Investments and product launches in a persistently weak market
Second Quarter
- Net sales amounted to 219.6 MSEK (212.5)
- Adjusted gross margin decreased by 2.4% to 34.8% (37.2)
- Adjusted operating profit amounted to -3.0 MSEK (0.2)
- Free cash flow including leasing amounted to -13.3 MSEK (-7.2)
- Order backlog amounted to 235.4 MSEK (233.7)
Comments from CEO Susanna Hilleskog
Second Quarter in a mixed market environment
The Group’s revenue was 3.3 per cent higher than in the corresponding period of the previous year; adjusted for currency effects, revenue decreased by 0.8 per cent. Performance varied between our two business areas, with very strong sales growth within Library Interiors, which increased by as much as 18.2 per cent, while sales within Office Interiors declined by 2.6 per cent.
Order intake for the Group decreased by 6.3 per cent, while the total order backlog at the end of the period was 0.7 per cent higher than at the same point last year. The adjusted gross margin amounted to 34.8 per cent (37.2).
Adjusted operating profit amounted to SEK -3.0 million (0.2) during the period, corresponding to an adjusted operating margin of -1.3 per cent (0.1). Free cash flow, including leases, amounted to SEK -13.3 million (-7.2).
Product launches and renewal focused on a strong future customer offering
The intensive ongoing work within the Office Interiors business area on product and portfolio development aimed at creating a coordinated offering across brand boundaries resulted, among other things, in several product launches in connection with the 3daysofdesign festival in Copenhagen in June. The launches encompassed all brands and included newly developed products, new product variants, and new functions and features for existing products. Through our renewal efforts, we are building on our heritage and history while ensuring a strong and relevant offering for the future when market conditions normalise.
The Library Interiors business area continued its efficiency improvement programme, supported by the recently implemented ERP system, to enhance the customer experience. Portfolio renewal, combined with ongoing brand development initiatives, is intended to create the right conditions for further growth going forward.
Market presence during the second quarter
The second quarter is traditionally the most intensive period of the year for the Group’s marketing activities, and this was also the case this year. Among the most significant initiatives was our joint participation at Salone del Mobile in Milan, where the Office Interiors business area, for the first time, brought together its brands in a shared stand at Europe’s leading meeting place for design and interiors. During Clerkenwell Design Week in London, we also launched a strategic initiative in the UK market through a new partnership with Tarkett UK and the establishment of a shared showroom. In addition, the Group participated in Nordbygg in Stockholm, where Office Interiors showcased solutions for glass walls and acoustic rooms, at 3daysofdesign in Copenhagen, and at several industry events within the library segment in Ireland, Germany and France.
The quarter’s marketing activities form part of the Group’s long-term strategy to continue investing in brands, market presence and customer relationships even in a challenging market environment, thereby strengthening our competitiveness and creating favourable conditions when demand returns.
Optimism in an uncertain and unstable environment
We operate in an uncertain global environment, which in turn creates challenging market conditions characterised by weak demand and lengthy customer decision-making processes.
We have also experienced rising freight costs and price increases for components. To mitigate the impact of these cost increases, we announced a temporary surcharge to the market during the quarter, the effect of which will be realised gradually in accordance with our existing agreements and commitments.
Across both of our business areas, we continue to work actively and continuously on cost control, supply chain flexibility and forward-looking initiatives. Within Office Interiors, we continue to invest in product development, market presence and customer relationships to strengthen our customer offering, increase our relevance in the market and build a stronger position for the future. Within Library Interiors, we continue to build on a solid foundation while developing new growth opportunities to further strengthen our market position.
Although market conditions remain challenging, our assessment is that the measures implemented over recent years have strengthened the Group’s competitiveness. With a renewed product offering, an improved operational platform, strong brands and a solid financial position, we are well placed to benefit from a future recovery in demand. Our ambition to achieve an EBIT margin of 8–10 per cent in a normalised market remains unchanged.
Invitation to report presentation
Today at 14:00 CEST, the report will be presented in a live webcast by CEO Susanna Hilleskog and CFO Jesper Langebro for the press and the financial market. The presentation will be held in Swedish. To access the presentation, please use the link below. The webcast includes the opportunity to submit written questions.
To participate in the presentation, please use the link below:
https://lammhults-design-group.events.inderes.com/q2-report-2026
For further information, please contact:
Susanna Hilleskog, CEO and President, tel. +46 (0) 709 55 13 37
Jesper Langebro, CFO, tel. +46 (0) 708 63 70 30
This information is information that Lammhults Design Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication at 13:00 CEST on 14 July 2026, through the agency of the contact person set out above.
About Lammhults Design Group
Lammhults Design Group is a Swedish furniture group that develops products and interior solutions for public spaces and office environments. The Group operates through two business areas: Office Interiors and Library Interiors. The Group creates long-term profitable growth by developing and refining its brands, strengthening its customer offering, and driving operational efficiency. Its operations are built on customer insight, design, innovation, and sustainability. The portfolio includes some of Scandinavia’s strongest brands, and the products are developed in close collaboration with leading designers in the industry. Lammhults Design Group is listed on Nasdaq Stockholm Small Cap.
This is an English translation of the original Swedish text. In case of any discrepancies, the Swedish version shall prevail.