MEDS Apotek (MEDS) Q1 2026 earnings summary

Executive summary

• Achieved above-market growth in Q1 2026, with net sales up 11.6% to 269.9 MSEK, driven by strong prescription medicine sales and increased order volumes.

• EBIT margin neared 2% (adjusted EBIT margin 1.9%), reflecting a focus on profitable growth despite campaign price pressure.

• Cash flow from operating activities improved to 35.3 MSEK, with a strong cash position and no debt.

• Announced move to a new, larger logistics center with increased automation to support future growth.

• Continued focus on margin over aggressive market share gains.

Financial highlights

• Gross profit increased by SEK 6.3 million sequentially and 9.7% year-over-year to 75.0 MSEK, though gross margin declined slightly to 27.8%.

• Adjusted EBIT was 5.2 MSEK, down from 5.5 MSEK year-over-year; net income was 5.3 MSEK.

• Cash and cash equivalents at quarter-end were nearly SEK 72 million, up from 34.0 MSEK a year earlier, with no debt.

• Marketing costs were 6.6% of sales, a strong figure for e-commerce.

• Earnings per share before dilution were 0.28 SEK, compared to 0.31 SEK in Q1 2025.

Outlook and guidance

• Targeting to triple revenues/net sales over the next five to six years, aiming for an EBIT margin of 3%-5%.

• Forecasts a SEK 25 million sales impact and SEK 6 million EBIT impact in the quarter of the logistics move, with a conservative ramp-up period post-move.

• Marketing spend expected to decrease temporarily during the move, especially in September.

• No dividends planned in the medium term; cash flow will be reinvested in growth.