Equity research Zinzino Q2, 2025: Expansion costs hamper margins, but strong outlook

Today, Zinzino published its interim report for Q2 2025. Below is a compilation of our first impressions of the outcome, including deviations from our updated estimates.

In line with the sales pre-announcement on 3 July, Zinzino reported revenue growth of 57 per cent in Q2 2025. This was driven by solid sales momentum across most regions, including core markets such as Central Europe and North America, as well as Asia-Pacific.

The CEO is hopeful for around 50 per cent growth for 2025, well above the financial target of 20 per cent growth on average. For the first half, growth was 58 per cent. Margins were lower than our forecast, which was related to higher OPEX than we had assumed. Zinzino mentions increased costs associated with acquisitions and the opening of new markets. In addition, currency translation effects impacted EBITDA for the quarter by SEK -10.0 (-0.2) million. Hence, operating leverage was lower compared to the previous quarter. However, Zinzino has historically successfully turned “growth investments” into increased sales. In summary, we will likely make minor downward adjustments to our estimates and valuation following the report.

• Total revenues increased by 57% in Q2 2025 to SEK 794m, which aligns with the preliminary sales figures already disclosed in July.
• Gross profit grew by 42% to SEK 248m, compared to our forecast of SEK 249m. Year-over-year, the gross margin decreased by 3.2 percentage points to 31.2%. Our forecast was 31.5%.
• Year-over-year, the EBITDA result increased to SEK 80m (63), corresponding to a margin of 10%. Our estimate was for SEK 90m, corresponding to a margin of 11.3%.
• The EBIT result increased year-over-year by 29% to SEK 71m, corresponding to a margin of 9%. Our estimate was for SEK 82m, corresponding to a margin of 10.4%.

We intend to provide an updated analysis on Zinzino shortly. Read the latest research update here.

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