STENOCARE (STENO) Q4 2024 earnings summary

Executive summary

• Transitioned to a trading-focused model (STENOCARE 3.0), exiting cultivation to reduce costs and improve agility.

• Achieved gross sales of 4.8 mDKK in 2024, exceeding revised guidance of 4.5 mDKK.

• Secured permanent legalisation of medical cannabis in Denmark, ensuring future market access.

• Launched new products (ASTRUM 10-10, CBD100) in Norway, Denmark, Germany, and Australia.

Financial highlights

• Gross sales for 2024 were 4,755 kDKK, down 31% year-over-year; net sales were 2,232 kDKK, down from 3,993 kDKK.

• Operating profit before depreciation (EBITDA) for 2024 was -24,230 kDKK, including 13,050 kDKK in special items; adjusted EBITDA was -2,031 kDKK.

• Net result for 2024 was -34,488 kDKK, compared to -17,570 kDKK in 2023.

• Cash position at year-end was 1,381 kDKK, with a successful rights issue in January 2025 providing 7,900 kDKK in net proceeds.

• Shareholders' equity turned positive post-capital increase, reaching 4,426 kDKK.

Outlook and guidance

• Expects significant cost reductions in 2025 and beyond due to exit from cultivation and focus on trading.

• Permanent legalisation in Denmark from 2026 expected to support long-term growth.

• Sufficient cash runway secured through 2025 and 2026 after rights issue.