Half-year report 2026, January - June

"We deliver another stable quarter of profitable growth. The acquisition of UBC strengthens our position in Central Europe, and the transition to the new distribution centre in the UK creates the conditions for increased efficiency."

Second quarter

• Net sales amounted to SEK 591.9 million (570.5), an increase of 3.7 percent. Organic growth was 1.8 percent
• EBITA amounted to SEK 81.0 million (83.4), corresponding to a margin of 13.7 percent (14.6)
• EBIT amounted to SEK 68.5 million (79.9), corresponding to a margin of 11.6 percent (14.0)
• Profit before tax amounted to SEK 55.9 million (69.3)
• Earnings per share amounted to SEK 0.78 (0.97)
• Free cash flow amounted to SEK 41.6 million (72.2)

First half-year

• Net sales amounted to SEK 1,175.5 million (1,166.8), an increase of 0.8 percent. Organic growth was 2.2 percent
• EBITA amounted to SEK 173.7 million (177.0), corresponding to a margin of 14.8 percent (15.2)
• EBIT amounted to SEK 157.9 million (169.8), corresponding to a margin of 13.4 percent (14.6)
• Profit before tax amounted to SEK 136.2 million (140.7)
• Earnings per share amounted to SEK 1.91 (1.96)
• Free cash flow amounted to SEK -18.2 million (123.1)
  

Significant events

• A contingent consideration of SEK 18.2 million relating to the acquisition of Thebalux was paid during the first quarter
• Svedbergs Group acquired a majority stake in Czech company UBC during the second quarter
  

CEO comments
Strengthened position through acquisitions and continued organic growth
We deliver another stable quarter with continued growth and good profitability, where the Group's geographic breadth and strengthened market positions once again demonstrate their strength. Net sales amounted to SEK 592 million (571), corresponding to an increase of +3.7 percent, of which organic growth accounted for +1.8 percent. The acquisition of the Czech bathroom group UBC contributed +4.1 percent to the sales increase.

The gross margin remained strong at 47.7 percent (47.0), reflecting a favourable product mix and consistent work on pricing, production and purchasing. Earnings are temporarily affected by higher logistics costs in the UK due to the current warehouse structure with five parallel warehouse units and the ongoing move to a new central distribution centre. EBITA amounted to SEK 81 million (83), corresponding to an EBITA margin of 13.7 percent (14.6).

Overall, the quarter demonstrates good profitability, growth and strong operational performance.

New segment reporting in line with the Group's strategic development
As of the second quarter of 2026, we report the Group's operations in three geographic segments: the Nordics, Central Europe and the UK. The change is a consequence of the acquisition of UBC and a natural development to better reflect the Group's structure and governance. As the number of brand companies grows, a geographic segment structure becomes both more appropriate and more practical to manage, while we remain committed to a continued high level of transparency towards our shareholders and the capital market.

Continued good development in our main markets
The Nordics are overall broadly in line with the second quarter of 2025. The picture is differentiated, however: Denmark is developing very positively, while Finland remains challenging and Sweden is delivering somewhat weaker figures than last year. We are seeing positive effects from the measures implemented and maintain our focus on sales, profitability and efficiency across all Nordic brand companies.

Central Europe shows strong growth during the quarter, both through the acquisition of UBC and through organic growth in the Dutch market. Thebalux continues to develop positively, combining growth with high profitability. The addition of UBC broadens our presence in Central Europe and creates opportunities for further value creation through both purchasing and product synergies.

The UK is developing positively with organic growth during the quarter. Roper Rhodes holds a strong position in its market segments and continues to perform well. During the quarter, we launched new products under the R2 brand. Work on the new distribution centre in South Gloucestershire is progressing, and we expect to move in towards the end of the fourth quarter, a time that is seasonally favourable with lower sales volumes and outbound deliveries. The new warehouse will replace the five existing warehouse units, thereby significantly improving both cost efficiency and service levels.

Positioned for profitable growth
During the second quarter, we continued to work consistently in line with our strategy, focusing on profitable growth and operational improvement. The acquisition of UBC is an important step in the Group's development and strengthens our presence in Central Europe, in line with our strategy of combining locally rooted brands with decentralised leadership and Group-wide strengths.

Product development and sales are key focus areas, where we continuously develop our offering to meet customer needs and strengthen profitability. The decentralised model contributes to resilience, speed and customer proximity, while synergies are created in areas such as purchasing, sustainability, digitalisation and information security.

Sustainability in line with the strategy
The greatest impact on the Group's climate footprint comes from purchased goods and transport in the supply chain. We therefore devote most of our efforts to initiatives that increase the share of recycled material and reduce material consumption in our products, more efficient energy use and stronger collaboration with our suppliers to support their transition.

Concrete activities during the quarter include the publication of several new environmental product declarations (EPDs), and preparations for the EU Packaging and Packaging Waste Regulation (PPWR) are proceeding as planned. We remain committed to our long-term climate targets and are making continuous progress towards them.

Outlook
The geopolitical situation remains challenging, with ongoing conflicts creating uncertainty around energy markets, trade flows and the investment climate. However, we assess the underlying demand for our products and services as remaining good. Svedbergs Group stands firm, with a business model that is resilient even in a volatile environment. Our decentralised model and geographic breadth give us the flexibility to act in a changing market landscape. With the transition to the new distribution centre in the UK during the fourth quarter and the continued integration of UBC, we see good conditions for profitable growth. We continue our journey of acquiring successful companies in our ambition to build a strong European Svedbergs Group.

Contacts
Per-Arne Andersson, CEO: +46 (0)706 38 50 12, per-arne.andersson@svedbergsgroup.com
Ann-Sofie Davidsson, CFO: +46 (0)720 74 10 62, ann-sofie.davidsson@svedbergsgroup.com

About us
Svedbergs Group is a long-term investor in Europe’s strongest independent companies that design, manufacture and market sustainable bathroom products and services. We are growing through organic growth and acquisitions that complement and strengthen our group through new product categories, geographic spread and new knowledge in marketing, innovation and sustainability. We create value by sharing each company’s unique expertise with the rest of the group, and we care about maintaining the entrepreneurial drive and commitment of the companies. We call this cooperation without confusion.

This information is information that Svedbergs Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-07-15 07:30 CEST.