Kjell Group (KJELL) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales rose 1.5% year-over-year to MSEK 773.4, with net profit up to MSEK 16.0 from MSEK 12.5.

• Full-year 2024 net sales increased 0.9% to MSEK 2,583.6, but net profit for the year was negative at MSEK -19.9, down from MSEK 12.4 in 2023.

• Adjusted EBITA rose 17.3% in Q4 to MSEK 33.3, but declined for the full year to MSEK 49.1 from MSEK 80.1.

• Operational focus included restructuring, cost efficiency, and strategic investments in a new automated warehouse and omnichannel expansion.

• The Norwegian segment saw strong growth, while Denmark faced sales declines due to integration and restructuring.

Financial highlights

• Q4 gross profit grew 0.3% to MSEK 304.5; gross margin decreased to 39.4% from 39.8%.

• Full-year gross profit declined 2.9% to MSEK 1,046.9; gross margin dropped to 40.5% from 42.1%.

• Items affecting comparability totaled MSEK 8.7 for Q4, mainly due to staffing changes.

• Currency effects negatively impacted EBITA by MSEK 12 in Q4.

• Cash flow from operating activities was MSEK 142 in Q4, down from MSEK 157 year-over-year; full-year cash flow was MSEK 139.2, lower than prior year.

Outlook and guidance

• Entering 2025 with a streamlined organization and efficiency program in place.

• New financial targets: net sales growth >5%, adjusted EBITA margin 6–8%, net debt/EBITDA <2x, and dividends at least 60% of earnings per share after tax.

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

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

• Strategic focus on omnichannel expansion, automation, and cost discipline to drive future profitability.