Refine Group (REFINE) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were 52.6 MSEK, down from 69.5 MSEK compared to the same quarter last year, mainly due to divestments and discontinued subsidiaries.

• Adjusted EBITDA for Q4 improved to -2.5 MSEK from -5.4 MSEK year-over-year; full-year adjusted EBITDA was -2.4 MSEK versus -12.4 MSEK.

• Net result for Q4 was -117.8 MSEK (vs. -258.4 MSEK), and for the full year -164.6 MSEK (vs. -311.9 MSEK), reflecting significant non-recurring items.

• Strategic actions included the sale of SQRTN Company, closure of MandySkin and C3, and a focus on strengthening the balance sheet.

Financial highlights

• Full-year net sales reached 244.9 MSEK, down from 261.6 MSEK year-over-year.

• Gross margin for Q4 was 46.1% (46.9% last year); full-year gross margin was 41.8% (42.3%).

• Q4 EBIT was -82.6 MSEK (vs. -261.0 MSEK); full-year EBIT was -118.8 MSEK (vs. -290.4 MSEK).

• Q4 EPS was -1.75 SEK (vs. -4.68 SEK); full-year EPS was -2.44 SEK (vs. -5.65 SEK).

• Cash flow for Q4 was 3.4 MSEK (vs. -4.7 MSEK); full-year cash flow was -20.5 MSEK (vs. 3.3 MSEK).

Outlook and guidance

• Underlying operational subsidiaries showed improved organic sales and EBITDA in 2024, with five out of six subsidiaries strengthening EBITDA.

• Focus remains on margin improvement, own brands, and risk reduction for supply disruptions ahead of the 2025 outdoor season.

• Digital Services segment is seeing a delayed recovery but expects increased demand as e-commerce stabilizes.

• Continued strategic review may lead to further divestments to reduce debt and strengthen cash flow.