RugVista Group (RUG) Q1 2025 earnings summary

Executive summary

• Net revenue grew 12% year-over-year to SEK 197 million, with organic growth at 12.3% and strong order growth to 96.6K; new customers reached a Q1 record of 69.3K.

• EBIT increased 36.2% to SEK 27.2 million (13.8% margin), and profit for the period rose to SEK 22.2 million.

• Average order value decreased by 3.1% to SEK 2,864, reflecting some price sensitivity.

• Growth was driven by consistent order increases, successful marketing campaigns, and a focus on outdoor and handmade rugs.

• Customer satisfaction remained high, with a Trustpilot score of 4.7.

Financial highlights

• Gross margin improved to 64.0% from 61.6% year-over-year, attributed to lower freight rates and product cost improvements.

• EBIT margin increased to 13.8%, up 2.5 points year-over-year.

• Marketing spend as a percentage of revenue decreased to 29.0% from 30.5%.

• Cash position remains strong at SEK 222.1 million.

• Inventory value at SEK 132 million, at the lower end of the target range (17.5–22.5% of LTM net revenue).

Outlook and guidance

• Inventory is intentionally kept low ahead of a major warehouse move, with plans to ramp up before the high season.

• Continued investments in automation, new facilities, and e-commerce platform, with SEK 55–60 million planned and SEK 12 million invested in the last six months.

• Dividend payment of SEK 1.25 per share (SEK 26.0 million) proposed for Q2, pending AGM approval.

• No current plans for M&A; focus remains on organic growth and internal initiatives.

• Management expects continued market uncertainty but remains confident in ongoing investments in customer acquisition, assortment, pricing, and cost control.