Orthex Corporation, Stock exchange release, 21 August 2025 at 9.00 a.m. EEST
Q2: Strong sales growth in Europe, Nordic consumer demand still challenging
This release is a summary of Orthex Corporation's Half-Year Financial Report for
the period January-June 2025. The complete report is attached to this release as
a pdf-file. It is also available on Orthex's website at
https://investors.orthexgroup.com/.
April-June 2025
· Invoiced sales amounted to EUR 21.2 million (21.6)
· Net sales decreased by 2.3% to EUR 20.5 million (21.0)
· Adjusted EBITDA was EUR 2.9 million (2.6)
· Adjusted EBITA was EUR 1.7 million (1.6), representing 8.4% of net sales
(7.4)
· Operating profit was EUR 1.7 million (1.5)
· Net cash flows from operating activities were EUR -0.8 million (-0.4)
· Earnings per share, basic was EUR 0.05 (0.05)
January-June 2025
· Invoiced sales amounted to EUR 43.1 million (44.6)
· Net sales decreased by 3.5% to EUR 41.5 million (43.0)
· Adjusted EBITDA was EUR 5.8 million (6.5)
· Adjusted EBITA was EUR 3.4 million (4.3), representing 8.3% of net sales
(10.0)
· Operating profit was EUR 3.4 million (4.3)
· Net cash flows from operating activities were EUR 3.9 million (3.7)
· Net debt / Adjusted EBITDA was 1.4 (1.6)
· Earnings per share, basic was EUR 0.12 (0.14)
The figures in brackets refer to the corresponding period in the previous year
unless stated otherwise. The figures are unaudited.
Long-term financial targets
As long-term financial targets the company has adopted to an average annual
organic Net sales growth to exceed 5 per cent at the Group level and to exceed
10 per cent outside the Nordics (growth in local currencies), adjusted EBITA
margin (adjusted for items affecting comparability) to exceed 18 per cent over
time and net debt to adjusted EBITDA ratio to stay below 2.5x. Leverage may
temporarily exceed the target range (for example, in conjunction with
acquisitions).
The company aims to distribute a stable and over time increasing dividend with a
pay-out of at least 50 per cent of net profit, in total, on a biannual basis.
Orthex does not publish a short-term outlook.
Key figures
EUR million 4-6/20 4-6/20 Change 1-6/20 1-6/20 Change 1-12/2024
25 24 25 24
Invoiced 21.2 21.6 -1.7% 43.1 44.6 -3.4% 92.3
sales
Net sales 20.5 21.0 -2.3% 41.5 43.0 -3.5% 89.7
Gross 5.8 5.7 1.8% 11.6 12.4 -6.2% 25.7
margin
Gross 28.1% 27.0% 27.9% 28.7% 28.6%
margin, %
EBITDA 2.9 2.6 10.8% 5.8 6.5 -9.5% 14.3
EBITDA 14.2% 12.5% 14.1% 15.0% 15.9%
margin, %
Adjusted 2.9 2.6 10.8% 5.8 6.5 -9.5% 14.6
EBITDA
Adjusted 14.2% 12.5% 14.1% 15.0% 16.3%
EBITDA
margin, %
EBITA 1.7 1.6 10.7% 3.4 4.3 -20.4% 9.8
EBITA 8.4% 7.4% 8.3% 10.0% 11.0%
margin, %
Adjusted 1.7 1.6 10.7% 3.4 4.3 -20.4% 10.2
EBITA
Adjusted 8.4% 7.4% 8.3% 10.0% 11.4%
EBITA
margin,
%
Operating 1.7 1.5 11.0% 3.4 4.3 -20.3% 9.8
profit
Operating 8.4% 7.4% 8.3% 10.0% 11.0%
profit
margin, %
Net cash -0.8 -0.4 -109.4% 3.9 3.7 4.7% 11.8
flows from
operating
activities
Net debt / 1.4x 1.6x 1.4x 1.6x 1.4x
Adjusted
EBITDA
Adjusted 5.2% 4.7% 10.2% 12.6% 29.7%
return on
capital
employed
(ROCE), %
Equity 42.6% 39.8% 42.6% 39.8% 41.9%
ratio, %
Earnings 0.05 0.05 -3.6% 0.12 0.14 -11.9% 0.34
per share,
basic (EUR)
FTEs 285 294 -3.1% 287 291 -1.3% 288
Alexander Rosenlew, CEO:
“In the second quarter, Orthex's net sales decreased by 2.3% to 20.5 million
euros (21.0) compared to the second quarter of 2024. Constant currency net sales
decreased by 5.1% to 20.5 million euros (21.6). The operating environment
remained challenging due to continued low consumer confidence. Despite that we
managed to achieve very strong sales growth in the Rest of Europe through
improving distribution, successful new product launches and effective in-store
campaigns. In the Nordics, some customers have been cautious in their buying
patterns due to the challenging market.
