Orthex CEO’s review
From Interim Report 1 January-30 September 2025: Slight net sales growth and strengthened profitability in Q3
Alexander Rosenlew, CEO:
“In the third quarter, Orthex’s net sales increased by 2.5% to 23.4 million euros (22.8) compared to the third quarter of the previous year. Constant currency net sales increased by 0.7% to 23.4 million euros (23.2). Despite the Q3 net sales growth, year-to-date net sales were still 1.4% behind last year and amounted to 64.9 million euros (65.9). The year-to-date sales decline is particularly attributed to lower sales in the first quarter of the year. It was a time when we had to limit shipments to some customers facing financial challenges.
In terms of sales, it is the best Q3 of all times for Orthex, delivered during demanding market conditions. I am pleased to see improved sales performance in Q3 both compared to the previous two quarters but also compared to the same period in the previous year. The sales increase was supported by earlier phasing of seasonal deliveries. Invoiced sales in the Nordics increased by 2.5% to 18.3 million euros (17.9) and in the Rest of Europe by 3.3% to 5.3 million euros (5.1). Rest of the world sales dropped 0.3 million euros due to trade uncertainty in the United States. Our commercial strategy adapted to the prevailing market conditions and our pipeline of new products performed well despite headwind from careful consumer and customer behaviour.
Storage is our biggest product category both in the Nordics and in the Rest of Europe. The positive sales development in the Rest of Europe supported the Storage category invoiced sales which increased by 3.8% to 16.6 million euros (16.0) compared to Q3 last year. The main part of the Kitchen category sales comes from the Nordic countries, but in the third quarter, the Kitchen category sales declined by 8.2% to 5.0 million euros (5.4), since the campaign outcome was weaker compared to last year. The smaller Home & Garden category sales increased by 7.0% to 2.1 million euros (2.0). Especially our flowerpots made of recycled material showed growth in the period.
Orthex’s profitability showed a strong increase in Q3, the adjusted EBITA margin at 14.3% (12.6) and the adjusted EBITA at 3.3 million euros (2.9) compared to the same period in the previous year. The positive EBITA development can be attributed to tight cost control and steady raw-material prices.
Cash flows in the third quarter increased by 4.1% and amounted to 5.9 million euros (5.7). The net debt to adjusted EBITDA ratio (leverage) was down at a healthy 1.0 (1.3) at the end of the period. This keeps us well positioned for possible strategic investments.
We aim to be the industry forerunner in sustainability, and our sustainability performance was recognised with a silver medal rating in the EcoVadis ESG assessment in September. This result places Orthex among the top 10 percent of more than 90,000 companies globally and annually assessed by EcoVadis.
We are refining our commercial strategy to strengthen our offering and ensure efficient targeting of key channels, key customers and key markets, with a focus on becoming a truly European company adding value to the categories we operate in, to our customers and to our consumers. Our strong ambition is to further accelerate growth especially in the market area Rest of Europe, while ensuring that our operations are structured to serve all our key markets efficiently.
I wish to express my gratitude to all our stakeholders, partners, and our exceptional employees for their commitment and positive collaboration. In a time shaped by geopolitical turbulence and heightened consumer caution, collaboration and a shared purpose have been important in recognizing and driving the excellent opportunities we have in front of us.”