This article first appeared on GuruFocus .
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Total Sales Growth:10.5% in Q3.
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Gross Margin:Increased to 44.1% in Q3.
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EBITDA Margin:Increased to 12.5% in Q3.
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Cash Flow:Positive cash flow of SEK865 million, an increase of SEK618 million in Q3.
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Net Sales Growth:9% in Q3, excluding currency effects, increased by 10.5%.
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Like-for-Like Growth:6.5% in Q3, excluding currency effects.
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Net Cash Position:SEK300 million, an increase of SEK354 million compared to the same quarter last year.
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Store Locations:232 store locations, with one new store opened in Finland during Q3.
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Store Pipeline:50 signed stores in the pipeline.
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Inventory:Inventory in balance, supporting future growth.
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Online Sales:High profitability, higher than physical stores, with continued growth.
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Sweden Sales Growth:11.5% in Q3, like-for-like 6.5%.
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Norway Sales Growth:10.4% in Q3, like-for-like 9.2%.
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Other Markets Sales Growth:7.2% in Q3, like-for-like 2.8%.
Release Date: March 12, 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 ) achieved a total sales growth of 10.5% in the third quarter, driven by increased customer visits and higher average ticket values.
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The company reported a strong gross margin development, reaching 44.1%, supported by a better product mix and successful campaigns.
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Rusta AB (publ) ( OSTO:RUSTA ) experienced a significant increase in cash flow, with SEK865 million in positive cash flow, marking an increase of SEK618 million.
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The company is net cash positive with SEK300 million, reflecting a strong balance sheet and financial stability.
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Rusta AB (publ) ( OSTO:RUSTA ) has a robust store expansion plan, with 50 signed stores in the pipeline, including new locations in Germany, supporting future growth targets.
Negative Points
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Currency effects had a negative impact of minus 1.5% on net sales growth during the quarter.
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The profitability in Finland and Germany was slightly weaker due to price investments in challenging market environments.
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The company faces uncertainty in the German market regarding its position in the recession, which could impact future performance.
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Rusta AB (publ) ( OSTO:RUSTA ) is dependent on favorable weather conditions for its summer sales, adding an element of unpredictability to future results.
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The ongoing Middle East crisis poses potential risks to supply chain stability, although no direct impact has been observed yet.
Q & A Highlights
Q: Can you discuss the continued strength and currency tailwinds in the start of Q4, given the strong momentum in Q2 and Q3 despite tougher comparisons from last year? A: Goran Westerberg, CEO: We are optimistic about continuing the positive development in profitability and margins. February showed continued growth, and we have stock in place, which is crucial for positive sales. However, April's performance, influenced by weather, will be critical. While we are hopeful, it's challenging to predict if we will match the growth levels of Q2 and Q3.
Q: With 14 stores planned for Finland, how confident are you about their success, and what are the typical contract lengths for stores in Finland and Germany? A: Goran Westerberg, CEO: We are expanding our footprint in Finland and Norway due to customer recruitment and increased purchases in higher categories. We are cautious with new contracts in Finland to consolidate development and drive profitability. In Germany, we operate on shorter contracts, and in Finland, contracts are similar, not extending to 15 years.
Q: Can you provide an update on the online share of sales for the group, especially with recent launches in Norway and upcoming in Germany? A: Goran Westerberg, CEO: Online sales have been between 1% and 2% but are expected to grow with recent launches. While physical stores are also expanding, online sales will likely remain in the lower single digits for the next two to three years. However, profitability for online sales is higher than in physical stores.
Q: Can you break down the gross margin difference year-over-year, considering FX impacts, campaigns, and transportation costs? A: Sofie Malmunger, CFO: The overall pricing effect is neutral, with positive mix effects from higher-priced items and lower sea freight costs. Purchase prices are slightly higher, but the currency effect positively impacted the gross margin by 0.2 percentage points. These factors contributed to a 0.6 percentage point increase in gross margin.
Q: Regarding CapEx, what are your expectations for the next three years given the store expansion agenda? A: Sofie Malmunger, CFO: CapEx will slightly increase from the usual 2% to closer to 3% due to warehouse automation and new store openings. The average cost per new store is SEK5 million, and our strong balance sheet supports this expansion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
