Go North Group (GONORTH) Q2 2025 earnings summary

Executive summary

• Q2 2025 focused on operational corrections, especially in supply chain, after process gaps led to inventory and cash flow risks; corrective actions were implemented to restore visibility and reduce risk.

• Revenue acceleration exposed under-ordering and product issues, impacting Amazon fulfillment and sales.

• Financing inventory for Q4 remains challenging due to ongoing reconstruction, leading to reduced purchase volumes and prioritization of key brands.

• Stabilization observed in the latter half of Q2, with core indicators like sales and ad spend leveling out.

Financial highlights

• Net sales for Q2 2025 were KSEK 109,034, down from KSEK 130,950 in Q2 2024, mainly due to stockouts, Amazon compliance issues, and a weaker USD/SEK exchange rate.

• Adjusted EBITDA was KSEK -15,951, compared to KSEK 3,831 in Q2 2024.

• EBITA was KSEK -16,553, down from KSEK 3,307 year-over-year.

• Cash flow from operating activities was KSEK -17,737, compared to KSEK -419 in Q2 2024.

• ROCE improved to -1.7% from -6.0% in Q2 2024, mainly due to prior year impairment write-downs.

• Earnings per share for Q2 2025 was -0.01, compared to -0.06 in Q2 2024.

Outlook and guidance

• Inventory financing for Q4 remains a key challenge, with ongoing reconstruction complicating capital raising.

• Ordering strategy has shifted to prioritize key brands and reduce purchase volumes, with operational headwinds expected to persist.

• Stabilization in core performance metrics offers a more optimistic outlook post-reconstruction.