MEKO (MEKO) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a market slowdown and lower demand across all regions, with intensified competition, especially in Denmark and Poland.

• Revenue declined 4% to SEK 4,508M, with organic growth at -5% and negative FX impact of 3%.

• New cost-saving program targeting SEK 100 million in annual savings launched, with full effect in 2026.

• Strategic investments in logistics, automated warehouses, and ERP systems are nearing completion to drive future efficiency and growth.

• Sustainability strategy advanced with SBTi approval of climate targets, aiming for net zero emissions by 2050.

Financial highlights

• Q2 2025 net sales were SEK 4,508m, down 4% year-over-year, with organic growth at -5%.

• Adjusted EBIT dropped 51% to SEK 175m, with margin at 3.8% (7.5%); reported EBIT fell 68% to SEK 91m.

• Cash flow from operations was SEK 498m, absorbing inventory buildup for the new Norway warehouse.

• Gross margin declined to 41.8% from 42.9%, mainly due to price competition and mix effects.

• Net debt at SEK 2,861m, leverage ratio at 2.7x, within target range.

Outlook and guidance

• Market conditions remain subdued with no immediate signs of improvement; cost-saving measures prioritized over expectations of market recovery.

• Full benefits from cost reductions and efficiency projects expected from 2026 onward.

• Ongoing focus on exclusive brands, logistics upgrades, and commercial vehicle segment to support future profitability.

• CapEx expected to normalize as major projects conclude.