Interim report
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Interim report Q2 2026 JANUARY – JUNE 2026 WALL&DECÒ: EUNOIA WAVES
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2 EMBELLENCE GROUP APRIL – JUNE 2026 BORÅSTAPETER: HILDASHOLM Second quarter 2026 • Net sales amounted to MSEK 181 (193), down –6%. Organic growth amounted to –5% and exchange rate effects had an impact of –1%. • The gross margin amounted to 62.3% (61.9). • Operating profit (EBITA) amounted to MSEK 23 (26). • The EBITA margin amounted to 12.6% (13.5). • Net profit for the period amounted to MSEK 14 (15) and earnings per share before and after dilution to SEK 0.61 (0.65). • Operating cash flow amounted to MSEK 21 (16). 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 Q2 / QUARTERLY OVERVIEW MSEK Apr–Jun 2026 Apr–Jun 2025 Change Jan–Jun 2026 Jan–Jun 2025 Change R12 Full-year 2025 Group Net sales 181 193 –6% 382 396 –3% 751 765 Gross profit 113 120 –6% 239 245 –2% 465 471 Gross margin, % 62.3% 61.9% 0 pp 62.6% 62.0% 1 pp 61.9% 61.9% EBITA 23 26 –13% 51 58 –13% 100 108 EBITA margin, % 12.6% 13.5% –1 pp 13.3% 14.8% –1 pp 13.4% 14.1% Net profit for the period 14 15 –7% 32 39 –18% 62 69 Operating cash flow 21 16 34% 35 23 49% 110 98 Net debt/EBITDA R12 0.7 0.9 0.7 0.9 0.7 0.5 Earnings per share before dilution (SEK) 0.61 0.65 1.35 1.66 2.62 2.93 Earnings per share after dilution (SEK) 0.61 0.65 1.35 1.66 2.62 2.93
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3 EMBELLENCE GROUP APRIL – JUNE 2026 Continued focus on channel diversification period. Our financial position remained strong, with net debt to EBITDA at 0.7 (0.9). A dividend of SEK 1.50 per share was paid during the quarter. WEAK SALES IN TRADITIONAL RETAIL Boråstapeter – our single largest brand – had a challeng - ing quarter in traditional retail in the Swedish domestic market, with sales decreasing 7% to MSEK 61. The rest of the Nordics and all international markets performed posi - tively, and we are continuing to see good potential for increasing brand awareness and sales outside of Swe - den. During the quarter, Boråstapeter launched its new online sales platform, creating better conditions for growth in DTC sales. Cole & Son’s second-quarter sales amounted to MSEK 30 (34). Restructuring of the sales channels continued, with a focus on a more diversified channel strategy. Additionally, as previously announced, we made a num - ber of commercial decisions that negatively impacted sales early in the year but which are important for strengthening our brand, improving the quality of our con - sumer offerings, and creating more sustainable growth over time. We are convinced that these measures will strengthen Cole & Son’s commercial platform over the long term, and we believe that the impact on sales in the second half of the year will be more limited than in the first. Meanwhile, DTC sales have picked up – from low levels – following the launch of a new online sales plat - form. Yelena Ford took office as the new Managing Director for Cole & Son during the quarter, following the changes to management that were initiated during the first quarter. Net sales for the second quarter amounted to MSEK 181 (193), down –6% compared with the year-earlier quar - ter. Currency-adjusted organic growth for the quarter amounted to –5%, while the strong SEK had a negative impact on growth of –1%. Our major brands still have a high degree of exposure to traditional retail. During the quarter, sales in Boråsta - peter’s Swedish home market were weak in this channel. Cole & Son and Wall&decò also reported lower sales to customers within the traditional retail sector. We continued our strategic efforts to broaden the Group’s sales mix through our strategic focus areas, and noted increased sales in direct-to-consumer (DTC), hos - pitality and project sales to architects and interior designers. Pappelina in particular distinguished itself with growth of 130% in DTC sales, demonstrating that our efforts in that channel are beginning to pay off. However, the channel does not yet account for a large enough share of the Group’s sales to offset the weaker perfor - mance in traditional retail. The gross margin remained strong during the quarter, amounting to 62.3% (61.9), driven by a positive channel mix, a greater share of DTC sales and active efforts to launch new premium products and designs. A lower sales level also impacted profitability, and EBITA for the quarter amounted to