Refine Group (REFINE) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked by structural actions, operational improvements, and focus on core business, with divestments of SQRTN and Ecomm Holding impacting year-over-year comparisons.

• Net sales decreased to 33.7 MSEK from 54.6 MSEK compared to Q1 2024, mainly due to fewer active subsidiaries.

• Profit after tax improved to 1.7 MSEK from -15.3 MSEK, driven by a 56.5 MSEK gain from the Ecomm divestment, despite negative EBITDA.

• Significant reduction in interest-bearing debt, with no remaining bank loans and improved cash flow from financial items.

• Ongoing restructuring in subsidiary Folkhemmet and continued focus on optimizing capital structure.

Financial highlights

• Net sales: 33.7 MSEK (Q1 2025) vs 54.6 MSEK (Q1 2024).

• EBITDA: -4.0 MSEK (Q1 2025) vs -2.5 MSEK (Q1 2024).

• EBITA (excl. goodwill): -4.2 MSEK (Q1 2025) vs -2.7 MSEK (Q1 2024).

• EBIT: -52.1 MSEK (Q1 2025) vs -12.2 MSEK (Q1 2024), impacted by 42.0 MSEK goodwill impairment.

• Net profit: 1.7 MSEK (Q1 2025) vs -15.3 MSEK (Q1 2024), supported by non-cash gain from Ecomm sale.

Outlook and guidance

• Continued focus on operational improvements, cost efficiency, and capital structure optimization.

• Expectation of improved profitability from restructuring and divestments, with ongoing efforts to reach financial targets during 2025.