MARIMEKKO FINANCIAL STATEMENTS BULLETIN, 1 Jan–31 Dec 2024: Marimekko’s net sales in the fourth quarter grew and operating profit improved

Marimekko Corporation, Financial Statements Bulletin, 19 February 2025 at 8.00 a.m. EET

MARIMEKKO FINANCIAL STATEMENTS BULLETIN, 1 Jan–31 Dec 2024: Marimekko’s net sales in the fourth quarter grew and operating profit improved

This release is a summary of Marimekko’s financial statements bulletin for the January-December period of 2024. The complete report is attached to this release as a pdf file and it is also available on the company’s website at company.marimekko.com under Releases & publications.

The fourth quarter in brief

Marimekko’s net sales increased by 7 percent and totaled EUR 54.0 million (50.6). Net sales were boosted, in particular, by the increased retail sales in all market areas.
Net sales in Finland grew by 3 percent as domestic retail sales developed well, increasing by 8 percent. International sales grew by 13 percent with both retail and wholesale sales increasing.
Operating profit was EUR 9.1 million (8.1). Comparable operating profit totaled EUR 9.3 million (8.3) equaling to 17.1 percent of net sales (16.4).
Operating profit in the fourth quarter was improved, in particular, by increased net sales. On the other hand, lower relative sales margin had a weakening impact on the operating profit.

Year 2024 in brief

Company’s net sales grew by 5 percent and amounted to EUR 182.6 million (174.1). Net sales were boosted especially by the growth of retail sales in all market areas and an increase in wholesale sales in the Asia-Pacific region and Scandinavia.
Net sales in Finland increased by 2 percent due to favorable development of retail sales. International sales grew by 9 percent with retail sales increasing in all and wholesale sales in nearly all market areas.
Operating profit totaled EUR 31.4 million (31.4) and comparable operating profit EUR 31.9 million (32.0) equaling to 17.5 percent of net sales (18.4).
Operating profit was boosted by increased net sales. On the other hand, especially higher fixed costs but also lower relative sales margin had a weakening impact on the operating profit.

Board’s proposal for dividend

The Board of Directors will propose to the Annual General Meeting that a regular dividend of EUR 0.40 and an extraordinary dividend of EUR 0.25 will be paid for 2024, with 17 April 2025 as the dividend payout record date and 28 April 2025 as the dividend payout date.

Financial guidance for 2025

The Marimekko Group's net sales for 2025 are expected to grow from the previous year (2024: EUR 182.6 million). Comparable operating profit margin is estimated to be approximately some 16–19 percent (2024: 17.5 percent). Development of consumer confidence and purchasing power especially in Finland as well as general uncertainties and possible disruptions in global supply chains, among others, cause volatility to the outlook for 2025.

Uncertainties related to the development of net sales and result are described in more detail in the Major risks and factors of uncertainty section of the Financial Statements Bulletin.

Key figures

(EUR million)	10–12/ 2024	10–12/ 2023	Change, %	1–12/ 2024	1–12/ 2023	Change, %
Net sales	54.0	50.6	7	182.6	174.1	5
International sales	22.7	20.1	13	81.6	75.2	9
% of net sales	42	40		45	43
EBITDA	11.4	10.4	10	40.7	40.6	0
Comparable EBITDA	11.6	10.6	9	41.3	41.2	0
Operating profit	9.1	8.1	13	31.4	31.4	0
Operating profit margin, %	16.8	15.9		17.2	18.0
Comparable operating profit	9.3	8.3	12	31.9	32.0	0
Comparable operating profit margin, %	17.1	16.4		17.5	18.4
Result for the period	7.3	6.1	20	24.4	23.6	3
Earnings per share, EUR	0.18	0.15	20	0.60	0.58	3
Comparable earnings per share, EUR	0.18	0.15	19	0.61	0.59	3
Cash flow from operating activities	14.4	21.0	-31	29.1	29.4	-1
Gross investments	0.6	0.9	-34	2.3	2.0	15
Return on capital employed (ROCE), %				31.4	33.0
Equity ratio, %				58.7	54.1
Gearing, %				-12.9	-6.3
Net debt / EBITDA (rolling 12 months)				-0.24	-0.10
Personnel at the end of the period				480	468	3
outside Finland				84	83	1
Brand sales *	109.6	95.9	14	419.2	376.7	11
outside Finland	68.3	57.5	19	287.1	249.0	15
proportion of international sales, %	62	60		68	66
Number of stores				168	167	1

