Interim report
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Duell Corporation Nine Months 2025 Financial Report September 2024-May 2025
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2 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET Challenging market conditions weighed on results Unaudited financials presented below. February 2025-May 2025 “Q3 2025" (comparable figures in parenthesis 2/2024-5/2024): • Net sales increased 0.7% to EUR 38.2 million (EUR 37.9 million), growth being fully organic. Net sales with comparable currencies decreased -0.8%. • Adjusted EBITA was EUR 2.1 million (EUR 3.2 million) with an adjusted EBITA margin of 5.4% (8.4%). • Net working capital was EUR 52.5 million (EUR 57.7 million). • Cash flow from operating activities was EUR 8.0 million (EUR 3.4 million). September 2024-May 2025 "1-9 2025" (comparable figures in parenthesis 9/2023-5/2024): • Net sales increased 2.9% to EUR 95.7 million (EUR 93.1 million), growth being fully organic. Net sales with comparable currencies increased 1.4%. • Adjusted EBITA was EUR 3.9 million (EUR 4.8 million) with an adjusted EBITA margin of 4.1% (5.2%). • Net working capital was EUR 52.5 million (EUR 57.7 million). • Cash flow from operating activities was EUR -1.3 million (EUR -8.3 million). • Earnings per share was EUR -0.0 (EUR -0.0) (according to the number of shares at the end of the review period). Duell lowered its guidance for the 2025 financial year on 30 June 2025 due to market uncertainty, further declining consumer confidence leading to a weaker-than-expected third quarter. At the same time, the company announced to remove its current medium-term financial targets, which it will redefine later. In the short term, Duell's focus will be on improving profitability and increasing organic net sales. New guidance for the financial year 2025 The market environment has become more challenging, which has impacted Duell's net sales and profitability performance. As a result, the company is lowering its guidance for the 2025 financial year. The new guidance for the 9/2024-8/2025 financial year is: • Duell expects organic net sales with comparable currencies to be at the same level or lower as the previous year. • Adjusted EBITA is expected to be below last year’s level. Previous guidance for financial year 2025 published on 10 April 2025 Markets have somewhat stabilised, but consumer sentiment remains fragile due to uncertainties. Duell expects the demand over the next 12 months to be slightly better than the comparison period, but there may be variations between product categories. The industry in which Duell operates remains relatively fragmented, which provides long-term opportunities and favours the larger players, of which Duell is one. Therefore, our guidance for financial year 9/2024-8/2025 is, that: • Duell expects that organic net sales with comparable currencies will be at the same level or higher than previous year. • Duell will continue to focus on improving profitability and expects adjusted EBITA to improve from last year’s level.
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3 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET CEO Magnus Miemois: The third quarter started on a very promising note with a quickly fading winter in the Nordics, and along with that, high activity on pre-order deliveries for the summer season. Unfortunately, market activity slowed down later in the quarter, which negatively impacted total sales. Weakened consumer sentiment impacted demand, especially in the traditional brick-and-mortar sector of our dealer network. Larger retail players with broader addressable markets seem to have coped better in capturing consumers’ attention. These dynamics affected the development trend and results for the quarter. As the third quarter is important for Duell, we are disappointed with this result and rewised our financial year 2025 guidance accordingly. Despite the result being disappointing, there are also positives to mention from this quarter. We successfully executed our plan to increase the availability of high demand spare parts, which increased sales. Our focus on capturing growth in selected Central European markets continues to deliver results, and Duell’s key markets are becoming increasingly diversified. Our development project for