Rusta (RUSTA) Q4 23/24 earnings summary

Executive summary

• Achieved 9% net sales growth to SEK 11.1 billion, with 4.6% like-for-like growth and a 45.7% increase in adjusted EBITA, despite macroeconomic headwinds and a significant IT incident.

• 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 from 64% to 67% of sales.

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

• Fourth quarter was impacted by an IT incident and late spring, resulting in net sales growth of 2.9% and negative EBITA of MSEK -47.

Financial highlights

• Full-year net sales reached SEK 11.1 billion (up 9.0%), with gross margin improving by 2.4 percentage points to 43.5%.

• Adjusted EBITDA margin for the year reached 7.1%, up from 5.3% last year.

• Earnings per share rose 56% year-over-year.

• Proposed dividend of SEK 1.15 per share, up from SEK 0.69 last year, representing 43% of net profit.

• Cash flow from operating activities increased 39% to SEK 1.4 billion.

Outlook and guidance

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

• Plans to open 40-60 new stores over the next three years, with 27-29 locations already approved or signed.

• Gross margin expected to normalize between 44%-45%, with continued positive effects from purchase price improvements offsetting rising freight costs.

• No material financial impact from the IT incident expected beyond FY 2023-2024.

• Automation investment of nearly SEK 300 million in the fulfilment centre expected to boost efficiency and EBITA from 2026/2027.