The change percentages in the table were calculated on exact figures before the amounts were rounded to millions of euros. The figure for comparable earnings per share takes account of similar items as comparable operating profit; tax effect included. Reconciliation of alternative key figures to IFRS and management’s discretion regarding items affecting comparability are presented in the table section of Financial Statements Bulletin.

^* Brand sales are given as an alternative non-IFRS key figure, representing the reach of the Marimekko brand through different distribution channels. An unofficial estimate of sales of Marimekko products at consumer prices, brand sales are calculated by adding together the company’s own retail net sales and the estimated retail value of Marimekko products sold by other retailers. The estimated retail value is based on the company’s realized wholesale sales and licensing income. Brand sales do not include VAT, and the key figure is not audited. Some licensees provide exact retail figures, in which case these figures are used in reporting brand sales. For other licensing agreements, Marimekko’s own retail coefficients for different markets are used. Licensing income is reported as brand sales when licensed products are sold.

Tiina Alahuhta-Kasko, President and CEO, in conjunction with the report:

“Our net sales in the fourth quarter reached a record high, and our result improved in spite of the challenging market situation. We achieved sales growth in all market areas, which reflects our consistent efforts to scale up the Marimekko phenomenon internationally.

Marimekko's net sales increased by seven percent in the fourth quarter. Net sales totaled EUR 54.0 million (50.6), which made it the biggest quarter the company has ever had. The growth of net sales was driven particularly by the excellent development of our retail sales in all market areas. In the important domestic market of Finland, retail sales grew by eight percent in spite of the continued challenging market situation. Total net sales in Finland grew by three percent, while international net sales increased by 13 percent, supported by growth in sales in all of our market areas.

Our comparable operating profit in the October–December period amounted to EUR 9.3 million (8.3), and the comparable operating profit margin improved to 17.1 percent of net sales (16.4). Operating profit was strengthened especially by the growth of net sales. On the other hand, operating profit was negatively affected by the relative sales margin declining due to higher logistics costs.

Our full-year net sales for 2024 grew by five percent and amounted to EUR 182.6 million (174.1). Our comparable operating profit was EUR 31.9 million (32.0), which represented 17.5 percent (18.4) of net sales, and our financial position remained strong.

We continued to take determined steps in executing Marimekko's SCALE strategy in the fourth quarter. The third limited-edition brand collaboration collection of the year with the global Japanese apparel retailer UNIQLO supported our work to increase our brand awareness. The various international collaboration collections help us introduce Marimekko to new customers. In addition, a jewelry collection made from recycled silver, created in partnership with Kalevala Jewelry, arrived in stores in October. We also continued to develop our omnichannel retail network. During the fourth quarter, five new Marimekko stores were opened in Asia and one in Finland. We also delighted our customers with five pop-up stores, mainly in Asia.

I would like to extend my heartfelt thanks to all Marimekko employees and partners around the world for our success in 2024. Every customer encounter is important in our work to serve both existing and new friends of our brand in the best possible way and thus take the Marimekko brand and our story forward. We are in an excellent position to continue our determined efforts in 2025 to scale up Marimekko internationally by challenging the fashion and design industry with empowering optimism, the art of printmaking and timeless design."

