OrganoClick (ORGC) Q2 2025 earnings summary

Executive summary

• Net sales declined 22.7% year-over-year in Q2 2025 to SEK 29.96 million, with EBIT at SEK -4.71 million and EPS at SEK -0.06.

• Sales were impacted mainly by a sharp drop in the Functional Wood segment and price competition in Nonwoven & Fiber Technologies.

• New funding secured: SEK 10 million shareholder loan and a proposed SEK 20 million rights issue, fully guaranteed by major shareholders.

• Strategic initiatives include cost-saving programs, new partnerships, and product launches to drive future growth.

Financial highlights

• Q2 2025 net sales: SEK 29,962k (Q2 2024: SEK 38,746k), revenue growth -22.7% (Q2 2024: -5.6%).

• EBIT for Q2: SEK -4,712k (Q2 2024: SEK -133k); H1 EBIT: SEK -6,813k (H1 2024: SEK 20k).

• Gross margin Q2: 21.6% (Q2 2024: 29.1%); H1: 23.6% (H1 2024: 29.2%).

• Cash flow from operating activities Q2: SEK 7,718k (Q2 2024: SEK 10,973k); H1: SEK -2,782k (H1 2024: SEK 554k).

• Net loss for Q2: SEK -6,413k (Q2 2024: SEK -1,747k); H1: SEK -9,967k (H1 2024: SEK -3,270k).

Outlook and guidance

• Focus on accelerating growth through new product launches, international expansion, and strategic collaborations.

• Cost-saving measures and out-licensing in Functional Wood to restore profitability.

• Rights issue and loan provide financial flexibility for growth initiatives.