Orthex (ORTHEX) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 decreased by 3.5% to EUR 41.5 million, with Q2 net sales down 2.3% to EUR 20.5 million; profitability improved in Q2 with adjusted EBITA margin rising to 8.4% from 7.4% year-over-year.

• Strong sales growth of 22.1% in Rest of Europe offset by a 7.4%–7.6% decline in the Nordics in Q2, as consumer caution persisted.

• Adjusted EBITA for H1 2025 was EUR 3.4 million, down from EUR 4.3 million in H1 2024, with an adjusted EBITA margin of 8.3%.

• Cash flows from operating activities for H1 2025 were EUR 3.9 million, up from EUR 3.7 million in H1 2024; Q2 cash flow was slightly negative at just below EUR -0.8 million.

• Sustainability initiatives advanced, including joining the UN Global Compact and launching new products with renewable materials.

Financial highlights

• H1 2025 net sales: EUR 41.5 million (down 3.5% YoY); Q2 net sales: EUR 20.5 million (down 2.3% YoY).

• Adjusted EBITDA for H1: EUR 5.8 million (down from EUR 6.5 million YoY); Q2: EUR 2.9 million (up from EUR 2.6 million YoY).

• Adjusted EBITA for H1: EUR 3.4 million (down from EUR 4.3 million YoY); Q2: EUR 1.7 million (up from EUR 1.6 million YoY).

• Gross margin Q2: 28.1% (up from 27.0% YoY); H1: 27.9% (down from 28.7% YoY).

• Net debt at period end: EUR 20 million; leverage ratio at 1.4x; equity ratio at 42.6% (up from 39.8% YoY).

Outlook and guidance

• Market conditions remain challenging in the Nordics, but international growth is expected to continue through distribution expansion and product innovation.

• Long-term targets: annual organic net sales growth >5% (group) and >10% (outside Nordics), adjusted EBITA margin >18%, leverage <2.5x, and pay-out ratio >50%.

• Commercial strategy update planned to strengthen European market position.

• Investment focus will remain on product novelties and factory safety improvements.