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INTERIM REPORT January–March 2025 15 May 2025 Alexander Rosenlew, CEO Saara Mäkelä, CFO Hanna Kukkonen, CMSO
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Content 1. Introduction to Orthex 2. January-March 2025 in brief 3. Strategy 4. Financials 5. Q&A Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025
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A leading Nordic houseware company with strong brands and sustainable products 8 sales organisations 3 factories (incl. warehouses) ~300 employees (FTE) Sustainability focus >90% own brands >40 customer countries
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1) Invoiced sales split by product category (LTM) Functional and award-winning design Long-lasting high-quality products Forerunner in sustainability ~10% of sales from new launches KITCHEN (21% of sales1)) HOME & GARDEN (11% of sales1)) STORAGE (68% of sales1)) Mission to make everyday life easier
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JANUARY–MARCH 2025 IN BRIEF Interim Report January–March 2025
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CEO comments on Q1 2025 The growing geopolitical and macroeconomic challenges resulted in very low consumer confidence across all our markets and influenced our first quarter performance. Tight fixed cost control not enough to protect the profit margins with the decline in sales. The outcome is weaker than our ambitions, thus the focus is on sharpening our efforts and improving our result despite the reality we operate in. A healthy cash flow and a strong balance sheet give us room to invest in future growth. Lower sales and profitability in uncertain market conditions Tough business climate continued during the first months of the year
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Q1 2025: Negative consumer sentiment affected sales and profitability Net sales and Invoiced sales Net sales decreased by 4.7% to EUR 21.0 million (22.0) Invoiced sales decreased by 4.9% to EUR 21.8 million (22.9) Negative consumer sentiment affected retail customers’ purchasing volumes across Europe Adjusted EBITA Adjusted EBITA was EUR 1.7 million (2.8) Adjusted EBITA margin was 8.2% (12.6) Cash flows Strong net cash flows from operating activities of EUR 4.7 million (4.1) Q1 INTERIM REPORT | JANUARY– MARCH 2025 | 15 MAY 2025
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Orthex’s invoiced sales in the Nordics were EUR 17.3 million (17.5) In the Nordics, strikes hit us and the Finnish trade and we missed a week of overall efficient operations and two weeks of goods delivery to Finnish customers. The Rest of Europe delivered invoiced sales decrease of 18.6% and EUR 4.3 million in sales (5.3). Increased risk for credit losses continued, and as a precaution, shipments to some of our customers were restricted. Strong push to grow compensating business Invoiced sales by geography & product category Q1 INTERIM REPORT | JANUARY– MARCH 2025 | 15 MAY 2025 Invoiced sales in the largest category Storage decreased by 7.0% to EUR 14.5 million (15.6) - the negative sales development in the Rest of Europe is visible in the Storage category sales Invoiced sales in the Kitchen category decreased to EUR 4.1 million (4.7) and were mostly affected by strikes that hit the business and production in the Nordics. Driven by growing flowerpot sales, invoiced sales in the Home & Garden category increased to EUR 3.2 million (2.6) 17,5 5,3 0,1 17,3 4,3 0,1 0 2 4 6 8 10 12 14 16 18 20 Nordics Rest of Europe Rest of the world Invoiced sales by geography, EUR million 1-3/2024 1-3/2025 15,6 4,7 2,6 14,5 4,1 3,2 0 2 4 6 8 10 12 14 16 18 Storage Kitchen Home & Garden Invoiced sales by product category, EUR million 1-3/2024 1-3/2025
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STRATEGY Interim report January-March 2025
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Market consolidation Solid actions to keep winning in the Nordics 1 Accelerating growth in the international markets through strong customer collaboration 2 Accelerating growth through the online retail channel 3 4 Clear growth strategy to deliver objectives #1 storage brand in Europe A leading houseware company in the Nordics Showing the way in sustainability Maintain a high innovation rate Clear category strategy focusing on storage ~€84m Net sales 2022 Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025 ~€86m Net sales 2023 ~€90m Net sales 2024
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Growth through strong in-store visibility – Celebrating SmartStoreTM Classic: 30 years of storing memories Clear category strategy focusing on storage Q! INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025
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Ambiente fair in Frankfurt
