Dustin Group (DUST) Q3 24/25 earnings summary

Executive summary

• Net sales for Q3 were SEK 5,089 million, down 6.7% year-over-year, with organic growth at -2.9% due to weak demand and customer caution, though some stabilization was seen in SMB and LCP segments.

• Gross margin declined to 13.4% from 15.0% year-over-year, mainly due to lower margins in Benelux and price pressure in the Netherlands.

• Adjusted EBITA was SEK 72 million (margin 1.4%), down from SEK 130 million (2.4%) last year.

• Rights issue completed, raising SEK 1,240 million to reduce debt and strengthen the balance sheet.

• Efficiency measures targeting SEK 150–200 million in annual savings are nearing completion, with a strategic shift away from the consumer market to focus on B2B and standardized services.

Financial highlights

• SMB segment Q3 net sales were SEK 1,396 million, down 5.3% year-over-year, with organic growth at -2.6% and margin improved to 2.7%.

• LCP segment Q3 net sales declined 7.2% to SEK 3,693 million, with organic growth at -3.0% and margin dropped to 1.7%.

• Cash flow from operating activities was SEK -139 million, a significant decline from SEK 454 million last year.

• Leverage ratio improved to 4.3x net debt/adjusted EBITDA post-rights issue, down from 6.0x last quarter.

• Inventory levels increased to SEK 1,098 million, above preferred levels, with a target to reduce going forward.

Outlook and guidance

• Market pressure and price competition, especially in the Netherlands and Benelux, are expected to persist, though signs of stabilization are seen in the Nordics.

• Efficiency measures and cost reductions are largely completed, with further minor reductions expected as the company exits B2C and standardizes services.

• The company aims to further reduce leverage to within the 2.0–3.0x target range and optimize its organization for B2B focus.

• Medium-term drivers include Windows 10 support ending, aging installed base, and AI-optimized hardware demand.