Apotea (APOTEA) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 rose 9.9% year-over-year to SEK 1,826.2 million, driven by strong demand for prescription (Rx) products and stable online ordering trends.

• Profitability improved, with adjusted EBIT margin at 5.4% and reported EBIT margin at 5.1%.

• Cash flow from operating activities strengthened to SEK 165 million, reflecting improved profitability and working capital management.

• Major operational highlights include the inauguration of a new automated fulfilment centre in Varberg and the opening of a new prescription hub in Stockholm.

• Earnings per share before and after dilution were SEK 0.69 for the period.

Financial highlights

• Q2 net revenue: SEK 1,826.2 million (up 9.9% year-over-year); H1 net revenue: SEK 3,579.7 million (up 12.5%).

• Adjusted EBIT margin for Q2: 5.4%; reported EBIT margin: 5.1%.

• Gross margin stable at 28% for Q2; gross profit increased from SEK 461 million to SEK 511 million year-over-year.

• Operating cash flow in Q2: SEK 165 million (SEK 44.5 million last year); strong cash flow conversion and high inventory turnover.

• Net debt/EBITDA (excluding IFRS 16) improved to -0.2x, indicating a net cash position.

Outlook and guidance

• Management expects increased costs and initially lower capacity utilization as Varberg facility ramps up, with a temporary negative margin impact.

• Maintain EBIT margin guidance of 3%-5% in the short to medium term, with a long-term target of 7%-8%.

• Over time, efficiency gains from Varberg and expanded AI initiatives are expected to improve margins and customer offering.

• RX share of net revenue expected to continue increasing, driven by ongoing demand and capacity expansion.