Interim report
Page 1
Interim report Q3 2025 JANUARY – SEPTEMBER 2025 WALL&DECÒ: ARUNDO
Page 2
2 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Third quarter 2025 • Net sales amounted to MSEK 174 (170), up 2%. Organic growth amounted to 5% and exchange rate effects had an impact of –3%. • The gross margin amounted to 60.6% (60.7). • Operating profit (EBITA) amounted to MSEK 24 (26). • The EBITA margin amounted to 13.6% (15.1). • Net profit for the period amounted to MSEK 13 (16) and earnings per share before and after dilution to SEK 0.55 (0.71). • Operating cash flow amounted to MSEK 30 (17). SIGNIFICANT EVENTS DURING THE QUARTER • No significant events to report. SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER • No significant events to report. INTERIM REPORT Q3 / QUARTERLY OVERVIEW MSEK Jul–Sep 2025 Jul–Sep 2024 Change Jan–Sep 2025 Jan–Sep 2024 Change R12 Full-year 2024 Group Net sales 174 170 2% 569 576 –1% 771 778 Gross profit 105 103 2% 350 343 2% 473 466 Gross margin, % 60.6% 60.7% –0.1 p.p. 61.5% 59.6% 1.9 p.p. 61.3% 59.9% EBITA 24 26 –8% 82 84 –2% 110 112 EBITA margin, % 13.6% 15.1% –1.5 p.p. 14.4% 14.6% –0.2 p.p. 14.3% 14.4% Net profit for the period 13 16 –19% 52 45 16% 64 57 Operating cash flow 30 17 77% 49 74 –34% 88 113 Net debt/EBITDA R12 0.7 1.0 0.7 1.0 0.7 0.7 Earnings per share before dilution (SEK) 0.55 0.71 2.21 1.98 2.73 2.50 Earnings per share after dilution (SEK) 0.55 0.71 2.21 1.98 2.73 2.50 BORÅSTAPETER:ARTS AND CRAFTS
Page 3
3 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Continued organic growth and strategic initiatives UK domestic market that remains weak. The performance of international sales was better, led by growth in markets such as the US and Italy. New collections were launched during the quarter in connection with London Design Week. These included a new Classic Collection of time - less designs from the archive, as well as the Cole & Son Ardmore “Design Meets Art” collection, which celebrates South Africa’s majestic baobab trees. Wall&decò’s sales totalled MSEK 20 (20), up 2% compared with the year-ear - lier quarter. The brand grew in the key Italian retailer market, and in Hospitality as well, which is fully aligned with our strategic priorities. Pappelina reported sales of MSEK 1 1 (1 1), supported by good growth in direct- to-consumer sales. It is gratifying to note that we are already seeing positive effects from the updated online sales platform launched in early July. Artscape posted sales of MSEK 28 (27) despite a major negative exchange rate effect. Currency-adjusted growth was 4%, driven largely by recovery among larger DIY customers. As part strategic efforts to strengthen direct-to-consumer sales, the online sales platform for this brand was also upgraded this summer. We are also see - ing a positive trend in this area in the form of higher sales, albeit from low levels. As communicated in connection with the Q4 2024 interim report, Artscape posted exceptional growth for that quarter, 51%, driven by one of its largest DIY custom - ers choosing to bring forward a major order, differing from how orders are normally placed over the course of a year. This will affect our comparative figures in the next quarter, as the customer is expected to follow a more nor - mal order pattern this year. Organic growth for the quarter amounted to 5%, driven by a positive performance in both our segments and sev - eral of our key markets. All together, net sales amounted to MSEK 174 (170), up 2%. A stronger SEK resulted in negative exchange rate effects of –3%. The gross margin for the quarter was 60.6% (60.7). While the positive development of the channel and prod - uct mix continued, this was offset by a somewhat nega - tive segment and brand mix. EBITA for the quarter was MSEK 24 (26), correspond - ing to an operating margin of 13.6% (15.1). During the quarter, we focused on strengthening our organisation and sales, as well as launching new platforms to con - tinue to support our growth. The overall effect