Komplett Group (KOMPL) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw 3.1% year-over-year revenue growth to NOK 4,883 million, driven by strong Black Week and peak season sales in Norway and Sweden, supported by new product launches.

• Gross margin remained stable at 13.9% despite intense competition and high campaign activity.

• Adjusted EBIT reached NOK 77 million, with higher operating expenses from marketing, store expansion, and cost inflation partially offset by cost measures.

• Liquidity position improved, aided by better payment terms, inventory management, and temporary effects from a late Black Week; net interest-bearing debt reduced and leverage ratio at 2.5x.

• Net profit for the quarter was NOK 20 million, compared to a loss of NOK 947 million in Q4 2023, which included significant impairments.

Financial highlights

• Q4 2024 revenue: NOK 4,883 million (+3.1% YoY); gross profit: NOK 681 million (+2.4% YoY); gross margin: 13.9% (down 0.1 pp YoY).

• Adjusted EBIT margin: 1.6% (NOK 77 million); Q4 EBIT: NOK 69 million.

• Net operating cash flow: NOK 660 million in Q4, supported by increased trade payables and inventory reduction.

• Net interest-bearing debt (incl. IFRS 16): NOK 854 million; equity ratio at 34.3% at Q4-end, down from 37.2% a year earlier.

• Operating free cash flow: NOK 552 million; cash and cash equivalents at year-end: NOK 726 million.

Outlook and guidance

• Optimism for improved market dynamics in 2025, with new product launches from NVIDIA and AMD expected to drive demand, especially in gaming and computing.

• Cost reduction initiatives, including workforce reductions, are underway, with significant impact expected in H2 2025 and some effects in Q1 and Q2.

• No specific gross margin guidance, but continued focus on cost leadership and adapting pricing strategies to market conditions.

• Market and consumer behavior remain unpredictable; competitive environment expected to stay intense.