Nilörngruppen (NIL) investor relations material

Executive summary

• Q1 order intake decreased by 18% year-over-year to MSEK 218, impacted by significant negative currency effects and a strong Q4 in the prior year; adjusted for currency, order intake was down 10%.

• Sales declined 16% in SEK to MSEK 218, with currency effects accounting for 10% of the drop; adjusted sales were flat year-over-year at MSEK 258.

• Market conditions remain cautious, especially in luxury and outdoor segments, with geopolitical events in the Middle East contributing to uncertainty.

• Underlying business remains stable despite reported declines, supported by a strong pipeline and ongoing strategic investments.

Financial highlights

• Operating profit was SEK 15.4 million, down from SEK 23 million year-over-year; adjusted operating profit (excluding non-recurring costs) was SEK 17.7 million.

• Non-recurring costs totaled SEK 2.3 million, mainly related to structural projects and personnel changes.

• Net profit for the period was MSEK 12.2, down from MSEK 15.8 year-over-year.

• Gross margin improved to 48.4% from 44.8% due to favorable product mix and increased in-house production, especially in Bangladesh and Portugal.

• Net cash position of SEK 56 million and cash holdings of SEK 102 million, supporting future investments; equity ratio at 59.1%.

Outlook and guidance

• Operating margin target remains at 10%-12%, but current margin is below target due to lower volumes.

• Packaging order delayed from Q1 to Q2, expected to strengthen Q2 results.

• Luxury segment normalization now expected more towards autumn rather than summer.

• Continued focus on cost optimization, digitalisation, and shifting resources to growth areas.

• Investments in US, Netherlands, and new Bangladesh factory aim to drive long-term competitiveness.