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Sustainability news during Q1 Recognitions In January, Orthex was ranked in 7th place among the Nasdaq Helsinki small- cap companies in the Nordic Business Diversity Index examining the diversity of senior leadership in Nordic listed companies. Reporting Orthex Annual and Sustainability report 2024 was published in March Orthex continued its preparations for the entry into force of the Corporate Sustainability Reporting Directive (CSRD). The new reporting requirements were expected to apply to the company starting from the beginning of 2025. However, changes to these reporting requirements have been proposed within the EU, which may result in the company being exempt from these requirements due to its size. Investments in novelties We launched several novelties, all of which include renewable raw materials. The new products are storage containers SmartStore Compact Access and SmartStore Compact Square as well as organisers SmartStore Compact Sort . SmartStore Compact Access was awarded with the “Winner” at the German Design Awards 2025 Showing the way in sustainability
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Strategy in Action - Maintain a high innovation rate Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025 Maintain a high innovation rate
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FINANCIALS Interim report January–March 2025
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Net sales and profitability In Q1 2025, the Group’s Net sales decreased by 4.7% to EUR 21.0 million (22.0) The decrease in Constant currency net sales was 4.8% compared to the first quarter of 2024 Increased consumer uncertainty contributed to the decline in net sales Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025 Adjusted EBITA decreased to EUR 1.7 million (2.8). The adjusted EBITA margin decreased to 8.2% (12.6) Gross margin decreased 2.7 percentage points from 30.4% to 27.7% Less fixed cost and operations fixed costs coverage due to decreased Net Sales 22,0 21,0 22,8 23,9 21,0 10 12 14 16 18 20 22 24 26 Q1 Q2 Q3 Q4 Net sales quarterly, EUR million 2024 2025 2,8 1,6 2,9 3,0 1,7 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 Q1 Q2 Q3 Q4 Adjusted EBITA quarterly, EUR million 2024 2025
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Normal fluctuation in index prices during Q1 The cost inflation in Europe increased the price pressure on raw material manufacturers European raw material suppliers are balancing their capacity to defend prices Geopolitical uncertainty might affect import and prices – Import to Europe increasing Development of raw material price indexes Q41 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025
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Investments & net debt Orthex’s investments during the first quarter of 2025 amounted to EUR 0.7 million and were related to moulds for new products and some capacity increases 2025 investments mainly related to novelties At the end of the review period, the Group’s net debt was EUR 16.8 million (19.4) The non-current interest-bearing liabilities were EUR 26.7 million (29.0) and Orthex’s total interest- bearing liabilities were EUR 31.3 million (33.3) on 31 March 2025 Leverage was at healthy 1.2x at the end of the period Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025 2,4 2,0 1,4 1,5 1,3 1,6 1,3 1,4 1,2 - 0,5 1,0 1,5 2,0 2,5 3,0 - 5 10 15 20 25 30 35 40 45 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net debt, EUR million & Leverage Net debt Leverage 1,0 0,9 1,1 1,2 0,7 - 0,2 0,4 0,6 0,8 1,0 1,2 1,4 Q1 Q2 Q3 Q4 Investments in tangible and intangible assets, EUR million 2024 2025
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Long-term financial targets 18% <2.5x >50% Target “An over time annual organic net sales growth to exceed 5 per cent on a Group level, and 10 per cent outside the Nordic region” “Improving EBITA margin (adjusted for items affecting comparability) exceeding 18 per cent over time” “Net debt to adj. EBITDA below 2.5x. Leverage may temporarily exceed the target, for example, in conjunction with acquisitions” “To distribute a stable and over time increasing dividend with a pay-out of at least 50% of net profit on a bi-annual basis” Description Latest reported -4.7% total -17.2% outside Nordics* 8.2% 1.2x SALES GROWTH PROFITABILITY LEVERAGE PAY-OUT RATIO Total growth of >5% Outside Nordics >10% 63.9% EUR 0.22 per share Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025 *Invoiced sales growth outside Nordics
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Reporting dates 2025 21 August 2025: Half-year financial report January–June 2025 13 November 2025: Interim report January–September 2025 Orthex will publish its financial reports in 2025 as follows: Q1 INTERIM REPORT | JANUARY– MARCH 2025 | 15 MAY 2025
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SUMMARY FULL FOCUS ON SALES GROWTH NEGATIVE CONSUMER SENTIMENT
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Q&A www.investors.orthexgroup.com
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Key Figures Q1 INTERIM REPORT | JANUARY–MARCH 2025 | 15 MAY 2025
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Practical is Beautiful