Mips (MIPS) Q4 2024 earnings summary

Executive summary

• Net sales grew 58% in Q4 2024 to SEK 144 million and 35% for the full year to SEK 483 million, with 52% organic growth in Q4 and strong performance across all categories and regions.

• Market share and penetration increased globally, with the highest number of projects implementing the technology since inception.

• The board proposes a dividend of SEK 6.5 per share, up from SEK 6, representing 122% of net earnings.

• Strategic review led to extending the net sales target timeline to 2029 (previously 2027) due to slower consumer market recovery and geopolitical factors.

• Consumer market remains challenging but shows positive trends, especially in US retail.

Financial highlights

• Q4 net sales: SEK 144 million (up 58% year-over-year); full-year net sales: SEK 483 million (up 35%).

• Q4 EBIT: SEK 62 million (up 260% year-over-year); full-year EBIT: SEK 174 million (up 148%).

• Q4 gross margin: 72.9% (up from 70.2%); full-year gross margin: 72.5% (up from 70.9%).

• Q4 operating cash flow: SEK 87 million; full-year: SEK 142 million.

• Cash and cash equivalents at year-end: SEK 382 million; equity ratio 87%.

Outlook and guidance

• Net sales target of SEK >2 billion now set for 2029 (previously 2027) due to slower inventory normalization and market uncertainty.

• EBIT margin target remains above 50%; dividend policy unchanged at above 50% of annual net earnings.

• Growth expected to be front-loaded, with an average annual sales growth target of 33%.

• Strategic focus on growing existing business, opening new channels/markets, and capturing new helmet safety opportunities.

• Continued investment in R&D and brand to support growth ambitions.