Meko Ab · OMXSTO:MEKO
Meko Ab — Q3 2025 Earnings Presentation
25 slides from Meko Ab's earnings presentation, Nov 13, 2025
Slide 1: MEKO July – September 2025
MEKO July – September 2025 November 13, 2025
Slide 2: Q3 2025 – Continued focus on improving profitability
Q3 2025 – Continued focus on improving profitability Intense competition and price pressure affecting profitability in the quarter Organic growth in the quarter – moving from negative growth in the first half of 2025 Launched several initiatives to accelerate profitable sales growth Warehouse projec
Slide 3: Accelerating the initiative Building a stronger MEKO
Accelerating the initiative Building a stronger MEKO -6% (-384) • Savings from the 100+ program: 7 000 6 916 6 532 140 o Additional 2% of the total workforce have (2%) 6 000 been given notice 5 000 o Total reduction of 6% compared to last year 4 000 • 14 branches in Poland have now been closed as sy
Slide 4: Upgraded high-tech warehouses in operation
Upgraded high-tech warehouses in operation • Completion of significant upgrade in Q3: o Finland – automated o Norway – automated o Denmark – automated • Gradual efficiency gains in 2026 • Calibration and finetuning before reaching full potential
Slide 5: CMD: Initiatives for increased growth and profitability
CMD: Initiatives for increased growth and profitability • A range of efforts presented at CMD in September, examples: • Acceleration within exclusive brands – pricefigther launched in seven new markets • E-commerce roll-out in additional markets • Expansion in commercial vehicles
Slide 6: Mobility Barometer 2025: Strong support for the car
Mobility Barometer 2025: Strong support for the car • The largest mobility survey in the Nordics • Fourth year in a row • Clear pattern: The car remains #1 for all • More people use the car every day in 2025 o 30 % vs 27 % in 2024 • 62 %: The car will play a key role in the future
Slide 7: Precautionary steps taken in the light of higher leverage
Precautionary steps taken in the light of higher leverage Change in leverage (Net debt/EBITDA) Q3 vs Q2 2025 • Pressure on profitability combined with large investments translating to higher 3.6 leverage 0.6 2.7 • Appropriate amendments to lending 0.2 0.5 agreements have been agreed • Actions taken
Slide 8: As in previous periods, returning to target range of 2-3x is a priority
As in previous periods, returning to target range of 2-3x is a priority Net debt Net debt/ MSEK EBITDA* 5,000 12,0 x 11,0 10,0 Q3 net debt of 2,672 (2,445) MSEK 4,000 9,0 Leverage of 3.6 times, measured 8,0 3,000 as net debt/EBITDA excl IFRS 16 6.4 7,0 6,0 Solid liquidity position with 3.7 5,0
Slide 9: Investment level is normalizing
Investment level is normalizing Capex Capex investment level coming MSEK down from a higher-than-normal 100 level the past year New central warehouses are 75 being finalized Generally lower investments adapted to market conditions 50 Separately 25 No M&As in the period ERP-investment, wh
Slide 10: Stabilization vs Q2, though at a still low level
Stabilization vs Q2, though at a still low level Returning to positive organic sales growth despite continued macro-economic uncertainty Gross margin negatively impacted by sales mix and intense price competition in Denmark and Poland Temporary staffing in connection with moves reflected in IA
Slide 11: Gross margin impacted by price competition and mix effects
Gross margin impacted by price competition and mix effects Gross margin (%) bridge 2024 Q3 to 2025 Q3 44.3 1.5 0.8 0.2 1.0 41.6 0.7 • Negative effect from strong price competition in Denmark and Poland • Currency had a positive effect in the quarter • Shift in sales mix between countries, with a hig
Slide 12: Profitability impacted by low volumes and price competition
