Operational efficiencies continue to drive profitability improvements
Second Quarter
- Net sales amounted to 212.5 MSEK (212.0)
- Adjusted operating profit increased to 0.2 MSEK (-13.6)
- Order intake amounted to 241.3 MSEK (241.1)
- Order backlog increased by 44.2 MSEK to 233.7 MSEK (189.5)
Comments from CEO Susanna Hilleskog
Continued steady development in 2025
2025 has continued in line with developments in the first quarter. Order intake was at the same level as in Q2 2024, and the order backlog at the end of the period was 23 percent higher. The backlog stretches across a longer time frame than usual and is expected to contribute to sales in both the third and fourth quarters of 2025. Group-level sales were in line with the previous year. The adjusted gross margin increased by 3.3 percent to 37.2 percent, as a result of several margin-enhancing initiatives. Adjusted operating profit improved by 13.8 MSEK to 0.2 MSEK.
At the business area level, Library Interiors continues to deliver steady sales, higher order intake, and improved profitability during the period. Sales in Office Interiors remained steady compared to the previous year, while order intake was somewhat lower due to sustained subdued market conditions. At the same time, the business area delivered a significant year-on-year improvement in operating profit in the second quarter.
A more efficient organization with improved cost control and coordination
The continued improvement in earnings confirms that we are becoming a more efficient organization with better cost control. At the same time, we are advancing our efforts focused on coordination and synergy realization. The action program launched at the end of 2024 is beginning to show results, and we maintain our assessment that the majority of its effects will be realized towards the end of 2025.
Investments in brand exposure and networking
In line with seasonal patterns, marketing-related expenses were higher in the second quarter - this year being no exception. We participated in several prominent international trade fairs, including Salone del Mobile (Milan), Trends & Traditions (Copenhagen), Clerkenwell Design Week (London), 3daysofdesign (Copenhagen), Libraries Connected (Warwick), ABF - Montreuil (Paris), and Bibliothekskongress (Bremen). These events provide not only valuable exposure, but also new perspectives, networks, and inspiration.
Our internal transformation journey continues
As part of our action program, efforts continue within Office Interiors to establish a more focused, efficient, and profitable structure through the coordination of the sales organization and group-wide functions. We see significant opportunities to realize the potential of the new structure. We believe in a gradual transition - where customer focus and employee engagement are key success factors.
New go-to-market strategy showing positive results
Since the beginning of the year, we have been gradually transitioning to a new go-to-market model, giving sales teams access to the full brand portfolio at the country level. Norway was the first market to implement the model, with the aim of achieving more effective market coverage for our Office Interiors brands, along with growth and improved customer dialogue.
Following extensive product training, knowledge sharing, and infrastructure development in the first quarter, we saw clear positive effects from the new strategy in the Norwegian market during the second quarter - in the form of increased lead generation, higher order intake, and greater sales. I am very pleased with the enthusiasm, dedication, and entrepreneurial mindset shown by our Norwegian sales team. We now look forward to adding further sales resources in Norway after the summer to seize even more opportunities.
The positive results in Norway serve as guidance for the continued implementation now underway in Sweden and Denmark. This is an important step toward strengthening long-term profitability and creating sustainable growth within the business area.
New showroom concept - from products to solutions
During the 3daysofdesign festival in Copenhagen, we took the next step in our go-to-market strategy by launching our new showroom concept. Under the theme "The Way We Work", our brands - Abstracta, Fora Form, Lammhults, and Ragnars - demonstrated how we are shifting from showcasing individual products to presenting integrated solutions for the workplaces of tomorrow. The showroom now offers an immersive experience - where design, functionality, and customer value come together.
Fresh start for the group's presence in Stockholm
This spring, we prepared for an exciting relaunch of our showroom in Stockholm. The move will take us to a strategically located space with improved visibility and allows for a more effective presentation of the Group's combined offering. The new showroom will open after the summer, and we look forward to welcoming both customers and partners.
Investments in design, product & portfolio development
During the quarter, we initiated a strategic collaboration with the internationally renowned design studio Note. Cristiano Pigazzini has been engaged as Senior Creative Advisor to help us further develop the Group's design strategy. This is a key step in our ambition to shape the workplaces and meeting spaces of the future-with solutions that enrich, engage, and inspire.
In parallel, we are strengthening our internal resources within product and portfolio development, as part of our coordination efforts. We are pleased to welcome Gunilla Wåxnäs as Head of Product & Portfolio Development for Office Interiors, starting August 2025. Gunilla brings broad experience in portfolio strategy, change management, and brand development.
With these combined initiatives, we are laying a strong foundation for the Group's next phase - where commercial focus, creativity, and customer value go hand in hand.
New website marks the start of a brand evolution
The Group has launched a new website - www.lammhultsdesigngroup.com - marking the beginning of a new phase in our brand journey: "Scandinavian design. Multiplied." The message is that Lammhults Design Group not only unites strong brands but, also creates value greater than the sum of the parts. Through close collaboration, digital tools, and deep expertise, we make it easy to bring visions to life - offering complete solutions, flexible processes, and personalized guidance.
Digitalization with customer value in focus
Our digital transformation continues with customer value in focus. During the quarter, Office Interiors launched a new training portal, and Library Interiors implemented a new ERP system. The Lammhults product portfolio is now available via the digital tool pCon, making it easier for partners to design and present interior solutions.
Focus on profitability and internal efficiency during a time of global uncertainty
The global environment remains turbulent and fast-changing. The continued uncertainty is affecting customer decision-making, and the market remains generally hesitant. We are investing significant resources to ensure we are well-positioned when market conditions improve, with continued focus on activities that drive growth and support our financial target of an EBIT margin of 8-10 percent.
Despite a challenging first half - characterized by internal transitions and a weak market - we have demonstrated resilience, adaptability, and forward momentum. A heartfelt thank you to all employees for your contributions. We look forward to continuing this journey together.
Invitation to Report Presentation
Today at 14:00 CEST, the report will be presented in a live webcast by CEO Susanna Hilleskog and CFO Jesper Langebro for the press and the financial market. The presentation will be held in Swedish. To access the presentation, please use the link below. The webcast includes the opportunity to submit written questions.
https://lammhults-design-group.events.inderes.com/q2-report-2025
For further information, please contact:
Susanna Hilleskog, CEO and President, tel. +46 (0) 709 55 13 37
Jesper Langebro, CFO, tel. +46 (0) 708 63 70 30
About Lammhults Design Group
Lammhults Design Group is a Swedish furniture group specializing in interiors for public spaces and office environments. The business is organized into two business areas: Office Interiors and Library Interiors. The Group generates profitable growth through long-term ownership of furniture and interior design companies. Built on customer insight, innovation, design excellence, and sustainability, we bring together some of Scandinavia's leading brands in collaboration with top industry designers. The company is listed on Nasdaq Stockholm Small Cap.
Please note that the full report is published in Swedish only.
This information is information that Lammhults Design Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 13:00 CEST on 11 July 2025.
