Mips (MIPS) Q4 2024 earnings summary

Executive summary

• Net sales grew 58% in Q4 and 35% for the full year, with organic growth of 52% and 35% respectively, 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.

• Inventory normalization contributed to sales rebound, especially in Sports and Motorcycle segments, and consumer market shows positive trends, particularly in US retail.

• 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 due to slower consumer market recovery and geopolitical factors.

Financial highlights

• Q4 net sales: SEK 144m (up 58% YoY, 52% organic); full year: SEK 483m (up 35% YoY, 35% organic).

• Q4 EBIT: SEK 62m (up 260% YoY); full-year EBIT: SEK 174m (up 148% YoY); EBIT margin Q4: 42.9%, full-year: 36.1%.

• Q4 gross margin: 72.9% (up 2.7pp); full-year gross margin: 72.5% (up 1.5pp).

• Q4 operating cash flow: SEK 87m (up 176% YoY); full-year: SEK 142m (up from SEK 11m).

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

Outlook and guidance

• Net sales target of SEK >2 billion now set for 2029 (previously 2027); EBIT margin target remains above 50%.

• 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.

• No forward quarterly guidance, but current momentum remains strong with normalized market conditions.