OrganoClick (ORGC) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 were SEK 127.2 million, down 12.8% year-over-year, with a continued operating loss but improved cash flow from operations due to inventory reductions.

• Consumer products (OrganoTex, BIOkleen) grew over 30%, while industrial segments faced weak demand, especially in Nonwoven & Fiber Technologies and Functional Wood.

• New product launches included 100% biobased paint remover, brush cleaner, graffiti remover, and textile waterproofing.

• The Board proposes no dividend for 2024.

Financial highlights

• Q4 net sales were SEK 21.4 million, a 23.2% decrease compared to Q4 2023; full-year net sales fell 12.8% to SEK 127.2 million.

• Q4 EBIT was SEK -6.9 million (Q4 2023: SEK -6.1 million); full-year EBIT was SEK -9.9 million (2023: SEK -9.2 million).

• Gross margin for Q4 was 12.7% (Q4 2023: 18.4%); full-year gross margin improved to 25.0% (2023: 24.3%).

• Earnings per share for 2024 were SEK -0.18 (2023: SEK -0.16).

• Cash flow from operating activities for 2024 was SEK 3.6 million, up from SEK 0.5 million in 2023.

Outlook and guidance

• 2025 has started in line with plans, with focus on expanding consumer products and increased marketing in Europe.

• Management expects slight improvement in industrial segments and continued growth in consumer products.

• Expansion in the German market and new partnerships (e.g., Rev'it, Bächli) are expected to support growth.