Duell Corporation half-year 2025 financial report September 2024-February 2025

This company announcement is a summary of Duell’s half-year financial report for September 2024–February 2025. 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/ Unaudited financials presented below.

A balancing act due to challenging weather conditions

December 2024-February 2025 "Q2 2025" (comparable figures in parenthesis 12/2023-2/2024): 

• Net sales increased 3.9% to EUR 29.3 million (EUR 28.2 million), growth being fully organic. Net sales with comparable currencies increased 1.3%.
• Adjusted EBITA was EUR 1.1 million (EUR 1.4 million) with an adjusted EBITA margin of 3.9% (4.9%).
• Net working capital EUR 58.5 million (EUR 58.9 million).
• Cash flow from operating activities was EUR -4.6 million (EUR -4.7 million).

September 2024-February 2025 "H1 2025" (comparable figures in parenthesis 9/2023-2/2024): 

• Net sales increased 4.3 % to EUR 57.5 million (EUR 55.2 million), growth being fully organic. Net sales with comparable currencies increased 2.8 %.
• Adjusted EBITA was EUR 1.8 million (EUR 1.6 million) with an adjusted EBITA margin of 3.2% (3.0%).
• Net working capital EUR 58.5 million (EUR 58.9 million).
• Cash flow from operating activities was EUR -9.4 million (EUR -11.7 million).
• Earnings per share was -0.00 EUR (EUR -0.01) (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: 

Our second quarter became a balancing act, and I would like to thank the whole organisation for performing well in such difficult circumstances.

Demand for snowmobile products was disappointing, due of course to the unusually warm winter and poor snow conditions in the Nordic countries. Although demand in the most northern regions was normal, and good sales progress was made, overall volumes in the snow category were down and this had a significant impact on margin development. On a positive note, our strategic focus in Central Europe continued to deliver progress with sales growth, particularly with large e-commerce customers. All in all, we achieved 4% top-line growth also in the second quarter. The development of margins and inventory levels became a delicate balancing act given the weaker than expected demand in the snowmobile category.

From a first half-year perspective, we continue to deliver growth, and both operational efficiency and profitability are improving, so I am pleased with this development. 

Key figures and ratios EUR thousand	Q2 2025 (12/2024- 2/2025)	Q2 2024 (12/2023-2/2024)	H1 2025 (9/2024-2/2025)	H1 2024 (9/2023-2/2024)	FY 2024 (9/2023-8/2024)
Net sales	29.252	28.155	57.544	55,169	124,652
Net sales growth, %	3.9	10.2	4.3	7.5	4.9
Net sales with comparable currencies, %	1.3	15.9	2.8	11.6	5.7
Gross margin	6,874	7,106	13,931	13,562	30,339
Gross margin, %	23.5	25.2	24.2	24.6	24.3
EBITDA	1,248	-551	2,058	-744	4,564
EBITDA margin, %	4.3	-2.0	3.6	-1.3	3.7
Items affecting comparability, EBITDA*	149	2,099	264	2,830	2,577
Adjusted EBITDA	1,397	1,548	2,322	2,086	7,141
Adjusted EBITDA margin, %	4.8	5.5	4.0	3.8	5.7
EBITA	999	-728	1,556	-1,185	3,628
EBITA margin, %	3.4	-2.6	2.7	-2.1	2.9
Adjusted EBITA	1,147	1,371	1,820	1,645	6,205
Adjusted EBITA margin, %	3.9	4.9	3.2	3.0	5.0
Operating profit	297	-1,422	156	-2,571	842
Operating profit margin, %	1.0	-5.1	0.3	-4.7	0.7
Earnings per share, basic, EUR*	-0.09	0,00	-0.00	-0.01	-0.004
Earnings per share, diluted, EUR*	-0.09	0,00	-0.00	-0.01	-0.004
Number of outstanding shares at the end of the period, basic**	5,160,574	1,038,546,116	5,160,574	1,038,546,116	1,036,334,706
Number of outstanding shares at the end of the period, diluted**	5,303,574	1,047,746,116	5,303,574	1,047,746,116	1,045,534,706
Investments in tangible and intangible assets excluding acquisitions	243	172	419	439	746
Net debt	29,274	29,917	29,274	29,917	19,563
Net working capital	58,503	58,897	58,503	58,897	48,323
Inventory, % of LTM*** net sales	39.5	42.7	39.5	42.7	36.1
Cash flow from operating activities	-4,565	-4,693	-9,359	-11,707	-912
Equity ratio, %	52.7	53.1	52.7	53.1	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

Operational key figures	Q2 2025 (12/2024- 2/2025)	Q2 2024 (12/2023-2/2024)	H1 2025 (9/2024-2/2025)	H1 2024 (9/2023-2/2024)	FY 2024 (9/2023-8/2024)
Number of brands	543	564	543	564	535
Share of own brand sales, % of total	19.6	21.2	20.3	21.4	18
Share of online sales, % of total	32.7	26.4	29.0	25.4	26
Share of sales in Nordics, % of total	51.6	55.8	52.8	55.8	53
Share of sales in Central Europe, % of total	48.4	44.2	47.2	44.2	47
Full-time equivalent employees, average	206	216	206	214	215

Significant events during review period 

Duell’s HR Director and member of the Management Team Pia Hoseus left the Company in early February 2025. The company initiated a recruitment process for a successor immediately. CFO Caj Malmsten will assume the HR Director responsibilities alongside his current duties.

Duell completed change negotiations related to the efficiency programme on 16 January 2025. Duell will achieve the targeted annual cost savings of approximately EUR 1 million across the Group through the efficiency programme, of which approximately half 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 (the original estimate of the need for a reduction was up to 20 positions). The savings from the efficiency programme will be spread over the last three quarters of the financial year starting 1 September 2024.

Significant events after review period

The company had no significant events after review period. 

Webcast for investors and media

Duell will arrange a live webcast for investors and media in English on April 10, 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 https://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:

• 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, Company's financial statements, auditor’s reports and sustainability report 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.