EQS-News: tonies achieves FY 2024 guidance with strong revenue growth and improved profitability – free cash flow and net income turn positive

Press Release FY 2024

 tonies achieves FY 2024 guidance with strong revenue growth and improved profitability – free cash flow and net income turn positive

• Group revenue in FY 2024 increases by 33.1% YoY to EUR 480.5m, driven by double-digit growth in all markets
• North America becomes the largest market for tonies with revenue of EUR 210.4m (+49.9% YoY) and turning profitable on EBITDA margin (2.5%)
• DACH region achieves double-digit revenue growth of 11.1% YoY to EUR 184.3m and delivers major EBITDA margin increase to 23.1% (FY 2023: 16.3%)
• Adjusted EBITDA margin up by 350 basis points to 7.5% and EBITDA margin up by 460 basis points to 7.0%, driven by operating leverage and gross margin improvement
• Free cash flow break-even achieved with EUR 33.1m (EUR +37.9m YoY) and net profit break-even achieved with EUR 13.1m (EUR +24.9m YoY)
• While tonies is confident that 2025 will be another year of profitable growth, the company will only publish its guidance once visibility on global tariff situation improves

LUXEMBOURG, 10 April 2025 // tonies SE ("tonies"), the globally leading digital audio platform for children with the award-winning Toniebox, continued its profitable high-growth trajectory in 2024. tonies delivered double-digit revenue growth and major improvements in EBITDA margins across all regions and reached important financial milestones by turning positive on free cash flow and net income for the first time. 

Tobias Wann, CEO of tonies, says: "2024 was a great year for tonies. We exceeded our ambitious targets and hit several important milestones. We grew North America into our largest single market, improved our profitability significantly – all operating segments became profitable on EBITDA – and completed our most successful entry into a new core market with Australia and New Zealand.

There are now well above over 100 million Tonies in homes around the world, reflecting our global reach and the emotional bond between families and our stories. This love for tonies is evident in the outstanding success of our 2024 launches that clearly show how hungry the market is for new tonies products. As we build tonies into a global icon, our focus on delivering innovative, fun, and educational products will continue to drive our growth in both newer and more established markets.

In 2025, we are navigating a much more complex and unpredictable business landscape. While we are entering this environment from a position of strength, global markets are marked by uncertainty and unprecedented trade dynamics – making reliable short-term planning nearly impossible at the time of our FY 2024 results release. However, years of building a solid financial foundation, combined with a clear strategy and the support of a committed community of families in a resilient industry, place us in a strong position to continue to grow profitably, adapting to whatever lies ahead."

Jan Middelhoff, CFO of tonies, adds: "We have shown that double-digit revenue goes hand in hand with profitability in all markets. It is our ambition to meet our targets year after year – and we are pleased to have done so once again: revenue grew by more than 33% to EUR 481 million, with revenue in North America up by 50% to EUR 210 million, while we increased our adjusted EBITDA margin by 3.5 percentage points to 7.5%. Our 2024 results speak to the strength of our business model and the discipline with which we have executed our growth strategy. I am particularly satisfied with our performance in the more established DACH market, where we increased our profitability to an EBITDA margin of 23% – a remarkable achievement. Finally, we have reached two major milestones, breaking even on both free cash flow – which we increased by EUR 38 million year-on-year – and net profit.

We further extended our syndicated loan more than three-fold to EUR 135 million including a top up option. This gives us more financial flexibility with improved terms going forward – something that is particularly valuable in the current environment. With the American bank Citi, we welcome another top global bank to our group of core lenders, which clearly underscores the confidence in our strategy. To sum up: we are profitable across all regions, we have ample liquidity and have a robust financial foundation to continue our growth journey also in a more challenging 2025 and beyond."

Revenue Performance

Group revenue rose by 33.1% to EUR 480.5 million in 2024 (FY 2023: EUR 360.9 million). Revenue in the important fourth quarter amounted to EUR 238.5 million (Q4 2023: EUR 169.0 million), which corresponds to growth of 41.1% compared to the previous year.

tonies has experienced double-digit growth across all regions, with North America showing particularly strong results and becoming the largest market for tonies. Revenue in the region reached EUR 210.4 million, reflecting a notable 49.9% YoY increase. This growth was primarily driven by the continued expansion in wholesale, with both vectors, the number of points of sale (POS) and shelf space, increasing significantly. While the number of POS rose by 24% from around 6,700 at the end of 2023 to around 8,300 at the end of 2024, the equally important average number of stock keeping units (SKUs) per retail partner increased by more than 60% in 2024. With over 1.1 million Tonieboxes sold in North America, the platform grew by more than 70% in FY 2024, now surpassing 2.5 million Tonieboxes sold – a strong foundation for further growth.

