In This Article:
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Revenue Growth: Increased by 1.6% year over year, with a 4% volume growth.
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Gross Margin: Improved to 46.9%.
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EBITDA: Rose by 17.9% to 42.3 million, with a margin of 8%.
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EBIT: Grew by 26.8%, with a margin of 5%.
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Profit Before Tax: Increased to 7.9 million, doubling from the previous year.
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Profit After Tax: Reached 6.3 million.
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Dividend: 0.15 per share, a 25% increase from last year.
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Share Buyback: 1.94 million allocated, representing 20% of total shareholder returns.
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Retail CapEx: 25.1 million, primarily for IKEA and sports store expansion.
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Net Debt to EBITDA Ratio: Improved from 2.4 times to 2 times.
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Sportswear Revenue: Grew by 4.1% to 191.1 million.
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Sportswear Gross Margin: Improved to 47%.
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Health and Wellness Revenue: Reached 2.3 million, with a significant increase in like-for-like sales.
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Health and Wellness Gross Margin: Improved to 48%.
Release Date: April 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fourlis Holdings SA (FRA:2FH) reported strong retail performance, gaining market share despite a challenging environment.
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The company exceeded its profit guidance, with significant profit improvements and enhanced shareholder returns through higher dividends and share buybacks.
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IKEA's expansion continued with the opening of a new store in Patras and plans for more urban IKEA stores in the coming years.
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The sportswear segment saw a milestone year with a partnership with Foot Locker, expanding its geographical footprint and product offerings.
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The logistics arm signed an important agreement with Inter IKEA to build and operate a logistics center for the Eastern Mediterranean, enhancing operational efficiencies.
Negative Points
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A cybersecurity attack in late November disrupted digital systems, impacting sales by an estimated $15 million, particularly affecting the home furniture segment.
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Despite overall revenue growth, IKEA's revenues declined by 5% in 2024, partly due to the cybersecurity incident.
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Operating expenses grew faster than sales in some segments, although they were managed below gross margin growth.
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The company faced challenges in the home furnishings market, which saw a 9% decline in Greece due to inflationary pressures on households.
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The share price underperformed compared to other stocks on the Athens Stock Exchange, raising concerns about valuation and shareholder returns.
Q & A Highlights
Q: Could you provide an outlook for IKEA's performance in 2025, considering the current market conditions? A: Dimitrios Valachis, CEO, stated that despite a challenging market, IKEA has seen a 4% increase in volume, gaining market share. This trend is expected to continue with single-digit growth in the first quarter of 2025. Specific targets for 2025 will be shared after the first quarter results, but the company remains confident in achieving its medium-term targets.