Meko AB (publ) (MEKO) Q1 2026 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:04.518 Thank you, and thank you for joining us. Our CFO, Kristi Johansson, is sitting beside 00:00:04.518 -- 00:00:10.724 me, and we will now present the results for the first quarter of 2026. 00:00:12.250 -- 00:00:17.137 The first quarter shows that our measures to improve our financial position are having 00:00:17.137 -- 00:00:22.826 an effect. Adjusted operating margin exceeded the level in the fourth quarter 00:00:22.826 -- 00:00:26.308 and for the full year 2025. 00:00:35.924 -- 00:00:41.070 We continue the efficiency measures linked to our major investments 00:00:41.070 -- 00:00:46.657 in our automated central warehouses and in general costs as a share of sales decline 00:00:46.657 -- 00:00:50.501 compared with the same period in both 2024 and 2025. 00:00:50.501 -- 00:00:55.947 It's also encouraging to see that our cash flow strengthens supported by reduced 00:00:55.947 -- 00:00:59.311 working capital and a lower level of investments. 00:00:59.311 -- 00:01:03.717 This contributed to a reduction in leverage which is a prioritized 00:01:03.717 -- 00:01:08.964 area for us. We achieved this despite the market conditions 00:01:08.964 -- 00:01:12.829 being unchanged in Q1 compared to Q4 last year. 00:01:12.829 -- 00:01:17.776 Car owners continue to postpone repairs that were not essential. 00:01:17.776 -- 00:01:23.184 This led to continuous strong competition between wholesalers and workshops 00:01:23.184 -- 00:01:28.472 with price pressure in the market. And even though our measures to strengthen 00:01:28.472 -- 00:01:32.978 probability are having effect, our profitability remains below target. 00:01:32.978 -- 00:01:37.163 We are therefore implementing additional cost reductions. 00:01:37.163 -- 00:01:42.770 An important part of this is ...