The DACH market recorded a revenue increase of 11.1% YoY to EUR 184.3 million. On the distribution channel side, this increase was primarily driven by a significant expansion in direct-to-consumer sales. On the product front, growth was largely driven by the success of Clever Pocket Tonies, a newly launched format that offers educational content for children aged five and up. This strong performance highlights the continued potential for growth within an established market, demonstrating that introducing innovative new products can drive further expansion and engagement.

In the Rest of World region, encompassing the UK, Ireland, France, Australia and New Zealand, and the European webshop, revenue surged by 57.0% YoY from EUR 54.7 million to EUR 85.9 million in 2024. This growth was primarily driven by a significant revenue increase in the UK and France, alongside the highly successful market launch of tonies in Australia and New Zealand in August 2024.

As a result of sustained international expansion, revenue from global markets grew rapidly. In 2024, international markets contributed around 62% of total revenue, up from 54% in 2023.

In terms of product categories, revenue from Tonieboxes rose by 16.1% year-over-year to EUR 137.2 million. Since launching in 2016, tonies has sold over 9 million Tonieboxes worldwide.

Revenue from Tonies figurines increased by 44.3% YoY to EUR 325.5 million. The increase was driven by a combination of licensed third-party Tonies including Paw Patrol, and various Disney Tonies, along with inhouse produced content and unique designs such as “Sleepy Friends” and “Playtime Songs”. By successfully rolling out its educational series Clever Pocket Tonies and by introducing full audio books through Book Pocket Tonies, tonies further strengthened its product portfolio for kids aged 5 and above. tonies also launched its own franchise, Lalalinos, which promotes child development through music, rhythm, and dance, supporting the company’s ambition of creating own beloved audio-first brands for children and parents.

Revenue in the Accessories & Digital category rose by 3.6% YoY, reaching EUR 17.9 million. This growth was driven by strong sales of the Night Light Tonies, from tonies’ own Sleepy Friends franchise, along with popular items like headphones, carriers, shelves, and chargers.

Financial Performance

Adjusted EBITDA margin improved materially from 4.0% of revenue in full-year 2023 (EUR 14.4 million) to 7.5% of revenue in full-year 2024 (EUR 36.1 million) and EBITDA margin rose significantly from 2.4% to 7.0%. The gap between adjusted EBITDA and EBITDA narrowed considerably as adjustments only included costs for share-based compensation, which declined notably. The increase in profitability was particularly attributable to operating leverage as personnel and other expenses declined as a percentage of revenue, and a higher gross margin. Gross margin increased by 50 basis points to 62.1%, driven by more favorable input costs and positive channel and product mix effects, particularly through the higher revenue share of Tonies at 68% (FY 2023: 63%). At the same time, licensing costs increased from 10.1% of revenue in 2023 to 11.4% in 2024. The increase was related to the higher share of Tonies and a one-time effect from the release of licensing provisions in 2023 (EUR 3.3 million). As a result, contribution margin decreased slightly from 35.3% in 2023 to 34.5% in 2024. In 2024, tonies also reached profitability on net income, which increased from EUR -11.8 million in 2023 to EUR 13.1 million in 2024. This was due to the significantly higher EBITDA and a tax income of EUR 8.0 million, driven by current taxes for 2024 and the recognition of deferred taxes on carried-forward tax losses in the US entity.

Free cash flow improved significantly and turned positive from EUR -4.8 million in 2023 to EUR 33.1 million in 2024. This was driven by a significantly higher cash flow from operating activities as a result of higher EBITDA, and an only slight increase in working capital due to more efficient inventory management. Furthermore, cash flow from investing activities, including investments in manufacturing tools for Tonies, own content production and software, was at EUR -14.1 million (FY 2023: EUR -12.9 million).

Sustainability

For 2024, tonies published its first sustainability report in line with CSRD/ESRS standards. Sustainability milestones this year included the launch of the Toniebox Repair Service in DACH and a material transition to bio-circular inputs in product lines such as “Book Pocket Tonies” and “Clever Pocket Tonies”. These initiatives lay the foundation for a more circular, transparent, and climate-conscious tonies product ecosystem in the future.

No guidance for full-year 2025 provided at this point in time

In light of the ongoing and highly dynamic global tariff situation, that has resulted in multiple pivots and new situations in a short period of time (including extreme responses on capital markets and global politics), tonies decided not to provide specific guidance for the immediate future. While the company understands the desire for clarity, the rapidly changing environment at the publication date of this report requires flexibility.

