Nelly Group (NELLY) Q4 2024 earnings summary

Executive summary

• Achieved stable, healthy core after a two-year transformation, entering a new phase focused on customer experience, operational efficiency, and brand development.

• Achieved seven consecutive profitable quarters and three consecutive quarters of net revenue growth, with full-year net revenue up 3.2% to SEK 1,094.3 million and operating profit rising to SEK 93.1 million.

• Gross margin improved to 53.1% for the year, driven by higher own-brand sales and lower campaign activity; return rate fell to 29.9% from 35.8%.

• Paid first dividend to shareholders and launched a share program for senior executives.

Financial highlights

• Q4 net revenue grew 5.5% year-over-year to SEK 318.4 million; full-year revenue up 3.2%.

• Q4 operating margin improved to 11.4% (from 8% last year); full-year margin at 8.5% (up from 1.0%).

• Gross margin rose to 53.3% in Q4 (from 50.0%); full-year gross margin at 53.1% (from 47.9%).

• Q4 operating profit was SEK 36.2 million (up from SEK 24 million); full-year operating profit SEK 93.1 million.

• Cash position at year-end was SEK 196.9 million, with no short-term credit utilized.

Outlook and guidance

• Focus on elevating customer experience, growing own brands, launching new brands and collaborations, and IT system changes in 2025.

• Continued investment in profitable marketing, IT improvements, and operational optimisation to drive growth and efficiency.

• Optimistic market outlook with expectations for stronger customer engagement and further internal improvements.