Lyko Group (LYKO-A) investor relations material

Executive summary

• Q3 net sales reached SEK 827.2 million, up 8.5% year-over-year, driven by strong Nordic performance and successful campaigns, despite challenges from the new warehouse automation launch and a viral Own brands campaign.

• The new automated warehouse in Vansbro went live, tripling capacity and positioning the company for future growth.

• Brand awareness in Sweden increased significantly, rising from 43% to 49% among women 16-60 years old.

• The company plans to roll out up to 100 new, larger stores, starting with Täby, to strengthen its physical presence and meet evolving customer preferences.

• Advent calendar and Club Week sales outperformed previous years, selling out faster.

Financial highlights

• Q3 net sales: SEK 827.2 million (762.7), up 8.5% year-over-year (9.8% in local currencies).

• Gross margin for Q3: 42.2% (44.1% in September), impacted by one-off campaign costs and warehouse ramp-up.

• EBIT for Q3: SEK 2.4 million (8.3), EBIT margin 0.3% (1.1%), reflecting margin pressure and one-off costs.

• Rolling 12-month net sales approached SEK 3.8 billion.

• One-off costs totaling SEK 11.7 million impacted operating expenses and personnel costs.

Outlook and guidance

• Focus remains on long-term growth and profitability, leveraging new automation and increased brand awareness.

• Marketing spend will increase in Q4 to drive peak season growth, with marketing-to-sales ratio likely similar to previous years.

• Store expansion will proceed cautiously, with the pace dependent on market response and results from initial new stores; acceleration expected from 2026.

• Amortization of warehouse investment begins Q2 2026, with quarterly installments of SEK 13.75 million.