Dustin Group AB (publ) (DUST) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

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 a 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. The decrease in gross margin is explained by strong public sector growth, a high share of PC sales and continued price pressure in the Netherlands. Adjusted EBITDA increased from 21 million to 83 million, driven by efficiency measures implemented, a weak comparative quarter and higher sales volumes. The margin increased to 1.5% compared to 0.4% last year. Cash flow from operating activities increased to 381 million compared to a negative 42 million last year, and this is primarily driven by improved net working capital. Leverage, measured as net debt to EBITDA, dropped to 3.1 times, and this is to be compared to 5.2 times last year as a result of the strong cash flow. In the beginning of the quarter, we also updated our sustainability targets in line with the latest research and to meet customer needs. And the updated climate targets are approved by science-based target initiative. And if we then go to the next slide, and as I mentioned earlier, organic growth development ...