of this was a lower EBITA margin. The operating margin on a rolling 12-month basis was 14.3% (14.0). Operating cash flow improved to MSEK 30 (17), underpinned by a reduction in working capital. BRANDS SEGMENT – CONTINUED ORGANIC GROWTH The Brands segment posted underlying organic growth of 4%, offset in part by a negative exchange rate effect. Sales totalled MSEK 152 (151). Boråstapeter’s sales increased to MSEK 62 (61), thereby growing for the third consecutive quarter. Initia - tives to strengthen brand awareness outside Sweden are beginning to yield results at the same time as we are see - ing stabilisation in the Swedish domestic market. New products in our “Made-to-measure” range, offering con - sumers the opportunity to choose between different grades of materials featuring different properties, were launched during the quarter. Cole & Son’s sales for the quarter amounted to MSEK 30 (33). This decrease is attributable primarily to exchange rate fluctuations, but to some extent also to a MANUFACTURING SEGMENT – CONTINUING TO CAPTURE MARKET SHARE Borås Tapetfabrik recorded a strong quarter with sales of MSEK 22 (19) to external customers, corresponding to an increase of 17% year-on-year. We are continuing to cap - ture market share, and the higher production volumes, combined with constant efficiency improvements , once again had a positive impact on profitability. STRATEGIC COMMERCIAL INITIATIVES Our costs increased MSEK 3 during the quarter, driven largely by strategic initia - tives to support our long-term growth strategy that was presented at the Capital Markets Day in 2024. We are convinced that, over the long term, these initiatives will promote a faster rate of growth and high gross margins. Accelerated direct-to-consumer sales Increasing the proportion of direct-to-consumer sales is a key strategic priority for three reasons: the channel is demonstrating a high rate of growth, offers better gross margins and puts our brands in closer direct contact with consumers. In recent quarters, we strengthened our internal expertise through key recruitments at both the Group level and in the individual brands. Moreover, we have taken the first steps to update our brands’ online sales platforms. To date, Artscape and Pappelina have implemented new plat - forms, which have already promoted an increased rate of growth. Next in line is Cole & Son, which will switch to a new platform in the fourth quarter. Boråstapeter’s new plat- form will also be launched, in the first half of 2026. Increased sales in international export markets Despite challenging exchange rate effects, during the quar - ter we saw growth for nearly all of our major geographical markets, US included. This is proof of our strength, and fully aligned with our strategy. We are now continuing to strengthen our international sales teams, making modifica - tions to the “go to market” models for some geographies, and launching new marketing initiatives to strengthen the experience of our brands at the retailer level. Increased focus on sales to Hospitality We have also reinforced our organisation as regards sales to the Hospitality channel: hotels, restaurants and other service industries. This is a channel with generally longer lead times but also great potential. We are convinced that our brands are highly relevant in the channel, and we view this initiative as an important step in efforts to drive sales in the years ahead. After half a year at the company, I take an even more positive view of our long-term potential and of our invest- ments in iconic designs, modern and effective technology platforms, more customer-centric marketing and proactive sales to achieve our long-term goals. Our focus on profit- ability, growth and customer value stands firm, and we are well prepared to take the next steps in our journey of growth. Borås, October 2025 Johan Andgren, CEO Embellence Group INTERIM REPORT Q3 / CEO STATEMENT
Page 4
