Synsam Group (SYNSAM) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with strong organic growth, improved market position, and record EBIT; net sales up 9.0% to SEK 6,435 million, organic growth at 9.2%.

• EBITDA rose 11.2% to SEK 1,595 million, EBIT increased 17.6% to SEK 819 million, and profit after tax up 17.7% to SEK 366 million.

• EPS increased to 2.48 SEK (from 2.08), and board proposes a dividend of SEK 1.80 per share; share buybacks of SEK 85 million executed in 2024.

• Synsam Lifestyle subscription business grew 16% in Q4 and 13% for the year, now representing 53% of total net sales, with a net inflow of 20,000 new customers in Q4.

• 46 new stores established in 2024, ahead of schedule for the 2024-2026 goal of 90 new stores.

Financial highlights

• Q4 net sales rose 10.3% year-over-year to SEK 1,631 million; full year net sales up 9.0% to SEK 6,435 million; organic growth 10.1% in Q4.

• Q4 EBITDA increased 11.2% to SEK 387 million; full year EBITDA up 10.8% to SEK 1,595 million; EBITA up 12.6% for the year.

• Q4 EPS increased to 0.51 SEK (from 0.41); full year EPS rose to 2.48 SEK (from 2.08).

• Gross margin for the year was 75.3% (75.5% prior year); Q4 gross margin 77.2%.

• Net debt increased to SEK 3,002 million at year-end; net debt/EBITDA at 1.88x.

Outlook and guidance

• Continued focus on profitable growth, cost control, innovation, and store expansion, with establishment rate ahead of schedule.

• Targeting annual organic growth of 8–12% and adjusted EBITDA margin of 25% or more in the medium term.

• Synsam's circular business model and second-hand assortment expected to drive future growth.

• Plans to establish 90 new stores by 2026, with 46 new stores opened in 2024.