Kakel Max (KAKEL) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were 37,152 tkr, nearly flat compared to 37,286 tkr in Q4 2023; full-year sales declined to 143,480 tkr from 155,294 tkr year-over-year.

• Net loss after tax widened to -3,078 tkr in Q4 2024 (vs. -1,066 tkr) and to -5,512 tkr for the full year (vs. 848 tkr profit in 2023), impacted by one-time costs for store closure.

• Store network changes included one closure, one opening, and one acquisition during 2024, reflecting a strategic but costly expansion in a weak market.

• Cost increases in rent and energy, along with insufficient cost reductions amid falling sales, contributed to the loss.

Financial highlights

• Operating loss for Q4 was -2,157 tkr (margin -5.8%), and for the year -4,555 tkr (margin -3.2%), both down from positive margins in 2023.

• Cash flow from operations improved to 7,658 tkr for the year (vs. 4,312 tkr), but total cash decreased to 1,590 tkr at year-end (from 5,363 tkr).

• Net debt increased to 16,125 tkr (from 9,568 tkr), with net debt excluding leasing at 2,288 tkr.

• Equity ratio declined to 53.9% (from 59.4%).

• Earnings per share for Q4 were -1.01 kr (vs. -0.35 kr); full-year EPS was -1.81 kr (vs. 0.28 kr in 2023).

Outlook and guidance

• Management expects gradual improvement in results due to ongoing cost-saving measures, renegotiations with suppliers, inventory optimization, and digital sales initiatives.

• No dividend proposed for 2024.