Rusta (RUSTA) Q1 24/25 earnings summary

Executive summary

• Net sales grew 3.7% year-over-year to SEK 3,069 million, with all markets and segments contributing despite a challenging consumer environment and strong comparables.

• Like-for-like sales increased by 0.5%, while profitability improved as EBITA rose 17.6% to SEK 351 million and gross margin reached 43.8%.

• Club Rusta loyalty program membership grew by nearly 14% to over 5.8 million, reflecting strong customer engagement.

• Store network expanded, with one new store opened in Norway during the quarter and a robust pipeline of 35 new stores agreed for future openings.

• All geographic segments and online channel delivered net sales and profitability growth in Q1 2024/25.

Financial highlights

• Gross profit increased by 6.2% to SEK 1,343 million, with gross margin improving to 43.8% from 42.7% year-over-year.

• Adjusted EBITA margin reached 11.4%, up from 10.1% in Q1 2023/24, with no adjustments made this quarter.

• Net profit for the quarter was SEK 231 million, up from SEK 189 million year-over-year; EPS after dilution was SEK 1.5 (1.2).

• Net cash position at quarter-end was SEK 458 million, a 33% increase from last year; net debt excl. IFRS 16 was SEK -458 million.

• Cash flow from operating activities was SEK 606 million, down from SEK 764 million, mainly due to higher inventory purchases.

Outlook and guidance

• Focus remains on price leadership and margin growth, with continued investment in low prices and campaigns to attract value-conscious consumers.

• Store pipeline supports guidance toward the higher end of 40–60 new stores over the coming years, with 35 locations already approved or signed.

• Medium-term targets: 8% annual organic net sales growth, LFL growth above 3%, and EBITA margin around 8%.

• Gross margin guidance of 44–45% reaffirmed, with current performance approaching this range.

• Sales growth expected to benefit from a larger customer base and new store openings as the economy improves.