Sinch AB (publ) (SINCH) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much, Operator, and a warm welcome to everyone for this Q2 earnings call. My name is Lorinda Pang, CEO of Cinch, and I'm calling in today from the U.S., while our CFO, Jonas Dahlberg, is calling in from Stockholm today. Let's turn to slide two to look at the highlights from the quarter. I'm pleased to share that our second quarter results for 2025 demonstrate our continued resilience and steady progress, even as we continue to navigate an uncertain macroeconomic environment. As we begin, I would call out the large FX swings we experienced in the quarter for net sales, gross profit, and costs due mainly to the weakened US dollar. As we always do, we will point you to organic changes, which normalize these FX swings and is a consistent representation of the underlying business. Reported net sales was 6.6 billion krona, corresponding to a 2% organic growth rate when adjusting for the effect of foreign exchange movements, which was nearly 600 million krona in the quarter. Organic net sales growth is an important guidepost to the underlying performance of the business, and 2% is lower than our ambition. While mixed shift will help drive improved profitability, we need to do both, higher top line growth in net sales and shifting our mix. our gross profit showed a robust six percent organic growth reaching 2.3 billion krona positive organic growth was delivered by all regions and across all product categories reflecting solid execution and our focus on higher value offerings this is reflected in our gross margin expansion to 35 percent this quarter We also demonstrated solid performance in adjusted EBITDA. Although flat in nominal terms and on a reported basis, adjusted EBITDA increased 8% organically to 869 million krona. EBITDA grew organically by 4% to 760...