a new ecommerce platform has progressed well through critical build stages and is approaching its first commercial release phase. I would like to thank all our customers, suppliers and partners, as well as the entire Duell organisation, for their efforts in achieving the best possible results in challenging market conditions. In the short term, our focus will be on improving profitability and increasing organic net sales. Key figures and ratios EUR thousand Q3 2025 (2/2025- 5/2025) Q3 2024 (2/2024-5/2024) 1-9 2025 (9/2024-5/2025) 1-9 2024 (9/2023-5/2024) FY 2024 (9/2023-8/2024) Net sales 38,183 37,904 95,727 93,073 124,652 Net sales growth, % 0.7 0.6 2.9 4.6 4.9 Net sales with comparable currencies, % -0.8 2.7 1.4 4.3 5.7 Gross margin 8,287 9,453 22,218 23,015 30,339 Gross margin, % 21.7 24.9 23.2 24.7 24.3 EBITDA 2,317 3,172 4,375 2,428 4,564 EBITDA margin, % 6.1 8.4 4.6 2.6 3.7 Items affecting comparability, EBITDA* 100 269 364 3,099 2,577 Adjusted EBITDA 2,418 3,441 4,739 5,527 7,141 Adjusted EBITDA margin, % 6.3 9.1 5.0 5.9 5.7 EBITA 1,976 2,928 3,531 1,743 3,628 EBITA margin, % 5.2 7.7 3.7 1.9 2.9 Adjusted EBITA 2,076 3,197 3,896 4,842 6,205 Adjusted EBITA margin, % 5.4 8.4 4.1 5.2 5.0 Operating profit 1,286 2,233 1,442 -337 842 Operating profit margin, % 3.4 5.9 1.5 -0.4 0.7 Earnings per share, basic, EUR* -0.020 -0.003 -0.000 -0.006 -0.004 Earnings per share, diluted, EUR* -0.019 -0.003 -0.000 -0.006 -0.004 Number of outstanding shares at the end of the period, basic** 5,194,374 1,038,546,116 5,194,974 1,038,546,116 1,036,334,706
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4 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET * According to the number of shares at the end of the review period **The company does not report the average number of shares for the period due to the reverse split ***LTM = Last twelve months Operational key figures Q3 2025 (2/2025- 5/2025) Q3 2024 (2/2024-5/2024) 1-9 2025 (9/2024-5/2025) 1-9 2024 (9/2023-5/2024) FY 2024 (9/2023-8/2024) Number of brands 548 548 548 548 535 Share of own brand sales, % of total 17 16 19 19 18 Share of online sales, % of total 30 26 29 26 26 Share of sales in Nordics, % of total 49 51 51 54 53 Share of sales in Central Europe, % of total 51 49 49 46 47 Full-time equivalent employees, average 212 217 208 218 215 Net sales Duell’s net sales increased 2.9% (4.6%) to EUR 95.7 million (EUR 93.1 million) for the first nine-month period. Net sales from Nordics amounted to 51% (54%), the Central Europe market area amounted to 49% (46%) of Duell's net sales. The share of online channel sales of total net sales amounted to 29.4 % (25.8%) for the review period. The share of own brand sales of the total net sales amounted to 19.4% (19.3%) in the review period. Profitability Duell’s EBITA was EUR 3.5 million (EUR 1.7 million). Adjusted EBITA decreased by 19.5% to EUR 3.9 million (EUR 4.8 million). Adjusted EBITA margin decreased to 4.1% (5.2%). Financial position and cash flow Duell's consolidated balance sheet total on May 31, 2025, was EUR 102.0 million (EUR 102.0 million). The amount of consolidated goodwill in the balance sheet was EUR 17.0 million (EUR 19.7 million). Duell’s cash and cash equivalents amounted to EUR 5.9 million (EUR 4.2 million) and total interest-bearing liabilities amounted to EUR 27.5 million (EUR 31.3 million) on May 31, 2025. Total interest-bearing liabilities comprise loans from financial institutions and utilisation of Revolving Credit Facility. At the end of the review period, Duell had unused credit facility of EUR 21.0 million. Duell's equity ratio was 50.8% (53.1%) on May 31, 2025, and the Group's return on equity was -0.2% (-9.5%). Number of outstanding shares at the end of the period, diluted** 5,303,574 1,308,546,116 5,303,574 1,038,546,116 1,045,534,706 Investments in tangible and intangible assets excluding acquisitions 512 189 931 628 746 Net debt 21,628 27,086 21,628 27,086 19,563 Net working capital 52,512 57,665 52,512 57,665 48,323 Inventory, % of LTM*** net sales 39.1 40.5 39.1 40.5 36.1 Cash flow from operating activities 8,016 3,402 -1,343 -8,305 -912 Equity ratio, % 50.8 53.1 50.8 53.1 55.0
