MEKO (MEKO) investor relations material

Executive summary

• Adjusted operating margin and cash flow improved, with leverage reduced to 3.6x, reflecting effective efficiency measures and cost controls.

• Net sales saw slight organic growth of 1%, but overall declined 3% year-over-year due to negative currency effects and postponed non-essential repairs.

• EBIT increased to SEK 173 million (up 7% year-over-year), while adjusted EBIT declined to SEK 200 million due to margin pressures and mix effects.

• Leadership changes and management team expansion in Norway and Denmark aim to support operational improvements.

• Additional cost reductions, especially in Poland, include a 10% workforce reduction and targeted efficiency programs.

Financial highlights

• Net sales for Q1 2026 were SEK 4,441 million, with rolling 12M net sales at SEK 17,893 million.

• Adjusted EBIT margin was 4.4%, down from 4.9% year-over-year; EBIT margin improved to 3.8%.

• Earnings per share rose 17% to SEK 1.00.

• Operating cash flow was strong at SEK 441 million, aided by inventory reductions and supplier bonus collections.

• Investments in fixed assets sharply reduced to SEK 167 million from SEK 1,527 million.

Outlook and guidance

• Ambition to achieve profitability in both Finland and Poland by year-end, with Finland nearing breakeven.

• Further cost reductions and efficiency measures are being implemented, especially in Poland.

• Focus remains on organic growth, own-brand expansion, and e-commerce.

• Target to reduce net debt/EBITDA to within the 2.0–3.0 range over time.

• Management expects to resolve supply-driven sales issues in Sørensen og Balchen by Q2.