OVS (OVS) Q4 2025 earnings summary

Executive summary

• Net sales rose 6.2% to €1,631 million, with strong H2 growth and contributions from OVS, Upim, Stefanel, and new brands, despite adverse weather in H1.

• Adjusted EBITDA increased by €13.0 million to €195.3 million, absorbing over €4 million in one-off losses and tax reversals.

• Cash flow improved by 7% to €68.6 million, with three-year cumulative cash generation near €200 million despite significant investments.

• Beauty segment exceeded €100 million in sales, up 20% year-over-year, and maintained double-digit growth.

• Proposed dividend of €0.11 per share, up over 50% from the ordinary dividend and 57% from last year, with a €10 million buyback program continuation.

Financial highlights

• Gross margin improved to 58.2%, up 91 basis points year-over-year, driven by normalized purchasing conditions.

• Net income grew 2.6% to €77.9 million, penalized by higher tax rates due to regulatory changes.

• EBIT increased 8.3% to €129.0 million; PBT up 8.0% to €109.5 million.

• Q4 net sales rose 5.1% to €455.1 million; Q4 EBITDA impacted by one-off losses and tax reversals.

• Net financial debt (adjusted) at €148.3 million, leverage ratio at 0.8x EBITDA.

Outlook and guidance

• 2025 guidance anticipates continued EBITDA and cash flow growth, with stable or improving gross margin and reduced CapEx by at least €10-15 million.

• Expansion in women’s and beauty segments, new launches, and dedicated store openings planned.

• Network development and international partnerships expected to drive sales and EBITDA growth.

• Cash flow in 2025 to benefit from reduced special investments; ongoing personnel cost increases anticipated.

• Macroeconomic uncertainties and increased household costs may slow consumption.