This article first appeared on GuruFocus .
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Revenue Growth:5.7% increase in the second quarter.
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Organic Growth:1.3% organic growth.
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Acquisition-Related Growth:1.4% growth from acquisitions.
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EBITDA:SEK187 million, a 30% improvement.
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EBITDA Margin:Increased to 7.2%.
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Operating Cash Flow:More than doubled compared to Q2 last year.
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Store Locations:Reduced from 239 to 234 stores.
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Net Debt-to-EBITDA Ratio:Improved to 2.1 from 2.5 at year-end.
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Own Brand Sales:Increased share, contributing to improved gross margin.
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Inventory Levels:Reduced as part of capital efficiency initiatives.
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Acquisitions:Svets & Robotteknik i Smaland AB and Svetsexperten i Kalmar AB, combined annual revenue of slightly above SEK50 million.
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Release Date: July 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Alligo AB ( LTS:0RTK ) reported a revenue growth of 5.7% in the second quarter, driven by a mix of organic growth, acquisitions, and favorable currency effects.
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The company achieved a 30% improvement in EBITDA, with the margin increasing to 7.2%, supported by higher volumes and improved gross margins.
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Alligo AB's efficiency program in Finland is progressing well, contributing to improved margins and operational execution.
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The launch of the ReCare service solution for work clothes, including laundry and repair services, is expected to drive long-term growth and profit.
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The company has a strong financial position with available cash and unutilized credit facilities close to SEK2 billion, allowing for continued investment in organic growth and acquisitions.
Negative Points
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The market in the Nordics remains stable but uneven, with specific challenges in the oil and gas segment in Norway leading to weaker demand.
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Customers remain cautious, limiting basket sizes and focusing on essential purchases, which puts pressure on sales.
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The acquisition in Norway had a negative contribution in the quarter due to strong seasonality, impacting overall performance.
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Despite positive developments, the Swedish market has not seen significant growth in basket sizes, indicating cautious consumer behavior.
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The company faces challenges in achieving its 10% margin target, requiring market recovery and increased volumes, particularly in Sweden and Norway.
Q & A Highlights
Q: Finland showed significant margin improvement in the quarter. Is this sustainable, or were there unique factors at play? A: Samuel Alteborg, CEO: The progress in Finland's efficiency program is promising, and while there are always some one-off elements, the overall momentum is strong. Irene Bellander, CFO: The business with Patria is growing steadily, indicating sustainable improvement.
Q: The recent acquisition in Norway had a negative contribution. Is this due to seasonality? A: Samuel Alteborg, CEO: Yes, the acquisition is highly seasonal, with most sales occurring around the Christmas season, which is typical for that company.
Q: Swedish operations show good traffic but not increased basket size. Are recent sales initiatives gaining traction? A: Samuel Alteborg, CEO: While we've implemented many initiatives to boost sales, customers remain cautious and specific in their purchases, similar to past trends.
Q: Regarding earn-out payments, is the SEK22 million payout in Q2 a regular occurrence? A: Irene Bellander, CFO: The SEK22 million was an earn-out payment, and while there will be more, they will be at a lower level in future quarters.
Q: What are your views on the acquisition-based growth strategy and the current pipeline? A: Samuel Alteborg, CEO: We see potential in strengthening our position with technology areas that complement our core business. While we don't comment on specific discussions, there are opportunities, and we may accelerate this strategy.
Q: Can you provide a timeline for reaching the 10% margin target? A: Irene Bellander, CFO: While it's challenging to predict, with market recovery and volume gains, we can achieve our targets. Sweden needs to reach a 12% margin, and Norway and Finland around 7-8%.
Q: What specific actions are being taken to improve the situation in Norway? A: Samuel Alteborg, CEO: We've been broadening our customer base beyond oil and gas, focusing on construction companies. While the market is stable, we aim to win market share and regain momentum.
Q: What are the initiatives to transform stable store sales in Sweden into positive organic growth? A: Samuel Alteborg, CEO: We focus on sales strategies, ensuring relevance in assortment and pricing, and running targeted campaigns. The goal is to broaden the customer base and cross-sell to existing customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
