Röko AB (publ) (ROKO_B) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome. To summarize LOEKO in 2025, we are not satisfied with the profit growth in the year, in particular due to the slower second half. 2025 was a challenging year with political uncertainty impacting operating companies, currency markets and of course M&A. Organically the main issues have been company specific and part some companies. In the UK, an introduced tax increase on pickup trucks have had a negative impact on the demand for 4x4 products and the US trade tariffs, not the least on goods manufactured in China, have impacted demand negatively for some of our companies and in particular Danfarm. Both of these companies have had a negative profit development in the year. On the positive side, we can see that many of our companies have worked well with improving or protecting their margins and three companies stand out with strong improvements in the year. Renovotech, Rocket Medical and Brownell, all of them are based in the UK. Total EBITDA growth for the year was 9%, mainly driven by acquisitions and with 4% organic EBITDA growth. On acquisitions, there is a mixed picture. We still see plenty of opportunities, more quality companies than we have done in recent years. I'm happy that we have completed our first acquisition in Italy in December. However, we would have liked to achieve higher organic and higher acquired growth for the year. Going forward, we continue to see strong inflow of opportunities across markets. We remain optimistic in our efforts to complete attractive acquisitions. In the year, we acquired three companies with an aggregate 465 million Swedish of net sales, which represent 8% growth through acquisitions if they would have been consolidated 1st of January. The companies have above average EBITDA margin for the group, evid...