Sjöstrand Coffee (SCC) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased by 63% year-over-year to 7.03 MSEK, driven by strong e-commerce and wholesale growth.

• Focus on international expansion with new distribution agreements in Benelux, Tjeckien, Slovakien, and the UK/Ireland.

• Launched a new product category, functional beverages, and introduced the Boost line of caffeine-free capsules.

Financial highlights

• Operating income for Q1 2025 was -2.49 MSEK, compared to -1.51 MSEK in Q1 2024.

• Net loss for the period was -2.50 MSEK, versus -1.51 MSEK year-over-year.

• EPS was -0.08 SEK, down from -0.05 SEK in Q1 2024.

• Adjusted gross margin was 50% for the quarter, compared to 55% last year, impacted by inventory accounting adjustments.

• E-commerce sales grew by 112%, wholesale by 68%, and hotel sales by 6% year-over-year.

Outlook and guidance

• Focus for Q2 is on supporting new distributors and launching additional coffee products to drive further growth.

• Freight costs are expected to stabilize after temporary increases in Q1.