Better Collective shares soar as FY 2024 EBITDA forecast to beat guidance
Affiliate giant anticipates EBITDA of around €113m, surpassing the previously lowered expectation of €100m to €110m, with revenue also at top end of forecast
Better Collective’s shares jumped more than 12% in Stockholm after the affiliate reaffirmed its full-year 2024 guidance ahead of a full financial disclosure on 19 February.
The Copenhagen-based business provided a brief trading update to the market this morning, 6 February, in which it said revenue last year is expected to be around €371m.
The forecast would put the revenue performance at the top end of the previously issued guidance of between €355m and €375m.
In October, Better Collective readjusted its full-year 2024 guidance following lower-than-expected activity in the US and Brazil.
The firm’s previous expectation for revenue in 2024 was €395m to €425m, yet this was cut ahead of its Q3 report being published on 14 November 2024.
The last three months of the year also saw Better Collective lay off more than 300 staff across the business, or 15% of the workforce, which it said would result in €50m of savings.
Better Collective also noted in today’s brief announcement that EBITDA is expected to be around €113m for full-year 2024, above the previously lowered guidance of €100m to €110m.
Pre-streamlining EBITDA guidance had previously been put at €130m to €140m.
Better Collective said: “The EBITDA before special items was driven by revenue reaching the upper end of guidance, and an earlier-than-anticipated impact of the implemented €50m cost efficiency programme.”
In the company’s Q3 report, bosses said they would expect to witness the full effect of the cost-cutting programme from the start of 2025.
The report revealed a 6% decline in organic revenue growth due to the “accelerated slowdown” in Brazil and a lack of progress in the US.
Meanwhile, the ratio of net debt to EBITDA is expected to be below 3x, which is also in line with previously issued guidance.
Should the affiliate’s full-year expectations come to fruition, 2024 will have made gains against 2023 despite the difficulties faced over the past 12 months.
Full-year 2023 revenue amounted to €327m, while EBITDA for the reporting period was €111m.
Better Collective’s shares in Stockholm are SEK114 at the time of writing, up almost 11%.