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.

• Operating as market leader in eight countries, with 600 branches and 20,000 workshop customers, including 4,500 under own brands.

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

Strategic Response and Growth Initiatives

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

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

• Expanding exclusive brands, commercial vehicles, and e-commerce, with exclusive brands consolidated into four key labels targeting SEK 1.8 billion turnover in 2025 and SEK 3 billion by 2028.

• Launching a comprehensive growth plan for the commercial vehicles segment, including heavy trucks and buses, targeting growth from SEK 0.3 billion to SEK 1.3 billion by 2028.

• E-commerce platform Mekster expanding to Finland and Denmark, capitalizing on increased demand for online sales and offering a broader range of spare parts for price-sensitive customers.