Zinzino (ZZ) Q3 2024 earnings summary

Executive summary

• Revenue grew 22% year-over-year in Q3 2024 to SEK 532.8 million, with strong growth in most regions and continued profitability despite margin pressure.

• EBITDA for Q3 was SEK 63.0 million (margin 11.8%), down from SEK 71.2 million (16.3%) last year, mainly due to lower gross margin and higher sales costs.

• Net profit for Q3 was SEK 42.6 million, compared to SEK 53.5 million in Q3 2023.

• Strategic acquisitions, new product launches, and market expansions (notably in France and the Canary Islands) contributed to growth.

Financial highlights

• Q3 2024 revenue: SEK 532.8 million (+22% YoY); Q1–Q3 2024 revenue: SEK 1,494.3 million (+21% YoY).

• Q3 gross profit: SEK 178.8 million (margin 33.6% vs. 38.2% last year); Q1–Q3 gross profit: SEK 514.1 million (margin 34.4% vs. 36.0%).

• Q3 EBITDA: SEK 63.0 million (margin 11.8%); Q1–Q3 EBITDA: SEK 177.8 million (margin 11.9%).

• Q3 net profit: SEK 42.6 million (net margin 8.0%); Q1–Q3 net profit: SEK 126.1 million (net margin 8.4%).

• Cash flow from operating activities Q3: SEK 35.0 million (vs. SEK 104.4 million last year); Q1–Q3: SEK 129.3 million (vs. SEK 215.7 million).

• Cash and cash equivalents at period end: SEK 321.2 million.

Outlook and guidance

• Targeting average sales growth of at least 20% for 2024–2026, with operating margin before depreciation/amortization above 10%.

• Dividend policy: at least 50% of net profit, subject to liquidity and equity/assets ratio.

• Continued focus on market expansion, product innovation, and digital investments.