4 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Group performance CONSOLIDATED NET SALES Net sales for the quarter amounted to MSEK 174 (170), up 2% compared with the year-earlier quarter. Organic growth during the quarter amounted to 5%, driven by both the Brands and Manufacturing segments. Exchange rate effects had a negative impact of –3% on the quarter. Net sales for the period amounted to MSEK 569 (576), down 1%. Exchange rate effects had a negative impact of –2%. CONSOLIDATED EARNINGS EBITA for the quarter was MSEK 24 (26), corresponding to an operating margin of 13.6% (15.1). The sales mix in the quarter had a negative impact on the operating mar - gin, with the strong performance in Artscape and the Manufacturing segment – both with lower gross margins – negatively impacting the operating margin. Continued investments and forward-looking sales and marketing initiatives also had an impact. Net profit for the quarter amounted to MSEK 13 (16), resulting in earnings per share before and after dilution of SEK 0.55 (0.71). EBITA for the period amounted to MSEK 82 (84), with an operating margin of 14.4% (14.6). Net profit for the period amounted to MSEK 52 (45), corresponding to earnings per share before and after dilution of SEK 2.21 (1.98). NET FINANCIAL ITEMS Net financial items for the quarter were MSEK –3 (–3). Net interest was MSEK –2 (–4), the result primarily of lower indebtedness. Remeasurement of financial items in foreign currency amounted to MSEK 0 (1). Net financial items also include costs related to refinancing. Net financial items for the period amounted to MSEK –3 (–15), due to lower indebtedness and the positive impact of the remeasurement of financial items in foreign currency. CASH FLOW Cash flow from operating activities amounted to MSEK 30 (17). The change in working capital amounted to MSEK 9 (–2), where changes in, primarily, inventory and accounts receivable had a positive impact. Cash flow from financ- ing activities for the quarter amounted to MSEK –27 (–19), mainly impacted by repayment of loans. Cash flow for the quarter amounted to MSEK –2 (–7). For the period, cash flow amounted to MSEK –1 (8), mainly due to negative changes in working capital as well as translation differences indicated under the item “Other”. FINANCIAL POSITION At the end of the quarter, the Group’s total assets amounted to MSEK 784 (826). The equity ratio amounted to 65% (60) and cash and cash equivalents at the end of the quarter were MSEK 37 (47). The Group’s net debt amounted to MSEK 99 (132) at the end of the quarter. At the end of the quarter, net debt/EBITDA (R12) was 0.7 times (1.0). INTERIM REPORT Q3 / GROUP PERFORMANCE COLE & SON: BAOBAB 0 200 50 15 0 100 250 0 800 400 200 600 1,000 MSEK Net sales Q3 25 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 R 12 NET SALES (MSEK) 0 24 16 8 40 32 0 8 12 4 20 16 %MSEK EBITA EBITA-margin Q3 25 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 EBITA (MSEK) AND EBITA MARGIN (%)
Page 5
5 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Net sales in the Brands segment amounted to MSEK 152 for the quarter, on par with the year-earlier quarter. The segment has returned to organic growth, with four of the five brands posting a positive performance. At the same time, sales for the quarter were negatively impacted by a strong currency headwind. BORÅSTAPETER Boråstapeter’s sales for the quarter amounted to MSEK 62, up 1% compared with the year-earlier quarter. This is the third straight quarter of growth, with Sweden continu - ing to perform well while the UK and Germany also dis - played positive tendencies. On the other hand, the US posted somewhat weaker performance in the quarter. COLE & SON Cole & Son’s sales for the quarter amounted to MSEK 30, down 7% compared with the year-earlier quarter. The weak performance during the quarter was partly attribut - able to currency, but also to subdued demand in the UK domestic market. The US and Italy performed well. WALL&DECÒ Wall&decò’s sales amounted to MSEK 20, up 2% com - pared with the year-earlier quarter. Hospitality proj - ects, along