"We continue to grow and strengthen the Group's profitability. With an EBITA margin of 15.7%, we are exceeding our long-term financial target - a testament to the strength of our decentralized model and our focus on operational excellence."
First quarter
- Net sales amounted to SEK 596.2 M (571.7), an increase of 4.3 percent. Organic growth was 3.5 percent
- EBITA amounted to SEK 93.6 M (83.7), corresponding to a margin of 15.7 percent (14.6)
- EBIT amounted to SEK 89.9 M (79.5), corresponding to a margin of 15.1 percent (13.9)
- Profit before tax amounted to SEK 71.3 M (67.1)
- Earnings per share amounted to SEK 0.99 (1.05)
- Free cash flow amounted to SEK 50.9 M (-58.2)
Significant events during the quarter
- An earn-out payment of SEK 185 M related to the acquisition of Roper Rhodes was made during the quarter.
| Financial data | Jan-Mar 2025 | Jan-Mar 2024 | R12 Apr-Mar | Jan-Dec 2024 |
| Net Sales, SEK m | 596.2 | 571.7 | 2,208.3 | 2,183.7 |
| EBITDA, SEK m | 111.4 | 99.5 | 386.7 | 374.8 |
| EBITDA Margin, % | 18.7 | 17.4 | 17.5 | 17.2 |
| EBITA, SEK m | 93.6 | 83.7 | 322.1 | 312.2 |
| EBITA Margin, % | 15.7 | 14.6 | 14.6 | 14.3 |
| EBIT, SEK m | 89.9 | 79.5 | 306.6 | 296.2 |
| EBIT Margin, % | 15.1 | 13.9 | 13.9 | 13.6 |
| Net Profit, SEK m | 52.4 | 50.2 | 170.3 | 168.1 |
| Earnings per Share, SEK | 0.99 | 1.05 | 3.21 | 3.25 |
| Free Cash Flow, SEK m | 50.9 | -58.2 | 267.5 | 158.4 |
CEO comments
A strong first quarter with continued improvement in profitability
We begin 2025 with yet another strong quarter, as the Group delivers both increased revenue and improved earnings. Net sales rose to SEK 596 million (572), with EBITA amounting to SEK 94 million (84), corresponding to an EBITA margin of 15.7 percent (14.6). Organic growth was positive during the quarter, reaching 3.5 percent. Taken together, this confirms our continued growth and strengthening profitability - driven by implemented price adjustments and our ongoing focus on product innovation.
Our strong earnings this quarter are driven by solid operational performance across several of our brand companies, combined with continued cost discipline. We're especially pleased to have, for the second quarter in a row, delivered an EBITA margin above our long-term financial target of 15 percent. This clearly shows that our business model - with independent brand companies, decentralized responsibility, and a sharp focus on profitability - is continuing to perform well.
Continued positive development in several brand companies
Roper Rhodes in the UK once again demonstrates strong sales growth and an improved EBITA margin. During the quarter, the agreed earn-out payment of SEK 185 million was settled, underscoring the company's solid performance. Growth has primarily been driven by price adjustments, although higher volumes also had a positive impact.
Thebalux continues its strong journey, with growth in both sales and profitability. Investments in the production facilities in Biddinghuizen and Veghel are progressing according to plan. Efficiency at Biddinghuizen has improved, and delivery times have now returned to normal. In the summer of 2025, new machinery will be installed in Veghel to meet future capacity needs.
Macro Design reports a year-over-year increase in sales and a significant improvement in EBITA margin, driven by greater efficiency and ongoing business development - including the launch of digital sales for spare parts and outlet products.
Cassøe in Denmark shows an improved margin and some sales growth in local currency. Although the market remains cautious, the company has observed signs of increased activity.
Svedbergs in Sweden and Finland continues to be negatively impacted by a weak project market. However, we can see clear results from the cost reductions that have been implemented. Adjusted for restructuring costs of approximately SEK 2.5 million, the result is significantly better than in the first quarter of the previous year.
Strategic focus and operational development
During the quarter, we continued to execute on our long-term strategy, with a focus on growth and profitability. Product development and sales remain key priorities. A central part of this work is improving our service level and accessibility for customers - for example, through digitalization to reduce response times. We are also continuing to strengthen our brand companies through Group-wide collaboration within the framework of our decentralized model.
Science-Based climate target approved by SBTi
Our sustainability efforts have taken another step forward. During the quarter, Svedbergs Group's climate targets were approved by the Science Based Targets initiative (SBTi), confirming that we are aligned with the Paris Agreement and science-based goals. Our ambition is to reach net-zero emissions across the entire value chain by 2050, with interim targets set for 2030. We have also continued our work to provide environmental product declarations and improve data collection in preparation for upcoming ESRS reporting requirements.
Outlook - Well positioned in an uncertain global environment
The geopolitical situation is naturally having an impact. Uncertainty generally dampens the willingness to invest, although the effects on us have so far been manageable. At present, we have no direct exposure to customers or suppliers in the United States, but global uncertainty may affect us indirectly, for example through exchange rates. A weakened dollar reduces our purchasing costs from suppliers who price in USD, which in turn lowers our cost of goods sold over time.
All in all, we remain in a strong position despite global uncertainty. With improved growth, strengthened profitability, and a robust balance sheet, we enter the rest of the year with great confidence and commitment. We believe that the Nordic market will gradually recover, while demand in the UK and the Netherlands remains stable. Our decentralized model and presence across multiple markets continue to be among our greatest strengths.
Contacts
Per-Arne Andersson, CEO: +46 (0)706 38 50 12, per-arne.andersson@svedbergsgroup.com
Ann-Sofie Davidsson, CFO: +46 (0)720 74 10 62, ann-sofie.davidsson@svedbergsgroup.com
About us
Svedbergs Group is a long-term investor in Europe's strongest independent companies that design, manufacture and market sustainable bathroom products and services.
We are growing through organic growth and acquisitions that complement and strengthen our group through new product categories, geographic spread and new knowledge in marketing, innovation and sustainability.
We create value by sharing each company's unique expertise with the rest of the group, and we care about maintaining the entrepreneurial drive and commitment of the companies. We call this cooperation without confusion.
This information is information that Svedbergs Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-29 07:30 CEST.
