This article first appeared on GuruFocus .
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Revenue Growth:4.9% net sales growth, 5.8% excluding currency effects, and 2.1% like-for-like growth for the fourth quarter.
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Gross Margin:Increased by 1.4 percentage points to 42.3% in the fourth quarter.
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EBITDA Margin:7.6% for the full year, with EBITDA increasing by 11.7% to SEK953 million.
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Net Sales:Increased by SEK768 million to SEK12.6 billion for the full year, a growth of 6.5% or 8% excluding currency effects.
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Store Expansion:14 new stores added during the year, with an additional four stores since the financial year ended, totaling 243 stores.
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Cash Flow from Operating Activities:Increased by SEK540 million to approximately SEK1.7 billion for the full year.
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Earnings Per Share:Increased by 15.5% to SEK3.6.
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Dividend Proposal:SEK1.80 per share, up from SEK1.45 last year, corresponding to 50% of net profit.
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Club Rusta Membership:Reached 7 million members in the fourth quarter.
Release Date: June 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Rusta AB (publ) ( OSTO:RUSTA ) delivered a solid fourth quarter with sales growth across all segments and improved profitability.
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The company opened eight new stores during the quarter, marking the highest quarterly pace ever, and has 41 stores in the pipeline.
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Rusta AB (publ) reached breakeven in the fourth quarter, making all four quarters in the financial year profitable for the first time since its founding.
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The Board proposes a higher dividend of SEK1.8 per share, up from SEK1.45 last year, reflecting a strong financial position.
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The company improved cash flow from operating activities by SEK540 million, reaching approximately SEK1.7 billion for the full year.
Negative Points
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Rusta AB (publ) faces challenges in its 'other markets' segment, with like-for-like growth being negative at minus 1.2% due to strong comparables and a weaker euro.
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Profitability in 'other markets' decreased, with an EBITDA margin of 0.1% compared to 1.2% last year, due to continued investment in store expansions and price positioning.
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The company is experiencing a tougher macroeconomic situation and weaker customer sentiment in Germany and Finland.
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Despite having as many stores in Finland as in Norway, sales per store in Finland are significantly lower, indicating potential issues with brand recognition or market adaptation.
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Currency effects, particularly a weaker euro, have negatively impacted the company's financial performance in certain markets.
Q & A Highlights
Q: What are your initial reflections as the new CEO of Rusta, and what are your key priorities? A: As the new CEO, I see Rusta as a well-run company with a strong strategy. My focus will be on continuing to develop like-for-like growth in existing stores and online, as well as expanding with new stores. I see potential in enhancing our assortment and leveraging insights from Club Rusta, which has reached 7 million members.
Q: How do you plan to address the lower sales per store in Finland compared to other markets? A: Finland is part of our smaller segment, facing tough macroeconomic conditions and high comparables. We continue to invest in price positioning and store concept development. Brand recognition and local adaptations are areas we need to focus on to improve performance in Finland and Germany.
Q: Are there plans to adjust the medium-term targets of 8% organic growth and an 8% margin? A: The targets are set on a two to five-year basis and align with our strategy and growth potential. We are close to achieving these targets, and they will remain unchanged.
Q: Will you continue to prioritize long-term scale over short-term profitability in other markets? A: Yes, we will continue to invest in new stores and price positioning to drive long-term growth. The current profitability reflects these investments and the challenging market conditions, particularly in Germany and Finland.
Q: Can you provide a breakdown of the 1.4 percentage point improvement in gross margin for the quarter? A: The improvement is driven by a favorable product mix, positive currency effects, and supply chain efficiencies, including the bonded warehouse. These factors contributed evenly to the gross margin growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
