Rusta (RUSTA) Q1 25/26 earnings summary

Executive summary

• Net sales grew 3.4% year-over-year to MSEK 3,174, with 6% growth excluding currency effects and 1.2% like-for-like growth excluding currency effects.

• Gross margin was 42.6%, with EBITDA/EBITA margin at 8.8%, down from last year due to currency headwinds and a weak Finnish market.

• Sweden and Norway showed strong growth and customer demand, while Finland underperformed due to cautious consumer behavior and macroeconomic headwinds.

• Store network expanded to 227 stores, with a record pipeline of 47 new locations and guidance towards the upper end of 50–80 new stores over three years.

• Major projects, including rapid store concept renewal and distribution center automation, are progressing on schedule.

Financial highlights

• Net sales: MSEK 3,174 (+3.4% y/y), with 6.0% growth excluding currency effects and 1.2% like-for-like growth excluding currency effects.

• Gross profit increased 0.6% year-over-year to MSEK 1,350; gross margin declined by 1.2 percentage points to 42.6% due to negative currency effects.

• EBITDA/EBITA margin was 8.8%, down from last year, mainly due to currency headwinds and absence of prior year IT attack compensation.

• Net profit for the quarter was MSEK 174, down from 231, and EPS before dilution was SEK 1.1 (1.5).

• Cash flow from operating activities decreased to MSEK 472, mainly due to earlier deliveries and payments.

Outlook and guidance

• FX headwinds peaked in Q1; positive currency effects expected in the second half of the financial year.

• Gross margin expected to improve in Q2 and beyond as positive FX and sourcing effects materialize.

• Store expansion to continue, with guidance towards the upper end of 50–80 new stores over three years and 17–19 new stores expected this year.

• LFL sales expected to rise 1.5–2.0% annually from store concept upgrades.

• Financial targets: 8% annual organic net sales growth, LFL growth above 3%, EBITA margin around 8%.