Equity research Zinzino Q4 2024: First impression – Margins significantly above our expectations

Zinzino published its Q4 2025 interim report today. Below is our initial analysis of the results, including deviations from our updated estimates.

In line with the sales pre-announcement, Zinzino reported a 45 percent revenue growth in Q4 of 2025. The main regional drivers of absolute sales were Central Europe and North America. Margins were 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 normalized remuneration levels for distributors during the quarter as reasons for the beat. However, the OPEX increase was more controlled than we had assumed, thanks to synergies from acquisitions.

Notably, the board updated the financial targets for 2026–2028. They set an EBITDA margin target above 11% and an average sales growth rate of at least 20%. We believe this upgrade is positive and in line with our expectations. A 50% dividend increase, which is more than we had assumed, is also a sign of confidence. However, we note that January 2026 sales were slower than expected, with only 20% growth. This suggests that organic growth has dwindled in the new year, at least temporarily. Therefore, we will closely monitor the monthly sales reports. However, the updated EBITDA margin target of at least 11% looks reasonable, given the Q4 results, and supports upward revisions to profitability.

• Total revenues increased by 45% in Q4 2025 to SEK 1,035m, which aligns with the preliminary sales figures already disclosed in January.
• Gross profit grew by 70% to SEK 370m, compared to our forecast of SEK 345m. Year over year, the gross margin increased by 1.8 percentage points to 35.8%, in line with the previous quarter.
• The EBITDA result increased to SEK 175m (73), corresponding to a margin of 16.9%. Our estimate was SEK 127m, corresponding to a 12.2% margin.

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