Cheffelo (CHEF) Q2 2025 earnings summary

Executive summary

• Local currency net sales growth reached 12% in H1 2025, with reported net sales up 9.6% year-over-year, driven by strong performance in Norway and Sweden, while Denmark contracted.

• EBIT increased by 42% to SEK 41.9 million in H1, with EBIT margin rising to 7% for H1 and 8.2% for Q2.

• Add-ons and groceries revenue grew by 50% in H1, now representing 2% of total net sales.

• Growth was supported by increased customer acquisition, higher average order value, and improved retention.

• Currency headwinds and Easter timing affected comparability of results.

Financial highlights

• Q2 reported net sales growth was 1.9%, with Easter-adjusted local currency growth at 6.1%.

• Contribution margin for Q2 was 30.3%, slightly down from 31.1% last year; H1 contribution margin was 31.6%.

• Free cash flow for H1 was MSEK 26.8, down from MSEK 34.0 last year.

• Cash and cash equivalents at period end were MSEK 104.0; equity/assets ratio at 60.3%.

• 342,000 new shares issued to management and key employees, generating SEK 8 million in cash.

Outlook and guidance

• Full-year net sales growth is expected to exceed the 8% target, with double-digit Q3 growth anticipated despite currency headwinds.

• Contribution margin projected to exceed 31% annually, though Q3 will be seasonally lower.

• Sales and marketing expenses forecasted at around 12% for 2025.

• EBIT is expected to be negative in Q3 due to seasonality, with profitability returning in Q4.

• Denmark expected to remain flat for the rest of the year, with focus on returning to profitable growth.