Humble Group (HUMBLE) Q1 2025 earnings summary

Executive summary

• Net sales reached MSEK 1,904 in Q1 2025, growing 4% year-over-year with organic growth at 3.9–4%, supported by resilient demand and strong brand performance, especially in Future Snacking and True Co.

• Gross margin improved to 32.3%, reflecting operational efficiencies, local sourcing, and a stronger SEK.

• Adjusted EBITA increased 4% to MSEK 133, maintaining a 7.0% margin despite higher brand and marketing investments.

• Significant improvement in operating cash flow after working capital, nearly doubling year-over-year, though impacted by tax deferral repayment and NWC changes.

• Profit after tax was MSEK 12, with EPS at SEK 0.03, down from SEK 0.05 year-over-year.

Financial highlights

• Net sales rose to MSEK 1,904, up 4% year-over-year, with organic growth at 3.9–4% and a 0.3% positive FX impact.

• Gross profit increased by 8.7–9% to MSEK 615, with gross margin up to 32.3% from 31.0%.

• Adjusted EBITA grew to MSEK 133, with margin stable at 7.0%.

• Cash flow from operations after working capital adjustments was MSEK 115, nearly double the prior year, but impacted by a MSEK -64 NWC effect and MSEK -45 tax repayment.

• Interest-bearing liabilities reduced to MSEK 1,624 from MSEK 1,766 at year-end.

Outlook and guidance

• Confident outlook for the first half and full year, aiming for higher organic growth in the remainder of the year.

• Focus on ramping up capacity in quality nutrition and leveraging new production lines for future growth.

• Positive impact expected from stronger SEK and lower freight costs on gross margin in coming quarters.

• Continued potential for strategic bolt-on acquisitions and deleveraging.

• Resilient demand in private label, discount, and better-for-you categories; limited exposure to US tariffs.