With a strong track record of delivering guidance, this decision reflects tonies commitment to maintaining transparency and responsibility. Given the volatility currently faced, the company believes that staying adaptable is the right approach while continuing to focus on long-term value creation.

tonies is confident that its strong product and business model, resilient category, strong and lasting partnerships, and strategic planning position it well to navigate these turbulent times effectively. With a diverse toolbox at hand, including multiple sourcing options, strong pricing power, and solid cash generation capabilities, the company believes that it is well-equipped to manage the current macroeconomic uncertainties. Furthermore, its financial position remains robust, with free cash flow breakeven achieved in 2024 and a new syndicated loan enhancing financial flexibility.

tonies DACH business continues to be a key pillar of financial strength, providing stable and reliable cash flow that supports its broader strategy. Additionally, its global product market fit remains strong, positioning tonies well for continued success across markets including North America and Rest of World.

tonies remains optimistic about the future. The company will provide more specific guidance as soon as there is greater visibility into the evolving market dynamics.

tonies SE will hold a presentation on its FY 2024 results today, Thursday, 10 April at 11 am CET. To register directly for the webcast, please go to our website through Financial Calendar.

All documents are available on tonies’ Investor Relations Website under Publications.

 
Figures at a glance

Revenue

in EURm	Q4 2024	Q4 2023	+/-	FY 2024	FY 2023	+/-
Revenue	238.5	169.0	41.1%	480.5	360.9	33.1%
by region
DACH	70.0	57.8	21.2%	184.3	165.9	11.1%
North America	118.3	80.2	47.4%	210.4	140.4	49.9%
Rest of World	50.2	31.0	61.8%	85.9	54.7	57.0%
by product category
Tonieboxes	78.8	67.3	17.2%	137.2	118.1	16.1%
Tonies figurines	152.0	94.8	60.4%	325.5	225.5	44.3%
Accessories & Digital	7.6	6.9	9.6%	17.9	17.3	3.6%

 

 

Adjusted P&L

			FY 2024					FY 2023			+/-
					EURm	% of revenue		EURm	% of revenue		EURm
Revenue					480.5	100.0%		360.9	100.0%		119.6
COGS					-182.2	-37.9%		-138.5	-38.4%		-43.7
Gross profit					298.4	62.1%		222.4	61.6%		75.9
Licensing costs					-54.9	-11.4%		-36.3	-10.1%		-18.5
Gross profit after licensing costs					243.5	50.7%		186.1	51.6%		57.4
Fulfilment					-77.7	-16.2%		-58.8	-16.3%		-18.8
Contribution profit					165.9	34.5%		127.3	35.3%		38.6
Marketing					-41.5	-8.6%		-29.7	-8.2%		-11.8
SG&A					-107.4	-22.4%		-98.5	-27.3%		-9.0
thereof personnel					-53.7	-11.2%		-48.6	-13.5%		-5.1
thereof OPEX					-53.8	-11.2%		-49.9	-13.8%		-3.8
Own work capitalized					1.6	0.3%		1.4	0.4%		0.2
Other result					14.9	3.1%		8.1	2.3%		6.8
Adjusted EBITDA					36.1	7.5%		14.4	4.0%		21.7

 

 

Operating segments*

in EURm	DACH	NA	RoW	Segments total	Corp.	Reconc.	tonies group (IFRS)
Revenue (external)	184.3	210.4	85.9	480.5	-	-	480.5
Licensing costs	-27.6	-23.4	-9.0	-60.1	5.2	-	-54.9
Contribution margin	38.3%	30.0%	29.6%	33.1%	-	-	34.5%
EBITDA	42.6	5.3	2.2	50.1	-10.1	-6.6	33.5
EBITDA margin 2024	23.1%	2.5%	2.6%	10.4%	-	-	7.0%
EBITDA margin 2023	16.3%	-3.2%	-8.7%	4.9%	-	-	2.4%

*NA = North America, Operational segments shown in local GAAP; Adjustments on EBITDA only on group level (share-based payments), Reclasses include transfer prices, IFRS effects, group provisions

 

About tonies

tonies® is the world’s largest interactive audio platform for children with more than 9 million Tonieboxes and more than 110 million Tonies sold. The intuitive and award-winning audio system has changed the way young children play and learn independently with its child-safe, wireless, and screen-free approach. Tonieboxes have been activated in over 100 countries, the content portfolio includes more than 1,100 Tonies in several languages.

 

Investor Relations Contact

Manuel Bösing

Head of Investor Relations

Phone: +4915157846012

Mail: ir@tonies.com

 

This document contains forward-looking statements

Certain statements included in this document are forward-looking statements. Forward-looking statements can typically be identified by the use of words such as "expects", "may", "will", "could", "should", "intends", "plans", "predicts", "envisages" or "anticipates" or other words of similar meaning. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the tonies SE. They are not historical or current facts, nor are they guarantees of future performance.

 

Disclaimer

By their nature, forward-looking statements involve several risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described in this document. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable mandatory law or regulation, the tonies SE expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in the tonies SE's expectations with regard thereto or any change in events, conditions, or circumstances on which any such forward-looking statements are based. Neither tonies SE nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions. For the definition of the alternative performance measures used, please refer to the published Annual Report as of December 31, 2024, or by using the following link to our website: APM.