Thinc (THINC) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw a 12% increase in net sales to 105,049 tkr, ending a year marked by macroeconomic headwinds and delayed projects.

• Full-year net sales rose 9% to 326,549 tkr, but profitability declined due to lower margins and increased costs.

• The company transitioned to IFRS reporting and listed on NGM Nordic SME in December 2024.

• No dividend is proposed for 2024 to preserve liquidity for acquisitions and future growth.

Financial highlights

• Q4 gross profit was 21,715 tkr (flat year-over-year), with a margin drop to 20.7% from 23.3%.

• Q4 EBITDA increased to 3,918 tkr, but margin fell to 3.7% from 4.1%.

• Full-year EBITDA declined to 8,183 tkr (from 12,890 tkr), with margin down to 2.5% from 4.3%.

• Net income for 2024 was -607 tkr, down from 5,683 tkr in 2023; EPS was -0.04 kr (0.35 kr prior year).

• Operating cash flow for the year was 9,644 tkr, down from 13,112 tkr.

Outlook and guidance

• Management expects improved profitability in 2025, supported by new product launches and strengthened central resources.

• The company aims for annual growth above 20% (including acquisitions) and an EBITDA margin of at least 7% by 2028.

• No dividend for 2024, with the goal to resume payouts in 2025 if cash flow allows.