Rusta (RUSTA) Q4 23/24 earnings summary

Executive summary

• Achieved 9% net sales growth and 4.6% like-for-like growth for the year, with adjusted EBITA up 45.7%, despite significant headwinds from an IT incident and unfavorable weather in Q4.

• Opened 11 new stores, expanding the network to 212 locations, and grew Club Rusta membership by 18% to 5.6 million.

• Private label share increased by 3 percentage points, now at 67% of sales.

• Net profit for the year was MSEK 408, up from MSEK 261; EPS before dilution reached SEK 2.7 (1.7).

• Store expansion and operational efficiency remain key priorities.

Financial highlights

• Full-year net sales reached MSEK 11,116 (up 9.0%), with Q4 net sales up 2.9% to MSEK 2,268.

• Gross margin improved by 2.4 percentage points to 43.5%, with gross profit for the year at MSEK 4,833.

• Adjusted EBITDA/EBITA margin for the year reached 7.1% (up 1.7 points), with earnings per share up 56%.

• IT incident caused a full-year sales loss of MSEK 120 and negative EBITDA/EBITA impact of MSEK 74.

• Net cash position of MSEK 130 at year-end, compared to net debt of MSEK 255 last year.

• Cash flow from operating activities increased 39% to MSEK 1,396 for the year.

Outlook and guidance

• Confident in delivering medium-term targets: annual sales growth above 8% total and 3% like-for-like, EBITA margin moving toward 8%.

• Plans to open 40-60 new stores over the next three years, with a strong pipeline supporting the upper end.

• Gross margin expected to normalize between 44%-45%, with potential for further strengthening.

• No material financial effects from the IT incident expected beyond FY 2023/24.

• Dividend policy remains at 30-50% of net profit, with a proposed increase for FY 2023/24.