Q1 2026 Dustin Group AB Earnings Call Transcript
Key Points
- Dustin Group AB (STU:9DG) reported an 18% organic growth in net sales, driven by strong performance in the LCP segment and public sector demand.
- Adjusted EBITDA increased significantly from SEK21 million to SEK83 million, attributed to efficiency measures and higher sales volumes.
- Cash flow from operating activities improved to SEK381 million, compared to a negative SEK42 million last year, primarily due to better net working capital management.
- Leverage decreased to 3.1 times net debt to EBITDA, down from 5.2 times last year, reflecting strong cash flow and operational improvements.
- The company updated its sustainability targets, aligning with the latest research and customer needs, and received approval from the science-based target initiative.
- Gross margin decreased to 13.1% from 14.3% last year, due to strong public sector growth, high PC sales, and price pressure in the Netherlands.
- The S&B segment saw a 5% decline in sales compared to last year, with a 3% decline when excluding negative foreign exchange effects.
- Continued price pressure in the Netherlands negatively impacted margins, with larger contracts yielding lower margins.
- Market uncertainty persists, with potential negative impacts from a predicted shortage of memory components in 2026.
- The strategic decision to exit the B2C market affected sales, contributing to the decline in the S&B segment.
Welcome to the Dustin Q1 presentation for 2025-026. (Operator instructions) Now I will hand the conference over to the CEO Samuel Skott and CFO Julia Lagerqvist. Please go ahead.
Thank you. Good morning and a very warm welcome everyone to our Q1 report presentation for Dustin. First of all, I want to say that I'm happy to be here today presenting my first quarterly report as CEO of Dustin, and with me here today I have Julia Lagerqvist, our CFO here at Dustin. So let's start with the presentation.
I'm glad to report the quarter with organic growth, improved profitability, robust cash flow, and reduced leverage. Net sales development was positive in the quarter with organic growth of 18%. The performance should partly be seen in the light of a weak comparative quarter, but apart from that, the positive development was driven by our LCP segment and particularly the public sector.
Gross profit increased slightly while the gross margin fell to 13.1% compared with 14.3% last year.
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