Equity research Zinzino: First impression, Q3 2025 – Positive margin surprise

Today, Zinzino published its interim report for Q3 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 October, Zinzino reported revenue growth of 47 per cent in Q3 2025. The persistently high rate is driven by strong organic growth and M&A in key regions, primarily Central Europe, Asia Pacific, and North America.

There are no further comments on the sales outlook for 2025. In the last report, the CEO was hopeful for around 50 per cent growth for 2025, well above the financial target of 20 per cent growth on average. Given strong sales growth of 65 per cent in October and recent acquisitions, we believe the previous management comments are reasonable.

Margins were clearly higher than our forecast, which was related to a higher gross margin than we had assumed. Zinzino cites lower raw material costs, a positive geographic mix, and normalised remuneration levels for distributors during the quarter. In light of continued solid growth momentum, M&A and the positive margin surprise, we will likely make upward adjustments to our estimates and valuation following the report.

• Total revenues increased by 47% in Q3 2025 to SEK 784m, which aligns with the preliminary sales figures already disclosed in October.
• Gross profit grew by 55% to SEK 277m, compared to our forecast of SEK 245m. Year-over-year, the gross margin increased, contrary to our expectations, by 1.8 percentage points to 35.4%. Our forecast was 31.2%.
• The EBITDA result increased to SEK 110m (63), corresponding to a margin of 14%. Our estimate was for SEK 81m, corresponding to a margin of 10.3%.
• The EBIT result increased year-over-year by 87% to SEK 101m, corresponding to a margin of 12.9%. Our estimate was for SEK 73m, corresponding to a margin of 9.3%.

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

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