Embellence Group AB (publ) (EMBELL) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

you very much and welcome everybody to ambulance q1 report my name is juan onion and i recently started as the ceo for the group and together with me today is the group cfo calling lydian so let's look then at what we achieved with the business during the first quarter of the year it was an overall good quarter despite the fact that we had a negative sales growth of six percent driven by the artscape business, which we knew would decline in Q1, and which we also flagged for in the last quarterly report. In fact, the artscape business declined 21 million Swedish krona versus last year, and I will shed some light on two extraordinary one-time effects later on as well. On the other hand, our two largest wallpaper brands, Borås Tapeto and Kolen Sun, both grew for the first time in some time. where the new collections were well received by the market. What also grew and have done so over the past two years was the manufacturing business, which is still having momentum with 39% increase versus a year ago. We are seeing other players decrease in the segment, such as the list of Sanderson Group in the UK. So it's of course good to see that our business keeps delivering. All in all, these efforts have helped deliver the overall sales for the group at 202 million Swedish krona, down 12 million Swedish krona versus a year ago. What is also good to see is that we continued our journey on improving our gross margin to 62%, up 3.7 percentage points versus a year ago. This was driven both by mix effects between brands, by product mix, and by manufacturing efficiencies. We are continuing to make progress towards our long-term EBITDA target of 15%. And in the quarter, the total group's EBITDA margin landed at 16%, up 0.3 percentage points versus a year ago, delivering an EBITDA of 32...