Kjell Group (KJELL) Q2 2026 earnings summary

Executive summary

• Net sales grew 8.4% year-over-year in Q2 2026, reversing a negative trend and showing improved profitability, with growth in Sweden and Norway and a return to growth for AV-Cables in June.

• Gross margin increased to 43.3% in Q2, driven by renegotiated supplier agreements and a favorable assortment mix.

• Customer engagement and active customer base increased, supported by improved inventory and CRM initiatives.

• The quarter included one-off costs related to restructuring, warehouse relocation, and incentive programs, impacting operating profit.

• Inventory management improvements and more effective campaigns contributed to sales and margin gains.

Financial highlights

• Q2 2026 net sales reached SEK 574.3m (up from SEK 529.7m); gross profit: SEK 248.5m (up from SEK 223.7m); net sales growth was 8.4% year-over-year.

• Gross margin improved by 1.1 percentage points to 43.3%.

• Adjusted EBITA turned positive at SEK 5.1m (from -9.2m), with a margin of 0.9% (from -1.7%).

• Net profit was SEK -12.6m (Q2 2025: SEK -20.9m); basic EPS: SEK -0.13.

• Cash flow from operating activities improved to SEK -28.7m (Q2 2025: SEK -136.1m).

Outlook and guidance

• Management targets net sales growth above 5% and an adjusted EBITA margin of 6–8%.

• Transformation is ongoing, with further improvements in customer experience, efficiency, and warehouse productivity targeted.

• Preparations underway for Q4 readiness, technical infrastructure updates, and an ERP upgrade planned for H1 2027.

• Net debt to adjusted EBITDA (excl. IFRS 16) is targeted below 2x; dividend policy aims for at least 60% of earnings per share after tax.