Rusta (RUSTA) Q2 24/25 earnings summary

Executive summary

• Net sales grew 3.1% in Q2 to MSEK 2,723, with growth of 5.1% excluding negative currency effects; like-for-like growth in local currencies was 0.8%.

• Gross margin improved to 43.9% from 43.6% year-over-year, despite price reductions and currency headwinds.

• Five new stores opened in Q2, expanding the network to 218-219 locations, with a record pipeline of 38 new stores.

• Club Rusta loyalty program surpassed six million members, up 13.2% in Q2, driving increased store footfall.

• Store expansion guidance was raised to 50-80 new stores over the next three years, up from 40-60.

Financial highlights

• Gross profit increased 3.6% in Q2, supported by improved purchase prices; gross profit for Q2 was MSEK 1,195.

• EBITA/EBITDA margin for Q2 was 4.9% (EBITDA 4%), with H1 margin at 8.4%.

• Net debt (excl. IFRS 16) decreased to SEK 18 million, with net debt/EBITDA at 0.02x.

• OPEX as a share of sales decreased by 0.1 percentage points, reflecting scalability.

• Cash flow from investment activities was -SEK 180 million to -MSEK 118, mainly due to warehouse optimization and new stores.

Outlook and guidance

• Store opening guidance raised to 50-80 stores over the next three years, with 38 signed approved locations and 180 prioritized sites.

• Like-for-like growth for the full year expected around 3%.

• Gross margin expected to stabilize at the lower end of the 44%-45% range.

• Positive signals from interest rate cuts and lower inflation expected to improve consumer sentiment.

• Christmas sales started well, with expectations for a strong December.