Arla Plast (ARPL) investor relations material

Executive summary

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

• Operating margin for Q1 was 6.0%, down from 7.3% in Q1 2025, with operating profit at SEK 19.4 million (down 33%).

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

• Lower raw material prices and sales volumes impacted results, partially offset by favorable product mix and currency effects.

• Positive cash flow and strong financial position with net cash of SEK 37.4 million at quarter-end.

Financial highlights

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

• Operating profit: SEK 19.4 million (down 33% year-over-year).

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

• Gross margin was 22.5% (22.8% prior year), slightly lower due to increased price competition but supported by favorable product mix.

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

Outlook and guidance

• Market volume perceived stable compared to prior year, but net sales pressured by lower prices and volumes.

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

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

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

• Turbulent raw material situation expected to continue, with global capacity adjustments.