Synsam Group (SYNSAM) Q1 2025 earnings summary

Executive summary

• Organic growth reached 12.8% year-over-year, with net sales up 12.3% to SEK 1,708 million and like-for-like growth of 8.9%.

• Synsam Lifestyle subscriptions rose 12.5%, with the customer base reaching up to 858,000 and churn rate near 3%.

• Cash business net sales increased 12.0% to 780 MSEK, representing 53% of total net sales.

• Profit after tax increased 54.8% to SEK 87 million, and EPS rose to SEK 0.60 from SEK 0.38.

• Continued investment in store network, with new flagship store in Copenhagen and expanded e-commerce operations.

Financial highlights

• EBITDA increased 4.6% to SEK 375 million; EBITDA margin declined to 21.6% from 23.3%.

• Gross margin was 74.1%, down from 75.7%, mainly due to a SEK 28 million lens stock valuation charge.

• Cash flow from operating activities rose to SEK 310 million from SEK 218 million year-over-year.

• Net debt/Adjusted EBITDA improved to 1.83 from 1.86.

• Net debt at period end was SEK 2,944 million, up from SEK 2,756 million year-over-year.

Outlook and guidance

• The company targets annual organic growth of 8–12% and an adjusted EBITDA margin of 25% or more in the medium term.

• Fewer new store openings planned in 2025–2026 to calibrate growth and profitability; 90-store target for 2024–2026 reaffirmed.

• Full implementation of iView/Synsam EyeView in Sweden expected by mid-summer 2025, with anticipated cost and capacity benefits.

• Ongoing efforts to adapt to new credit regulations in Denmark, with a focus on improving store network and product offering.

• Strong development anticipated in Norway and continued robust performance in Finland.