Karelia Tobacco (KARE) Q1 2025 earnings summary

Executive summary

• Group turnover for Q1 2025 rose 12.34% year-over-year to €77.8 million (net of excise and VAT), driven by higher international and domestic sales volumes.

• Net profit after tax and non-controlling interests declined 27.54% year-over-year to €21.2 million, impacted by lower financial results and negative currency effects.

• Gross profit margin slightly decreased to 45.8% from 46.1% due to higher raw material costs.

• The company increased market share in key regions, notably Bulgaria, the Balkans, France, and Greece.

Financial highlights

• Group turnover: €77.8 million (+12.34% year-over-year); total gross turnover: €359 million.

• EBIT: €29.3 million (+11.16% year-over-year); EBITDA: €30.97 million (+9.42% year-over-year).

• Net profit before tax: €27.4 million (-26.71% year-over-year); net profit after tax: €21.2 million (-27.54% year-over-year).

• Basic EPS: €7.69 (vs. €10.62 in Q1 2024).

• Net cash from operating activities: €55.1 million (vs. €2.3 million in Q1 2024).

Outlook and guidance

• No significant change in sales volume trends expected for the remainder of 2025.

• Economic slowdown and further, but slower, interest rate reductions anticipated.

• Uncertainty remains due to Middle East developments and US tariff policy reversals, affecting currency forecasts.