Humble Group (HUMBLE) Q4 2024 earnings summary

Executive summary

• Achieved stable quarterly performance with net sales just below SEK 2.1 billion in Q4, up 8%, and full-year net sales of MSEK 7,708, up 9% year-over-year, with organic growth at 9%.

• Adjusted EBITDA grew 11% year-over-year in Q4 to SEK 157 million, and adjusted EBITA for the year increased 15% to MSEK 578, with profit after tax improving to MSEK 124 from a loss of MSEK -106.

• Gross margin improved to 31.5% in Q4 and 31.4% for the year, with net debt leverage reduced to 2.8x adjusted EBITDA.

• No dividend proposed for 2024; all excess cash to be reinvested in growth opportunities.

• Management expresses strong confidence for 2025, citing robust demand, successful brand launches, and completed consolidation initiatives.

Financial highlights

• Full-year EBITDA was MSEK 688, EBITA was MSEK 570, and adjusted EBIT for the year was MSEK 384, up 39% year-over-year.

• Earnings per share before dilution improved to SEK 0.28 from SEK -0.28.

• Cash flow from operating activities declined to MSEK 300 from MSEK 1,088, mainly due to working capital changes and prior year tax deferrals.

• Interest-bearing liabilities increased to MSEK 2,218 from MSEK 1,819.

• Deployable cash flow was MSEK 70.

Outlook and guidance

• Management anticipates continued margin improvement and double-digit growth in 2025, supported by lower freight costs, strong demand, and completed strategic initiatives.

• Balance sheet expected to reach target levels soon, enabling renewed M&A activity.

• Continued focus on operational efficiency, international expansion, and product launches.

• No significant impact from US tariffs anticipated; China not a near-term priority.