Arla Plast (ARPL) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales decreased 19% year-over-year to 317.4 MSEK, mainly due to lower demand, price competition, and raw material prices, especially in Spain.

• Operating profit for Q3 fell 25% to 24.1 MSEK, with a margin of 7.6%.

• Cash flow from operations was strong at 45.7 MSEK in Q3, aided by reduced working capital and lower seasonal inventory build-up.

• The acquisition of Aikolon Oy in October broadened the product and customer portfolio, expected to positively impact Q4.

• Demand for high optical products remained strong despite supply chain disruptions.

Financial highlights

• Q3 2025 group net sales were 317.4 MSEK, down 19% year-over-year; operating profit was 24.1 MSEK, down 25%.

• Q3 net income was 16.5 MSEK, down 36%; EPS was 0.79 SEK (down from 1.24 SEK).

• Q3 gross margin improved to 21.5% (from 20.0%).

• EBITDA for Q3 was 38.1 MSEK (down 14%).

• Net cash position at period end was 80.8 MSEK, compared to net debt in Q3 2024.

Outlook and guidance

• Net sales expected to remain pressured by re-positioning in Spain, lower volumes, and raw material prices.

• Continued high demand for optical products, but supply chain disruptions persist.

• Ongoing investments in production efficiency and quality are planned in Sweden and the Czech Republic.

• Focus on sales expansion, customer segmentation, and operational improvements in Spain, Czech Republic, and Sweden.

• Acquisition of Aikolon Oy is expected to strengthen the value chain and enable further product development.