Hernö Gin (HERNO) Q2 2025 earnings summary

Executive summary

• Strategic shift to direct distribution to Systembolaget began July 1, ending partnership with Anora, expected to yield higher margins per bottle and smoother sales across quarters.

• First half-year net sales reached 21.6 MSEK (29.1 MSEK), with Q2 at 10.6 MSEK (18.2 MSEK); pre-tax profit for H1 was 2.9 MSEK (7.4 MSEK), Q2 at 0.6 MSEK (6.2 MSEK).

• Sales decline attributed to transition in distribution and lower consumer demand due to economic pressure and a cold spring.

• Swedish gin market saw a 0.3% increase at Systembolaget, but company sales dropped 19% in H1 2025 after a strong 2024.

• Export sales, especially in Denmark, were lower, but a new partnership in Spain was established.

Financial highlights

• Q2 net sales: 10.6 MSEK (down from 18.2 MSEK YoY); H1 net sales: 21.6 MSEK (down from 29.1 MSEK YoY).

• Q2 gin sales: 6.0 MSEK (14.2 MSEK YoY); H1 gin sales: 13.1 MSEK (21.5 MSEK YoY).

• Q2 pre-tax profit: 0.6 MSEK (6.2 MSEK YoY); H1 pre-tax profit: 2.9 MSEK (7.4 MSEK YoY).

• Q2 EBITDA: 0.5 MSEK (6.5 MSEK YoY); H1 EBITDA: 2.8 MSEK (8.2 MSEK YoY).

• Q2 after-tax profit: 0.5 MSEK (4.9 MSEK YoY); H1 after-tax profit: 2.3 MSEK (5.9 MSEK YoY).

Outlook and guidance

• Direct sales to Systembolaget expected to stabilize quarterly sales and improve margins.

• Focus on brand-building, experiences, and digital marketing to drive long-term growth.

• Export strategy emphasizes selective, profitable partnerships; new collaboration in Spain signals international growth ambitions.