Dustin Group AB (publ) (DUST) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and a warm welcome to the presentation of our second quarter results. My name is Samuel Scott. I'm the group CEO here at Dustin, and with me today, I have our CFO, Julia Lagerqvist. And if we get into the two to report, I'm glad to report yet another quarter with organic growth, strong cash flow, and reduced leverage, while we continue to streamline and improve the efficiency of our operations. Net sales development was positive in the quarter, with organic growth of 4.4%. Growth was driven by strong performance in the public sector and should partly be seen in the light of a strong comparable quarter. The gross margin decreased to 13.2% compared with 13.9% last year, but indicated a sequential improvement compared to the first quarter's margin of 13.1%. The lower margin is mainly explained by mixed effects arising from strong public sector growth and continued price pressure in the Netherlands, also a weak performance within non-standard services that had a negative impact. Adjusted EBITDA was relatively stable at 103 million compared to 110 million a year earlier, where implemented efficiency measures nearly compensated for a lower gross profit. Cash flow from operating activities increased to 258 million compared to 180 million last year, and this is primarily driven by improved net working capital. Leverage measured as net debt to EBITDA dropped to 2.7 times compared to 5.7 times last year, and is now within our target range of two to three times. And if we then turn into some operational highlights for the quarter, We have taken important steps to further sharpen our business, and the discontinuation of the consumer offering is now completed in all markets, which means that we are now fully focused on our business customers. We have also ...