Desenio Group (DSNO) Q1 2025 earnings summary

Executive summary

• Net sales declined by 10% year-over-year to SEK 206 million amid continued weak market conditions across all regions.

• Adjusted EBITA/EBITDA increased to SEK 21.5 million, with the margin rising to 10.4% from 9.7% last year, driven by higher gross margin and lower administrative expenses.

• Major restructuring of bonds and capital structure completed, including a 75% bond write-down and debt-for-equity swap, resulting in 95% dilution for existing shareholders.

• New board members elected following an extraordinary general meeting in April 2025.

• Adjusted gross margin improved to 84.8% year-over-year.

Financial highlights

• Adjusted operating cash flow improved to SEK -17.7 million, excluding extraordinary restructuring costs.

• Adjusted administrative expenses were SEK 6.9 million lower year-over-year.

• Operating cash flow was SEK -32.8 million for the quarter.

• Net debt reduced to SEK 326.5 million, down 67.2% year-over-year.

• One-time items totaled SEK 27.9 million, mainly related to bond refinancing and warehouse consolidation.

Outlook and guidance

• Measures to improve efficiency and profitability are showing results, but reversing the negative sales trend remains a key challenge.

• Improved capital structure provides greater financial flexibility for future growth.

• Ongoing efforts to reduce fulfilment costs and streamline operations, including warehouse consolidation in Europe.

• Clear strategy in place to reverse negative sales trend, focusing on scalability and continued cost reduction.