with positive performance in the key Italian retailer market, supported Wall&decò return to growth in the quarter . PAPPELINA Pappelina’s sales for the quarter amounted to MSEK 1 1, up 1% compared with the year-earlier quarter. Following a challenging period, signs of incipient stabilisation for Pappelina are beginning to appear. Sales through the new online sales platform are off to a good start, having a positive impact already in the quarter. The relocation of the head office to Borås is completed. ARTSCAPE Artscape’s sales for the quarter amounted to MSEK 28, up 4% compared with the year-earlier quarter despite a major negative currency impact. Sales through the new online sales platform that was launched during the summer had a good start, mak - ing a positive impact during the quarter, while sales to physical retail were strong. Looking forward, Arts - cape will face a challenging comparative quarter that was positively impacted by a major order being brought forward. INTERIM REPORT Q3 / SEGMENT PERFORMANCE NET SALES MSEK Jul–Sep 2025 Jul–Sep 2024 Change Jan–Sep 2025 Jan–Sep 2024 Change R12 Full-year 2024 Brands 152 151 0% 498 515 –3% 675 693 Boråstapeter 62 61 1% 208 200 4% 280 273 Cole & Son 30 33 –7% 104 105 –1% 139 141 Wall&decò 20 20 2% 66 70 –5% 90 94 Pappelina 11 11 1% 34 36 –7% 44 46 Artscape 28 27 4% 86 104 –16% 122 139 Manufacturing (external) 22 19 17% 72 61 19% 96 85 EMBELLENCE GROUP 174 170 2% 569 576 –1% 771 778 MANUFACTURING SEGMENT The segment recorded yet another strong quar- ter with sales of MSEK 22 (19) to external cus- tomers, up 17% year-on-year. Performance in the quarter was driven by increased income from existing customers – primarily in digital printing, which is continuing its robust growth. Segment performance BRANDS SEGMENT BORÅS TAPETFABRIK
Page 6
6 EMBELLENCE GROUP JULY – SEPTEMBER 2025 INTERIM REPORT Q3 / OTHER Other Group Parent Company ORGANISATION The number of FTEs on 30 September 2025 was 225 (231). RELATED-PARTY TRANSACTIONS No related-party transactions took place. RISKS AND UNCERTAINTIES Embellence Group works continuously to identify and manage the risks associated with the Group’s opera - tions. The company has a well-functioning risk-man - agement process in place whereby risks are consoli - dated, reported and monitored by Group management. For a complete description of the risks impacting the company, refer to the 2024 Annual Report. SEASONAL VARIATIONS Some seasonal variations arise, with the first and fourth quarters normally tending to be slightly stronger. The Parent Company’s net sales amounted to MSEK 4 (3) in the third quarter. Net loss amounted to MSEK –4 (–4). ACCOUNTING POLICIES This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. For the Parent Com- pany, recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board was applied to the preparation of this interim report. Accounting policies and the basis of calculations are the same as the policies applied in the company’s most recent annual report. The carrying amount is a good approxima- tion of fair value for financial assets and liabilities. New standards and interpretations that have come into effect after 31 December 2024 have not had a significant impact on the Group’s financial statements for the current or future periods, nor on future transactions. SIGNIFICANT EVENTS DURING THE QUARTER No significant events to report. SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER No significant events to report. AUDIT This report has been reviewed by auditors. PAPPELINA: CRISS LINEN
Page 7
7 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Signatures and assurance The undersigned assure that the interim report provides a true and fair view of the Parent Company and the Group’s operations, financial position and earnings and describes the material risks and uncertainties faced by the Parent Company and the companies included in the Group. BORÅS, 4 NOVEMBER 2025 MAGNUS WELANDER Chairman JOHAN ANDGREN CEO KARIN DENNFORD MARIA VEERASAMY HENRIK NYQVIST CHRISTINA STÅHL INTERIM REPORT Q3 / SIGNATURES
