Review by the CEO
Turnover and EBIT to a record driven by the best quarter of all time
Q1-Q4 2024, 12 February 2025
The fourth quarter of 2024 was the best quarter in NoHo’s history. Turnover increased by 12% and profitability was excellent at 12.6%. I also consider the full-year EBIT margin of 9.7% to be an excellent achievement in a challenging market environment, and I am satisfied with the profitability levels in both business segments. All of our professional and committed employees and restaurant operators are to thank for this success. Our partner model, combined with the economies of scale, management model and operational excellence of a large company, creates sustainable and profitable growth despite the softness of the market.
The challenges that have long been tormenting the restaurant market are gradually starting to subside, and a cautious recovery was seen towards the end of the year. In the long term, there is considerable potential in the Finnish restaurant market in particular as restaurant culture develops and becomes more European, while the generational change is bringing an increasing amount and more active customers to restaurants.
The fourth quarter of the year is traditionally the busiest season, and it was also reflected in the successful business and event sales. However, the challenges facing consumer purchasing power continued to be reflected in the business of nightclubs in particular. During the review period, we strengthened our market share in Finland by acquiring a majority stake in H5 Ravintolat Oy, which includes eight restaurants in Tampere.
The year 2025 has also started actively. After the review period, we announced an acquisition of Wanha Satama’s restaurant business in Helsinki. This supports the company’s already strong portfolio of event venues, adding more capacity and diversity. Openings have already been confirmed for this year in Helsinki, Tampere and Jyväskylä. In addition, the company will carry out concept changes at selected sites.
The Better Burger Society subgroup, which operates in the premium burger market, increased its turnover to MEUR 80 while maintaining excellent profitability. In addition to Friends & Brgrs Jumbo, which opened in January 2025, the aim is to open five units in Finland this year. Six new Holy Cow! restaurants will open in Switzerland during the financial period. With the new openings, the number of restaurants will increase to approximately 60. In line with BBS’ strategy, the acceleration of growth will be continued in the current operating countries, with the aim of geographical expansion in the near future.
In Denmark, the profitability of the business was at an excellent level and the portfolio creates a sustainable basis for future growth. The packaging material supplier Triple Trading acquired during the financial period continued profitable growth and is a good example of synergistic investments that support the core business in line with the strategy. In Norway, we fell short of our expectations as the challenges of the nightclub business burdened profitability during the review period.
The new Group-wide financing agreement concluded in the fourth quarter frees up capital for growth investments and the payment of growing dividends through a lighter amortisation programme. With the new financing agreement and falling reference interest rates, the company’s cost of financing are expected to decrease significantly in the coming years. The financing agreement also makes it possible to achieve the long-term target set for debt, according to which the company’s objective is to lower the ratio of net debt to operational EBITDA, adjusted for IFRS16 lease liabilities, to approximately two.
In accordance with the dividend policy and long-term financial targets, the company aims to distribute an annually growing dividend. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.46 per share be paid for the financial year 2024 (2023: 0.43).
We are starting from a good position towards the goals we have set for the strategy period 2025–2027. We have defined clear long term numerical targets for our Finnish business, and we aim for profitable growth and the creation of shareholder value in international business. For the financial period 2025, we expect the profitability of the Finnish business operations to remain at the current good level and the Group’s earnings per share to increase.
Jarno Suominen
CEO, NoHo Partners