MSEK 23 (26), corre - sponding to an operating margin of 12.6% (13.5). We have continued to step up our efforts to drive growth in our priority areas of strategic focus: DTC, international sales, and the hospitality channel. Operating cash flow amounted to MSEK 21 (16) in the quarter, up MSEK 5 compared with the year-earlier Sales for Wall&decò in the second quarter amounted to MSEK 19 (23). Sales in the traditional retail sector of the Italian domestic market were weak during the quarter, and while this market remains pressured, we also believe that our commercial performance has not been strong enough. That is why we have re-allocated resources to increase the commercial focus, improve implementation and strengthen sales performance. Pappelina posted a strong quarter with sales of MSEK 14 (1 1), driven by growth in DTC sales that remained very strong during the quarter. The brand was first out in the summer of 2025 to use the new online sales platform that has now been rolled out for all our brands, and we are now seeing a clear acceleration in sales. Pappelina’s international distribution in the US was also restructured during the first half of the year, and we began to see the results at the end of the second quarter. Artscape’s sales in the second quarter amounted to MSEK 27 (34). The comparative period included a new product launch at one of our major customers in North America. Efforts to diversify the brand’s sales channels are progressing, and DTC growth accelerated during the quarter. Sales to external brands via Borås Tapetfabrik contin - ued their positive performance, posting good growth. Sales to external customers for the quarter totalled MSEK 30 (26). Behind this strong performance is a clear focus on delivering high-quality products and offering a high level of service, primarily to our internal brands, which also favours our strategically selected external customers. INTERIM REPORT Q2 / CEO STATEMENT
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4 EMBELLENCE GROUP APRIL – JUNE 2026 We are continuing to develop our offering in the hospi - tality channel through investments in new materials, new printing technology and a broader design offering. We are thereby – together with our brands’ iconic designers – enhancing our capacity for meeting demand in larger, more complex projects. Together with expanded collab - oration among our brands, this will create conditions for a broader customer base and a more diversified sales portfolio. Although the second quarter was marked by weaker sales growth – due primarily to timing effects at Artscape and continued challenges in traditional retail markets – we are making progress in our strategic focus areas. The underlying trend in several parts of our operations is pos - itive: the gross margin remains strong, and during the quarter we took important steps to strengthen our com - mercial platform. However, the Group’s exposure to the traditional retail sector – which is facing challenges in several of our geo - graphic markets – remains significant. Going forward, our strategic focus will therefore be on increasing the rate of growth in DTC, strengthening our position in priority international markets and further developing our offering in hospitality. With strong brands, improved digital plat - forms, and a clearer commercial focus, I am confident that we will drive profitable growth. Borås, July 2026 Johan Andgren , CEO Embellence Group CONTINUED STRATEGIC INITIATIVES TO ACHIEVE A MORE DIVERSIFIED CHANNEL MIX The Group’s exposure to traditional retail – a channel that has faced numerous challenges in Europe in recent years – remains high. That is why we are continuing our strategic initiatives to broaden our sales mix in relation to DTC and hospitality sales via architects and interior designers. The investments we have made over the past twelve months in new online sales platforms, upskilling and a more commercial approach to the DTC channel are now meeting with success. In April, Boråstapeter went live with its new online sales platform – the last in our series of planned platform migrations for 2026. All of the brands posted good rates of growth in DTC sales during the first half of the year, with Pappelina distinguishing itself in terms of percentage increase. The next step is fully capitalising on the new platforms with more fully developed product offerings, improved customer experiences and a greater focus on data- driven traffic. Conversion work commenced in the spring of 2026. Historically, our brands have held very strong posi - tions in their domestic markets, but we are seeing poten - tial for further growth in our key export markets. Going forward, our focus will be on prioritising the markets where we see the greatest potential, strengthening our commercial partnerships and developing our network of retailers, distributors, agents, architects, and interior designers. INTERIM REPORT Q2 / CEO STATEMENT COLE & SON: FRUTTO PROIBITO
