Röko (RÖKO) Q2 2025 earnings summary

Executive summary

• EBITDA and adjusted EBITA grew 11% year-to-date, driven by acquisitions and organic growth, despite negative FX effects.

• Net sales increased 6% year-to-date to MSEK 3,259, with 3% organic growth in local currency; FX headwinds impacted results.

• Free cash flow declined 9% year-to-date, mainly due to IPO transaction costs; adjusted decline was 2%.

• Completed IPO in March 2025, with SEK 41 million in related costs impacting cash flow and profits.

• One acquisition (Topa Bathroom Products) completed, expanding Benelux presence and adding MSEK 227 in annual sales.

Financial highlights

• EBITDA/EBITA margin reached 22% in H1 2025, up from 20% full-year 2024, reflecting margin improvements and accretive acquisitions.

• Net profit for H1 2025 was MSEK 406, up from MSEK 383 in H1 2024.

• Return on capital employed improved to 14.1% from 13.5% in H1 last year.

• Cash conversion was 67% (73% adjusted for IPO costs) year-to-date.

• Number of employees increased 6% to 1,550 at period end.

Outlook and guidance

• Acquisition pipeline is more active in 2025, with qualitative opportunities improving versus prior years.

• No specific guidance on M&A volume, but optimism about increased activity in H2.

• Most companies expected to raise prices in H2 2025 to offset trade tariffs.

• Cash conversion expected to remain stable, with no significant deviation anticipated.

• Management highlights robust cash generation and profit growth as key strengths.