Equity research, Zinzino Q4 2024: First impression

Today, Zinzino published its interim report for Q4 2024. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.

In line with the sales pre-announcement, Zinzino reported revenue growth of 35 per cent in Q4 2024 and 25 per cent for the full year 2025. Investments in growth and raw material costs have weighed on margins in 2024 and also in Q4. The gross margin declined compared to Q3 and was weaker than we had expected. Hence, the profit increase was slower than our forecast. The board has proposed a dividend of SEK 4 (3) per share against our expectations of an unchanged dividend.

We expect a negative share price reaction due to lower gross margin and lower operating leverage than expected in Q4 2024.

• Total revenues increased by 35% in Q4 2024 to SEK 713m, in line with the preliminary sales figures reported on 7 January of SEK 706m.
• Gross profit grew by 8% to SEK 218m, compared to our forecast of SEK 251m. Year-over-year, the gross margin decreased by 7.7 percentage points to 30.6%. Our forecast was 35.6%.
• Year-over-year, the EBITDA result rose slightly by 2% to SEK 72.9m, corresponding to a margin of 10.2%. Our estimate was for SEK 87m, corresponding to a margin of 12.3 %.

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

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