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5 EMBELLENCE GROUP APRIL – JUNE 2026 Group performance CONSOLIDATED NET SALES Net sales for the quarter amounted to MSEK 181 (193), down –6% compared with the year-earlier quarter. Organic sales growth during the quarter amounted to –5%. Exchange rate effects had a negative impact of –1%. Net sales for the period amounted to MSEK 382 (396), down 3% compared with the year-earlier period. The organic sales trend amounted to –1% and exchange rate effects had an impact of –3%. CONSOLIDATED EARNINGS EBITA for the quarter was MSEK 23 (26), corresponding to an operating margin of 12.6% (13.5). Lower levels of sales were the primary cause of the lower EBITA margin. Net profit for the quarter amounted to MSEK 14 (15), resulting in earnings per share before and after dilution of SEK 0.61 (0.65). EBITA for the quarter was MSEK 51 (58), correspond - ing to an operating margin of 13.3% (14.8). Net profit for the period amounted to 32 MSEK (39). Earnings per share before and after dilution amounted to SEK 1.35 (1.66). NET FINANCIAL ITEMS Net financial items for the quarter were MSEK –1 (–2). Net interest items amounted to MSEK –1 (–2). Remea - surement of financial items in foreign currency was MSEK 0 (1). Net financial items for the period amounted to MSEK –2 (0). CASH FLOW Cash flow from operating activities for the quarter amounted to MSEK 21 (16). Changes in working capital amounted to MSEK –3 (–14). Accounts receivable decreased while stock levels experienced seasonal growth. Cash flow from investing activities amounted to MSEK –9 (–4). Cash flow from financing activities for the quarter amounted to MSEK –10 (–5). A dividend of MSEK –35 (–29) was paid during the quarter. Cash flow for the quarter amounted to MSEK 3 (8). Cash flow from operating activities for the period amounted to MSEK 35 (23). FINANCIAL POSITION At the end of the quarter, the Group’s total assets amounted to MSEK 797 (812). The equity ratio amounted to 66% (62) and cash and cash equivalents at the end of the quarter were MSEK 42 (39). The Group’s net debt amounted to MSEK 87 (124) at the end of the quarter. At the end of the quarter, the ratio of net debt to EBITDA (R12) was 0.7 (0.9). INTERIM REPORT Q2 / GROUP PERFORMANCE PAPPELINA : LEA POTATO 0 200 50 15 0 100 250 0 800 400 200 600 1 000 MSEK Net sales Q1 26 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 R 12 Q2 26 NET SALES (MSEK) 0 24 16 8 40 32 0 8 12 4 20 16 %MSEK EBITA EBITA-margin Q1 26 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q2 26 EBITA (MSEK) AND EBITA MARGIN (%)
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6 EMBELLENCE GROUP APRIL – JUNE 2026 Net sales during the quarter amounted to MSEK 181, down –6% compared with the year-earlier quarter. Pappelina’s positive performance continued during the quarter. Boråstapeter – and other wallpaper brands as well – were negatively impacted by weak performance in traditional retail in their respective domestic markets. The comparative quarter for Artscape included a new launch at a major US customer. Borås Tapetfabrik continues its growth. BORÅSTAPETER Boråstapeter’s sales for the quarter amounted to MSEK 61, down 7% compared with the year-earlier quarter. The Swedish domestic market, which is largely charac - terised by traditional retail, remained challenging during the quarter. All of the significant international markets – including the rest of the Nordics – performed well, and DTC sales gained momentum after the launch of the new online sales platform in April. COLE & SON Cole & Son’s sales for the quarter amounted to MSEK 30, down 12% compared to the year-earlier quarter. Restructuring of the sales channels continued, which over the long term is important for the brand and its position but has a negative impact on total sales in the short term. DTC sales continued to perform positively. WALL&DECÒ Wall&decò’s sales amounted to MSEK 19, down 14% compared to