Kid (KID) Q4 2024 earnings summary

Executive summary

• Group revenues rose 12.0% year-over-year in Q4 to NOK 1.4 billion, with Hemtex up 17% and Kid Interior up 8.8%; like-for-like revenue increased 10.1%, and online sales grew 13.7%.

• EBITDA reached a record NOK 464.5 million, up NOK 44.6 million, driven by strong seasonal sales, marketing, and omnichannel initiatives.

• Net profit for the full year increased 27% to NOK 398.6 million, with revenue up 10.9% to a record NOK 3.785 billion.

• EPS for the year reached an all-time high of 9.81, and cash flow from operations was at a record high, aided by the sale of the Swedish warehouse.

• Proposed full-year dividend of NOK 8.00 per share, including a NOK 3.00 pre-payment and NOK 5.00 in May 2025, with an 82% payout ratio.

Financial highlights

• Q4 gross margin decreased by 2.2 percentage points to 61.2%, mainly due to higher freight costs and campaign activity; full-year gross margin was 61.9%.

• Q4 EBITDA margin at 33.1%; EBIT margin at 24.5%.

• OPEX to sales ratio improved to 35.4% in Q4; full-year OPEX to sales ratio improved from 45.7% to 45.3%.

• Online revenue, including click and collect, grew 15.6% to NOK 687.9 million, now 18.2% of total revenue.

• Cash and available credit facilities at year-end totaled NOK 830.5 million.

Outlook and guidance

• Board proposes a NOK 5.00 per share dividend in May 2025, following a NOK 3.00 prepayment in November 2024, totaling 82% of net profit.

• Eight Kid Interior and five Hemtex store projects signed for H1 2025, including refurbishments and relocations.

• Hemtex to commence operations from new Swedish warehouse in Q1 2025; full group transition by mid-2025.

• Digital pilot for Hemtex in European markets launching H2 2025.

• New CEO Marianne Fulford to take office May 2025.