Puuilo (PUUILO) Q4 2024 earnings summary

Executive summary

• Net sales grew 13.3% year-over-year to €383.4 million, with Q4 net sales at €85.8 million, driven by seven new store openings and increased customer traffic.

• Adjusted EBITA rose 23.8% to €67.0 million, with Q4 adjusted EBITA up 33.6% to €14.3 million.

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

• Board proposes a total dividend of €0.70 per share, including a special dividend, representing about 81% of net income.

• Private label sales grew 18.8% year-over-year, now representing 21.7% of net sales.

Financial highlights

• Gross margin improved to 37.7% (up 1.1 percentage points), supported by private label growth and favorable sales mix.

• Earnings per share increased to €0.57 (from €0.46), with net income at €47.9 million.

• Operating free cash flow for the year was €44.0 million, down from €54.8 million due to higher inventories for new stores and supply chain preparation.

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

• Operating expenses as a percentage of net sales decreased, supported by automation and cost discipline.

Outlook and guidance

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

• Long-term targets include net sales above €600 million and adjusted EBITA margin above 17% by FY2028.

• Guidance assumes a recovery in consumer confidence, stronger like-for-like sales, and continued private label growth.

• Uncertainties include economic conditions, consumer behavior, geopolitical risks, and supply chain disruptions.