Orthex CEO review
From Interim Report Q1/2026: Strong sales growth outside the Nordics, improved profitability
Alexander Rosenlew, CEO: “In the first quarter, Orthex’s net sales increased by 2.7% to EUR 21.6 million compared with Q1 last year (21.0). In constant currencies, net sales decreased by 0.4% and amounted to EUR 21.6 million (21.6). The reported net sales growth was mainly driven by increased sales of storage products outside the Nordics, and the exchange rates in the Nordics had a positive impact on the net sales.
Invoiced sales in the Nordics decreased by 1.1% to EUR 17.1 million despite the positive exchange rate effect (17.3). Consumers in Finland and Sweden remained cautious in their purchasing behaviour. Invoiced sales in the Rest of Europe increased strongly by 16.2% to EUR 5.0 million (4.3), with expanded distribution in major European retail chains being the main driver of growth. Our strategy to grow with major retailers and the systematic local efforts showed good progress with increased distribution and enlarged shelf presence in France, Switzerland and Germany. Thanks to our consistent and persistent activities, there is a growing interest in our high-quality SmartStoreTM storage solutions both among retailers and consumers on our main European markets. Invoiced sales in the Rest of the World increased to EUR 0.3 million (0.1).
Storage is our largest product category across all geographies. The positive sales development in the Rest of Europe was clearly visible in the Storage category, where invoiced sales increased by 8.5% to EUR 15.8 million (14.5) compared with Q1 last year. Invoiced sales of Kitchen products decreased by 6.8% to EUR 3.8 million (4.1), mainly due to slower demand in the Nordics. The Home & Garden category also declined for the same reasons, with Q1 invoiced sales amounting to EUR 2.9 million (3.2).
Orthex’s profitability improved in the first quarter, with adjusted EBITA increasing by EUR 0.4 million to EUR 2.1 million (1.7). The adjusted EBITA margin improved to 9.6% (8.2%). Cash flow amounted to EUR 3.5 million (4.7). The net debt to adjusted EBITDA ratio declined further to a healthy 1.0 (1.2) at the end of the period.
Raw material prices still had a positive impact on Q1 profitability, but towards the end of the period, the war in the Middle East triggered a rapid increase in raw material prices and added uncertainty to raw material availability. This has not yet had a negative effect on profitability as fluctuations in raw material prices affect the company with some delay. The effect of the higher raw material costs will be visible from Q2 onwards and we have urgently initiated price increases to mitigate the impact. The implementation will gradually offset rising costs. Orthex has long relationships and contracts with raw material suppliers that help to ensure raw material availability. Our ambition to grow with major European retailers remains unchanged, and we continue to do our utmost to ensure uninterrupted supply to our partners.
The Ambiente fair in Frankfurt, held in February, was one of the commercial highlights of the quarter. Our customers showed strong interest in our novelties, and the recently launched SmartStore™ Module storage solution was awarded the “Winner” distinction at the German Design Awards 2026, presented in connection with the fair.
From March to May, Orthex is piloting reusable, deposit based take away food containers and a return system in collaboration with the K Group, the S Group and several other partners in Finland. During the pilot, customers in four stores have the option to choose a reusable container instead of a disposable one for their takeaway meals. Orthex is supplying 10,000 reusable Kiertis containers for the trial. If successful, this pilot could open new business opportunities for Orthex.
As the industry faces increasingly turbulent conditions, I would like to thank our personnel, partners and suppliers for their strong commitment, flexibility and swift reactions in managing these fast changing and unpredictable circumstances. I would especially like to thank our commercial teams for many interesting new products and for the strong efforts in increasing our distribution and presence in retailers and stores across Europe.”