Ellos Group (ELLOS) investor relations material

Executive summary

• Q3 net sales rose 9.6% YoY to SEK 932.2m, including 8.1% organic growth; adjusted EBITA increased 34% to SEK 88.6m, with a 9.5% margin.

• Growth was driven by own-brand fashion and home products across Nordic and European e-stores; own brands represented 66% of Q3 sales.

• Strong operating cash flow and IPO proceeds helped reduce leverage to 1.5x; 9M net loss reflected tax and other exceptional costs.

Financial highlights

• Q3 revenue was SEK 932.2m, up 9.6%; 9M revenue was SEK 2,611.9m, up 6.5%, with organic growth of 8.1% and 6.2%, respectively.

• Q3 gross profit rose 13.8% to SEK 426.8m; gross margin expanded to 45.8% from 44.1%. YTD and LTM gross margins were 45.3% and 45.1%.

• Q3 adjusted EBITA increased 34% to SEK 88.6m; 9M adjusted EBITA rose 17.5% to SEK 164.5m. LTM adjusted EBITA was SEK 243.4m.

• Q3 net income was SEK 35.1m versus SEK 16.3m; 9M net loss was SEK 22.3m versus net income of SEK 1.3m.

• Adjusted operating cash flow was SEK 69.3m in Q3 and SEK 107.8m in 9M, versus SEK 18.9m and SEK 26.8m, respectively.

Outlook and guidance

• Medium-term targets: organic sales growth in line with the addressable market, with ambition to outperform; adjusted EBITA margin above 8%; leverage below 2.0x.

• Strategy remains focused on own brands, relevant assortment and gross margins into Black Friday and Christmas; Q4 is the largest trading quarter, with macroeconomic and geopolitical uncertainty.

• Share repurchases and dividends are being prepared for 2027, conditional on capital structure targets and funding profitable growth.