Elanders (ELAN) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were MSEK 3,232, a 2% organic decline year-over-year, reflecting weaker demand across most customer segments, with Print & Packaging Solutions most affected and Supply Chain Solutions more resilient.

• Adjusted EBITA margin fell to 4.1% from 5.5% year-over-year, impacted by lower sales, market volatility, and restructuring costs.

• Structural measures totaling MSEK 87 were implemented, targeting annual cost savings of MSEK 145, with MSEK 81 expected in 2025 and affecting 283 employees across five countries.

• Result after tax was a loss of MSEK 85, compared to a profit of MSEK 8 in Q1 2024; adjusted result after tax was a loss of MSEK 21, with adjusted EPS at SEK -0.60.

• Cash conversion remained strong at 138%, with operating cash flow (excluding acquisitions) at MSEK 520.

Financial highlights

• EBITDA for Q1 2025 was MSEK 378, down from MSEK 467 in Q1 2024.

• Free cash flow was MSEK 357, with free cash flow per share at SEK 10.1.

• Net debt decreased to MSEK 8,250 from MSEK 8,948, aided by working capital reduction and currency effects.

• Net debt/EBITDA (RTM adjusted, excl. IFRS 16) was 3.9, improved from 4.0 at year start.

• Equity ratio stood at 23.8%, and return on equity was -8.8% for the quarter.

Outlook and guidance

• Continued focus on cost reduction, capacity consolidation, and high sales activity to secure new customers and leverage logistics opportunities.

• Ongoing rollout of the CloudX warehouse system and AI integration to enhance productivity and client services.

• No formal forecast for 2025 was provided; management expects continued market volatility.