Embellence Group (EMBELL) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 3% to MSEK 178, with 2% organic growth and a 1% positive currency effect; four of five brands grew.

• DTC growth and channel diversification supported performance; gross margin improved, while EBITA margin was affected by Wall & decò management-transition costs.

• Net profit increased to MSEK 16 from MSEK 13; operating cash flow rose to MSEK 39 from MSEK 32.

Financial highlights

• Q3 net sales were MSEK 178, up 3%; Jan–Sep net sales were MSEK 561, down 2%, with flat organic sales and a 2% negative currency effect.

• Q3 gross profit rose to MSEK 111 from MSEK 105; gross margin increased to 62.4% from 60.6%.

• Q3 EBITA was MSEK 24, flat YoY, with margin of 13.2% versus 13.6%; Jan–Sep EBITA was MSEK 74 versus MSEK 82.

• Q3 net profit rose to MSEK 16 from MSEK 13; Jan–Sep net profit was MSEK 48 versus MSEK 52.

• Q3 operating cash flow increased to MSEK 39 from MSEK 32; Jan–Sep operating cash flow rose to MSEK 74 from MSEK 55.

Outlook and guidance

• Priorities include accelerating DTC through traffic, conversion and consumer experience, expanding internationally and developing hospitality offerings and commercial networks.

• More than 50% of growth over the coming years is expected from DTC; the channel is delivering double-digit growth across brands.

• Artscape’s larger-customer product-line rollout is planned for Q4; DTC momentum and the launch support growth prospects for the coming quarter.

• External sales growth at Borås Tapetfabrik is expected to moderate after an extended period of double-digit annual growth.