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Investing.com -- Shares of Zabka declined by 2.5% after the company announced its fourth-quarter results for the fiscal year 2024.
While the company reported a 21% increase in revenues year-on-year (YoY), its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was in line with expectations, and margins remained flat as a percentage of Sales to End Customers.
However, reported EBITDA numbers fell short of Bloomberg consensus estimates by 8%, attributed to higher one-time costs likely connected to changes in ownership structure and securing financing.
Depreciation and amortization charges were significantly higher compared to consensus, but this was mitigated by better-than-expected financing costs. Profit before tax (PBT) was 11% below consensus on a reported basis.
Despite the earnings miss, Zabka’s net debt to EBITDA ratio improved from 2.3x to 1.5x in 2024, based on management’s definition (pre IFRS16), surpassing the forecast of 1.9x. The management also confirmed a 100 basis point benefit from refinancing debt facilities, and including leases, net debt stood at £8.6 billion, marking a significant reduction in gross financial debt by 13% YoY.
Morgan Stanley (NYSE:MS) said the focus of the latest financial release was on margins and guidance for 2025, following a January trading update that had already disclosed sales to end customers and store openings.
Their analysts added that the company’s performance in terms of revenue growth remained robust, but the impact of one-off expenses and higher depreciation and amortization charges has cast a shadow over the results, leading to the stock’s downturn in the trading session.
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