Puuilo (PUUILO) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 grew 13.3% year-over-year to EUR 383.4 million, with adjusted EBITDA/EBITA up 23.8% to EUR 67.0 million, exceeding guidance.

• Seven new stores opened, expanding the network to 49 locations and driving strong customer traffic growth.

• Like-for-like sales growth was 1.5% for the year, with online sales up 1.7% after a prior year decline.

• Board proposes a total dividend of EUR 0.70 per share (81% payout), including a special dividend.

• Gross margin improved to 37.7%, supported by private label sales and favorable sales mix.

Financial highlights

• Q4 net sales were EUR 85.8 million, up 11.8% year-over-year; adjusted EBITDA/EBITA for Q4 was EUR 14.3 million, up 33.6%.

• Earnings per share for FY2024 were EUR 0.57, up from EUR 0.46.

• Operating free cash flow for FY2024 was EUR 44.0 million, down from EUR 54.8 million due to higher inventories and new store preparations.

• Net debt/adjusted EBITDA improved to 1.4 (0.5 excluding IFRS 16), below the 2.0x target.

• Private label products accounted for 21.7% of net sales, growing 18.8% year-over-year.

Outlook and guidance

• FY2025 net sales are forecasted at EUR 425–455 million, with adjusted EBITDA/EBITA expected between EUR 70–80 million.

• Long-term targets: net sales above EUR 600 million and adjusted EBITDA/EBITA over EUR 105 million by FY2028, with margin above 17% and net debt/EBITDA below 2.0x.

• Guidance assumes recovery in consumer confidence, stronger like-for-like sales, and continued expansion.

• Risks include economic uncertainty, consumer behavior, geopolitical tensions, and supply chain disruptions.