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Embellence Group (EMBELL) investor relations material
Embellence Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 2025 delivered stable results with 1% organic sales growth, but total sales declined 3% due to significant currency headwinds and tough prior-year comparables.
Strategic focus remained on D2C, international sales, and hospitality channels, with ongoing investments in organization, digital platforms, and go-to-market models.
Management changes at Cole & Son and commercial initiatives aim to address underperformance and set up for long-term growth, with a new Managing Director starting May 2026.
Gross margin improved to 61.8% in Q4 and 61.6% for the year, driven by mix, pricing, and efficiency.
Strategic initiatives in technology and market presence are beginning to yield results.
Financial highlights
Q4 net sales were SEK 195 million, down 3% year-over-year, with organic growth of 1% and negative currency impact of -4%.
Q4 EBITDA/EBITA was SEK 26 million (13.2% margin), down from SEK 28 million, impacted by FX and strategic investments.
Full-year EBITDA/EBITA was SEK 108 million (14.1% margin), down from SEK 112 million.
Operating cash flow in Q4 was SEK 42 million, up from SEK 39 million; full-year operating cash flow was SEK 91 million, down from SEK 113 million.
Dividend proposed at SEK 1.50 per share, up from SEK 1.25, corresponding to 51% of net profit.
Outlook and guidance
Strong SEK expected to continue negatively impacting top and bottom line, especially in Q1 2026.
D2C channel expected to contribute over half of total growth in the next three years.
CapEx guidance for 2026 is around SEK 20 million, with investments normalizing to about 2% of net sales after 2026.
Continued focus on D2C acceleration, international expansion, and hospitality channel growth.
The company is prepared for further acquisitions, supported by a stable organization and financial position.
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