Page 8
8 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed consolidated income statement MSEK Jul–Sep 2025 Jul–Sep 2024 Jan–Sep 2025 Jan–Sep 2024 Full-year 2024 Net sales 174 170 569 576 778 Cost of goods sold –68 –67 –219 –233 –312 Gross profit 105 103 350 343 466 Selling and administrative expenses –86 –83 –282 –275 –375 Other operating income 1 1 5 4 5 Other operating expenses — –1 –3 –3 –3 Operating profit 19 21 69 70 93 Net financial items –3 –3 –3 –15 –22 Profit before tax 17 18 66 55 72 Tax –4 –2 –14 –10 –14 Net profit for the period 13 16 52 45 57 Earnings per share for the period before dilution (SEK) 0.55 0.71 2.21 1.98 2.50 Earnings per share for the period after dilution (SEK) 0.55 0.71 2.21 1.98 2.50 Other comprehensive income Translation differences –6 –12 –53 10 36 Total other comprehensive income –6 –12 –53 10 36 Comprehensive income for the period 7 4 –1 55 93 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 9
9 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed consolidated balance sheet Indebtedness MSEK 30 Sep 2025 30 Sep 2024 31 Dec 2024 Assets Intangible non-current assets 320 353 362 Tangible non-current assets 83 78 80 Right-of-use assets 51 61 59 Deferred tax assets 7 13 5 Financial non-current assets 3 4 3 Total non-current assets 464 508 509 Inventories 144 139 147 Accounts receivable 108 92 98 Current tax assets 5 16 6 Other receivables 6 5 9 Prepaid expenses and accrued income 20 19 20 Cash and cash equivalents 37 47 41 Total current assets 320 318 321 Total assets 784 826 830 Equity and liabilities Share capital 59 59 59 Other contributed capital 111 111 111 Reserves 7 35 61 Retained earnings, including net profit for the year 329 294 307 Equity attributable to Parent Company shareholders 506 499 538 Provisions for pensions 6 7 7 Deferred tax liabilities 16 16 17 Other non-current interest-bearing liabilities 42 46 27 Lease liabilities 41 49 48 Total non-current liabilities 105 117 99 Other current interest-bearing liabilities 12 15 — Bank overdraft facility 25 53 49 Lease liabilities 16 16 16 Accounts payable 49 39 59 Other current liabilities 25 36 20 Accrued expenses and deferred income 46 50 49 Total current liabilities 173 210 193 Total liabilities 278 327 292 Total equity and liabilities 784 826 830 MSEK 30 Sep 2025 30 Sep 2024 31 Dec 2024 Lease liabilities 56 65 64 Bank overdraft facility 25 53 49 Other interest-bearing receivables and liabilities 54 61 27 Gross debt 136 179 140 Cash and cash equivalents –37 –47 –41 Net debt 99 132 99 EBITDA (R12) 136 133 138 Net debt/EBITDA (R12) 0.7 1.0 0.7 Net debt/EBITDA excl. IFRS 16 effects (R12) 0.4 0.7 0.4 Equity ratio 65% 60% 65% Quota value per share (SEK) 2.5 2.5 2.5 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 10
10 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed consolidated cash flow statement MSEK Jul–Sep 2025 Jul–Sep 2024 Jan–Sep 2025 Jan–Sep 2024 Full-year 2024 OPERATING ACTIVITIES Operating profit 19 21 69 70 93 Adjustments for non-cash items Depreciation and amortisation 11 11 32 33 44 Other –3 –7 –18 1 8 Total 28 26 84 104 145 Interest received — — — 1 2 Interest paid –2 –4 –6 –12 –16 Tax paid –4 –2 –11 –9 –10 Cash flow from operating activities before changes in working capital 21 19 67 83 121 Cash flow from changes in working capital 9 –2 –17 –8 –9 Cash flow from operating activities 30 17 49 74 113 INVESTING ACTIVITIES Acquisition of non-current assets –4 –5 –13 –12 –14 Cash flow from investing activities –4 –5 –13 –12 –14 MSEK Jul–Sep 2025 Jul–Sep 2024 Jan–Sep 2025 Jan–Sep 2024 Full-year 2024 FINANCING ACTIVITIES Change in bank overdraft facilities 25 –38 –24 –38 –42 Repayment of lease liabilities –4 –3 –11 –11 –15 New borrowing — — 131 — — Repayment of loans –49 –4 –104 –34 –71 Option premiums received — — — 3 3 Redemption of warrants — 26 — 26 26 Dividend — — –29 — — Cash flow from financing activities –27 –19 –37 –54 –98 Cash flow for the period –2 –7 –1 8 1 Cash and cash equivalents at beginning of period 39 54 41 38 38 Exchange rate differences in cash and cash equivalents — — –3 1 2 Cash and cash equivalents at end of period 37 47 37 47 41 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 11
