Arla Plast (ARPL) investor relations material

Executive summary

• Net sales/revenue declined 17% year-over-year in Q1 2026 to 325.5 MSEK, mainly due to lower raw material prices and reduced sales volumes.

• Operating income fell 33% to 19.4 MSEK, with an operating margin of 6.0% (down from 7.3% in Q1 2025).

• Net profit decreased 27% to 15.1 MSEK, with EPS at 0.72 SEK (0.98 SEK prior year).

• Gross margin remained stable but slightly lower at 22.5%, supported by a positive product mix and industrial projects.

• Positive operating cash flow of 13.6 MSEK and a net cash position of 37.4 MSEK, with a strong equity ratio at 66.7%.

Financial highlights

• Q1 2026 net sales: 325.5 MSEK (down 17% year-over-year).

• Q1 2026 operating income: 19.4 MSEK (down 33% year-over-year).

• EBITDA for the quarter was 34.6 MSEK, down 18% year-over-year.

• Rolling 12 months net sales: 1,366.4 MSEK (down 5%).

• Cash flow from investing activities was -17.1 MSEK, mainly for production facility investments.

Outlook and guidance

• Market volume expected to remain at similar levels as the previous quarter.

• Ongoing investment projects in all operational segments, focusing on workplace environment and product quality.

• Market outlook remains uncertain due to raw material price volatility and geopolitical tensions, especially in the Middle East.

• Continued focus on broadening product offering, customer segmentation, and market presence.

• Restructuring program in Finland aims to strengthen customer relations and profitability.