MEKO (MEKO) Q3 2025 earnings summary

Executive summary

• Q3 2025 marked a return to 1% organic sales growth after negative growth in the first half, despite ongoing intense competition and price pressure impacting profitability.

• Adjusted EBIT margin improved sequentially from Q2 but declined year-over-year, with profitability under pressure from competition and price wars.

• Ongoing cost-saving initiatives include workforce reductions, with over 500 fewer full-time employees expected by end of Q4 and 140 layoffs in Q3.

• Major logistics upgrades with new automated central warehouses operational across the Nordics, expected to drive long-term efficiency.

• Strategic focus on e-commerce expansion and new private label brand launches in multiple markets.

Financial highlights

• Net sales for Q3 2025 were SEK 4,432 million, up 1% year-over-year; EBIT was SEK 145 million, down 58% due to SEK -71 million in items affecting comparability.

• Adjusted EBIT for Q3 was SEK 217 million, a 33% decrease year-over-year, with a margin of 4.8%.

• Cash flow from operating activities improved to SEK 428 million in Q3, mainly due to working capital optimization.

• Leverage increased from 2.7 in Q2 to 3.6 in Q3, driven by lower EBITDA and negative items affecting comparability.

• Earnings per share dropped to SEK 0.10 from SEK 4.03 in Q3 2024.

Outlook and guidance

• Market conditions expected to remain challenging, with no significant improvement in demand anticipated in the near term.

• Cost-saving and efficiency measures to continue, with further benefits expected as warehouse projects conclude and full effect of layoffs realized in 2026.

• No major CapEx increases or new investments foreseen for 2026; focus on optimizing inventories post-warehouse project.