Meko AB (publ) (MEKO) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to MEKO's presentation of our results for the second quarter 2025. I'm here with our CFO, Christer Johansson, and together we will walk you through our performance and current position. Already in the first quarter, the market slowed somewhat, affected by international turbulence and uncertainty about the economy. This situation continued into the second quarter with lower demand. This also intensified competition, particularly in Denmark and Poland. All in all, this impacted our Q2 sales and our organic growth decline compared to the same quarter last year, which actually was the strongest in our history. For some time now, we have stepped up our efforts to build a stronger and more profitable MIACO. This has included extensive savings and optimization initiatives, which have shown clear effect. But the slower market have affected both our sales and results in Q2, despite our focus on efficiency. And we are responding to this immediately. So we're now launching a new cost reduction program that will lower our costs by 100 million SEK annually, with full effect going into 26. Beyond reducing costs, we're also working with more focus to increase our sales. Several activities are underway, both locally and at group level. We are renewing our focus on exclusive brands and have continued to bring our upgraded central warehouses into operation in Q2. In addition, we'll launch our new ERP in Poland as the first market. So let me show you a brief status on the efficiency improvements. And let's turn to next slide. We launched the initiative Building a Stronger America in late 2023. The aim is clear to improve profitability and long-term growth. In short, Building a Stronger Mirko focuses on these three areas. First, cost reductions and increased eff...