Humble Group (HUMBLE) Q1 2025 earnings summary

Executive summary

• Net sales reached MSEK 1,904 in Q1 2025, growing 4% year-over-year with organic growth at 4%, supported by resilient demand and successful brand positioning.

• Gross margin improved to 32.3%, reflecting operational efficiencies, local sourcing, and a stronger SEK.

• Adjusted EBITA increased 4% to MSEK 133, maintaining a 7.0% margin despite higher strategic brand investments.

• Strong performance in Future Snacking, especially Pändy and True Co, with over 100% growth and capacity investments progressing as planned.

• Significant improvement in operating cash flow after working capital, nearly doubling year-over-year, though impacted by tax deferral repayment.

Financial highlights

• Net sales rose to MSEK 1,904 from MSEK 1,826 year-over-year, with 3.9% organic growth and 0.3% positive FX impact.

• Gross profit increased by 9% to MSEK 615, with gross margin up to 32.3% from 31.0% year-over-year.

• Adjusted EBITA grew to MSEK 133 from MSEK 128, with margin stable at 7.0%.

• Cash flow from operations after working capital adjustments was MSEK 115, nearly double the prior year, but affected by a MSEK -45 tax deferral repayment.

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

Outlook and guidance

• Confident outlook for the remainder of the year, aiming for higher organic growth and maintaining a minimum majority of 15% as per financial targets.

• Full-year development expected to align with business plan, with stronger organic growth anticipated in coming quarters.

• Focus on executing growth initiatives, improving gross margin, and strengthening cash flow.

• Resilient demand in private label, discount, and better-for-you categories; stable outlook with limited exposure to US tariffs.

• Positive expectations for quality nutrition segment as new capacity and customer orders ramp up.