Zinzino (ZZ) Q3 2024 earnings summary

Executive summary

• Total revenue grew 22% year-over-year in Q3 2024 to 532.8 MSEK, with 21% growth for the first nine months to 1,494.3 MSEK.

• EBITDA for Q3 was 63.0 MSEK (11.8% margin), and net income was 42.6 MSEK; both margins declined due to higher costs and normalized distributor compensation.

• Strong growth in key markets, especially in Central Europe, Southern/Western Europe, North America, and APAC, offset weaker performance in the Nordics and Eastern Europe.

• Strategic acquisitions and new product launches, including Collagen Boozt, supported expansion and revenue growth.

• The company is on track to exceed its long-term target of 20% average annual sales growth for 2024-2026.

Financial highlights

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

• Q3 gross profit: 178.8 MSEK (margin 33.6%); Q1–Q3 gross profit: 514.1 MSEK (margin 34.4%).

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

• Q3 net income: 42.6 MSEK (net margin 8.0%); Q1–Q3 net income: 126.1 MSEK (net margin 8.4%).

• Operating cash flow Q3: 35.0 MSEK; Q1–Q3: 129.3 MSEK; cash and equivalents at period end: 321.2 MSEK.

Outlook and guidance

• Targeting at least 20% average annual sales growth and EBITDA margin above 10% for 2024–2026.

• Dividend policy: at least 50% of net income, subject to liquidity and solvency.

• Continued focus on geographic expansion, product innovation, and digital investments to drive growth.