Nilörngruppen (NIL) Q4 2024 earnings summary

Executive summary

• Q4 net sales rose 14% year-over-year to SEK 232 million, with operating profit more than doubling to SEK 19.5 million.

• Full-year 2024 net sales increased 9% to SEK 945 million, with operating profit up 32% to SEK 82.9 million.

• Order intake for the year grew 13% to SEK 935 million, though Q4 order intake decreased 7%; adjusting for a large packaging order, Q4 order intake increased 1% year-over-year.

• Board proposes a dividend of SEK 1.50 per share, totaling SEK 17.1 million, or 29% of net profit, and plans major investments in Bangladesh and Portugal.

• Outdoor segment recovered as predicted, while the luxury segment remained slow.

Financial highlights

• Q4 gross margin improved to 46.2% (from 44.9%); full-year gross margin reached 45.2% (from 43.6%).

• Q4 operating margin was 8.4%; full-year operating margin was 8.8% (up from 7.2%), or 9.3% adjusted for SEK 4.4 million cyber attack cost.

• Q4 net profit was SEK 13.8 million (up from 5.7 million); full-year net profit was SEK 58.9 million (up from 39.3 million).

• Equity stands at SEK 350 million, with an equity ratio of 58.6% and net cash position of SEK 60 million (IFRS 16 adjusted).

• Earnings per share for 2024 were SEK 5.17 (up from 3.45).

Outlook and guidance

• Targeted growth rate is 7%+ and operating margin above 10%; net debt should not exceed 2x EBITDA.

• For 2024, achieved 9% growth and 8% operating margin, below the margin target.

• Investments in digital platforms, production capacity, Nilörn Connect, and packaging are prioritized to meet upcoming EU regulations and support growth.

• New Bangladesh factory expected to be operational by end of 2026, with full ramp-up a year later; Portugal factory upgrade to finish by end of 2025 or 2026.

• Company expects to continue investing in growth and strengthening its market position in 2025.