Kjell Group (KJELL) Q4 2024 earnings summary

Executive summary

• Q4 net sales rose 1.5% to 773.4 MSEK, with adjusted EBITA up 17.3% year-over-year to 33.3 MSEK, despite a challenging home electronics market.

• Full-year net sales increased 0.9% to 2,583.6 MSEK, but net income for the year was -19.9 MSEK, down from 12.4 MSEK in 2023.

• Strong customer traffic in Sweden and Norway, along with operational initiatives and cost control, supported improved Q4 results.

• Strategic initiatives included investment in a new automated central warehouse and a fully guaranteed rights issue to strengthen the financial position.

• New shop-in-shop collaborations, notably with Eko Stormarknad, are expected to contribute to 2025 sales.

Financial highlights

• Q4 sales reached 773.4 MSEK, up 1.5% year-over-year; Sweden grew 2%, Norway 13.4%, Denmark declined 16.1%.

• Q4 gross profit was 304.5 MSEK (up 0.3%), with a gross margin of 39.4% (down 0.4pp); full-year gross margin declined to 40.5% from 42.1%.

• Adjusted EBITA for Q4 was 33.3 MSEK (up from 28.4); full-year adjusted EBITA was 49.1 MSEK (down from 80.1).

• Net debt/adjusted EBITDAAL increased to 4.1x from 2.8x; expected to fall to 2.5x post-rights issue.

• Cash flow from operations was 142.7 MSEK in Q4, down from 157 MSEK year-over-year.

Outlook and guidance

• Focus for 2025 is on margin improvement, efficiency measures, and supply chain investments.

• New financial targets: net sales growth above 5%, adjusted EBITA margin 6–8%, net debt/EBITDA below 2x, and dividend payout of at least 60% of net income, subject to financial position.

• No dividend proposed for 2024; result to be carried forward.

• 13 new shop-in-shop concepts to open in 2025 through EKO supermarket collaboration.

• Gradual market improvement expected, supported by tax and interest rate cuts in the second half of 2025.