RugVista Group (RUG) Q1 2025 earnings summary

Executive summary

• Net revenue grew 12% year-over-year to SEK 197 million, with organic growth at 12.3% and order count rising 17.3% to 96.6 thousand; new customers reached a Q1 record of 69.3 thousand.

• EBIT increased 36.2% to SEK 27.2 million, with a margin of 13.8%, and profit for the period rose to SEK 22.2 million.

• Average order value decreased by 3.1% to SEK 2,864, reflecting some price sensitivity.

• Growth was driven by consistent order increases, successful campaign planning, and a shift to visually driven marketing channels.

• Customer satisfaction remained high, with a Trustpilot score of 4.7.

Financial highlights

• Gross margin improved to 64% from 61.6% year-over-year, attributed to lower freight rates and reduced marketing spend.

• EBIT margin rose to 13.8% from 11.4% year-over-year.

• Marketing spend as a percentage of revenue decreased to 29% from 30.5% last year.

• Cash position remains strong at SEK 222 million.

• Inventory value at SEK 132 million, at the lower end of the target range (17.5-22.5% of LTM net revenue).

Outlook and guidance

• Management expects continued market uncertainty but remains confident in ongoing investments in customer acquisition, assortment, pricing, and cost control.

• Inventory is being tightly managed ahead of a major warehouse move, with plans to ramp up stock in late summer and early fall.

• Dividend payment of SEK 1.25 per share planned for Q2, pending AGM approval.

• Continued investments in automation, new warehouse facilities, and e-commerce platform, with SEK 55-60 million total planned and SEK 12 million invested in the last six months.