Orthex CEO review
From Half-year Financial Report Q1-Q2/2026: Strong Nordic sales growth, prompt actions to support profitability
Alexander Rosenlew, CEO: “In the second quarter, Orthex’s net sales increased by 5.2% to EUR 21.6 million compared to the second quarter in the previous year (20.5). In constant currencies, net sales increased by 4.3%. In the first half of the year, net sales increased by 4.0% and amounted to EUR 43.2 million (41.5). The reported net sales growth was mainly driven by increased sales in the Nordics.
Decisive and rapid price increases were implemented during the quarter in response to the significant rise in raw material costs caused by the conflict in the Middle East. In the Nordics, where our market position and our brands are strong, business grew beyond the necessary price increasing negotiations and invoiced sales in the Nordics grew by 12.0% and amounted to EUR 17.8 million (15.9). In the Rest of Europe, several growth initiatives had to be temporarily paused while pricing discussions with customers were ongoing. As a result, invoiced sales in the Rest of Europe decreased by 10.5% and were EUR 4.6 million (5.1).
With the price increases now largely implemented, our focus shifts to accelerating growth together with customers across Europe and beyond. I would like to extend a special thank you to our sales teams for their determination, professionalism and swift execution of these challenging but necessary pricing actions across all our markets.
In the second quarter, the Storage category continued its strong performance, with invoiced sales increasing by 7.7% compared to the corresponding period last year. Invoiced sales of Kitchen products also grew by 4.7%, while the Home & Garden category remained stable. New product launches and campaigns performed well especially in the Nordics, and our ongoing focus on category management with major retailers continues to create value for both our customers and the categories in which we operate.
Compared to the second quarter of 2025, Orthex’s profitability declined because of the sharp increase in raw material costs and expenses related to strategic development projects. Adjusted EBITA amounted to EUR 1.4 million (1.7), corresponding to an adjusted EBITA margin of 6.3% (8.4). Higher sales volumes and disciplined cost control helped mitigate raw material cost increases. The price increases implemented will gradually offset the increased cost. Thanks to our long-standing supplier cooperation, we have succeeded in securing the availability of key raw materials.
Our aim to accelerate sales growth with major European retailers remains unchanged. We see many opportunities to unlock growth together with our customers, supported by the production capacity, capabilities and organization we have built over recent years. In April, we were honoured to see our latest innovation, the SmartStore™ Module storage solution, receiving the prestigious Red Dot Design Award. This recognition is proof of the strong expertise of our product development team, and I congratulate the team on their excellent achievement.
As we move through the remainder of 2026, I remain confident in our ability to adapt, execute and accelerate our European growth strategy. We have a strong foundation for future success. I would like to sincerely thank everyone at Orthex for their commitment, flexibility and relentless focus on improving every day. Together, we continue to build a strong future for Orthex.”