Wittchen (WTN) Q4 2024 earnings summary

Executive summary

• Revenue for 4Q24 reached 133.1 mln PLN, up 0.6% year-over-year, but net profit fell 57.1% to 8.9 mln PLN.

• Full-year 2024 sales declined 2.8% to 454.2 mln PLN, with net profit down 44.1% to 34.2 mln PLN.

• Gross margin remained high at 61.5% in 4Q24, though down 3.4 p.p. year-over-year due to cost pressures and increased competition.

• Sales volume increased 12% year-over-year in 2024, despite lower total sales value.

• Expansion continued with five new stores abroad and optimization of marketplace presence.

Financial highlights

• 4Q24 EBIT dropped 35.1% year-over-year to 16.8 mln PLN; EBIT margin at 12.6% (down 6.8 p.p.).

• EBITDA for 4Q24 was 24.9 mln PLN (margin 18.7%), down from 33.1 mln PLN (25.0%) in 4Q23.

• SG&A costs rose 7.9% year-over-year in 4Q24, mainly due to inflation and higher marketing costs abroad.

• For 12M24, EBIT was 51.7 mln PLN (down 33.5%), EBITDA 82.8 mln PLN (down 21.9%), and gross margin 61.8%.

• Net debt decreased in 4Q24 versus 3Q24; investment spending focused on IT, e-commerce, and store expansion.

Outlook and guidance

• 2025 plans include optimizing sales and marketing efficiency, especially online, and further cost optimization in logistics and marketplace operations.

• Focus on stabilizing new foreign stores and adapting to local customer preferences.

• Risks include weaker consumer demand, supply chain volatility, and intensified competition from Asian platforms.