Synsam Group (SYNSAM) CMD 2025 summary

Strategic direction and growth initiatives

• Focus on expanding the subscription-based model (Lifestyle), targeting 1.21 million customers by 2029, with a 7.5% annual net growth and subscriptions now accounting for over half of sales.

• Continued rollout and optimization of Synsam EyeView technology, fully implemented in Sweden and Norway, increasing capacity, enabling remote exams, and supporting expansion into smaller and underserved markets.

• Ongoing expansion with 90 new stores planned for 2024–2026, 80 more for 2027–2029, and 30 Mega upgrades, focusing on white spots and smaller towns.

• House brands and in-house production are central to differentiation, with plans to increase production to over 250,000 frames annually by 2028 and expand shelf space.

• Launch of smart glasses and hearing aid glasses, leveraging AI and new form factors, with ambitions to capture a 10% Nordic market share by 2030 and add up to 900 million SEK in annual sales.

Financial guidance and updated targets

• Medium-term targets: 8–12% organic growth, EBIT margin of 12–15%, investments at 3% of net sales, net debt/EBITDA at 2.5x, and dividend payout of 40–60% of net profit.

• Shift from EBITDA to EBIT margin as the primary profitability metric, reflecting a maturing business model.

• Lower investment needs going forward due to completed major projects, with focus on efficiency and shorter payback periods for new stores (targeting 2.5 years from 2026).

• Net sales have grown from MSEK 3,380 in 2018 to MSEK 6,740 LTM Q2 2025, with consistent double-digit growth rates.

• Factory in Sweden is profitable, with significant unused capacity and potential for export and B2B sales, supporting both financial and ESG goals.

Market trends, business model evolution, and innovation

• Demographic shifts and increased screen time are driving long-term demand for vision correction and eye health services.

• Subscription model is transforming customer behavior, increasing loyalty, frequency of visits, and ARPU, with churn rates stable and over 50% of churned customers returning.

• EyeView technology enables more flexible and scalable service delivery, tripling optometrist capacity and supporting expansion into underserved areas.

• House brands now account for about 50% of frame sales, supporting higher margins and rapid response to trends.

• Smart glasses and hearing aid glasses are positioned as perfect add-ons for the subscription model, with limited cannibalization of existing sales expected.