Equity research Lohilo Foods, Q1 2025: Positive margin trend in slow season

Today, Lohilo published its interim report for Q1 2025. Below is a compilation of our first impressions of the outcome, including deviations from our estimates.

Lohilo’s sales figures were below our estimates in a seasonally slow quarter, further affected by an adverse Easter effect. We have previously commented that it is hard to draw conclusions from a single quarter, and Lohilo mentions fluctuations in export orders hurting sales in the period. We will likely decrease our sales estimates related to slower export markets but adjust our margin expectations upwards. We are still optimistic regarding Q2 2025 due to seasonal tailwinds and improving margins.

• In Q1 2025, Lohilo Foods reported net sales of SEK 43m, corresponding to a 6% decline. Our forecast for the quarter was SEK 54m. The difference from our forecast was in Dry products and export orders.
• Despite lower sales, gross profit was flat and aligned with our expectations. We are encouraged by the better-than-expected gross margin, which increased to 34.8 per cent (33.2). Lohilo cites FX effects and price adjustments as positive factors.
• Consequently, profitability (EBITDA) was somewhat better than anticipated. Cash decreased to SEK 1.8m from SEK 3.2m in the quarter. Lohilo says it has secured liquidity for the upcoming seasonally strong summer season.

We intend to provide an updated analysis of Lohilo shortly. Read the initiation of coverage report here.

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