Profitability impacted by low volumes and price competition Adjusted EBIT (SEK M) bridge 2024 Q3 to 2025 Q3 322 • Sweden/Norway affected by lower gross profit and higher costs related 60 to the new warehouse in Norway 44 217 • Poland/the Baltics impacted by 18 1 0 18 intense price competition and ef
Slide 13: Profitability improved quarter on quarter
Profitability improved quarter on quarter Adjusted EBIT (SEK M) bridge 2025 Q2 to 2025 Q3 • Profitability in Denmark, SogB and Sweden/Norway fairly on par with 217 the second quarter 22 175 22 3 2 1 4 • Slight improvement in Poland/the Baltics driven by organic growth and continued integration of El
Slide 14: Finland – Positive organic growth but mix impacting profitability
Finland – Positive organic growth but mix impacting profitability • Reported net sales growth of 3 per cent, of which 6 per cent organic, driven by strong tire sales. Development affected by a continued cautious market and competitive pressure 9% • Adjusted EBIT impacted by price pressure and a lowe
Slide 15: Denmark – Impacted by strong competition and price pressure
Denmark – Impacted by strong competition and price pressure • Reported net sales growth of -2 per cent, of which +1 per cent organic. Sales impacted by strong competition • Adjusted EBIT declined primarily due to a lower gross margin and higher depreciation related to the new warehouse. Gross margin
Slide 16: Poland/The Baltics – Competition weighing on margins
Poland/The Baltics – Competition weighing on margins • Reported net sales growth of 14 per cent, mainly driven by the acquisition of Elit Polska. Organic growth of 9 per cent, supported by volume growth in Poland and the export business • Adjusted EBIT burdened by lower gross margin and higher perso
Slide 17: Sweden/Norway – Sales drop puts pressure on profitability
Sweden/Norway – Sales drop puts pressure on profitability • Reported net sales growth of -7 per cent, of which -6 percent organic. Net sales negatively impacted by generally low workshop activity and weak consumer sales in both Sweden and Norway 35 % • Adjusted EBIT declined mainly due to lower gros
Slide 18: Sørensen og Balchen – Solid profitability development
Sørensen og Balchen – Solid profitability development • Reported net sales growth of -5 per cent, of which -2 per cent organic. Weak market held back consumer demand and workshop 5% competition increased with more market players • The continued high profitability is mainly explained by effective cos
Slide 19: Q3 2025 – Continued focus on improving profitability
Q3 2025 – Continued focus on improving profitability Intense competition and price pressure affecting profitability in the quarter Organic growth in the quarter – moving from negative growth in the first half of 2025 Launched several initiatives to accelerate profitable sales growth Warehouse projec
Slide 20: Q&A
Q&A 20
Slide 21: We enable mobility - today, tomorrow and in the future
WE ENABLE MOBILITY - TODAY, TOMORROW AND IN THE FUTURE 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Strong Group footprint
Strong Group footprint Market shares per geography Net sales per geography, 2025Q3 Denmark 28% Number of branches: 48 (25Q2: 48) Number of affiliated workshops: 899 (25Q2: 907) Finland 25% Number of branches: 156 (25Q2: 157) Number of affiliated workshops: 423 (25Q2: 450) Norway 25% Number of branch
Slide 24: Largest owners 2025-09-30
Largest owners 2025-09-30 Voting rights and share capitals, % LKQ Corporation 26,6 Fjärde AP-fonden 8,6 Nordea Funds 4,7 Unionen 3,9 Carnegie Fonder 3,7 Swedbank Robur Fonder 3,6 Eva Fraim Påhlman 3,1 Vanguard 2,8 Dimensional Fund Advisors 2,7 AFA Försäkring 2,4 Total 10 largest shareholders 62,2 Ot
Slide 25: Long term financial targets
Long term financial targets Sales growth Adjusted EBIT growth Annual sales growth of at least 5 percent Annual adjusted EBIT growth of at least 10 percent. - through a combination of organic growth and smaller acquisitions, but excluding selective M&A. Net debt/EBITDA Dividend policy Net debt/EBITDA