Humble Group (HUMBLE) Q1 2025 earnings summary

Executive summary

• Net sales grew 4% year-over-year to SEK 1.9 billion, with organic growth also at 4%.

• Gross profit rose 9% to SEK 615 million, with gross margin improving to 32.3% from 31% sequentially.

• Adjusted EBITDA/EBITA increased 4% to SEK 133 million, while reported EBITA declined 14% to SEK 115 million.

• Cash flow from operations after working capital adjustments was SEK 115 million, nearly double the prior year, with a SEK -45 million tax deferral repayment.

• Future Snacking segment, especially Pandy and True Co, delivered over 100% sales growth.

Financial highlights

• Adjusted EBITDA/EBITA margin held steady at 7.0%; adjusted EBIT margin improved to 4.6%.

• Net interest-bearing debt/Adjusted EBITDA was 2.8x, meeting credit facility covenants.

• Financial expenses decreased to SEK -51 million from SEK -63 million.

• Interest-bearing liabilities reduced to SEK 1,624 million from SEK 1,766 million at year-end.

• Earnings per share was SEK 0.03, down from SEK 0.05 year-over-year.

Outlook and guidance

• Confident outlook for the first half and full year, aiming for higher organic growth in the remainder of the year.

• Focus on ramping up capacity in quality nutrition and leveraging new production lines for future growth.

• Positive impact expected from stronger SEK and lower freight costs on gross margin in coming quarters.

• Diversified business model and exposure to private label/discount stores provide resilience against weak consumer sentiment.

• Emphasis on profitable growth, working capital efficiency, and cash flow generation.