Orthex

Orthex's Q2 figures were operationally slightly stronger than our expectations, although one-off costs related to strategic projects weighed on the reported result, bringing it below our estimate. During the review period, the revitalized sales in the Nordic countries and resilient gross margins demonstrated the company's ability to pass increased production costs into its prices.

With the increase in oil prices following the conflict in Iran, we estimate that Q2 has been a balancing act between growth and profitability for the company.

Orthex's profitability in Q1 exceeded our expectations, but the prolonged conflict in the Middle East has weakened the company's outlook.

We expect the company's revenue to have returned to a growth trajectory after a weak end to last year.

The prolonged conflict in Iran has increased the risk of cost inflation, which is particularly detrimental to Orthex.