Stillfront Group AB (STLFF) Q4 2023 Earnings Call Transcript

Stillfront Group AB (OTCPK:STLFF) Q4 2023 Results Conference Call February 7, 2024 4:00 AM ET

Company Participants

Jörgen Larsson – CEO

Andreas Uddman – CFO

Conference Call Participants

Simon Jönsson – ABG

Erik Larsson – SEB

Edward James – Cantor Fitzgerald

Rasmus Engberg – Handelsbanken

Nick Dempsey – Barclays

Jörgen Larsson

Welcome to the Stillfront Group Full Year Report 2023. I will be presenting, CEO, Jorgen Larsson, together with my colleague, Andreas Uddman, CFO.

This is what we will talk about mainly today. We returned to organic growth in both November and December, which is what we aimed for in the beginning of the year. However, our net revenue declined 2% year-over-year in the fourth quarter, but we had a, as I said, organic uplift. The organic bookings declined by 2% as well despite being positive in November and December. Our gross profit grew by 1% in the fourth quarter. Gross margin increased by 2 percentage points year-over-year to 78%. We will go deeper into this during the presentation.

Looking at the full year, which is what we’re presenting, the EBITDAC margin is up by 1.8% from 22.7% to 24.4%, which is very much in line with the trajectory or the path that we described at our Capital Markets Day February last year. The adjusted EBITDAC margin was down 4% year-over-year in the fourth quarter due to the massive UA push that we were able to push into our new Star product, Sunshine Island, which we also will go further into.

And that is also what’s worth mentioning is that our free cash flow is down to 833% for the full year, the last 12 months. And that’s a decrease, and that’s mainly related to that. We do have lower financial net, higher interest rates, and we have some one-off costs related to our cost optimization project. On

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