THE BEAUTY POWER HOUSE TAKING SHAPE!
We are closing a strong quarter marked by continued positive momentum in both revenue growth, and more importantly, profitability. EBIT grew with 253% in the quarter and amounted to 77 MSEK, with an EBIT margin of 7.0%. Full-year EBIT totalled 117 MSEK, with a growth of 73% corresponding to an EBIT margin of 3.3%.
| Fourth quarter | Period 1 January - 31 December |
| • Net sales of 1,095.4 (947.2) MSEK. • Sales growth was 15.6% (24.0%). • Gross margin of 45.2% (43.0%). • EBIT of 76.5 (21.7) MSEK. • EBIT margin of 7.0% (2.3%). • Earnings for the period 47.9 (18.0) MSEK. | • Net sales of 3,561.7 (3,053.7) MSEK. • Sales growth was 16.6% (22.8%). • Gross margin of 44.0% (44.1%). • EBIT of 117.4 (67.7) MSEK. • EBIT margin of 3.3% (2.2%). • Earnings for the period 21.0 (32.1) MSEK. |
The result marks a significant milestone as our first billion-revenue quarter, with net sales growing 15.6% to reach 1,095 MSEK. For the full year, we reached 3,561 MSEK in net sales, reflecting a growth of 16.6%.
PERSEVERANCE BUILDS CHAMPIONS
Our long-term commitment to continuous improvement and building a strong organization are delivering clear results. A strong brand position keeps us top of mind among consumers in our largest markets, which solidifies our presence and reinforces our role as a preferred partner for suppliers and their long-term investments.
We are gaining market shares in the beauty market across the Nordics.
HARNESSING THE POWER OF THE BEAUTY ECO SYSTEM
Earlier, we have described our view of The Beauty Ecosystem, and this quarter clearly demonstrates the leverage when the business grows, and technology is in place. With a more data-driven approach and effective system support, efficiency continues to improve.
An improved gross margin of 45.2% reflects a combination of factors, including a strong market position, a favorable product mix, and a more strategic approach to financing promotional activities - alongside a strong commercial offer. This enables the realization of stronger margins.
Our Own Brand portfolio also continues to grow in importance, contributing 8.4% of net sales in the quarter and 7.7% for the full year. The currency effect has been an additional tailwind during this period.
FAB PROGRESS ACROSS ALL SEGMENTS
The Nordics perform strongly on all KPIs, and we have yet again delivered improvements to our EBIT margin. Our stores continue to perform increasingly well, and our latest store opening in Bergen, Norway beat previous records on its first day of trade.
In Europe, a positive trajectory continues with reduced losses and an improved gross margin. The focus now lies on identifying and reaching the right customer segments to build a sustainable and profitable business.
LYKO GLAM – MORE EFFICIENT LOGISTICS AND HIGHER PERFORMANCE
The most challenging period in our warehouse operations has now been successfully navigated, a huge thank you to all suppliers and our dedicated staff. A shout out to our tech department, which managed to implement a software transition in our existing warehouse while increasing capacity beyond original specifications.
Looking ahead, our expanded warehouse automation capabilities remain on track for launch in Q3 2025. The infrastructure we are building this year puts us in thebest possible position in the competitive landscape in the years to come.
I am immensely proud that we successfully navigated our biggest quarter ever - balancing growth, profitability, and at the same time delivering the best customer experience!
Rickard Lyko, CEO February 13th 2025
