Dustin Group (DUST) Q1 2025 earnings summary

Executive summary

• Net sales declined 17.5% year-over-year to SEK 4,782 million, with organic growth at -16.2%, mainly due to weak demand and IT platform implementation in Benelux.

• Gross profit fell 24% to SEK 683 million, with gross margin at 14.3% (down from 15.3% last year).

• Adjusted EBITDA/EBITA dropped to SEK 21 million (from SEK 192 million), margin down to 0.4% (from 3.3%).

• EBIT was SEK -52 million (vs. SEK 129 million last year), and the quarterly loss was SEK -78 million (vs. SEK 33 million profit).

• Organizational changes and efficiency measures are underway, targeting SEK 150–200 million in annual cost savings.

Financial highlights

• LCP segment sales down 20.9% year-over-year to SEK 3,228 million; margin at 0.3% (4.0%).

• SMB segment sales declined 9.2% to SEK 1,553 million; margin at 3.2% (3.6%).

• Cash flow from operating activities was SEK -42 million, down from SEK 250 million.

• Leverage increased to 5.4x adjusted EBITDA (from 4.0x or 4.6x), mainly due to lower EBITDA and higher working capital.

• Net working capital was SEK 267 million (target: -SEK 100 million), mainly due to late deliveries and higher inventory.

Outlook and guidance

• No significant operational impact expected from Benelux IT platform in Q2; inventory and working capital expected to normalize.

• Market expected to remain weak in Q2, with recovery projected in 2025 driven by AI PCs, Windows 10 phase-out, and replacement cycles.

• Leverage target of 2–3x expected to be reached in 4–6 quarters.