Karelia Tobacco (KARE) Q4 2024 earnings summary

Executive summary

• Consolidated net turnover (excluding excise duty and VAT) rose 1.77% to €283.2m; gross turnover exceeded €1.5bn, up 13.9% year-over-year.

• EBIT increased 7.5% to €104.7m; net profit after tax and non-controlling interests surged 29.9% to €112.8m.

• Strong international performance, especially in the Balkans, Western Europe, and Spain, offsetting declines in Eastern Europe and Egypt.

• Greek market volumes and shares grew despite competition from alternative nicotine products.

Financial highlights

• Group equity reached €792m (up from €713m in 2023).

• EBITDA rose 7.02% to €112.3m; operating & net financial result up 11.36% to €129.5m.

• Net financial result up 31.25% to €24.8m, aided by higher cash reserves and interest rates.

• Dividend proposed at €14/share (+12.9% YoY), total €38.6m, yielding 4.16%.

• Capital expenditure for the year: €1.85m.

Outlook and guidance

• 2025 outlook cautiously optimistic: sales volume and organic profitability expected to rise.

• Risks include geopolitical uncertainty, potential excise duty hikes, and intensified competition from alternative products.

• New production lines to be delivered in H2 2025 to meet demand and improve flexibility.

• Gradual de-escalation in raw material prices anticipated.