Embellence Group (EMBELL) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales reached SEK 193 million, up 1% year-over-year, with 4% organic growth offset by -3% currency effects.

• Gross margin improved to 61.9% (up 1.8pp), driven by product mix, pricing, and efficiency.

• EBITDA/EBITA margin increased to 13.5% (up 0.5pp), with EBITDA/EBITA at SEK 26 million.

• Net profit rose to SEK 15 million, up 23% year-over-year.

• Boråstapeter and Artscape showed strong growth; other brands declined.

Financial highlights

• Q2 sales were SEK 193 million, up from SEK 191 million last year; organic growth was 4%.

• Gross profit increased 4% to SEK 120 million; gross margin at 61.9%.

• EBITDA/EBITA margin at 13.5% (up 0.5pp); net profit for the period was SEK 15 million.

• Operating cash flow for Q2 was SEK 14 million, down from SEK 43 million last year.

• Year-to-date net sales were SEK 396 million; gross margin 62%; EBITDA/EBITA margin 14.8%.

Outlook and guidance

• Currency headwinds, especially from USD and GBP, are expected to persist, negatively impacting sales and EBITDA.

• Continued investment in sales, marketing, and e-commerce platforms to drive future growth.

• D2C channel expected to account for more than half of growth over the next three years.

• External environment remains uncertain due to tariffs, trade barriers, and currency fluctuations.