Karelia Tobacco (KARE) Q1 2026 earnings summary

Executive summary

• Net turnover for Q1 2026 increased by 5.1% year-over-year to €81.8 million, with group turnover reaching €389.6 million, up 8.6% from Q1 2025.

• Net profit after tax and non-controlling interest rose 65.4% year-over-year to €35.1 million.

• Strong sales growth in both international and domestic markets, with notable increases in cigarette and roll-your-own tobacco volumes.

Financial highlights

• Group gross profit margin improved to 51.6% from 45.8% in Q1 2025.

• Results from operating activities increased 24.8% year-over-year to €36.5 million.

• EBITDA rose 24.1% to €38.4 million, and EBIT margin reached 44.7% of net turnover.

• Net financial result declined by 9.8% due to lower interest rates, but foreign exchange gains of €3.7 million were recognized versus losses in the prior year.

• Earnings per share (basic and diluted) were €12.73, up from €7.69 in Q1 2025.

Outlook and guidance

• Management expects the positive sales trend to continue in the coming months, supported by strong performance in key markets.

• Ongoing monitoring of macroeconomic and regulatory developments, including EU tobacco directives and interest rate environment.