Equity research Candles, Q1 2026: On track but with margins lagging as the Örebro bet takes shape

Today, Candles Scandinavia published its Q1 2026 interim report. Below is a compilation of our first impressions of the outcome.

Net sales came in at SEK 82.2m, in line with management expectations but somewhat below our estimate. HashtagYou contributed SEK 45.6m, which management says maintains its momentum. The legacy Private Label business, however, contracted somewhat.

EBITDA was reported at SEK -2.3m and total costs less D&A was lower than we had anticipated. The production relocation of HashtagYou’s range to the company’s own factory in Örebro is the single most strategically important operational event right now. Management says the project is progressing to plan, with the launch of in-house manufactured products expected towards the end of Q2. The profitability impact is expected to start in H2 2026, with full run-rate effects from 2027.

• In Q1 2026, Candles Scandinavia reported net sales of SEK 82.2m, corresponding to a 98% growth. We had expected 96m. HashtagYou contributed SEK 45.6m The Private label business fell 12% to SEK 36.6m. We had expected some SEK 43m in Private Label sales. Thus, the deviation was driven by both segments.
• Reported EBITDA fell to SEK -2.3m (0.9). We had expected a low single-digit margin in a seasonally weak quarter.
• Cash flow from operations was SEK -12.5m in the quarter, and the cash position was SEK 12.1m at the end of Q1 2026, vs SEK 17.6m at the end of December 2025.

We intend to provide an updated research report of Candles Scandinavia shortly. Read the last research update report here.

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