Embellence Group interim report for the third quarter of 2026

“Net sales for the third quarter amounted to MSEK 178 (174), up 3% compared with the year-earlier quarter. Currency-adjusted organic growth for the quarter amounted to 2%, and currency effects had a positive effect of 1 percentage point on sales performance.

Four of our five interior design brands grew during the quarter. Growth was driven primarily by direct-to-consumer sales – one of our strategic focus areas – which continued to perform strongly and offset continued weakness in traditional physical retail. Pappelina stood out in particular, more than doubling its sales in the direct-to-consumer (DTC) channel for the second consecutive quarter.

The gross margin continued to strengthen during the quarter, amounting to 62.4% (60.6), driven by a positive channel mix with a greater share of DTC sales, a positive product mix and improvements to efficiency in manufacturing.

EBITA for the quarter was MSEK 24 (24), corresponding to an operating margin of 13.2% (13.6). Earnings also include restructuring costs for the replacement of the Managing Director of Wall&decò.

Strengthening and developing our organisation has been central to our strategic direction and transformation. Over the past year, we have made several changes to ensure that the business has the right leadership, expertise and commercial focus. With strong brands, a stronger organisation and a clearer commercial focus, we have a solid platform for long-term, profitable growth.”
Johan Andgren, CEO, Embellence Group

Third quarter 2026

• Net sales amounted to MSEK 178 (174), up 3%. Organic growth amounted to 2% and exchange rate effects had an impact of 1%.

• The gross margin amounted to 62.4% (60.6).

• Operating profit (EBITA) amounted to MSEK 24 (24).

• The EBITA margin amounted to 13.2% (13.6).

• Net profit for the period amounted to MSEK 16 (13) and earnings per share before and after dilution to SEK 0.69 (0.55).

• Operating cash flow amounted to MSEK 39 (32).

Significant events during the quarter

• New Managing Director of Wall&decò appointed.

Significant events after the end of the quarter

• No significant events to report.

Webcast
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Q3 Report 2026