Nilörngruppen AB

Q3 sales increased 10% year over year, or 18% adjusted for currency. Operating profit was SEK 26.3 million versus SEK 15 million a year ago, and operating margin was 11.4%. Order intake declined 13%, but management said that excluding a SEK 18 million packaging order that shifted into Q4 and a currency effect, the business was roughly flat. The tax rate was 24.6%, and equity was described as almost SEK 350 million. Looking ahead, management did not give formal quarterly or full-year numeric guidance, but said the current operating margin target remains 10% to 12%, full-year tax rate should likely stay around 24.6%, and luxury packaging deliveries may not normalize until mid-2026; the Bangladesh facility is now expected to be ready in the first half of 2027.

Krister Magnusson framed the quarter as proof that Nilörn’s model remains volume driven: when volumes are strong, profitability follows. He emphasized that the company is evolving from selling labels to selling concepts, with stronger emphasis on design, sustainability, compliance, packaging, and digital solutions. He also sounded constructive on strategic investments, saying the Portugal factory upgrade, Bangladesh expansion, and international footprint additions should strengthen the business for the future.

Maria Fogelstrom mostly moderated the Q&A and did not add a separate scripted financial review beyond the reported quarter figures. The key financial items discussed were sales growth, the SEK 26.3 million operating profit, 11.4% margin, and 24.6% tax rate. Management also referenced a strong balance sheet with equity of almost SEK 350 million and noted that foreign currency translation reduced equity by SEK 32 million in 2025. On capital allocation, the company said it is actively looking at acquisitions and is investing in Portugal and Bangladesh while also building out new countries and specialist capabilities.

Analysts asked about the sales mix between Outdoor and luxury, and management said Outdoor is the biggest segment while luxury is still only about 5% to 10% of sales, versus Outdoor at about 25% to 30%. They were also asked how much EBIT improvement came from leverage versus efficiencies, and management said the quarter was mainly volume driven. On cost savings, management said Turkey restructuring has been implemented and similar work is ongoing in other countries, alongside shifting volume from Hong Kong and China toward Vietnam and Sri Lanka. Management said it sees no major change to the 2026 outlook, expects luxury to recover only around mid-2026, and said segment reporting by product group is something they should consider.