Viva Wine Group (VIVA) Q4 2024 earnings summary

Executive summary

• Net sales increased 8.7% year-over-year in Q4 2024, with organic growth of 8.2%, and full-year net sales rose 5.8% to SEK 4,211 million, driven by strong Nordic performance and record market shares.

• Adjusted EBITDA/EBITA margin improved to 8.7% from 6.3% year-over-year, with adjusted EBITA up 49.6% in Q4 and 25.6% for the year.

• Continued market share gains in the Nordics, reaching record highs in all monopoly markets and maintaining #1 position.

• eCom segment faced sales declines and weak consumer sentiment, particularly in Germany, but new customer acquisition strategies are being scaled.

• Board proposes an ordinary dividend of SEK 1.55 per share.

Financial highlights

• Net sales for Q4 reached SEK 1,194 million, up from SEK 1,098 million in Q4 2023; full-year net sales were SEK 4,211 million.

• Adjusted EBITA for Q4 was SEK 104 million (up 49.6%); full-year adjusted EBITA was SEK 366 million (up 25.6%).

• Operating profit for Q4 was SEK 74 million (up 112.2%); full-year operating profit was SEK 264 million (up 60.4%).

• Operating cash flow was strong, supported by improved working capital and increased to SEK 245 million for the year.

• Net debt to EBITDA improved to 1.1x from 1.4x year-over-year, below the target of 2.5.

Outlook and guidance

• Management expects OPEX in 2025 to return to 2023 relative levels, scaling towards 2024 levels in 2026 and beyond.

• Gross margins expected to remain strong and stable into 2025, assuming stable currency rates.

• Nordic market volumes expected to be stable or slightly down (1-2%), but value to grow 2-3% due to price increases.

• eCom segment outlook slightly brighter for 2025, with new customer acquisition strategies being scaled.

• Ongoing active engagement in M&A market, with increased deal flow and more reasonable valuations.