MEKO (MEKO) CMD 2025 summary

Market environment and challenges

• Slower growth and decreasing margins in H1, driven by cautious consumer behavior and economic uncertainty across Europe.

• Demand for vehicle services is postponed, with car owners opting for essential repairs and cheaper parts.

• Market fragmentation and price competition intensified, especially from Polish exporters and local players with lower profitability expectations.

• Denmark and Finland faced profitability headwinds, but actions are underway to improve efficiency and cost structure.

Strategic direction and market positioning

• Focus on driving growth and strengthening logistics to maintain leadership in Northern Europe's independent auto aftermarket, with #1 positions in Sweden, Norway, Finland, and Denmark, and a multi-brand strategy maximizing sales across 4,500 workshops.

• Vision centers on enabling mobility for all vehicle technologies and offering logistics of the highest international standard.

• Business model leverages a solid, time-tested industry with constant service demand, handling all vehicle types and technologies.

• Expansion in commercial vehicles and exclusive brands, targeting new growth foundations and increased market share.

• Well-positioned for the EV transition, with over 1,000 workshops certified for high-voltage repairs and learnings from Norway's advanced EV market.

Strategic response and operational initiatives

• Core strategy of efficiency, cost control, and organic growth remains unchanged, with acceleration of cost-saving programs.

• SEK 200 million in savings achieved, with an additional SEK 100 million cost program being implemented, mainly through FTE reductions and warehouse automation.

• Major investments in high-tech, automated warehouses across Denmark, Norway, Finland, and Poland, increasing efficiency, capacity, and delivery speed.

• Logistics upgrades have increased automation by 300%, productivity by 92%, and SKU capacity by 50%, while reducing FTEs by 38%.

• Upgraded logistics network enables faster deliveries, broader assortment, and readiness for third-party partnerships.