Embellence Group AB (publ) (EMBELL) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Imbalance Group Q4 2025 report presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key. The group and together with me today is Karin Lidén, who is the CFO. Today we will start to look at the business and what we achieved in the fourth quarter of the year. We will then look at the full year performance and how we're doing on our strategic focus areas. And since we are a group with strong iconic brands in the interior decoration industry, we will also look at some of our recent product launches. But first, let's dig into the business and our Q4 numbers. Q4 was a stable quarter where we delivered currency-adjusted organic sales growth of 1%. As we also highlighted in our last quarterly call, we continue to face currency headwinds mainly from the US dollar and the Great British Pound that negatively impacted our top line by 4%. All in all, delivering net sales of 195 million Swedish krona, which is down 3% versus past year. Worth noticing is the comparison number from past year where Artscape had an extraordinary one-time effect where they grew 51%, so the comparison numbers are heavily impacted by this activity. The numbers are also, of course, impacted by the FX rates, which Karin will shed some more light on later on in the presentation. In the quarter, our gross margin improved to 61.8%, up 1.1 percentage points versus past year, and it's sixth consecutive quarter above 60%. This was driven by positive channel and product mix, which means that we sold more from profitable channels, such as the D2C channel, and we've also actively worked with launching products that are more premium and higher priced. So a...