Vuxen Group (VUXEN) Q1 24/25 earnings summary

Executive summary

• Net sales increased by 0.9% to 49.2 MSEK compared to the same quarter last year, with EBITDA stable at 3.9 MSEK and an EBITDA margin of 7.9%.

• The company maintained profitability despite challenging retail market conditions in the Nordics and Europe, focusing on direct-to-consumer sales and unique proprietary brands.

• Strategic priorities include platform improvements, reduced marketplace sales, and preparations for key seasonal periods such as Halloween and Christmas.

• Expansion into Germany in the sexual health segment is planned for Q3, aiming to leverage a broad product range and proprietary brands.

Financial highlights

• Net sales for Q1 2024/25 were 49.2 MSEK, up from 48.7 MSEK year-over-year.

• Gross margin was 43.6%, slightly down from 43.8% in the prior year.

• EBITDA was 3.9 MSEK, unchanged from the previous year, with an EBITDA margin of 7.9%.

• EBIT was 2.1 MSEK, with an EBIT margin of 4.2%.

• Net income for the period was 1.8 MSEK, up from 1.7 MSEK year-over-year.

Outlook and guidance

• Management expects a strong Q3 due to seasonal demand, especially during the Christmas period, and is optimistic about gaining new customers.

• Ongoing focus on core business, operational improvements, and gradual geographic expansion underpin a positive outlook.