ITAB Shop Concept (ITAB) Q1 2025 earnings summary

Executive summary

• Q1 2025 is the first quarter with combined pro forma figures after the HMY acquisition, consolidated from February 2025, doubling company size and expanding market reach.

• Sales doubled to above SEK 13 billion on a rolling 12-month basis, with operations in over 40 countries and 5,400 employees.

• Integration is progressing above expectations, with a strong focus on business continuity, customer relationships, and early synergy realization.

• The company is shifting from a product-oriented to a solution-oriented approach, leveraging combined strengths and cross-selling.

• Focus on procurement efficiencies and leveraging combined purchasing power.

Financial highlights

• Q1 2025 pro forma sales grew 16% year-over-year to SEK 3.3 billion, with adjusted EBIT up 12% to SEK 209 million.

• Rolling 12-month pro forma sales reached SEK 13.7 billion, with adjusted EBIT over SEK 900 million and an EBIT margin of 6.8%.

• Q1 adjusted EBITDA was MSEK 320, up 7% year-over-year; EBITDA margin at 9.7%.

• Cash flow for Q1 was SEK 26 million, impacted by higher operating capital; rolling 12-month cash flow was SEK 586 million with 80% cash conversion.

• Net debt (excluding leasing) at MSEK 2,618, with equity/assets ratio at 34%.

Outlook and guidance

• Synergy targets from the HMY acquisition remain at EUR 30 million by 2027, with no change in timeline despite a slight delay in closing.

• Management maintains synergy targets for sales, procurement, and efficiency over the next three years.

• Cautious approach to investments and CapEx, aiming for stability and integration focus in 2025.

• Adjusted tax rate around 25% is considered a reasonable proxy for the combined group.

• Market interest in loss prevention and self-service solutions remains strong, especially in Europe.