Equity research, Zinzino Q1 2026: First impression – Healthy margin trend continues

Zinzino published its Q1 2026 interim report today. Below is our initial analysis of the results, including deviations from our updated estimates

In line with the preliminary sales pre-announcement in April, Zinzino reported a 26 percent revenue growth in Q1 of 2026. The main regional drivers of absolute sales were again Central Europe and North America.

Margins were again clearly higher than our forecast and Zinzino’s financial targets. This was primarily due to a higher gross margin than we had assumed. Zinzino cites a weaker USD, a positive geographic mix, and normalised remuneration levels for distributors during the quarter as reasons for the improvement. In sum, the solid margin trend continues. The comments regarding the North American market are more optimistic than we had feared, however, the contribution from acquisitions seems lower than we had assumed.

The CEO, Dag Bergheim Pettersen, described the first quarter as a “record quarter” and expressed his satisfaction with achieving economies of scale while maintaining strong growth and successfully integrating new acquisitions. The strategic focus for 2026 includes profitable growth, pursuing further acquisitions, investing in the company’s digital platform, and maintaining cost control.

• Total revenues increased by 26% in Q1 2026 to SEK 922m, which aligns with the preliminary sales figures already disclosed in April.
• Gross profit grew by 53% to SEK 342m, compared to our forecast of SEK 325m. Year over year, the gross margin increased by 5.1 percentage points to 37%, a further increase compared to the strong previous quarter.
• The EBITDA result increased to SEK 142m (78), corresponding to a margin of 15.4%. Our estimate was SEK 130m, corresponding to a 14.2% margin. The deviation was due to the significantly improved gross margin. Cash flow from operations soared to SEK 121m (21).

We intend to provide a research update on Zinzino shortly. Read the latest research update here.

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