11 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed consolidated statement of changes in equity MSEK 30 Sep 2025 Opening balance 1 Jan 2025 538 Dividend –29 Net profit for the period 52 Other comprehensive income –54 Closing balance 30 Sep 2025 506 MSEK 31 Dec 2024 Opening balance 1 Jan 2024 415 Option premiums received 3 Redemption of warrants 26 Net profit for the period 57 Other comprehensive income 37 Closing balance 31 Dec 2024 538 INTERIM REPORT Q3 / FINANCIAL INFORMATION ARTSCAPE: CLEO MURAL ONYX
Page 12
12 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed Parent Company income statement MSEK Jul–Sep 2025 Jul–Sep 2024 Jan–Sep 2025 Jan–Sep 2024 Full-year 2024 Net sales 4 3 12 10 13 Administrative expenses –6 –6 –22 –22 –30 Operating loss –2 –3 –11 –12 –17 Net financial items –3 –3 –2 –16 –25 Loss after financial items –5 –5 –13 –28 –42 Group contributions — — — — 66 Other appropriations — — — — –8 Profit/loss before tax –5 –5 –13 –28 17 Tax 1 1 3 6 –5 Net profit/loss for the period –4 –4 –10 –22 12 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 13
13 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Condensed Parent Company balance sheet MSEK 30 Sep 2025 30 Sep 2024 31 Dec 2024 Assets Intangible non-current assets — 1 1 Deferred tax assets 3 6 — Financial non-current assets 618 618 618 Total non-current assets 621 624 619 Current tax assets 5 3 — Other receivables — 1 — Prepaid expenses and accrued income 2 2 1 Cash and cash equivalents — — — Total current assets 8 5 1 Total assets 629 630 620 MSEK 30 Sep 2025 30 Sep 2024 31 Dec 2024 Equity and liabilities Share capital 59 59 59 Statutory reserve 10 10 10 Share premium reserve 129 129 129 Retained earnings, including net profit for the year 133 139 173 Equity attributable to Parent Company shareholders 331 336 370 Untaxed reserves 25 18 25 Provisions for pensions 2 2 2 Other non-current interest-bearing liabilities 42 46 27 Total non-current liabilities 44 48 29 Other current interest-bearing liabilities 12 15 — Bank overdraft facility 25 53 49 Accounts payable 1 1 2 Liabilities to Group companies 186 153 137 Other current liabilities 1 2 1 Accrued expenses and deferred income 3 5 6 Total current liabilities 229 228 195 Total liabilities 273 276 224 Total equity and liabilities 629 630 620 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 14
14 EMBELLENCE GROUP JULY – SEPTEMBER 2025 INTERIM REPORT Q3 / FINANCIAL INFORMATION Quarterly overview GROUP MSEK Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net sales 190 214 191 170 202 202 193 174 Gross profit 110 125 115 103 123 126 120 105 Gross margin, % 57.7% 58.3% 60.1% 60.7% 60.7% 62.0% 61.9% 60.6% EBITA 23 34 25 26 28 32 26 24 EBITA margin, % 12.2% 15.7% 13.0% 15.1% 13.9% 16.0% 13.5% 13.6% NET SALES PER BRAND AND SEGMENT MSEK Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Boråstapeter 78 78 61 61 72 79 66 62 Cole & Son 37 36 36 33 36 39 34 30 Wall&decò 27 25 26 20 24 23 23 20 Pappelina 10 12 13 11 10 11 11 11 Artscape 24 46 31 27 36 25 34 28 Net sales Brands 175 197 167 151 178 179 168 152 Net sales Manufacturing (external) 15 17 24 19 24 24 26 22 Total 190 214 191 170 202 202 193 174 NET SALES BY LARGEST MARKETS MSEK Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Sweden 70 70 62 56 73 80 65 61 US 33 60 45 37 48 39 48 39 UK 20 19 16 21 19 21 17 17 Rest of World 68 65 68 57 62 63 63 57 Total 190 214 191 170 202 202 193 174
Page 15
