Increased net sales despite lower volumes on a hesitant market
JULY - SEPTEMBER 2026
- Net sales amounted to SEK 329.1 million (317.4), an increase by 4%. The organic decline was 5%.
- Operating profit amounted to SEK 18.4 million (24.1), a decrease of 24%.
- The operating margin amounted to 5.6% (7.6).
- The profit for the period amounted to SEK 15.1 million (16.5), a decrease of 9%.
- Earnings per share amounted to SEK 0.72 (0.79).
- Cash flow from operating activities amounted to SEK 32.9 million (45.7).
JANUARY - SEPTEMBER 2026
- Net sales amounted to SEK 1 021.3 million (1,105.9), a decrease of 8%. The organic decline was 14%.
- Operating profit amounted to SEK 64.4 million (92.5), a decrease of 30%.
- The operating margin amounted to 6.3% (8.4).
- The profit for the period amounted to SEK 51.5 million (68.4), a decrease of 25%.
- Earnings per share amounted to SEK 2.45 (3.26).
- Cash flow from operating activities amounted to SEK 27.7 million (120.2).
- The net cash amounted to SEK 4.9 million (80.8) at the end of the period, equivalent to 0.0 times (0.5) EBITDA.
Increased net sales, focus on cash flow and volatile raw material prices on a hesitant market concludes the third quarter of 2026.
The market
In the third quarter our net sales increased despite of lower sales volume and increased price competition. The quarter was characterized by volatile raw material prices which resulted in a more cautious approach among our customers. In our perception, measured in volume, market demand during the quarter was lower than in the quarter in comparison quarter.
Demand from construction industry continued to be slow. At the same time we noted a stable demand within some industrial projects, this development could be seen in segment East Europe as well as segment North Europe. Encouragingly we also noted increased activity from some customer groups within the automotive industry. Sales volumes within segment West and South Europe decreased mainly affected by the weaker demand and also by our continued repositioning in the customer portfolio. Despite of the lower volumes, we strengthened our gross margin which confirms that our business plan for the segment is effective.
Raw material prices, which affect both net sales and gross profit, started to decrease during the third quarter but were on a significant higher level than in the comparison quarter. As a result of the slightly weaker demand and volatile raw material prices the price competition towards customers increased.
Focus on cash flow
Net sales increased by 4% during the third quarter compared to the same period previous year, mainly due to higher raw material prices and the acquisition of Aikolon Oy. In addition, a favorable customer and product mix affected positively. Lower sales volumes affected negatively.
The gross margin in the quarter reached 20,6%, which was slightly lower than in the comparison quarter. Lower sales volumes and volatile raw material prices affected negatively while a favorable customer and product mix affected positively.
The operating profit amounted to SEK 18.4 million during the quarter, which is a decrease by 24% compared to the same period previous year. The Group result was impacted by high costs and operational disruptions connected to the consolidation of our operations in Finland and also by a redistribution of production between segments. These activities impact our profit in a short term perspective. Also lower sales volume and higher raw material prices affected the result. The operating margin amounted to 5.6%.
Raw material prices were on a significant higher level in the third quarter than in the comparison quarter which increased our working capital for inventory and accounts receivable. During the quarter we therefore continued to optimize our inventory levels. Our activities contributed to a positive cash flow and at the end of the quarter we had a net cash of SEK 4.9 million.
Outlook
For the last quarter of the year, we see a continued hesitant market and an uncertain development of raw material prices which we partly assess is due to the announced capacity adjustment by the European raw material producers.
After significant prices increases during the first half year, raw material prices slightly decreased in the third quarter. Price increases of raw material were again announced in the beginning of the fourth quarter. Our assesment is that the announced price increases are connected to the communicated capacity adjustments rather than an underlying demand from the market.
Current uncertain market conditions makes the future development hard to predict, even if the demand from some customer groups is stable. In a weaker market the strenght of our diversified customer and product portfolio is particularly important.
Our strong financial position gives us the ability to keep a high investment pace for cost-effectiveness measurements and to ensure the highest product quality. We continue our long term work towards our goals with focus on flexibility to quickly be able to adapt to changed market conditions.
Christian Krichau
President och CEO
For further information, please contact:
Christian Krichau, President and CEO, +46 141-20 38 58
Forward-looking information
Some statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the factors specifically highlighted, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic situation, changes in exchange rates and interest rates, political developments, the impact of competing products and their prices, disruptions in the supply of raw materials.
This information is such information that Arla Plast AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on November 6, 2026 at 8:00 am CET.
About Arla Plast
Arla Plast AB (publ) is a leading manufacturer and supplier of extruded sheets in technical plastics with a wide range of applications areas such as safety products, machine guards, ice hockey rinks, greenhouses, pool covers, sound walls, suitcases, automotive components and other construction-related applications. The company has its headquarters in Borensberg, Sweden, and has today a total of five production facilities in Sweden, the Czech Republic, Spain and Finland as well as a distribution unit in Germany. Arla Plast has a turnover of more than SEK 1,400 million, has approximately 400 employees and delivers to more than 1 200 customers in over 50 countries.
Read more about Arla Plast at www.arlaplastgroup.com.
