OrganoClick AB (publ) publishes interim report for the third quarter 2026

In the third quarter, we improved our earnings and cash flow despite a significantly lower sales volume. Better margins and lower costs show that our strategic changes are having an effect. Sales for our consumer brands increased by double digits. At the same time, we have initiated the transition to a licensing model in Wood protection, which reduces sales but improves profitability. In Nonwoven Technologies, the loss of sales from the industrial customer we lost is noticeable, but we have also reached the commercial phase with a customer who launched a plastic-free agricultural nonwoven material with our biobased binder.”

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

Second quarter, 1 July – 30 September 2026

The Group compared to 2025

» Net sales amounted to SEK 11.2 (22.5) million

» Net sales pro forma* amounted to SEK 7.9 (7.5) million

» Gross margin amounted to 15.2% (17.5%)

» Operating profit (EBIT) amounted to SEK -5.1 (-6.4) million

» Cash flow from operating activities amounted to SEK -3.1 (-8.5) million

First half year, 1 January – 30 September 2026

The Group compared to 2025

» Net sales amounted to SEK 60.7 (87.8) million

» Net sales pro forma* amounted to SEK 34.0 (37.0) million

» Gross margin amounted to 27.0% (22.0%)

» Operating profit (EBIT) amounted to SEK -6.8 (-13.2) million

» Cash flow from operating activities amounted to SEK -1.6 (-11.3) million

* Pro forma, excluding sales for OrganoWood AB, the terminated private label collaboration for Consumer applications and the terminated industrial customer for Nonwoven technologies.

A word from the CEO

Strong growth for our consumer brands and improved earnings despite lower sales

In the third quarter, we improved our earnings and cash flow despite a significantly lower sales volume. Better margins and lower costs show that our strategic changes are having an effect. Sales for our consumer brands increased by double digits. At the same time, we have initiated the transition to a licensing model in Wood protection, which reduces sales but improves profitability. In Nonwoven Technologies, the loss of sales from the industrial customer we lost is noticeable, but we have also reached the commercial phase with a customer who launched a plastic-free agricultural nonwoven material with our biobased binder.

Financial performance third quarter

To clarify the underlying sales trend, we are also reporting sales on a pro forma basis as a complement to the reported sales as of this quarter. The pro forma measure excludes sales to the discontinued, unprofitable private label customer in Consumer Applications and to the industrial customer that we have lost in Nonwoven Technologies. Wood sales in Wood Protection, which are to be out-licensed, have also been excluded.

The Group's reported sales decreased in the third quarter by -50.0% (-22.2%) to SEK 11.2 (22.5) million. The decline was due to lower sales in Nonwoven technologies and Wood protection. On a pro forma basis, however, the Group's sales increased by 4.9% (-21.7%) to SEK 7.9 (7.5) million. The growth came mainly from our consumer brands in Consumer applications, which grew by 22.6%. Pro forma sales of binders in Nonwoven technologies also increased, while sales in Wood protection decreased. Lower costs and a changed product mix improved the Group's operating profit to SEK -5.1 (-6.4) million. Cash flow from operating activities improved significantly to SEK -3.1 (-8.5) million.

During the third quarter, we continued to implement the extended savings program of SEK 5 million, which was initiated in the second quarter. As a result of the change of business model, we have also initiated the discontinuation of OrganoWood AB's sales organization. This measure is expected to reduce the Group's costs by approximately SEK 8 million from next year. With the changes implemented in 2026, the Group's fixed cost base is expected to be halved by 2027 from the 2025 level.

Consumer applications

Sales in Consumer applications increased on a pro forma basis by 22.6% to SEK 7.0 (5.7) million. All our product segments grew. Among our consumer brands, OrganoTex had particularly strong growth, both in Sweden and in the Netherlands, which is our largest market outside Sweden. Our new, 100% biobased OrganoTex Odor remover continues to sell well, and more and more retailers are adding the product to their range. The private label car care business also had good sales during the quarter and recovered some of the sales loss earlier in the year.

Nonwoven technologies

The third quarter was the first quarter without sales to the major industrial customer that we have lost in Nonwoven Technologies. The business area's sales therefore decreased sharply to SEK 0.9 (7.3) million. On a pro forma basis, however, sales to other customers increased to SEK 0.9 (0.7) million. Sales to existing customers were stable. A new German nonwoven manufacturer launched an agricultural nonwoven material, and during the quarter we received our first small order for binders from this customer.

Wood protection

Sales of OrganoWood in Wood protection decreased during the quarter to SEK 3.0 (7.8) million. As previously reported, we are restructuring the business area by out-licensing wood sales and wood manufacturing to wood processing companies. During the quarter, we worked on the discontinuation of OrganoWood AB's current sales organization, which is expected to reduce the Group's costs by approximately SEK 8 million from the turn of the year. The new business model means lower sales in the business area but is expected to increase profitability. We are in discussions with several potential licensees. The ambition is to begin sales of wood preservatives to our license partners in 2027 and to phase out wood sales.

Outlook

Our consumer products continue to develop well, with good sales from both existing and new customers. Going forward, we also prioritize to continue the implementing of the savings program and adapting the cost base to the new sales volume. Now the ambition is to take the next decisive step towards becoming a pure green chemical company through the out-licensing of timber production. The goal is to return to sales growth for our green chemical products and continue to improve earnings on the way to profitability.

Mårten Hellberg, CEO