In the first half of the year, net sales decreased by 3.5% and amounted to 41.5
million euros (43.0). During the period, credit risks continued in some of our
customers, and as a precaution we restricted shipments especially in the first
quarter, which had a negative sales impact on sales outside the Nordics. In the
Nordics, the sales were affected by some key customers buying smaller campaign
volumes compared to last year. Strikes also impacted us and the Finnish trade
negatively during the first quarter.
Compared to the Q2 in the previous year, Rest of Europe showed a strong growth
of 22.1% to 5.1 million euros (4.2). Invoiced sales for the second quarter in
the Nordics decreased by 7.6% to 15.9 million euros (17.2) The decline in the
Nordics came from a few customers, relating to timing of campaigns and slower
sell-out. Our extensive pipeline of new products is showing good performance,
and we are happy to see strengthening customer partnerships and increased
distribution in the Rest of Europe.
Storage is the Group's biggest product category, and it represents most of the
business outside the Nordic countries. The positive sales development in the
Rest of Europe supported the Storage category's invoiced sales which increased
by 1.0% to 13.5 million euros (13.4) compared to Q2 last year. Sales of the
Kitchen category decreased by 8.0% to 4.4 million euros (4.7), the decrease
comes from lower buying volumes in the Nordics. The main part of the Kitchen
category sales is still coming from the Nordic countries. The Home & Garden
category sales decreased by 3.8% to 3.3 million euros (3.5).
Orthex's Q2 profitability increased with the adjusted EBITA margin at 8.4%
(7.4%) and the adjusted EBITA at 1.7 million euros (1.6) compared to the same
period last year. We managed to keep our overall costs under good control, which
enabled us to protect the profit margins despite the decline in sales in the
Nordics.
Cash flows in the quarter were according to our plans at -0.8 million euros (
-0.4). The net debt to adjusted EBITDA ratio (leverage) was down at a healthy
1.4 (1.6) at the end of the period. This positions us well to be prepared for
possible strategic investments.
Orthex conducted a sustainability materiality assessment with key stakeholders
during the spring. The assessment results are used to ensure that our
sustainability strategy focuses on material sustainability topics. In May 2025,
Orthex joined UN Global Compact. The UN Global Compact is a United Nations
initiative to encourage businesses worldwide to adopt sustainable and socially
responsible practices.
During the upcoming quarters, we will be updating our commercial strategy to
strengthen our commercial offering and ensure efficient targeting of key
channels, key customers and key markets, with a focus on becoming a truly
European company. The ambition is to accelerate healthy growth, while ensuring
that our operations are optimized to serve our key markets efficiently. I want
to sincerely thank all our stakeholders, partners and our dedicated personnel
for the good cooperation during times which require quite some extra efforts to
overcome consumer carefulness under geopolitically turbulent conditions.”
Press conference on financial results:
Orthex's CEO Alexander Rosenlew, CFO Saara Mäkelä and CMSO Hanna Kukkonen will
present the report today in a webcast starting at 11.00 a.m. EEST. The webcast
can be joined through this link (https://orthex.events.inderes.com/q2-2025). The
webcast presentation will be held in English.
Q&A:
Questions to the management can be sent through the meeting chat.
Presentation material:
The presentation material will be shared in the online meeting, and it can be
downloaded in the same day on the corporate website at Reports & presentations -
Orthex Group (https://investors.orthexgroup.com/reports-and-presentations/).
Recording of the event:
After the event, a recording will be available on the corporate website at
Reports & presentations - Orthex
Group (https://investors.orthexgroup.com/reports-and-presentations/).
Further enquiries:
Alexander Rosenlew, CEO, Orthex Corporation
Tel. +358 (0)40 500 3826
alexander.rosenlew@orthexgroup.com
Saara Mäkelä, CFO, Orthex Corporation
Tel. +358 (0)40 083 8782
saara.makela@orthexgroup.com
Distribution:
Nasdaq Helsinki Ltd
Main media
https:/investors.orthexgroup.com/
Orthex in brief
Orthex (ORTHEX, Nasdaq Helsinki, Finland) is a leading Nordic houseware company.
Orthex offers a broad assortment of practical and durable household products
with a mission to make consumers' everyday life easier. Orthex main consumer
brands are SmartStore™ in storage products, GastroMax™ in kitchenware and
Orthex™ in home and garden products. Orthex aims to be the industry forerunner
in sustainability by offering safe and long-lasting products and reducing its
carbon footprint by increasing the share of recycled and renewable raw
materials. Read more www.orthexgroup.com.
Orthex's net sales in 2024 were 89.7 million euros. The company has customers in
more than 40 countries and local sales organisations in the Nordics, Germany,
France, the UK, and the Benelux.
Follow Orthex on LinkedIn (https://www.linkedin.com/company/orthexgroup) /
Facebook (https://www.facebook.com/Orthex-Group-933475916759915/?fref=ts) /
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