RVRC (RVRC) Q1 24/25 earnings summary

Executive summary

• Net sales grew 3% year-over-year to SEK 350 million, with 5% growth in local currencies, outperforming a market that declined over 10% in many countries.

• Growth was driven by strong performance outside the Nordics, with Rest of World up 11% and DACH up 8% in local currencies, while the Nordics declined 4% due to weak Finnish demand.

• 75% of net sales were generated outside the Nordics, with particularly strong growth in the UK, Austria, Poland, and Rest of World.

• The company continues to gain market share, supported by a digital D2C model, high customer satisfaction, and over 660,000 product reviews with a record high 4.6/5 rating.

• Ended the quarter with a net cash position of SEK 131 million and an undrawn SEK 600 million credit facility.

Financial highlights

• Gross profit was SEK 245 million, with a gross margin of 70.0% (down from 72.2% YoY) due to higher price reductions and currency effects.

• EBIT was SEK 57 million, with an EBIT margin of 16.3% (down from 19.5% YoY); adjusted EBIT margin for the last 12 months was 20.5%.

• Cash flow from operating activities was negative SEK 82 million, mainly due to seasonal inventory build-up and changes in working capital.

• Inventory at quarter end was SEK 577 million, with SEK 447 million in warehouse.

• Earnings per share was SEK 0.40 (down from SEK 0.47 YoY).

Outlook and guidance

• October sales growth slightly exceeded the first quarter's growth rate, indicating a positive start to the seasonally strong second quarter.

• Management remains confident in long-term growth targets, citing continued market share gains and new financial targets of 20% annual growth and 20% adjusted EBIT margin through 2026/27.

• Focus remains on international expansion, product development, and capitalizing on e-commerce trends.

• No formal forecast provided.