Matas (MATAS) Q1 25/26 earnings summary

Executive summary

• Achieved 6.0% year-over-year revenue growth to DKK 2,074 million in Q1 2025/26, with currency neutral growth at 4.7%.

• Free cash flow surged to DKK 371 million, reflecting improved working capital and normalized investments.

• Operational excellence, automation investments, and synergy realization are driving margin improvement and cash generation.

• Membership base surpassed six million, supporting competitive positioning and customer engagement.

• Refinancing completed on competitive terms, providing increased financial headroom; share buyback program launched.

Financial highlights

• Group revenue reached DKK 2,074 million in Q1 2025/26, with 4.7% currency neutral growth year-over-year.

• EBITDA before special items rose to DKK 302 million, up 2.8% year-over-year, with margin at 14.5%.

• Gross margin was 46.0%, slightly down from 46.2% currency neutral last year, impacted by SEK strength and Skincity closure.

• Free cash flow improved significantly, supporting deleveraging and growth investments.

• Gearing reduced to 3.0x NIBD/LTM EBITDA, with long-term target unchanged at 2.0x–3.0x.

Outlook and guidance

• Maintains FY 2025/26 guidance: revenue growth of 3–7% currency neutral (3.9%–7.9% excluding Skincity), EBITDA margin before special items around 15%.

• Investments (excluding M&A) expected at 3–4% of revenue, about DKK 330 million.

• Special items expected at DKK 40 million for the year, with DKK 5 million in Q1 and the remainder backloaded.

• Long-term guidance and strategic priorities remain unchanged.