Zinzino (ZZ) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record growth with 27% revenue increase year-over-year, reaching SEK 922.1 million, and net profit exceeding SEK 100 million, slightly exceeding expectations.

• Strong profitability was driven by economies of scale, successful integration of acquisitions, and effective cost control.

• Investments were made in inventory, new markets, technology, product development, and several acquisitions.

• Expansion in North America and Central Europe, through both organic growth and acquisitions, is a strategic focus.

• Management remains optimistic about continued growth and profitability for the remainder of the year.

Financial highlights

• Total revenue: SEK 922.1 million, up 27% year-over-year; local currency growth was 37%.

• Gross margin reached 37%, the highest since 2023, with gross profit at SEK 341.5 million.

• EBITDA: SEK 142.3 million (margin 15.4%); net profit: SEK 104.5 million.

• Margins and profits increased more than revenue, with profitability above historical Q1 levels.

• Cash flow from operating activities: SEK 125.6 million.

Outlook and guidance

• Management expects to maintain growth above 20% and EBITDA above 11% for the year, targeting at least 20% annual sales growth through 2028.

• Dividend policy: at least 50% of net earnings, with a proposed dividend for 2025 of SEK 6.00 per share, a 50% increase.

• Guidance for It Works! revenue is above $45 million, though the original $60 million target may be challenging.