Orthex CEO review
From Financial statements release 2025: Solid profitability in a weak market environment
Alexander Rosenlew, CEO:
“In the fourth quarter of 2025, Orthex’s net sales decreased by 6.6% to 22.3 million euros compared to the record Q4 of the previous year (23.9). The decrease in net sales is mainly explained by big deliveries of goods at the end of the third quarter and less year-end pre-loading for campaigns at the start of 2026. The decline in constant currency net sales was 9.4%. Full-year net sales decreased by 2.8% and amounted to 87.2 million euros (89.7). The sales decline is particularly attributed to careful consumer behaviour. In addition, especially at the start of the year we had to limit shipments to some customers facing financial challenges.
Despite lower sales, Orthex’s profitability improved compared to Q4 in 2024, with the adjusted EBITA margin at 13.6% (12.7) and adjusted EBITA at 3.0 million euros (3.0). The adjusted EBITA margin for the full year 2025 remained stable despite lower sales and was 11.3% (11.4). The adjusted EBITA amounted to 9.8 million euros meaning a slight decline compared to 10.2 million euros in the previous year. The EBITA result development can be attributed to tight cost control and a balance between volume driving campaigns and more profitable base sales. Steady, and towards the second half of the year declining raw material prices further improved the results. Operational efficiencies were not gained with declining sales, hence measures to offset cost increase and secure margins were consciously implemented during the year to secure delivery of the EBITA result.
Cash flows in the fourth quarter increased by 5.3% and amounted to 2.5 million euros (2.4). The full-year net cash flows from operating activities increased by 4.5% to 12.3 million euros (11.8). The net debt to adjusted EBITDA ratio (leverage) was down to a healthy 1.1x (1.4x) at the end of the period. We are well positioned for potential strategic investments in 2026.
Invoiced sales for the fourth quarter in the Nordics decreased by 6.1% to 17.4 million euros (18.5). The performance in the Nordics was affected by smaller 2025 pre-shipments for early 2026 campaigns compared to 2024 year ending shipments. In the Rest of Europe sales declined by 4.6% to 5.4 million euros (5.7). Some of the strategic markets showed healthy growth, while one important customer held back on campaign ordering in the fourth quarter.
Storage is our biggest product category both in the Nordics and in the Rest of Europe. The negative sales development in the Nordics impacted the Storage category invoiced sales which declined by 6.9% to 17.3 million euros compared to Q4 last year (18.6). The main part of the Kitchen category’s invoiced sales come from the Nordic countries, and the Kitchen category sales declined by 3.1% to 4.3 million euros (4.4). The smaller Home & Garden category sales remained flat at 1.4 million euros (1.4).
Orthex participated in the Finland’s Most Sustainable Product competition and the winners were announced in November. I am very pleased that our Paulina self-watering flowerpot made from recycled plastic won the Home & Leisure time category. Orthex has been using recycled plastic in production since the 1990s, and nowadays all our flowerpots and balcony boxes are made from it.
To ignite consumer demand in 2025, we focused heavily on in-store visibility, and a good example of this is the building of over 400 SmartStore™ and GastroMax™ shelf implementations in major retail chains across Europe and the Nordics. The measures taken in the stores boosted out of store sales and shopper activity. We have deployed further local resources focusing on France and Germany, the stronger international commitment is intended to accelerate future growth in the area outside the Nordics. Invoiced sales outside the Nordic market accounted for 23.1% (22.9) of Orthex’s invoiced sales in 2025.
The business climate in 2025 was characterized by careful consumer behaviour and customer uncertainty. Although inflation pressures slowed down, and interest rates stabilized during the year, demand did not recover remarkably. During these conditions, we have used our time efficiently, working on our go-to-market strategy, our internal operations, reducing complexity and strengthening our commercial teams and improving our tools. With a strong portfolio of new products, classic favourites and a very clear plan on how to advance, we take on 2026 with determination and confidence.
I am incredibly proud of the teamwork, individual efforts, and dedication of our employees in building, adapting and executing our growth strategy. I want to extend my heartfelt thank you to everyone at Orthex for their significant contribution throughout the year. To all our customers and stakeholders, I would like to show my gratitude and share our ambition to be the best partner for business growth in the category.
The Board of Directors has decided to propose a higher dividend payout compared to the previous year and is proposing a dividend of 0.23 euros per share (0.22), totalling 4.1 million euros (3.9) and 60.3% (63.9) of net profit.”