Wonderful Times Group (WTG) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was 17.8 MSEK, down 1% year-over-year amid a challenging market for toys and baby products.

• EBITDA fell to -0.6 MSEK from 0.5 MSEK, mainly due to increased costs, partly one-off, following the Amvina acquisition.

• Cash flow from operations was -3.0 MSEK, compared to 3.8 MSEK in Q1 2024.

• Net result after tax was -0.5 MSEK, down from 0.4 MSEK in the prior year.

• Amvina contributed to sales, with expectations for a larger impact in coming quarters; Q2 sales are up about 20% so far.

Financial highlights

• Gross margin remained stable at 37% year-over-year.

• Earnings per share were -0.11 SEK, compared to 0.09 SEK in Q1 2024.

• Equity per share was 12.45 SEK at quarter-end.

• Liquidity, including unused credit, was 13.9 MSEK at March 31, 2025.

• Räntebärande nettotillgångar (net interest-bearing assets) were 1.4 MSEK, down from 10.1 MSEK year-over-year.

Outlook and guidance

• Q2 2025 sales are up approximately 20% so far, with hopes for 2025 to be a growth year despite market headwinds.

• Long-term financial targets: 10% average annual sales growth, EBITDA margin of at least 10%, and equity ratio of at least 40%.

• Dividend policy: 30–70% of profit after tax, considering liquidity.