Kakel Max (KAKEL) Q1 2025 earnings summary

Executive summary

• Net sales increased 17% year-over-year to 40,855 tkr in Q1 2025, despite the period being a low season.

• Result after tax was -388 tkr, down from 105 tkr in Q1 2024, with operating income at -1,256 tkr.

• Investments in stores and personnel have not yet translated into improved profitability.

• Consumer sales rose in late 2024, and professional sales stabilized, especially in the Stockholm region.

• Management expresses cautious optimism due to signs of market stabilization and expected drivers like lower interest rates and increased purchasing power.

Financial highlights

• Net sales: 40,855 tkr (35,017 tkr in Q1 2024).

• Operating income: -1,256 tkr (362 tkr in Q1 2024), operating margin -3.1% (1.0%).

• Result after tax: -388 tkr (105 tkr in Q1 2024); EPS: -0.13 kr (0.03 kr).

• Cash flow from operations: -282 tkr (1,684 tkr in Q1 2024).

• Net debt: 16,489 tkr (8,574 tkr in Q1 2024); equity ratio: 50.7% (59.3%).

Outlook and guidance

• Market shows signs of stabilization after years of decline, with positive signals from consumer sales.

• Renovation market expected to drive building materials trade in 2025; new construction anticipated to recover.

• Lower interest rates and improved economic conditions are expected to support demand.