the year-earlier quarter. Wall&Decò was also impacted by weak performance in the retail sector during the quarter. The Group is actively supporting the organisation in its commercial activities to reverse the trend and return to growth. PAPPELINA Pappelina’s sales for the quarter amounted to MSEK 14, corresponding to an increase of 27% compared with the year-earlier quarter. Growth via the new online sales platform continued to accelerate while sales in the key US market performed strongly as a result of new distri - bution model. ARTSCAPE Artscape’s sales for the quarter amounted to MSEK 27 . DTC sales continued to perform well. The compar- ative period included a new launch at one of the brand’s major traditional customers in its domestic market. INTERIM REPORT Q2 / OPERATIONAL PERFORMANCE NET SALES MSEK Apr–Jun 2026 Apr–Jun 2025 Change Jan–Jun 2026 Jan–Jun 2025 Change R12 Full-year 2025 Boråstapeter 61 66 –7% 144 145 –1% 285 287 Cole & Son 30 34 –12% 62 73 –16% 122 134 Wall&decò 19 23 –14% 40 46 –13% 81 87 Pappelina 14 11 27% 26 22 19% 48 44 Artscape 27 34 –20% 52 59 –12% 106 113 Borås Tapetfabrik 30 26 14% 58 50 17% 109 101 EMBELLENCE GROUP 181 193 –6% 382 396 –3% 751 765 MANUFACTURING Borås Tapetfabriker’s sales to external custom - ers continued its rapid growth, with sales now amounting to MSEK 30 – up 14% compared with the year-earlier quarter. Performance in the quarter was driven by increased income from existing and new customers in both digi - tal and traditional printing. Operational performance BRANDS WALL&DECÒ: UNDERSTORY REVERIE
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7 EMBELLENCE GROUP APRIL – JUNE 2026 INTERIM REPORT Q2 / OTHER Other Group Parent Company ORGANISATION The number of FTEs on 30 June 2026 was 228 (227). 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 operations. The company has a well-functioning risk-management process in place whereby risks are consolidated, reported and monitored by Group management. For a complete description of the risks impacting the company, refer to the 2025 Annual Report. SEASONAL VARIATIONS Some seasonal variations arise, with the first and fourth quarters normally tending to be slightly stronger. ACCOUNTING POLICIES This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. For the Parent Company, 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 The Parent Company’s net sales in the second quarter amounted to MSEK 7 (4). Net profit amounted to MSEK 45 (–4). The increase is due to a dividend from a subsidiary. are the same as the policies applied in the company’s most recent annual report. The carrying amount is a good approximation of fair value for financial assets and liabilities. New standards and interpretations that have come into effect after 31 December 2025 have not had a significant impact on the Group’s financial statements for the current or future periods, nor on future transac - tions. The cash flow statement was updated so that exchange rate changes in working capital are included in Changes in working capital, and not in Other. In con - nection with this change, adjustments were also made to align with IFRS 18, which comes into force on January 1, 2027 . 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 was not subject to review by the Group’s auditors. ARTSCAPE: WILDFLOWER
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8 EMBELLENCE GROUP APRIL – JUNE 2026 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, 21 JULY 2026 MAGNUS WELANDER Chairman JOHAN ANDGREN CEO KARIN DENNFORD MARIA VEERASAMY HENRIK NYQVIST CHRISTINA STÅHL INTERIM REPORT Q2 / SIGNATURES
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9 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed consolidated income statement MSEK Apr–Jun 2026 Apr–Jun 2025 Jan–Jun 2026 Jan–Jun 2025 Full-year 2025 Net sales 181 193 382 396 765 Cost of goods sold –68 –74 –143 –151 –293 Gross profit 113 120 239 245 471 Selling and administrative expenses –94 –97 –197 –196 –383 Other operating income 1 1 2 3 6 Other operating expenses — –1 –2 –2 –4 Operating profit 19 22 43 50 91 Net financial items –1 –2 –2 — –4 Profit before tax 19 21 41 50 87 Tax –4 –5 –9 –11 –18 Net profit for the period 14 15 32 39 69 Earnings per share for the period before dilution (SEK) 0.61 0.65 1.35 1.66 2.93 Earnings per share for the period after dilution (SEK) 0.61 0.65 1.35 1.66 2.93 Other comprehensive income Translation differences 8 –9 19 –47 –64 Total other