Duell - In line with our estimates
Duell reported Q4 net sales at EUR 31.6m, just surpassing our forecast of EUR 31.3m, while adjusted EBITA reached EUR 1.4m, slightly higher than our prediction of EUR 1.3m. The performance in the Nordics was stronger than expected while the other Europe developed slower than we had estimated.
- Duell’s Q4 net sales grew 5.8% y/y to EUR 31.6m (EUR 29.9m in Q4/23, EUR 31.3m Evli).
- Net sales in the Nordics amounted to EUR 15.9m (EUR 15.2m in Q4/23, EUR 14.4m Evli), in Rest of Europe net sales stood at EUR 15.7m (EUR 14.7m in Q4/23, EUR 16.9m Evli).
- Adj. EBITA in Q4 amounted to EUR 1.4m (EUR 0.2m in Q4/23, EUR 1.3m Evli). The company’s gross margin improved y/y as expected.
- Net debt was at EUR 19.6m at the end of the fiscal year, above our estimate of roughly EUR 16m yet at a substantially lower level compared to EUR 38.2m at the end of FY 2023. The conditions for the covenants were met at the end of the fiscal year.
- Guidance 2025: Organic net sales with comparable currencies will be at the same level or higher than previous year. Adjusted EBITA to improve from last year’s level.
- As anticipated, the company issued broad guidance, yet, unlike the FY 2024 guidance, Duell now includes organic net sales outlook.
- In addition to the earnings release, the company announced that it starts change negotiations to improve efficiency, the aim of the efficiency measures is to achieve annual cost savings of approximately EUR 1m, mainly in the FY 2025.
- Duell also plans a reverse split, which requires a resolution of the general meeting.