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5 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET Duell’s net cash flow from operating activities in 1-9 2025 was EUR -1.3 million (EUR -8.3 million), an increase of EUR 7.0 million, mainly due to net working capital fluctuation. Duell's net debt was EUR 21.6 million on May 31, 2025, (EUR 27.1 million). Duell's net debt to adjusted EBITDA ratio for the last 12 months on May 31, 2025, was 3.4 (4.5). The conditions for the covenants were met at the end of the review period. Significant events during review period Duell announced on 16 April that it has appointed Anne-May Asplund as the Group’s Chief People and Communications Officer and member of the Management Team, effective 1 July 2025. Asplund joins Duell from her position as Chief People & Culture Officer at Hedengren Group. Prior to Hedengren, Asplund held various management and specialist positions in human resources and communications since 2002 and, also has a strong background in listed companies as well as in the wholesale industry. Significant events after review period Duell lowered its guidance for the 2025 financial year on 30 June 2025 due to market uncertainty, further declining consumer confidence leading to a weaker-than-expected third quarter. At the same time, the company announced to remove its current medium-term financial targets, which it will redefine later. In the short term, Duell's focus will be on improving profitability and increasing organic net sales. New guidance for the financial year 2025 The market environment has become more challenging, which has impacted Duell's net sales and profitability performance. As a result, the company is lowering its guidance for the 2025 financial year. The new guidance for the 9/2024-8/2025 financial year is: • Duell expects organic net sales with comparable currencies to be at the same level or lower as the previous year. • Adjusted EBITA is expected to be below last year’s level. Previous guidance for financial year 2025 published on 10 April 2025 • Duell expects that organic net sales with comparable currencies will be at the same level or higher than previous year. • Duell will continue to focus on improving profitability and expects adjusted EBITA to improve from last year’s level. Webcast for investors and media Duell will arrange a live webcast for investors and media in English on July 3, 2025, at 10.30 am EET. The webcast can be followed online through this link. A presentation will be held by CEO Magnus Miemois, CFO Caj Malmsten and IR Pellervo Hämäläinen. A recording of the event will be available later the same day at https://investors.duell.eu/. Financial reporting and Annual General Meetings in Financial Year 2025 During the Financial Year 2025, Duell will publish financial information as follows: • Financial Statements Bulletin for the financial year 9/2024–8/2025 (Q4 2025) on Thursday, October 16, 2025.
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6 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET Annual Report 2025, which includes, among other things, the Report of the Board of Directors, Company's financial statements, auditor’s reports and sustainability report in the week commencing October 27, 2025. Duell’s Annual General Meeting of shareholders is scheduled for Tuesday, November 25, 2025. The financial reviews and the annual report will be available after publication on the company's investor website at (https://investors.duell.eu/en/reports_and_presentations). Further information Magnus Miemois, CEO Duell Corporation +358 50 558 1405 magnus.miemois@duell.eu Pellervo Hämäläinen, Communications and IR Manager Duell Corporation +358 40 674 5257 pellervo.hamalainen@duell.eu Certified Advisor Oaklins Finland Ltd, +358 9 612 9670 Financial figures of 1-9 2025 financial report September 1, 2024-May 31, 2025 Consolidated Income Statement 01.09.2024 01-09-2023 01.09.2023 Currency: EURO - 31.5.2025 - 31.5.2024 - 31.8.2024 NET SALES 95 727 93 073 124 652 Other operating income 190 209 273 Materials and services Materials and consumables Purchases during the period -74 239 -63 906 -83 279 Change in inventories 5 443 -1 395 -4 501 External services -4 713 -4 757 -6 533 -73 509 -70 058 -94 313 Personnel expenses Wages and salaries -8 297 -8 216 -10 707 Social security expenses Pension expenses -968 -855 -1 124 Other social expenses -1 025 -1 089 -1 436 -10 290 -10 161 -13 267 Depreciation and amortization -2 933 -2 766 -3 722 Other operating expenses -7 743 -10 634 -12 780 OPERATING PROFIT (-LOSS) 1 442 -337 842