comprehensive income 8 –9 19 –47 –64 Comprehensive income for the period 22 6 51 –8 5 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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10 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed consolidated balance sheet Indebtedness MSEK 30 June 2026 30 June 2025 31 Dec 2025 Assets Intangible non-current assets 314 327 311 Tangible non-current assets 95 82 87 Right-of-use assets 46 55 50 Deferred tax assets 8 6 4 Financial non-current assets 3 3 3 Total non-current assets 466 473 455 Inventories 160 154 140 Accounts receivable 93 112 95 Current tax assets 5 4 4 Other receivables 12 8 11 Prepaid expenses and accrued income 19 22 18 Cash and cash equivalents 42 39 38 Total current assets 332 339 307 Total assets 797 812 762 Equity and liabilities Share capital 59 59 59 Other contributed capital 111 111 111 Reserves 16 14 –3 Retained earnings, including net profit for the year 343 316 346 Equity attributable to Parent Company shareholders 529 500 513 Provisions for pensions 5 6 5 Deferred tax liabilities 20 17 20 Other non-current interest-bearing liabilities 33 45 39 Lease liabilities 35 44 39 Total non-current liabilities 93 111 104 Other current interest-bearing liabilities 12 58 12 Bank overdraft facility 34 — 1 Lease liabilities 15 16 15 Accounts payable 47 53 50 Other current liabilities 20 22 22 Accrued expenses and deferred income 47 51 45 Total current liabilities 175 200 145 Total liabilities 268 312 248 Total equity and liabilities 797 812 762 MSEK 30 June 2026 30 June 2025 31 Dec 2025 Lease liabilities 50 60 54 Bank overdraft facility 34 — 1 Other interest-bearing receivables and liabilities 45 103 51 Gross debt 129 163 106 Cash and cash equivalents –42 –39 –38 Net debt 87 124 68 EBITDA (R12) 126 138 134 Net debt/EBITDA (R12) 0.7 0.9 0.5 Equity ratio 66% 62% 67% Quota value per share (SEK) 2.5 2.5 2.5 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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11 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed consolidated cash flow statement MSEK Apr–Jun 2026 Apr–Jun 2025 Jan–Jun 2026 Jan–Jun 2025 Full-year 2025 OPERATING ACTIVITIES Operating profit 19 22 43 50 91 Adjustments for non-cash items Depreciation and amortisation 10 11 20 21 43 Other — — 4 –3 –9 Cash flow from changes in working capital –3 –14 –22 –38 –13 Cash flow from operating activities before tax 27 20 45 30 113 Tax paid –6 –4 –10 –7 –15 Cash flow from operating activities 21 16 35 23 98 INVESTING ACTIVITIES Net investments in non-current assets –9 –4 –14 –9 –22 Interest received 1 — 1 — 1 Cash flow from investing activities –9 –4 –14 –9 –21 FINANCING ACTIVITIES Change in bank overdraft facilities 34 –46 33 –49 –48 Repayment of lease liabilities –3 –4 –7 –7 –15 New borrowing — 131 — 131 131 Repayment of loans –3 –55 –6 –55 –107 Dividend –35 –29 –35 –29 –29 Interest paid –2 –2 –3 –4 –8 Cash flow from financing activities –10 –5 –18 –14 –77 Cash flow for the period 3 8 3 1 1 Cash and cash equivalents at beginning of period 38 32 38 41 41 Exchange rate differences in cash and cash equivalents 1 — 1 –2 –4 Cash and cash equivalents at end of period 42 39 42 39 38 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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12 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed consolidated statement of changes in equity MSEK 30 June 2026 Opening balance 1 Jan 2026 513 Dividend –35 Net profit for the period 32 Other comprehensive income 19 Closing balance 30 Jun 2026 529 MSEK 30 June 2025 Opening balance 1 Jan 2025 538 Dividend –29 Net profit for the period 39 Other comprehensive income –47 Closing balance 30 Jun 2025 500 INTERIM REPORT Q2 / FINANCIAL INFORMATION PAPPELINA : VERA PINE
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13 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed Parent Company income statement MSEK Apr–Jun 2026 Apr–Jun 2025 Jan–Jun 2026 Jan–Jun 2025 Full-year 2025 Net sales 7 4 12 8 21 Administrative expenses –12 –9 –21 –16 –32 Operating loss –5 –4 –9 –8 –12 Net financial items 48 –1 44 — –3 Profit/loss after financial items 43 –6 36 –8 –15 Group contributions — — — — 85 Other appropriations — — — — –18 Profit/loss before tax 43 –6 36 –8 52 Tax 1 1 3 2 –11 Net profit/loss for the period 45 –4 38 –6 42 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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14 EMBELLENCE GROUP APRIL – JUNE 2026 Condensed