Intercos (ICOS) Q4 2024 earnings summary

Executive summary

• Net sales reached €1,064.9 million in 2024, up 7.8% year-over-year, surpassing €1 billion for the first time despite a challenging market and a Q1 cyber attack.

• Adjusted EBITDA grew 4.3% to €143.3 million, with margin on value-added sales at 17.5% (+13bps); double-digit growth in all quarters except Q1.

• Adjusted net income was €56.7 million, stable year-over-year; reported net profit was €48.8 million, down 7% due to higher non-recurring charges.

• Asia led regional growth with a 24% increase, notably China and Korea; Americas declined 5.5%-6% due to market softness and cyberattack impact.

• Net debt reduced to €97.7 million (0.68x Adj. EBITDA), with a proposed €19 million dividend (39% payout ratio).

Financial highlights

• Q4 2024 net sales grew 14.5% year-over-year to €289.8 million; Adj. EBITDA up 14.1% to €40.1 million.

• Adjusted EBITDA margin on net sales was 13.5% (down 45bps); on value-added sales, 17.5% (up 13bps).

• Operating cash flow was €57.1 million after €65.1 million in capex, mainly for China and Korea plant expansions.

• Net financial position ended at €55.1 million pre-IFRS 16, or €97.7 million including IFRS 16.

• FY24 gross margin was 19.4% (down 73bps); cash and cash equivalents at year-end were €190.0 million, up €37.2 million.

Outlook and guidance

• 2025 Beauty market expected to grow ~4% globally; company targets 5–7% net sales growth, aiming to outperform.

• Order intake for Jan–Feb 2025 reached a record €144 million; order book at end-February was €324 million.

• Management remains optimistic due to historical outperformance, innovation demand during crises, and global footprint as a hedge against trade/geopolitical risks.

• Market conditions are challenging: China and US remain soft, Europe has slowed to low single-digit growth.