Embellence Group (EMBELL) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached SEK 174 million, up 2% year-over-year, with 5% organic growth offset by a 3% negative currency effect from a stronger Swedish krona.

• Four out of five brands achieved organic growth; Boråstapeter led for the third consecutive quarter, while Cole & Son remained flat or declined due to weak U.K. demand and currency effects.

• Strategic focus areas included D2C, international sales, and hospitality, with investments in digital platforms, staff, and targeted recruitments to support long-term objectives.

• New product launches and brand initiatives were implemented to strengthen market position.

Financial highlights

• Net sales for Q3 were SEK 174 million, up from SEK 170 million last year; gross profit was SEK 105 million, up 2%.

• Gross margin was stable at 60.6% (60.7% last year), marking the fifth consecutive quarter above 60%.

• EBITA/EBITDA margin declined to 13.6% from 15.1% last year, with EBITDA at SEK 24 million.

• Net profit for Q3 was SEK 13 million, down from SEK 16 million; year-to-date net profit was SEK 52 million, up from SEK 45 million.

• Operating cash flow improved to SEK 30 million in Q3, up from SEK 17 million last year, driven by better working capital management.

Outlook and guidance

• Currency headwinds from the strong Swedish krona are expected to persist in coming quarters.

• Continued focus on D2C, internationalization, and hospitality channels, with further digital platform rollouts planned for Cole & Son in Q4 and Boråstapeter in H1 2026.

• More than half of growth over the next three years is anticipated to come from the D2C channel.

• Q4 comparison for Artscape will be challenging due to an exceptional large order in the prior year.