Q2 2025 Meko AB Earnings Call Transcript
Key Points
- MEKO AB (FRA:1OM) has launched a new cost reduction program aiming to save SEK100 million annually, with full effect expected in 2026.
- The company has achieved improvements of SEK200 million through its ongoing initiatives, with substantial gains still anticipated.
- MEKO AB (FRA:1OM) has completed high-tech warehouse projects in Denmark, Finland, and Norway, which are expected to drive long-term growth.
- The company is focusing on exclusive brands, creating a new division to expand its product offering and meet demand for more affordable products.
- MEKO AB (FRA:1OM) has secured a successful bond issue, improving its financial position with a 35 basis point rate improvement and extending maturity to July 2027.
- MEKO AB (FRA:1OM) experienced a decline in organic growth, with Q2 sales negatively impacted by international turbulence and economic uncertainty.
- The company faced intensified competition, particularly in Denmark and Poland, affecting its market position.
- Implementation costs for new warehouses and ERP systems are currently burdening the company, with benefits yet to be realized.
- The company reported a steep decline in adjusted EBITDA, attributed to lower volumes and competitive market dynamics.
- MEKO AB (FRA:1OM) is dealing with salary inflation and price pressure in Poland, impacting profitability in the region.
Good morning and welcome to MEKO's presentation of our results for the second quarter of 2025. I'm here with our CFO Christer Johansson, and together we will walk you through our performance and current position.
Already in the first quarter, the market slowed somewhat affected by international turbulence and uncertainty about the economy. This situation continued into the second quarter with lower demand. This also intensified competition, particularly in Denmark and Poland. All in all, this impacted our Q2 sales and our organic growth declined compared to the same quarter last year, which actually was the strongest in our history.
For some time now, we have stepped up our efforts to build a stronger and more profitable MEKO. This has included extensive savings and optimization initiatives which have shown clear effect, but the slower market have affected both our sales and results in Q2, despite our focus on efficiency.
And we are responding to this immediately. So we're now launching a new cost reduction program
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