Duell Corporation First Quarter 2025 Financial Report September-November 2024

This is not an interim report in accordance with IAS 34. The company complies with the semi-annual reports required by the Securities Markets Act and normally publishes business reports for the first three and first nine months of the year, which present key information describing the company's financial development. This company announcement is also a summary of Duell’s financial report for September-November 2024. The complete Report is attached to this announcement as a pdf file. It is also available on the company website at https://investors.duell.eu/en/reports_and_presentations. Unaudited financials presented below:

Growth and improved profitability continued in the first quarter 2025

September-November 2024 "Q1 2025" (comparable figures in parenthesis 9/2023-11/2023): 

• Net sales increased 4.7% to EUR 28.3 million (EUR 27.0 million), growth being fully organic. Net sales with comparable currencies increased 4.4%.
• Adjusted EBITA was EUR 0.7 million (EUR 0.3 million) with an adjusted EBITA margin of 2.4% (1.0%).
• Net working capital EUR 53.5 million (EUR 55.5 million).
• Cash flow from operating activities was EUR -4.8 million (EUR -7.0 million).
• Earnings per share was EUR -0.08 (EUR -0.06) (according to the number of shares at the end of the review period).

Guidance 2025 (unchanged)

Markets have somewhat stabilised, but consumer sentiment remains fragile due to uncertainties. Duell expects the demand over the next 12 months to be slightly better than the comparison period, but there may be variations between product categories. The industry in which Duell operates remains relatively fragmented, which provides long-term opportunities and favours the larger players, of which Duell is one. Therefore, our guidance for financial year 9/2024-8/2025 is, that: 

• Duell expects that organic net sales with comparable currencies will be at the same level or higher than previous year.
• Duell will continue to focus on improving profitability and expects adjusted EBITA to improve from last year’s level.

Medium-term financial targets (3-5 years) (Unchanged)

Growth: Net sales in the range of EUR 200-300 million in medium term, achieved through yearly growth organically and inorganically.

Profitability: adjusted EBITA margin of at least 13% in the medium-term.

Leverage: net debt to adjusted EBITDA ratio in the range of 2-3. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).

CEO Magnus Miemois:

I am pleased with Duell’s first quarter 2025 performance. The development during the quarter was good despite the late start of Nordic winter season. We increased our fully organic net sales by 4.7% to over 28 million euro and adjusted EBITA grew to 0.7 million euro. Both market areas; Nordics and Central Europe contributed to the growth with main product categories being ATV and Snowmobile, where Duell have a strong brand portfolio and market position. In October, we started change negotiations aimed at improving operational efficiency and achieving annual cost savings.

We also continued to improve our net working capital management with the goal to accelerate inventory turnaround and to reduce the inventory levels. Performance was positive on both counts. We have also significantly strengthened our financial position compared to the previous year, thanks to the rights issue that was completed in January 2024. 

Key figures and ratios	Q1 2025	Q1 2024	FY 2024
EUR thousand	(9/2024-11/2024)	(9/2023-11/2023)	(9/2023-08/2024)
Net sales	28,292	27,014	124,652
Net sales growth, %	4.7	4.9	4.9
Net sales growth with comparable currencies, %	4.4	7.4	5.7
Gross margin	7,057	6,456	30,339
Gross margin, %	24.9	23.9	24.3
EBITDA	810	-193	4,564
EBITDA margin, %	2.9	-0.7	3.7
Items affecting comparability, EBITDA	115	731	2,577
Adjusted EBITDA	925	538	7,141
Adjusted EBITDA margin, %	3.3	2.0	5.7
EBITA	557	-457	3,628
EBITA margin, %	2.0	-1.7	2.9
Adjusted EBITA	672	274	6,205
Adjusted EBITA margin, %	2.4	1.0	5.0
Operating profit	-141	-1,148	842
Operating profit margin, %	-0.5	-4.3	0.7
Earnings per share, basic, EUR*	-0.08	-0.06	-0.003
Earnings per share, diluted, EUR*	-0.08	-0.06	-0.003
Number of outstanding shares at the end of the period, basic**	5,160,574	30,545,474	1,038,546,116
Number of outstanding shares at the end of the period, diluted**	5,303,574	30,545,474	1,046,544,706
Investments in tangible and intangible assets excluding acquisitions	176	267	746
Net debt	24,721	45,177	19,563
Net working capital	53,509	55,456	48,323
Inventory, % of LTM*** net sales	38.4	43.3	36.1
Cashflow from operating activities	-4,794	-7,014	-912
Equity ratio, %	53.1	34.8	55.0

* According to the number of shares at the end of the review period
**The company does not report the average number of shares for the period due to the reverse split
***LTM = Last twelve months

	Q1 2025	Q1 2024	FY 2024
Operational key figures	(9/2024-11/2024)	(9/2023-11/2023)	(9/2023-08/2024)
Number of brands	536	559	562
Share of own brand sales, % of total	21	22	18
Share of online sales, % of total	25	24	26
Share of sales in Nordics, % of total	54	56	53
Share of sales in Central Europe, % of total	46	44	47
Full-time equivalent employees, average	206	211	215

Significant events during review period 

Duell announced to start change negotiations on October 9, 2024, with the aim of improving operational efficiency by adapting operations and workloads to the current market situation. The aim of the efficiency measures, which will affect the Group's all 220 employees, is to achieve annual cost savings of approximately EUR 1 million, mainly in the financial year 2025. The total estimated need for reductions in the Duell Group is up to 20 positions. 

