Nilörngruppen (NIL) Q1 2025 earnings summary

Executive summary

• Order intake rose 15% year-over-year to MSEK 267, with revenue up 7% to MSEK 259, driven by a strong rebound in the outdoor segment and growth across client segments, especially in Sweden and Asia.

• Operating profit increased slightly to SEK 23 million, with gross margin improving to 44.8% due to lower purchasing prices and reduced share of lower-margin packaging products.

• Net profit for the period was MSEK 15.8 (16.7), and EPS was SEK 1.38 (1.46).

• Board proposes a dividend of SEK 1.5 per share (up from 1.0), totaling MSEK 17.1.

• Nilörn:CONNECT digital solution is gaining traction as a sales tool and compliance enabler.

Financial highlights

• Revenue adjusted for currency effects was MSEK 260, reflecting a 7% organic increase.

• Operating margin was 8.9% (10% adjusted for SEK 3 million currency effect).

• Net cash position improved to SEK 40 million (MSEK 39.7), reflecting strong liquidity.

• Gross profit reached MSEK 115.7 (104.7), with gross margin at 44.8% (43.2%).

• Cash flow from operating activities was negative at MSEK -4.1, mainly due to working capital changes.

Outlook and guidance

• Long-term operating margin target remains 10-12%.

• Sales growth target is above 7% annually, with a focus on maintaining a healthy balance sheet.

• Market conditions remain uncertain due to geopolitical tensions and global economic concerns, with indirect exposure to US tariffs.

• Investments continue in Bangladesh (new factory by Q4 2026) and Portugal (capacity expansion, LEAN production).

• Board proposes a dividend of SEK 1.5 per share.