StrongPoint (STRO) Q4 2024 (Q&A) earnings summary

Executive summary

• Achieved significant improvement in EBITDA and 15% growth in recurring revenue year-over-year, with strong momentum in Scandinavia and the Baltics, and continued deployments with major retailers like Sainsbury's, Asda, Rimi, and IKI.

• Announced a multifaceted international partnership with VusionGroup, integrating e-commerce platforms and expanding retail technology offerings across nine countries.

• Focused on providing end-to-end retail technology solutions for grocery retailers, driving efficiency, margin improvement, and enhanced shopping experiences.

• Full-year 2024 revenue reached NOK 1.3 billion, with 2025 targets set at NOK 1.5–1.8 billion.

• Full-year 2024 EBITDA was 2 MNOK, including 10 MNOK in non-recurring restructuring costs.

Financial highlights

• Q4 2024 revenue rose 3% year-over-year to 359 MNOK, with recurring revenue up 15% to MNOK 358, and EBITDA improving to MNOK 20 from -20.6 MNOK in Q4 2023.

• Q4 2024 EBITDA margin was 1.5%, and full-year EBITDA margin was 0.2%.

• EPS for Q4 2024 was -0.05 NOK per share.

• Net interest-bearing debt at year-end was 59.7 MNOK, down from 109 MNOK in Q2 2024.

• Disposable funds increased to 102.5 MNOK by year-end.

Outlook and guidance

• 2025 revenue target remains achievable, contingent on improvements in core markets and order wins in both in-store and e-commerce segments.

• Cautiously optimistic short-term outlook due to positive trends but ongoing market uncertainty, with a focus on profitable UK expansion and customer intimacy.

• Sainsbury’s Order Picking rollout expected to complete by Q3 2025 despite development delays.

• No specific financial targets for 2026 yet; a strategy update is planned later in the year.

• Next financial update scheduled for Q1 2025 and AGM on 29 April 2025.