MEKO (MEKO) Q1 2025 earnings summary

Executive summary

• Net sales rose 6% year-over-year to SEK 4,562 million, mainly due to the Elit Polska acquisition, while organic growth was -1%.

• EBIT increased to SEK 161 million (146), with an EBIT margin of 3.4% (3.3%). Adjusted EBIT was SEK 231 million (224), margin 4.9% (5.1%).

• Gross margin remained stable, supported by price adjustments and improved procurement.

• Strategic initiatives included expansion in the tire segment, commercial vehicles, and electric vehicle partnerships.

• Cash flow from operating activities was SEK -122 million (285), mainly due to increased working capital.

Financial highlights

• Net sales for Q1 2025 were SEK 4,562 million, up 6% from SEK 4,320 million in Q1 2024.

• Operating profit (EBIT) rose 10% to SEK 161 million; adjusted EBIT up 3% to SEK 231 million.

• Gross margin held steady at 42.8% (42.9%) as price increases offset lower-margin volumes from Elit Polska.

• Investments in fixed assets totaled SEK 1,527 million (177), mainly for new central warehouses and automation.

• Earnings per share decreased 8% to SEK 0.85.

Outlook and guidance

• Focus remains on long-term profitability via efficiency, synergies, and growth, with logistics upgrades planned for 2025.

• Targeting over 30% increase in tire sales by end of 2026 through a strategic partnership with Goodyear.

• ERP system rollout in Poland and warehouse automation in Finland expected to drive future synergies.

• Further margin-raising measures and cost reductions are planned in response to economic turbulence.

• Currency effects on gross margin will be realized with a delay of 4–6 months.