Market outlook and growth targets for 2025

The uncertainties related to the development of the global economy, such as geopolitical tensions and their impact on the general economic situation, and general cost inflation influence consumer confidence, purchasing power and behavior and, as a result, can have an impact on Marimekko’s business in 2025, especially in the important domestic market of Finland. Different exceptional situations may cause even significant disruptions in production and logistics chains, and may thus have a negative impact on the company’s sales, profitability and cash flow.

Finland, Marimekko’s important domestic market, traditionally represents about half of the company’s net sales. Sales in Finland in 2025 are impacted by the weak general economy and low consumer confidence as well as the development of purchasing power and behavior. In addition, the tactical operating environment continues to have an impact on the business. The timing between quarters of the non-recurring promotional deliveries in Finnish wholesale sales and their size typically vary on an annual basis. In 2025, the non-recurring promotional deliveries in wholesale sales are expected to be significantly lower than in the comparable year and weighted clearly in the second half of the year. Despite the weak market situation, net sales in Finland are expected to be approximately at the level of the previous year.

International sales are estimated to grow in 2025. In the strategy period 2023–2027, Marimekko focuses on Asia as the most important geographical area for international growth. In 2025, net sales in the Asia-Pacific region, Marimekko’s second-largest market, are expected to increase. All brick-and-mortar Marimekko stores and most online stores in Asia are partner-owned. In 2025, the aim is to open approximately 10–15 new Marimekko stores and shop-in-shops, and most of the planned openings will be in Asia.

Licensing income in 2025 is forecasted to be significantly below the previous year’s record level.

Due to the seasonal nature of Marimekko’s business, a major portion of the company’s euro-denominated net sales and operating result are traditionally generated during the second half of the year. Net sales and operating profit in the first quarter of 2025 are significantly impacted by timing differences from the comparison period. In the comparable year, a large amount of non-recurring promotional deliveries in Finnish wholesale sales occurred exceptionally during the first quarter of the year. In addition, a significant part of licensing income in 2024 was recorded already during the first quarter of the year, unlike in 2025.

Marimekko develops its business with a long-term view and aims to continue scaling its profitable growth in the upcoming years. In 2025, fixed costs are expected to be up on the previous year. The general cost inflation continues to also affect Marimekko in 2025. Personnel expenses are impacted, for example, by general pay increases in different markets. Marketing expenses are expected to increase (2024: EUR 10.6 million).

Early commitments to product orders from supplier partners, typical of the industry and partly further emphasized due to different factors, undermine the company’s ability to optimize product orders and respond to rapid changes in demand and consumer behavior, which also increases risks related to sales, inventory management, cashflow and relative profitability. There are still significant uncertainties related to global production and logistic chains, which may cause delays. If realized, these kinds of delays can have an impact on the company’s sales and profitability. Marimekko works actively to ensure functioning production and logistics chains, to avoid delays, to mitigate the negative impacts of generally increased costs, and to enhance inventory management.

Marimekko is closely monitoring the general economic situation, the development of consumer confidence and purchasing power and the impacts of possible exceptional situations and disruptions, and the company will adjust its operations and plans according to the circumstances.

Media and investor conference

A conference for media and institutional investors will be held in English on 19 February 2025 at 2.00 p.m. EET. A live webcast of the conference can be followed at https://marimekko.videosync.fi/q4-2024, and a recording of the webcast will be available at the same address later. Questions can be asked during the live webcast in writing.

Further information:

Tiina Alahuhta-Kasko, President and CEO, tel. +358 9 758 71
Elina Anckar, CFO, tel. +358 9 758 7261

MARIMEKKO CORPORATION
Corporate Communications

Anna Tuominen
Tel. +358 40 5846944
anna.tuominen@marimekko.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. In 2024, the company's net sales totaled EUR 183 million and comparable operating profit margin was 17.5 percent. Globally, there are roughly 170 Marimekko stores, and online store serves customers in 38 countries. The key markets are Northern Europe, the Asia-Pacific region and North America. The Group employs about 480 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com

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