The Group’s currency-adjusted organic growth amounted to 3 percent during the quarter, driven by Boråstapeter, Pappelina as well as Artscape delivering strong direct-to-consumer sales growth. Sales to external brands from Borås Tapetfabrik also developed well in the quarter. The strong Swedish krona, particularly against the USD and GBP, had a negative impact on sales and earnings.

Cole & Son’s sales declined as a result of our strategic decision to change the commercial distribution set-up to drive long-term growth with the partners we believe best represent the brand.

The gross margin strengthened thanks to an improved channel and product mix, with direct-to-consumer sales in particular driving the development. Operating costs increased slightly during the first quarter due to increased direct to consumer efforts and costs associated with the change of Managing Director in the Cole & Son brand. Operating cash flow also strengthened during the quarter, and we continue to have a strong financial position.

“Our strategic initiatives – direct-to-consumer, international expansion and hospitality – are delivering results, indicating that we are on the right track.”
 
Johan Andgren, CEO Embellence Group

First quarter 2026

• Net sales amounted to MSEK 201 (202), down 1%.

• Organic growth amounted to 3% and exchange rate effects had an impact of –4%.

• The gross margin amounted to 62.8% (62.0).

• Operating profit (EBITA) amounted to MSEK 28 (32).

• The EBITA margin amounted to 14.0% (16.0).

• Net profit for the period amounted to MSEK 18 (24) and earnings per share before and after dilution to SEK 0.75 (1.00).

• Operating cash flow amounted to MSEK 14 (8).

Significant events during the quarter

• A new Managing Director for Cole & Son has been appointed.

Significant events after the end of the quarter

• No significant events to report.