Duell announced on October 9, 2024 that the Board of Directors proposed that the combination of shares would be implemented by issuing new shares in the company without consideration and by redeeming shares in the company without consideration so that after carrying out the arrangements under this proposal, each existing 200 shares in the company would correspond to one (1) share in the company.

Duell completed its share buy-back programme on 15 October 2024. The buybacks started on 5 August 2024. Under the buy-back programme, the company acquired 6,760,000 shares at an average price of EUR 0.0369. The shares were repurchased in public trading on the First North Growth Market Finland marketplace operated by Nasdaq Helsinki Ltd at the market price at the time of acquisition. After the buybacks, the company held a total of 6,760,000 shares, which corresponds to approximately 0.7% of the total number of 1,038,546,116 shares in Duell Corporation.

The Annual General Meeting held on November 20, 2024, resolved on the combination of shares, i.e., the reduction of the number of shares and related directed share issue and redemption of shares.

The Board of Directors of Duell Corporation has decided in the organisational meeting held on November 20, 2024, after Annual General Meeting that Anna Hyvönen is elected as the chair of the Board of Directors. Anu Ora is elected as the chair of the People and Remuneration Committee and Niko Mokkila and Anna Hyvönen as members of the People and Remuneration Committee. Kim Ignatius is elected as the chair of the Audit Committee and Axel Lindholm and Anna Hyvönen as members of the Audit Committee.

Duell announced on November 22, 2024, that it has executed a reverse split and a related directed share issue without consideration, redemption of shares and cancellation of shares. After these measures, the new number of shares in the Company is 5,194,374. The new number of shares has been registered with the Trade Register maintained by the Finnish Patent and Registration Office today, November 22, 2024, and trading with the new total number of shares in the Company commences on Monday November 25, 2024, with a new ISIN code FI4000582143. Duell’s trading code DUELL will remain the same.

Significant events after review period

On 16 January 2025, Duell announced that it had completed the efficiency programme covering the entire Group and its entire workforce of approximately 220 employees, which was launched on October 15, 2024. As part of the programme, the company completed the change negotiations and related measures in the Finnish and Swedish companies. In the other Group country companies, the personnel changes have been implemented by, among other things, rearranging jobs instead of recruiting replacements. At the beginning of the efficiency programme, the company defined that decisions on the efficiency programme measures would be taken by 16 January 2025. Approximately half of the savings will be achieved through personnel cost reductions and half through other efficiency measures. The total number of personnel reductions in the Duell Group is 13 positions. Duell will achieve the targeted annual cost savings of approximately EUR 1 million through the efficiency programme, which will be applied to the last three quarters of the financial year starting September 1, 2024.

Webcast for investors and media

Duell will arrange a live webcast for investors and media in English on January 16, 2025, at 10.30 am EET. The webcast can be followed online through this link. A presentation will be held by CEO Magnus Miemois, CFO Caj Malmsten and IR Pellervo Hämäläinen. A recording of the event will be available later the same day at www.invhttps://investors.duell.eu/.

Financial reporting and Annual General Meetings in Financial Year 2025

During the Financial Year 2025, Duell will publish financial information as follows: 

• Half-year financial report September 2024–February 2025 (Q2 2025) on Thursday, April 10, 2025.
• Financial report September 2024–May 2025 (Q3 2025) on Thursday, July 3, 2025.
• Financial Statements Bulletin for the financial year 9/2024–8/2025 (Q4 2025) on Thursday, October 16, 2025.

Annual Report 2025, which includes, among other things, the Report of the Board of Directors and the Company's financial statements, in the week commencing October 27, 2025.

Duell’s Annual General Meeting of shareholders is scheduled for Tuesday, November 25, 2025.

The financial reviews and the annual report will be available after publication on the company's investor website at (https://investors.duell.eu/en/reports_and_presentations).

Further information

Magnus Miemois, CEO
Duell Corporation
+358 50 558 1405
magnus.miemois@duell.eu

Pellervo Hämäläinen, Communications and IR Manager
Duell Corporation
+358 40 674 5257
pellervo.hamalainen@duell.eu

Certified Advisor

Oaklins Finland Ltd, +358 9 612 9670

Duell Corporation (Duell) is an import and wholesale company based in Mustasaari, Finland, established in 1983. Duell imports, manufactures, and sells products through an extensive distribution network in Europe covering approximately 8,500 dealers. The range of products includes over 130,000 items under more than 500 brands. The assortment covers spare parts and accessories for Motorcycling, Bicycling, ATVs/UTVs, Snowmobiling, Marine and Garden/Forest categories. Logistics centres are in Finland, Sweden, Netherlands, France, and the UK. Duell’s net sales in 2024 was EUR 125 million and it employs over 200 people. Duell’s shares are listed on the Nasdaq First North Growth Market Finland marketplace. www.duell.eu.