Recyctec (RECY) Q4 2024 earnings summary

Executive summary

• Net sales increased by 9% in Q4 2024 to SEK 5.52 million, with a full-year increase of 8% despite challenging market conditions.

• Operating loss improved to SEK -682 thousand from SEK -814 thousand in Q4 2023, with EPS at SEK -0.69 versus -0.84.

• November saw a record monthly turnover of SEK 2.45 million, resulting in positive cash flow for the month.

• A rights issue raised SEK 8.9 million, reducing debt and to be finalized in Q1 2025.

• New agency agreement for the Finnish market to start in Q1 2025, supporting future expansion.

Financial highlights

• Q4 net sales: SEK 5,518,385 (up from SEK 5,076,527 year-over-year).

• Operating result (EBIT): SEK -682,225 (improved from SEK -814,498 year-over-year).

• Full-year net loss: SEK -8,979,864 (improved from SEK -10,978,331 year-over-year).

• Cash flow from operations in Q4: SEK 210,456; year-end cash position: SEK 472,761.

• Equity at year-end: SEK -10,687,370; total assets: SEK 8,164,367.

Outlook and guidance

• Management maintains the goal of achieving positive cash flow within the next year.

• Price adjustments implemented in January 2025 are expected to improve margins from Q1 2025.

• Finnish market entry and increased raw material supply post-quarter are expected to boost revenue and margins.