Viva Wine Group (VIVA) Q4 2024 earnings summary

Executive summary

• Net sales grew 8.7% year-over-year in Q4 2024 to 1,194 MSEK, with organic growth at 8.2% and record Nordic market share gains.

• Adjusted EBITA/EBITDA margin improved to 8.7% from 6.3% last year, with adjusted EBITA up 49.6% to 104 MSEK in Q4.

• Market share reached record highs in all Nordic countries: Sweden 28.2%, Finland 22.8%, Norway 7.3%.

• Net income was 60 MSEK in Q4, with EPS at 0.60 SEK.

• Board proposes a dividend of 1.55 SEK per share.

Financial highlights

• Q4 net sales reached 1,194 MSEK, up from 1,098 MSEK in Q4 2023.

• Adjusted EBITA increased by 49.6% year-over-year, with gross margin improving to 21.5%.

• Operating income (EBIT) doubled in Q4 to 74 MSEK.

• Cash flow from operations increased to 128 MSEK in Q4.

• Net debt/EBITDA improved to 1.1x–1.4x, with equity ratio at 46.7%.

Outlook and guidance

• Management expects continued strong momentum in the Nordics and gradual improvement in European e-commerce.

• OPEX in 2025 expected to rise due to process improvements and investments, returning to 2023 relative levels.

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

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

• Ongoing active engagement in M&A market.