Pamica Group (PAMICA) Q1 2025 earnings summary

Executive summary

• Net sales rose 23% year-over-year to MSEK 1,210.2, driven by acquisitions despite -2% organic growth.

• Adjusted EBITA increased 34% to MSEK 52.6, with margin stable at 4%.

• Profit for the period was MSEK -16.1, with diluted EPS at SEK -0.29 from continuing operations.

• Operating cash flow turned negative at MSEK -0.4, mainly due to working capital changes.

• Structural plan and Pamica 5 AB established post-Q1 to improve margins, reduce leverage, and enable targeted acquisitions.

Financial highlights

• Net sales: MSEK 1,210.2 (up 23% year-over-year); organic growth -2%.

• Adjusted EBITA: MSEK 52.6 (up 34%); margin 4%.

• EBIT: MSEK 24.9 (up from 9.1); EBIT margin 2%.

• Profit for the period: MSEK -16.1; diluted EPS: SEK -0.29.

• Leverage ratio: 3.5x, down from 3.7x in Q1 2024 but up from 3.3x in Q4 2024.

Outlook and guidance

• Focus on improving adjusted EBITA margin, profitability, and reducing leverage in preparation for a potential IPO.

• Continued emphasis on streamlining, capital injection for high-margin acquisitions, and portfolio optimization.

• Management expects structural measures to gradually reflect in earnings.