Kjell Group (KJELL) Q1 2026 earnings summary

Executive summary

• Net sales declined 13.2% year-over-year to SEK 487.4 million, mainly due to inventory shortages and a major warehouse relocation impacting availability and sales, especially in January and February.

• Gross margin improved to 44.9% from 42.1% year-over-year, driven by renegotiated supplier agreements, a favorable product mix, and a shift toward private label products.

• Adjusted EBITA was SEK -13.3 million (margin -2.7%), down from SEK -2.3 million (-0.4%) in Q1 2025, mainly due to lower sales volumes; net loss widened to SEK -34.9 million from SEK -20.7 million.

• Inventory availability improved by March, leading to a positive sales trend in Sweden and Norway, while Denmark continued to underperform.

• Strategic focus for 2026 is on rebuilding assortment, organizational strengthening, and operational infrastructure, with Q4 growth as a key milestone.

Financial highlights

• Net sales for Q1 were SEK 487.4 million, down 13.2% year-over-year; trailing twelve months net sales declined 9.7% to SEK 2,305.2 million.

• Gross profit for the quarter was SEK 219.0 million, with a gross margin of 44.9%.

• Adjusted EBITA was SEK -13.3 million (margin -2.7%), down from SEK -2.3 million (-0.4%) in Q1 2025.

• Cash flow from operating activities was SEK -127 million, primarily due to increased inventory and lower payables.

• Net financial debt at quarter-end was SEK 175.6 million, with net debt/EBITDAAL improved to 3.2 from 4.7.

Outlook and guidance

• Q4 2026 is targeted as a key milestone for growth, with ongoing efforts to rebuild inventory and assortment.

• Gradual improvements expected for AV-Cables through 2026, aiming for a return to growth in Q4.

• Profitability remains the primary goal, with ongoing focus on operational execution and strategic transformation.

• Financial targets include net sales growth above 5%, adjusted EBITA margin of 6-8%, and net debt to adjusted EBITDA below 2x.

• Continued focus on assortment optimization, operational efficiency, and leadership strengthening.