Q4 2025 Dustin Group AB Earnings Call Transcript
Key Points
- Dustin Group AB (DUSXF) reported an organic growth of 3.6% in Q4, with the LCP segment showing a strong 7.0% growth, primarily driven by the Nordics.
- The company successfully implemented efficiency measures, resulting in annual cost savings of approximately SEK200 million.
- Adjusted EBITDA improved significantly to SEK83 million from SEK28 million last year, with the EBITDA margin increasing to 1.6% from 0.6%.
- The company has updated its sustainability targets, aligning them with the science-based target initiative, aiming for significant reductions in emissions by 2030.
- Cash flow from operating activities improved, with a negative SEK73 million compared to last year's negative SEK355 million, indicating better operational performance and tax position.
- The SMB segment experienced a negative organic growth of 6.3%, affected by a retroactive change in accounting treatment, with an adjusted decline of 2.2%.
- Gross margin decreased slightly to 12.7% from 12.9% last year, pressured by high public sales and price competition, particularly in the Netherlands.
- The Benelux region continues to face challenges, with heavy price competition and difficult market conditions impacting margins.
- Net working capital increased significantly, with inventory levels higher than target, particularly in the Benelux region due to customer-specific inventory.
- The company is facing fierce competition in the Netherlands, with many large European and US resellers present, leading to price pressures in a slow market.
Welcome to the Dustin Q4 presentation for 2024, 2025. (Operator Instructions)
Now I will hand the conference over to the CEO, Johan Karlsson; and CFO, Julia Lagerqvist. Please go ahead.
Thank you, operator, and a warm welcome to this Q4 presentation from Dustin Group. And as you heard, Julia and myself, Johan Karlsson is here to present that to you. If we start with some summary of the Q4 numbers on slide 2. As in the last quarter, sales was affected by a weak but stabilizing market with continued general cautiousness by the customers mainly in the smaller customer groups. In the quarter, we saw some positive development in LCP, where the market, primarily in the Nordics, is stabilizing.
Sales in the quarter was SEK5.056 billion, representing an organic growth of 3.6%. The organic growth in the SMB segment was negative 6.3%. However, this number in SMB was affected by a retroactive change in accounting treatment. And without the correction, organic growth was negative 2.2%.
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