15 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Notes NOTE 1 Earnings per share MSEK Jul–Sep 2025 Jul–Sep 2024 Jan–Sep 2025 Jan–Sep 2024 Full-year 2024 Net profit for the period (SEK) Earnings per share before dilution 0.55 0.71 2.21 1.98 2.50 Earnings per share after dilution 0.55 0.71 2.21 1.98 2.50 Performance measures used in the calculation of earnings per share before and after dilution (MSEK) Net profit for the period 13 16 52 45 57 Profit above is attributable to Parent Company shareholders in its entirety Weighted average number of shares before and after dilution Before dilution Weighted average number of ordinary shares for calculation of earnings per share before dilution 23,538,721 22,729,179 23,538,721 22,632,665 22,860,417 Warrants Adjustment for calculation of earnings per share after dilution attributable to warrants — 44,161 — 2,320 — After dilution Weighted average number of ordinary shares and potential ordinary shares used as denominator for calculation of earnings per share after dilution 23,538,721 22,773,340 23,538,721 22,634,985 22,860,417 INTERIM REPORT Q3 / FINANCIAL INFORMATION
Page 16
16 EMBELLENCE GROUP JULY – SEPTEMBER 2025 Definitions NUMBER OF EMPLOYEES Total number of employees included on Embellence Group’s payroll at the end of the period. GROSS MARGIN Gross profit divided by net sales. GROSS PROFIT Net sales less cost of goods sold. EBITA (Earnings before interest, taxes and amortisation). Operating profit/loss before amortisation of intangible assets. EBITA MARGIN EBITA divided by net sales. EBITDA (Earnings before interest, taxes, depreciation and amortisation). Operating profit/loss before depreciation, amortisation and impairment. ADJUSTED EBITA EBITA adjusted for items affecting comparability. ADJUSTED EBITA MARGIN Adjusted EBITA divided by net sales. EARNINGS PER SHARE IN SEK AFTER DILUTION Earnings after tax divided by the average number of shares outstanding during the period plus the number of shares that would have been issued as an effect of the ongoing incentive programmes. SEGMENT Embellence Group reports two segment, Brands and Manufacturing. The Brands segment consists of Boråstapeter, Cole & Son, Wall&decò, Pappelina and Artscape. The Manufacturing segment consists of Borås Tapetfabrik. EQUITY RATIO Equity attributable to Parent Company shareholders as a percentage of total assets. ITEMS AFFECTING COMPARABILITY Material costs that impact comparability of accounting periods. These items include, but are not limited to, restructuring costs, listing costs, acquisition costs and losses in connection with divestments of operations. NET DEBT The sum of non-current interest-bearing liabilities, non-current lease liabilities, current interest-bearing liabilities, current lease liabilities, liabilities and receiv - ables against Group companies and bank overdraft facilities minus cash and cash equivalents. NET DEBT/EBITDA Net debt divided by EBITDA, rolling 12 months. NET DEBT/EBITDA EXCL. IFRS16 Net debt divided by EBITDA, rolling 12 months, excluding lease liabilities, interest and impairments under IFRS 16. NET SALES – ORGANIC GROWTH Change in net sales after adjustments for net sales that have arisen from acquired or divested operations, in constant currencies. EARNINGS PER SHARE IN SEK Profit after tax divided by the average number of outstanding shares during the period. INTERIM REPORT Q3 / OTHER INFORMATION
Page 17
PUBLICATION This information is information that Embellence Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publica - tion, through the agency of the contact persons set out below, on 4 November 2025 at 8:00 a.m. CET. Karin Lidén, CFO Tel: +46(0)33-236400 E-mail: ir@embellencegroup.com FINANCIAL CALENDAR Q4 2025 – 17 February 2026 Q1 2026 – 5 May 2026 Annual General Meeting – 12 May 2026 Q2 2026 – 21 July 2026 ABOUT EMBELLENCE GROUP AB Embellence Group, founded in 1905, is a leading European company in interior decoration with a focus on premium brands in the wallpaper segment, complemented by other colour and pattern-driven interior decoration such as textiles and rugs. Our products are sold in more than 100 markets around the world. CONTACT Embellence Group AB (publ) Ryssnäsgatan 8 SE-504 64 Borås, Sweden Tel: +46(0)33-236400 E-mail: info@embellencegroup.com CERTIFIED ADVISER FNCA Sweden AB Nybrogatan 34 SE-102 45 Stockholm BORÅSTAPETER: SKENNINGE