Knowit (KNOW) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 decreased by 9.6% to SEK 6,415.7 million, reflecting weak demand and capacity reductions, especially in Sweden.

• Adjusted EBITDA for Q4 was SEK 107 million (margin 6.5%), and for the full year SEK 395 million (margin 6.2%), both lower than the previous year, impacted by a SEK 28.4 million COVID-19 support provision.

• Workforce reduced by 10% year-over-year to 3,860 employees, reflecting cost optimization and efficiency measures.

• Dividend proposed at SEK 2.30 per share, in the upper range of the 40%-60% payout policy, totaling SEK 62.8 million.

• Early signs of recovery observed, though Sweden remains the most challenging market.

Financial highlights

• Q4 2024 net sales: SEK 1,641.9 million, down 10% year-over-year; full-year sales: SEK 6,415.7 million, down 9.6%.

• Adjusted EBITDA Q4: SEK 107 million (6.5% margin), down from 8.1% last year; full-year: SEK 395 million (6.2% margin), down from 7%.

• Earnings per share for 2024 were SEK 3.88 (8.74 prior year); Q4 EPS was SEK 1.43 (3.32 prior year).

• Cash flow from operating activities increased to SEK 626.1 million for the year.

• Net debt at SEK 624 million; leverage ratio at 1.2, well below the target of 2.

Outlook and guidance

• Early signs of market improvement in Sweden and retail, but high uncertainty remains.

• Q1 2025 expected to have a slow start due to post-holiday trends in a tough market.

• Focus shifting from staff reductions to margin improvement and growth; positive net recruitment likely in Q3 2025.

• Hourly prices expected to rise in 2025, supported by indexed public sector agreements.

• Salary inflation anticipated at 3%-4% for 2025, in line with market trends.