Equity research Zinzino, Q4 2023: Increased dividend proposed after a strong year

Today Zinzino published its interim report for Q4 2023. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.

• Total revenues increased by 23% in Q4 2023 to SEK 528m. Our updated estimate was SEK 529m and the outcome was thus in line with our expectations.
• Gross profit of SEK 202m was better than our forecast of SEK 193m. Year-over-year, the gross margin increased by 3.4 percentage points to 38.3%. Our updated forecast was 36.5%.
• Year-over-year, the EBITDA result increased by 75% to SEK 71m, corresponding to a margin of 13.5%. Our updated estimate was for SEK 74m, corresponding to a margin of 14.0%.
• The EBITresult increased year-over-year by 71% to SEK 60m, corresponding to a margin of 11.3%. Our updated estimate was for SEK 67m, corresponding to a margin of 12.7%.
• Based on an EPS of SEK 4.83 for the full year 2023, the board of directors has proposed a dividend of SEK 3.00. That corresponds to an increase of 71%

The Q4 report was slightly below our expectations in terms of profitability. With a strong share price trend ahead of the report, the share may fall back on the report’s outcome. However, the proposed dividend increase demonstrates confidence in the strategy and good development in 2024.

We intend to provide an updated analysis on Zinzino shortly. Read the latest research update here.

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