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7 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET Financial income and expenses Other Interest and other financial income 1 511 1 245 1 630 Interest and other financial expenses -2 722 -3 286 -4 138 -1 211 -2 040 -2 508 Profit before appropriations and taxes 231 -2 378 -1 666 Income taxes -333 -964 -959 PROFIT (-LOSS) FOR THE FINANCIAL YEAR -102 -3 341 -2 626 Consolidated Balance Sheet Currency: EURO 31.5.2025 31.5.2024 31.8.2024 A S S E T S NON-CURRENT ASSETS Immaterial rights 121 281 208 Goodwill 17 049 19 733 19 138 Other intangible assets 2 234 941 1 023 Assets under construction 740 1 954 1 735 Intangible assets total 20 145 22 910 22 105 Machinery and equipment 652 746 695 Tangible assets total 652 746 695 TOTAL NON-CURRENT ASSETS 20 797 23 656 22 799 CURRENT ASSETS Inventories 48 458 48 489 43 291 Advance payments 1 294 1 305 1 708 Inventories total 49 753 49 794 44 999 Other long-term receivables 221 0 165 Total long-term receivables 221 0 165 Trade receivables 23 319 22 774 14 445 Other receivables 610 490 1 002 Prepaid expenses and accrued income 1 475 1 045 1 224 Total short-term receivables 25 404 24 308 16 672 Cash at bank 5 873 4 177 9 288 TOTAL CURRENT ASSETS 81 251 78 279 71 123 TOTAL ASSETS 102 049 101 935 93 923 Currency: EURO 31.5.2025 31.5.2024 31.8.2024 E Q U I T Y AND L I A B I L I T I E S
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8 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET EQUITY Share capital 80 80 80 Reserve for invested unrestricted equity 52 797 53 047 52 980 Retained earnings -963 4 372 1 214 Profit (-loss) for the financial year -102 -3 341 -2 626 TOTAL EQUITY 51 813 54 158 51 648 NON-CURRENT LIABILITIES Loans from financial institutions 24 203 27 085 25 552 Other non-interest bearing liabilities 89 76 95 Total non-current liabilities 24 292 27 161 25 647 CURRENT LIABILITIES Loans from financial institutions 3 298 4 177 3 298 Trade payables 15 679 9 118 7 601 Other current liabilities 3 136 3 208 2 720 Accrued expenses and deferred income 3 829 4 112 3 008 Total current liabilities 25 943 20 616 16 627 TOTAL LIABILITIES 50 235 47 777 42 275 TOTAL EQUITY AND LIABILITIES 102 049 101 935 93 923 Consolidated Cash Flow Statement 31.5.2025 31.5.2024 31.8.2024 Cash flow from operating activities EBIT 1 442 -337 842 Depreciations and amortizations 2 933 2 766 3 722 Other income and expenses, without cash impact 53 265 -1 077 Changes in working capital -4 567 -9 244 -1 369 Financial expenses and income -1 097 -1 515 -2 672 Income taxes -108 -239 -358 Net cash flow from operating activities -1 343 -8 304 -912 Cash flow from investing activities Investments of intangible and tangible assets -931 -628 -746 Acquired shares in subsidiaries 0 -5 718 -5 718 Net cash flow from investing activities -931 -6 346 -6 464 Cash flow from financing activities Withdrawals of long-term loans 0 0 0 Repayment of non-current debt -1 649 -4 149 -5 798 Credit limit change 0 278 -601 Share issue and buy-back -182 20 160 20 093 Net cash flow from financing activities -1 831 16 289 13 694 Unrealized exchange and currency translation differences 691 152 585
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9 Nine months financial report 9/2024-2/2025 July 3, 2025, at 8.30am EET Cash and cash equivalents at the beginning of the financial year 9 288 2 386 2 386 Changes in cash and cash equivalents -3 415 1 790 6 902 Cash and cash equivalents at the end of the financial year 5 873 4 176 9 288 Duell Corporation (Duell) is an import and wholesale company based in Mustasaari, Finland, established in 1983. Duell imports, manufactures, and sells products through an extensive distribution network in Europe covering approximately 8,500 dealers. The range of products includes over 130,000 items under more than 500 brands. The assortment covers spare parts and accessories for Motorcycling, Bicycling, ATVs/UTVs, Snowmobiling, Marine and Garden/Forest categories. Logistics centres are in Finland, Sweden, Netherlands, France, and the UK. Duell’s net sales in 2024 was EUR 125 million and it employs over 200 people. Duell’s shares are listed on the Nasdaq First North Growth Market Finland marketplace. www.duell.eu.