Parent Company balance sheet MSEK 30 June 2026 30 June 2025 31 Dec 2025 Assets Intangible non-current assets 1 — — Deferred tax assets 3 2 1 Financial non-current assets 618 618 618 Total non-current assets 622 620 619 Current tax assets 4 3 — Other receivables 1 — — Prepaid expenses and accrued income 2 2 2 Cash and cash equivalents — 3 — Total current assets 7 9 3 Total assets 629 629 621 MSEK 30 June 2026 30 June 2025 31 Dec 2025 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 188 137 185 Equity attributable to Parent Company shareholders 386 335 383 Untaxed reserves 43 25 43 Provisions for pensions 2 2 2 Other non-current interest-bearing liabilities 33 45 39 Total non-current liabilities 35 47 41 Other current interest-bearing liabilities 12 58 12 Bank overdraft facility 34 — 1 Accounts payable 2 1 1 Liabilities to Group companies 111 158 131 Other current liabilities 1 1 5 Accrued expenses and deferred income 5 4 5 Total current liabilities 165 223 155 Total liabilities 200 269 196 Total equity and liabilities 629 629 621 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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15 EMBELLENCE GROUP APRIL – JUNE 2026 INTERIM REPORT Q2 / FINANCIAL INFORMATION Quarterly overview GROUP MSEK Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net sales 170 202 202 193 174 195 201 181 Gross profit 103 123 126 120 105 121 127 113 Gross margin, % 60.7% 60.7% 62.0% 61.9% 60.6% 61.8% 62.8% 62.3% EBITA 26 28 32 26 24 26 28 23 EBITA margin, % 15.1% 13.9% 16.0% 13.5% 13.6% 13.2% 14.0% 12.6% NET SALES PER BRAND AND EXTERNAL MANUFACTURING MSEK Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Boråstapeter 61 72 79 66 62 79 83 61 Cole & Son 33 36 39 34 30 30 31 30 Wall&decò 20 24 23 23 20 20 21 19 Pappelina 11 10 11 11 11 10 13 14 Artscape 27 36 25 34 28 27 25 27 Borås Tapetfabrik 19 24 24 26 22 29 29 30 Total 170 202 202 193 174 195 201 181 NET SALES BY LARGEST MARKETS MSEK Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Sweden 56 73 80 65 61 76 78 57 US 37 48 39 48 39 46 42 46 UK 21 19 21 17 17 16 20 12 Rest of World 57 62 63 63 57 57 61 66 Total 170 202 202 193 174 195 201 181
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16 EMBELLENCE GROUP APRIL – JUNE 2026 Notes NOTE 1 Earnings per share MSEK Apr–Jun 2026 Apr–Jun 2025 Jan–Jun 2026 Jan–Jun 2025 Full-year 2025 Net profit for the period (SEK) Earnings per share before dilution 0.61 0.65 1.35 1.66 2.93 Earnings per share after dilution 0.61 0.65 1.35 1.66 2.93 Performance measures used in the calculation of earnings per share before and after dilution (MSEK) Net profit for the period 14 15 32 39 69 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 23,538,721 23,538,721 23,538,721 23,538,721 Warrants Adjustment for calculation of earnings per share after dilution attributable to warrants — — — — — 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 23,538,721 23,538,721 23,538,721 23,538,721 INTERIM REPORT Q2 / FINANCIAL INFORMATION
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17 EMBELLENCE GROUP APRIL – JUNE 2026 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). Oper - ating profit/loss before amortisation of intangible assets. EBITA MARGIN EBITA divided by net sales. EBITDA (Earnings before interest, taxes, depreciation and amor - tisation). Operating profit/loss before depreciation, amortisation and impairment. NET DEBT The sum of non-current interest-bearing liabilities, non-current lease liabilities, current interest-bearing lia - bilities, current lease liabilities, liabilities and receivables against Group companies and bank overdraft facilities minus cash and cash equivalents. NET DEBT/EBITDA Net debt divided by EBITDA, rolling 12 months. 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. EARNINGS PER SHARE IN SEK AFTER DILU - TION 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. EQUITY RATIO Equity attributable to Parent Company shareholders as a percentage of total assets. INTERIM REPORT Q2 / OTHER INFORMATION COLE & SON: RIFLESSO
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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 publication, through the agency of the contact person set out below, on 21 July 2026 at 8:00 a.m. CEST. Karin Lidén, CFO Tel: +46(0)33-236400 E-mail: ir@embellencegroup.com FINANCIAL CALENDAR Q3 2026 – 3 November 2026 Q4 2026 – 24 February 2027 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: VINTAGE PALMS DINOSAURS