Lyko (LYKO-A) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 net sales of 1,095.4 MSEK, up 15.6% year-over-year, marking the first billion-revenue quarter; full-year net sales reached 3,562 MSEK, a 16.6% increase.

• EBIT for Q4 was 77 MSEK (7.0% margin), up 253% year-over-year; full-year EBIT was 117.4 MSEK (3.3% margin), up 73%.

• Focused on strengthening brand position as a beauty ecosystem, expanding in skincare and makeup, and increasing brand awareness in Sweden, Norway, and Finland.

• Continued investment in marketing, own brands, and unique collaborations, such as the PLY Skin brand in Norway and Lyko Professional for hairdressers.

• Strong performance in the Nordics offset by declining sales in Europe.

Financial highlights

• Q4 gross margin improved to 45.2% from 43% year-over-year; full-year gross margin stable at 44%.

• Other external costs fell below 20% of sales for the first time, reflecting scalability and cost control.

• Personnel costs as a share of sales decreased in the high-volume quarter.

• Earnings per share before dilution were 3.12 SEK in Q4; full-year EPS was 1.37 SEK.

• Stock-to-sales ratio improved to 14.4% from 16.6% year-over-year.

Outlook and guidance

• Warehouse extension in Vansbro on track, with 150% capacity increase expected by Q3 2025; majority of related investment still ahead.

• Focus remains on efficiency, data-driven operations, and strengthening the Own Brand portfolio.

• Continued emphasis on profitable growth in the Nordics and sustainable turnaround in Europe.

• Brand awareness and store expansion expected to drive further growth, with new store openings planned in Finland and continued investment in the Lyko community platform.

• Inventory management improved, with stock-to-sales ratio reduced to 14.4% in Q4.