Q4 2024 Embellence Group AB (publ) Earnings Call Transcript
Key Points
- Embellence Group AB (OSTO:EMBELL) reported a strong Q4 2024 with net sales of SEK202 million, a 6% increase from the previous year.
- The company achieved an EBITA of SEK28 million, marking a growth of SEK5 million compared to the previous year.
- Gross margin improved by 3 percentage points to 60.7%, driven by efficiency improvements and product mix effects.
- The manufacturing segment performed well, gaining market share in the European wallpaper market with good margins.
- Artscape, the window film brand, had a strong quarter in the US, boosted by early large orders from a major retailer.
- Three major wallpaper brands, Boråstapeter, Wall&decò, and Cole & Son, experienced a soft quarter in the retail channel.
- The direct-to-consumer segment, although showing growth, remains a small share of the company's sales.
- SG&A costs increased by 10% year-on-year in Q4, partly due to a large order in Artscape and a focus on organic growth.
- The company anticipates a slower Q1 2025 due to the phasing of a large Artscape order in Q4 2024.
- The traditional retail channel for wallpaper brands continues to struggle, with closures and reduced locations impacting sales.
Welcome to the Embellence Group Q4 2024 report presentation. (Operator Instructions)
Now I will hand the conference over to the speakers, CFO and Interim CEO, Karin Liden; and Chairman of the Board, Magnus Welander. Please go ahead.
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Thank you very much and very welcome to the Q4 report for the Embellence Group. As you heard, I'm Magnus Welander, the Chairman, and I'm standing in today to ensure that Karin is also getting the support as you should as a CFO and as Interim CEO to be two people on the call. So let's look then at what we achieved during the fourth quarter of the business.
It was a strong quarter with solid sales growth and a continued margin improvement. Net sales ended at SEK202 million, which was up SEK12 million versus the previous year, and an EBITA of SEK28 million, which also was a growth of SEK5 million versus this year. And it was good to see that we continued our journey of improving our EBITA margin at 1.7 percentage points higher than
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