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Third party research

Embellence Group: Wallpaper growth a welcome relief - ABG

Embellence Group

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
Back to wallpaper growth in Q1
We lower '25e-'26e EBITA by 2-3% on Artscape-driven Q1 miss
We reiterate our fair value range of SEK 35-42


Q1: tough comps in Artscape dictated headline numbers

Both Boråstapeter and Cole & Son turned the recent quarters' soft top-line trend in Q1, reporting y-o-y net sales growth of 1% and 7% respectively. Wall & Decó struggled with hesitant Italian retailers for growth of -6% y-o-y, and Artscape faced extremely tough comps for growth of -46% y-o-y. External manufacturing kept growing rapidly: by 40% y-o-y in Q1. Artscape's comp-driven negative growth dictated the report's headlines overall, however, for -6% top-line growth and EBITA growth of -4%. The lower Artscape share of sales meant gross margins were ~4pp stronger y-o-y, but this was offset by the higher opex ratio (from opex being largely fixed with SEK 21m lower Artscape sales y-o-y) .
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