Orthex (ORTHEX) Q4 2024 earnings summary

Executive summary

• Net sales grew 4.4% year-over-year to EUR 89.7 million, with strong growth outside the Nordics and resilient performance in a sluggish market.

• Invoiced sales reached EUR 92.3 million, with Rest of Europe up 10% and Nordics up 3.5% year-over-year.

• Adjusted EBITA for the year was EUR 10.2 million, with a margin of 11.4%, impacted by higher costs and absence of prior year one-off support.

• Investments of EUR 4.3 million focused on new product lines, capacity, and sustainability initiatives, including joining the Circular Economy Green Deal.

• Board proposes a dividend of EUR 0.22 per share, totaling approximately EUR 3.9 million, to be paid in two instalments.

Financial highlights

• Q4 net sales reached a record EUR 23.9 million, up 2% year-over-year, with international sales outside the Nordics growing by 10%.

• Adjusted EBITDA for 2024 was EUR 14.6 million; adjusted EBITA margin declined to 11.4% from 12.7%.

• Net cash flows from operating activities improved to EUR 11.8 million, up 16.1% year-over-year.

• Net debt/Adjusted EBITDA improved to 1.4x from 1.5x; equity ratio rose to 41.9%.

• Operating profit for 2024 was EUR 9.8 million; profit for the period was EUR 6.1 million.

Outlook and guidance

• Market recovery remains sluggish, with continued consumer focus on low prices and ongoing market turbulence.

• Long-term targets: annual organic net sales growth >5% (group), >10% (outside Nordics), adjusted EBITA margin >18%, leverage <2.5x, and pay-out ratio >50%.

• No short-term outlook published; international sales organization strengthening to support further growth in Europe.

• Raw material prices stabilized in 2024; 2025 prices will depend on demand, sanctions, and logistics.