Zinzino (ZZ) Q2 2025 earnings summary

Executive summary

• Achieved 57% year-over-year revenue growth in Q2 2025 to SEK 794.4 million, with strong profitability and performance above plan for the first half.

• Growth supported by new market launches (China, Philippines), tech investments, product development, and multiple strategic acquisitions (Zurvita, Valentus Global, Ecosystem SAS).

• Strong sales growth across most regions, especially APAC (+545%), North America (+204%), and Central Europe (+60%) in Q2.

Financial highlights

• Q2 2025 gross profit: SEK 247.9 million (31.2% margin), EBITDA: SEK 79.7 million (10.0% margin), net earnings: SEK 55.4 million (7.0% margin).

• Reported 57% total growth despite currency headwinds, with approximately 47% organic growth.

• Cash flow from operating activities in H1: SEK 133.7 million; cash and equivalents at period end: SEK 408.5 million.

• Cash flow remains strong, with 96% of business prepaid before delivery, supporting liquidity.

• Operating expenses increased by roughly 50% year-over-year, partly due to investments and one-off or time-limited costs.

Outlook and guidance

• Targeting average sales growth of at least 20% and EBITDA margin above 10% for 2025–2027.

• CEO expects around 50% sales growth for full-year 2025, driven by ongoing expansion and acquisitions.

• Confident in reaching the 10% margin target for the year.

• Ambition to reach 20 million customers by 2035 and 100 million by 2050, balancing growth and profitability.

• Dividend policy: at least 50% of net earnings, subject to liquidity and equity ratio.