Volati (VOLO) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 15% sales growth and 4% organic sales growth, with EBITA up 48% year-over-year, supported by both organic improvements and acquisitions.

• Five of six platforms increased profit; EPS rose 450% year-over-year, with Salix and Ettiketto Groups showing strong improvements.

• Acquisitions, including Clever Etiketten and Hans Eggestrand AB, added over SEK 750 million in annualized turnover, expanding presence in Central Europe.

• Credit facilities expanded by SEK 750 million to SEK 3,650 million, supporting further acquisitive growth.

• Market conditions remain uncertain but show signs of improvement, especially in construction-related segments.

Financial highlights

• Net sales reached SEK 2,001 million in Q1 2025, up from SEK 1,747 million in Q1 2024; EBITA increased to SEK 135 million from SEK 91 million year-over-year.

• EBITA margin improved to 7% from 5% year-over-year; EBITA per share up 48%.

• Operating cash flow was SEK -136 million, impacted by higher inventories and receivables.

• Net debt/adjusted EBITDA at 2.9x, within the 2-3x target range; equity ratio at 28%.

• Return on adjusted equity at 17%, below the 20% target.

Outlook and guidance

• Market recovery is ongoing but gradual, with continued uncertainty and stabilization in key segments.

• Platforms are positioned for continued organic and acquisitive growth as conditions normalize.

• Management expects strong cash-generating quarters ahead, especially in the second half of the year.

• Focus remains on acquisitions, organic growth, and operational improvements.