Orthex (ORTHEX) Q1 2026 earnings summary

Executive summary

• Net sales grew by 2.7% year-over-year to EUR 21.6 million, driven by strong storage product sales and expansion in Rest of Europe, while Nordic sales declined slightly amid cautious consumer sentiment.

• Profitability improved with adjusted EBITA up 21% to EUR 2.1 million and margin rising to 9.6% from 8.2% year-over-year.

• Storage category led growth, especially in Europe, offsetting declines in Kitchen and Home & Garden categories in the Nordics.

• Market volatility increased toward the end of the quarter, driven by geopolitical events in Iran and rising oil and raw material prices, though Q1 profitability was unaffected.

• Strategic focus remains on expanding European presence, growing in the Nordics, and maintaining leadership in sustainability and product innovation.

Financial highlights

• Net sales: EUR 21.6 million (+2.7% year-over-year); invoiced sales: EUR 22.5 million (+3.1%).

• Adjusted EBITDA: EUR 3.4 million (+14.9%); adjusted EBITA: EUR 2.1 million (+21%).

• Gross margin improved to 28.8% (up from 27.7%).

• Investments in Q1 totaled EUR 1.6 million, mainly for new product moulds, novelties, and capacity increases.

• Net debt declined to EUR 14.6 million, with leverage at 1.0x adjusted EBITDA.

Outlook and guidance

• Full focus on sales growth in 2026, with priority on strengthening the European position and reigniting growth in the Nordics.

• Price increases are being implemented to offset expected Q2 raw material cost rises due to geopolitical tensions.

• Long-term targets: annual organic net sales growth >5% group-wide, >10% outside Nordics; adjusted EBITA margin >18%; leverage below 2.5x; payout ratio >50%.

• Profitability improvement targeted as raw material pressures ease and growth continues.