Duell (DUELL) Q1 2025 earnings summary

Executive summary

• Net sales grew 4.7% year-over-year to EUR 28.3 million in Q1 2025, with all growth organic and both Nordics and Central Europe contributing.

• Adjusted EBITDA/EBITA rose to EUR 0.7 million (up from EUR 0.3 million), with margin improving to 2.4% from 1.0%.

• Financial position strengthened, with net debt reduced to EUR 24.7 million from EUR 45 million a year ago and leverage down to 3.1x from 7.2x.

• Efficiency program launched in October 2024 contributed to profitability improvement and targeted EUR 1 million in annualized savings.

• Strong performance in key categories: snowmobile, ATV, and motorcycle rider gear, with AMOQ as the fastest-growing snow gear brand in Nordics.

Financial highlights

• Gross margin increased to 24.9% (from 23.9%), supporting improved profitability.

• Cash flow from operating activities was EUR -4.8 million, improved from previous year.

• Inventory as a percentage of LTM net sales decreased to 38.4% (from 43.3%), with improved turnover rates.

• Net cash reserves at period end were EUR 5.5 million.

• Operating profit was EUR -0.1 million (improved from EUR -1.1 million); EPS was EUR -0.08 (vs. EUR -0.06).

Outlook and guidance

• Guidance for FY2025 unchanged: organic net sales in comparable currencies expected at or above previous year, with improved adjusted EBITDA/EBITA.

• Efficiency program to deliver EUR 1 million in annualized savings, with partial impact in FY2025.

• Market has somewhat stabilized, but consumer sentiment remains fragile; demand expected to be slightly better over next 12 months, with variations by product category.

• Medium-term targets: net sales EUR 200–300 million, adjusted EBITA margin ≥13%, net debt/EBITDA 2–3x.