Garpco (GARPCO) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached SEK 170.35 million, a 5% increase year-over-year, mainly due to acquisitions, but sales were flat when adjusted for acquisitions.

• Net profit dropped to SEK 5 million from SEK 11.5 million in Q1 2024, while net result after tax was -2.1 million SEK, impacted by one-time costs, weak market conditions, and negative currency effects.

• EBITDA fell to SEK 4.96 million from SEK 11.49 million, with EPS at -2.01 SEK (3.37 SEK Q1 2024).

• The group intensified restructuring, including closure or divestment of low-margin units.

Financial highlights

• One-time costs totaled SEK 4.5 million, including SEK 1.7 million for the Olofström unit closure and SEK 1.4 million for the Oscarssons Möbel transfer.

• Negative currency effects amounted to SEK 1.4 million compared to the previous year.

• Equity increased to SEK 228.7 million; equity ratio remains strong at 53.2%.

• Cash and equivalents at period end: SEK 26.6 million; net debt increased to SEK 54.8 million.

• Investments in tangible assets were SEK 2.69 million, with available liquidity including unused credit at SEK 45.89 million.

Outlook and guidance

• Ongoing restructuring and export initiatives are expected to improve performance, with a focus on the UK, Germany, Scotland, and Ireland.

• 2025 will be marked by continued restructuring, focusing on core business and outsourcing price-pressured product groups.

• Polymera Material expected to shift from divestment to investment and growth; Interiör & Design to phase out unprofitable lines.

• Q2 order intake has improved, with several units seeing positive market signals.

• Management anticipates improved resilience and profitability after restructuring is completed.