Resilient gross margin in a turbulent market
APRIL – JUNE 2026
• Net sales amounted to SEK 366.7 million (396.4), a decrease by 7%.
• Net sales for comparable segments decreased by SEK 58.0 million, a decrease by 15%.
• Operating profit amounted to SEK 26.6 million (39.6), a decrease of 33%.
• The operating margin decreased to 7.3% (10.0).
• The profit for the period amounted to SEK 21.3 million (31.3), a decrease of 32%.
• Earnings per share, before dilution, amounted to SEK 1.02 (1.49) and after dilution to SEK 1.02 (1.49).
• Cash flow from operating activities amounted to SEK -18.8 million (58.0).
JANUARY – JUNE 2026
• Net sales amounted to SEK 692.2 million (788.5), a decrease of 12%.
• Net sales for comparable segments decreased by SEK 143.2 million, a decrease by 18%.
• Operating profit amounted to SEK 46.0 million (68.4), a decrease of 33%.
• The operating margin decreased to 6.6% (8.7).
• The profit for the period amounted to SEK 36.4 million (51.9), a decrease of 30%.
• Earnings per share, before dilution, amounted to SEK 1.73 (2.47) and after dilution to SEK 1.73 (2.47).
• The net debt amounted to SEK 21.5 million (-40.8) at the end of the period, equivalent to 0.1 times (-0.2) EBITDA.
• Cash flow from operating activities amounted to SEK -5.2 million (74.5).
Heavily increased raw material prices and a resilient gross margin despite significant lower volumes concludes a turbulent second quarter of 2026.
The market
When I summarize the second quarter and six months of 2026, I can conclude that we navigate well in the geopolitical environment with heavily increased raw material prices and disruptions in our supplier chains. This, in combination with a speculative purchasing behavior, contributes to increased price competition as the market demand continues to be restrained. The increasing demand seen at the end of the first quarter continued into the second quarter, however the demand declined by the end of the period. In our perception, measured in volume, the market demand during the quarter was slightly higher than in the comparison quarter.
During the second quarter both sales volume and net sales decreased significantly in segment West and South Europe, at the same time as the gross margin strengthened, which is in line with our business plan for the segment. Positively we noted an increased demand for our premium high-optical products at the end of the period.
Raw material prices, which affect both net sales and gross profit, continued to increase rapidly during the second quarter and were at a significantly higher level than in the comparison quarter. Price increases and availability were mainly driven by an expected shortage of input material for plastic granules due to the conflict in the Middle East. Through our good relationships with our suppliers we could secure our raw material needs during the quarter.
When the quarter has passed, seen from a Group perspective, we note that the availability of raw material exceeded the underlying demand even though the beginning of the quarter was extremely turbulent.
Focus on gross margin
During the second quarter our net sales decreased by 7% compared to the same period previous year. The decreased net sales are due to lower sales volumes and the continued repositioning towards customers within segment West and South Europe. Increased raw material prices and additional net sales through the acquisition of Aikolon Oy affected the net sales positively.
Our gross margin in the quarter reached 22.9%, which was slightly lower than in the comparison quarter. The gross margin was negatively affected by lower sales volumes while the work of improving customer and product mix within segment West and South Europe affected positively. Our gross margin within West and South Europe has strengthened successively even though the sales level measured in volume is significantly lower than in the comparison quarter. The strengthened gross margin reflects the positive effects of the ongoing repositioning which significantly have improved the quality in our business.
During the second quarter of 2026 our operating profit amounted to SEK 26.6 million, which is a decrease by 33% compared to the same period previous year. The result of the Group was mainly affected by temporary operational disruptions in connected to planned redistribution of production between our units and the consolidation of our operations in Finland. In the short perspective these activities have affected the profit. The operating margin amounted to 7.3%.
During the second quarter our cash flow from operating activities turned from positive to negative affected by increased raw material inventory as well as by the heavily increasing raw material prices.
Outlook
For the third quarter we encounter a hesitant market and a continued turbulent raw material situation due to the crisis in the Middle East. From some customer groups we see a sustained demand and, in combination with current uncertainty in the market, the situation forward is difficult to predict.
In our operations in Finland the restructuring program continues and a former production unit is now closed. In all our operations investments are ongoing with the intention to improve the production environment, further increase the product quality and efficiency. The next larger investment project to be finished is at one of our production units in segment East Europe, the new equipment is planned to be commissioned during the fourth quarter of 2026.
We have a strong financial position and good gross margin with continued focus on profitability. Our ambition is to continuously develop our organization and our customer offering. We continue to invest in efficient and flexible production to meet future market needs.
Christian Krichau
President and CEO
For further information, please contact:
Christian Krichau, President and CEO, +46 141-20 38 58
Forward-looking information
Some statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the factors specifically highlighted, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic situation, changes in exchange rates and interest rates, political developments, the impact of competing products and their prices, disruptions in the supply of raw materials.
This information is such information that Arla Plast AB is obliged to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact person on 14 August, 2026 at 8:00 am CET.
About Arla Plast
Arla Plast (publ) is a leading manufacturer and supplier of extruded sheets in technical plastics with a wide range of applications areas such as safety products, machine guards, ice hockey rinks, greenhouses, pool covers, sound walls, suitcases, automotive components and other construction-related applications. The company has its headquarters in Borensberg, Sweden, and has today a total of five production facilities in Sweden, the Czech Republic, Spain and Finland as well as a distribution unit in Germany. Arla Plast has a turnover of more than SEK 1,400 million, has approximately 400 employees and delivers to more than 1 200 customers in over 50 countries. Read more about Arla Plast at www.arlaplastgroup.com.