This article first appeared on GuruFocus .
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Net Sales:SEK487 million, 5% growth in local currencies compared to last year.
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Adjusted EBIT:SEK105 million, with an adjusted EBIT margin of 21.4%.
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Gross Margin:71%, improved from 69.4% last year.
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Net Cash Position:SEK351 million.
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Credit Facility:SEK600 million, unutilized at the end of the quarter.
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Cash Flow from Operating Activities:SEK18 million, compared to SEK110 million last year.
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Inventory:SEK409 million, decreased from SEK543 million a year ago.
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Repurchased Shares:SEK62 million during the quarter, total SEK90 million under the current mandate.
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Store Openings:Opened third store in Haparanda, Sweden.
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Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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RVRC Holding AB ( FRA:0GE ) reported a net sales growth of 5% in local currencies for Q3, indicating resilience in a challenging market environment.
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The company maintained a strong adjusted EBIT margin of 21.4%, aligning with its target of maintaining a 20% EBIT margin.
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Gross margin improved to 71%, partly due to favorable currency effects and a weaker US dollar impacting purchasing costs positively.
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The company successfully relocated its Nordic warehouse operations to a new automated logistics center, enhancing future volume handling capabilities.
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RVRC Holding AB ( FRA:0GE ) continues to expand its product range, with positive customer feedback on new launches such as the updated Nordwand series and a new cycling collection.
Negative Points
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Net sales and earnings were negatively affected by foreign exchange fluctuations, with a significant portion of sales generated in currencies other than the Swedish krona.
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Sales in the 'rest of the world' region decreased by 4% in local currencies, with North America particularly impacted by changing market conditions and tariffs.
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Germany, the company's largest market, showed signs of weaker consumer confidence, affecting overall growth.
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The company's cash flow from operating activities decreased significantly to SEK18 million from SEK110 million in the same period last year.
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Inventory levels are low, which may impact product availability and top-line growth if not managed carefully.
Q & A Highlights
Q: Can you provide insights into the sales performance trend during the quarter, month by month? A: Sales performance varied by market, with Sweden, Austria, and Switzerland showing strong results. January and February were particularly strong months, while March saw lower growth due to higher comparables from the previous year. Germany, which accounts for over 50% of total sales, followed a similar pattern.
Q: How does the current market environment compare to the end of 2025? A: In Germany, the market appears weaker compared to the end of 2025, although we continue to grow market share. Sweden and Austria remain strong, indicating a mixed market environment across regions.
Q: What factors contributed to the 12% organic growth in Sweden? A: The growth in Sweden is attributed to a strong customer offering and a somewhat stronger underlying market compared to Germany. Our value proposition and market positioning have been key drivers of this growth.
Q: Can you elaborate on the impact of FX on gross margins and future expectations? A: The weaker USD positively impacted gross margins, contributing between a third and half of the improvement. We expect this positive impact to continue, assuming stable currency conditions, alongside product and market mix factors.
Q: How has the situation in the Middle East affected your operations? A: While we haven't seen direct impacts, we anticipate potential delays in inbound shipments and possible fuel surcharges. We are closely monitoring lead times to ensure timely deliveries for peak seasons.
Q: What is the strategy regarding inventory levels and their impact on sales? A: We plan to increase inventory levels in the coming months to support peak season demand. Current inventory is fresh and composed mainly of high runners, which positions us well for future sales.
Q: How do you balance profitability with marketing investments in a challenging market? A: We aim to maintain a balance between growth and profitability, targeting a 20% annual growth and a 20% EBIT margin. We prioritize disciplined spending to ensure all orders are profitable, focusing on long-term value generation.
Q: What is the status of the share buyback program? A: We have executed SEK90 million of the SEK200 million buyback mandate, with SEK110 million remaining. We plan to continue distributing value to shareholders through dividends and buybacks, maintaining a balanced approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
