During the first quarter, we took an important step forward and turned our earnings trend into a positive operating profit – despite lower sales. Cash flow also improved significantly thanks to our improved operating profit. This is an effect of the adaptation and streamlining we have made of our operations over the past six months and of a good development for our consumer brands.

The effects of the savings program we initiated in the fourth quarter are now clear, and together with a more profitable product mix, it lays the foundation for a stronger and more sustainable business. We also see continued good growth in new customer sales in our consumer brands, both in Sweden and in Switzerland. It confirms that our investments are right and that our offering is strong in the market."

Translation from CEO Mårten Hellberg's comment on the interim report.

First quarter, 1 January – 31 March 2026

The Group compared to 2025

» Net sales amounted to SEK 27.4 (35.4) million

» Gross margin amounted to 30.5% (25.2%)

» Operating profit (EBIT) amounted to SEK 0.3 (-2.1) million

» Cash flow from operating activities amounted to SEK -0.4 (-10.5) million

A word from the CEO

A clear break in the trend - positive operating profit and improvement in cash flow
During the first quarter, we took an important step forward and turned our earnings trend into a positive operating profit – despite a lower sales level. Cash flow is also improving significantly thanks to our improved operating profit. This is an effect of the adaptation and streamlining we have made of our operations over the past six months and of a good development for our consumer brands.

The effects of the savings program we initiated in the fourth quarter are now clear, and together with a more profitable product mix, it lays the foundation for a stronger and more sustainable business. We also see continued good growth in new customer sales in our consumer brands, both in Sweden and in Switzerland. It confirms that our investments are right and that our offering is strong in the market.

FINANCIAL PERFORMANCE FIRST QUARTER
During the first quarter, the Group had a sales loss of -22.7% (-7.3%) to SEK 27.4 (35.4) million. The loss came primarily from our construction-related products in the Wood protection business unit and our binders with exposure to hotels and restaurants in the Nonwoven Technologies business unit. The changed product mix with higher amount of consumer products, which accounted for more than 50% of our sales in the quarter, strengthened the gross margin to 30.5% (25.2%), resulting in a gross profit that was almost in line with the previous year despite the lower sales. During the quarter, our previously communicated savings programs were implemented, which reduce our fixed operating costs by SEK 20 million per year, which almost had full effect during the quarter. Operating profit thus strengthened sharply to SEK 0.3 (-2.1) million despite the lower sales. Cash flow from operating activities also improved sharply to SEK -0.4 (-10.5) million. Excluding the remaining liquidity-affecting items of approximately SEK 5 million related to the savings program, the quarter's cash flow from operating activities would have been positive of SEK 4.5 million!

CONSUMER APPLICATIONS
For the Consumer applications business unit, sales decreased by -11% (9%) to SEK 13.7 (15.4) million, but turned to profitability as a result of improved gross margins and our efficiency program. The loss of revenue came from the previously communicated discontinuation of a private label customer that will reduce our sales by approximately SEK 5 million in 2026 but strengthen our profitability. Excluding the discontinued private label customer, the business unit's sales grew by 3%, with our own brands BIOkleen and OrganoTex growing strongly, while some private label customers were weaker. New customer sales have been good, with e.g. Mestergruppen (including Happy Homes and Colorama), Motonet Sweden, and Beijer byggmaterial for BIOkleen, and Switzerland's leading sports chain Ochsner Sport and Löplabbet as new customers for OrganoTex.

NONWOVEN TECHNOLOGIES
For the Nonwoven Technologies business unit, sales decreased by -28% (-26%) to SEK 7.4 (10.3) million. The decrease came from a single customer who supplies the hotel and restaurant sector, where price competition has become increasingly fierce. Our customer projects in new applications have gone in the right direction during the quarter, with a focus on food absorbents, wipes and tea bags, where the drive is strong from our customers' customers to be able to offer 100% plastic-free and compostable end products.

WOOD PROTECTION
The Wood protection business unit decreased sales by -35% (-18%) to SEK 6.3 (9.7) million. Demand was low in the quarter, with the construction economy continuing to be weak in Sweden and Europe. We are continuing to work on cost efficiencies for the business unit, but also on finding license partners for our wood production.

OUTLOOK AHEAD
At the beginning of Q2, we announced that we had lost a major industrial customer that will affect our sales from the third quarter. To mitigate this loss of sales, we have now introduced a new cost savings program that will reduce our fixed costs by an additional SEK 5 million in addition to our savings program of SEK 20 million. The Group's product mix will have an increasing emphasis on our consumer products in the Consumer Applications business area, which both has the highest margins and has had underlying growth over the past three years. Our goal is to continue to take the Group to profitable growth. With a well-diversified consumer business and a number of promising customer projects in new applications, we will get there and be a driving force in replacing fossil-based chemicals with our biobased alternatives in our business segments!

Mårten Hellberg, CEO