Meko AB (publ) (MEKO) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining us. Our CFO Kristi Åhrensson is sitting beside me and we will now present MEKO's results for the fourth quarter and full year 2025. The fourth quarter marked the end of a year that can be described as an important investment year for MEKO. In parallel, we concluded major warehouse upgrades in four markets, according to plan for improving operations within the program Building a Stronger MEKO. We also launched several key initiatives to attract new customer segments and drive growth. In addition to this, we started the launch of our new ERP system in Poland and accelerated our cost savings efforts. In total, we reduced the number of full-time employees by 500 during the year. We did this in a somewhat weaker vehicle market compared to 2024, with more car owners postponing service and maintenance due to uncertainty about the future. For Meko, this resulted in lower sales in the first half of the year, which we partly offset in the third quarter. The market situation remained unchanged in the fourth quarter with zero growth reported in line with the same period in 2024. Overall, our results were negatively impacted with an adjusted EBIT margin of 2.2% for the period. The lower result have increased our leverage and we are now fully focused on improving profitability and reducing our leverage. Compared with the very intensive 2025, we see better conditions in 2026 to do this. Let's move to slide three for a closer look at some of our important initiatives in 2025. As mentioned, we completed upgrades and construction of four central warehouses all at the same time. We automated the warehouse in Finland and built new automated ones in Norway and Denmark, where we now have moved in. In addition, we relocated to a central warehouse in Warsaw that is nea...