Sosandar (SOS) H2 2024 earnings summary

Executive summary

• Achieved FY 2024 revenue of £46.3 million, up 9% year-over-year, with a strategic shift to margin and profitability over volume.

• Significant reduction in price promotions led to a 140 basis point increase in gross margin to 57.6% for FY 2024, and a further rise to 63.4% in Q1 FY 2025.

• Transitioned from a small loss before tax in FY 2024 (£0.3 million) to a projected profit of £1 million in FY 2025, supported by a strong cash position.

• Imminent launch of first physical stores in Chelmsford and Marlow, self-funded from strong cash flow, expected to drive incremental sales and enhance brand equity.

Financial highlights

• FY 2024 revenue increased 9% to £46.3 million year-over-year; gross profit up 12% to £26.7 million.

• Gross margin rose from 56.2% to 57.6% in FY 2024, and to 63.4% in Q1 FY 2025.

• Full year loss before tax of £0.3 million, with a £1 million profit before tax in H2 FY 2024.

• Q1 FY 2025 net revenue declined to £8.2 million from £11.4 million, reflecting reduced promotions.

• Cash balance at March 31, 2024, was £8.3 million, stable through Q1 FY25.

Outlook and guidance

• FY 2025 revenue expected to be flat year-over-year, but with a significant increase in profit to £1 million.

• Medium-term goals: £100 million+ revenue and at least 10% PBT margin.

• Gross margin target of 65–70% over time, driven by reduced promotions and scale from store rollout.

• Store rollout to be self-funded, with cash expected to remain flat at March 2025.

• Focus on further margin expansion, scale growth, and brand expansion.