Söder Sportfiske (SODER) Q4 2024 earnings summary

Executive summary

• Net sales increased by 6.5% to 53.0 MSEK in Q4 2024 compared to Q4 2023, with organic growth matching at 6.5%.

• Swedish operations grew 6.8% in Q4, while international sales rose 6.2%, though marine electronics in Germany and France underperformed.

• Full-year net sales rose 4.3% to 232.4 MSEK, with international growth at 15.4% and Sweden at -1.3%.

• EBITDA improved to 0.3 MSEK in Q4 (from -0.3 MSEK), and to 15.2 MSEK for the year (from 13.4 MSEK).

• Board proposes a dividend of 0.80 SEK per share, up from 0.60 SEK.

Financial highlights

• Q4 gross margin declined to 37.3% (from 40.7%), impacted by heavy discounting and a one-time retroactive VAT effect (-0.6 MSEK).

• Q4 EBIT was -1.2 MSEK (vs. -2.0 MSEK), with EBIT margin at -2.3%.

• Full-year EBIT reached 9.3 MSEK (up from 7.6 MSEK), with a 4.0% margin.

• Q4 net result was -0.7 MSEK (vs. -1.3 MSEK); full-year net result was 7.2 MSEK (vs. 5.7 MSEK).

• Cash flow from operations was -0.1 MSEK in Q4 and 18.5 MSEK for the year.

• Cash position at year-end was 34.4 MSEK, up from 21.1 MSEK.

Outlook and guidance

• Management sees market stabilization and expects improved growth conditions in 2025, focusing on commercial operations, community, and proprietary products.

• Plans to enhance inventory planning and marketing for own brands in 2025.

• New CEO Daniel Hörnqvist to assume role by April 2025, bringing e-commerce and brand experience.