Rusta (Stockholm:RUSTA) Q1 2026 Earnings Call

0:00 the first quarter, we have decreased the share of operating costs. So overall, we've managed to do this in a very good way. Yeah, I mean, the build-up of the COPEX is quite complex. Of course, we have a positive effect of that. So a share of that is, of course, decreasing our total share. But there are many factors into the OPEX. Okay. And just to finalize, I noticed that you have three signed stores in Germany now that are supposed to be open soon, I guess.

0:46 You talked earlier about sort of finding clusters or possible clusters in the German market possibly to have a better impact on your local presence in that region. Are these three stores close to each other? There are two stores signed now. Sorry, there are, as you say, three stores signed. And all of these three stores are within the clusters that we have identified as new clusters for us. And they are within the same geographical spread as our current store network. Okay, so they are in separate sort of clusters, but they are close to other stores that you already operate.

1:32 It depends on how you define the cluster, but yes. Any timing on those three particular stores? Are they calendar 26 or 27? We have the first one opening now in Q3. And the following two is in a couple of quarters. We don't have the definite date yet, but hopefully as soon as possible. But for this financial year, we believe there will be one, maybe two openings, but most probably one opening. Thank you so much. Thank you. Thank you.

2:26 Thank you. Can I ask you to elaborate maybe a little bit about the difference between the months, if there were any big differences between May, June, July, and now maybe also if you can elaborate a little bit on your comment when you talk about a stable start of Q2. Does that mean stable as in flat or as in a similar development to what you saw in Q1? When we look at this quarter, we see quite stable sales between the quarter when we look at the totality. Then we know that we have, if you look at the market data for each country, that it's been quite uneven in the different months.

3:11 When it comes to current trading, we see stable growth. And actually the quarter that we're in now, Q2, we have the highest share of sales in the last month. So also the guidance on the quarter now is maybe a bit more unpredictable, given that the high share of sales will come in the later part of the quarter. Very clear. Thank you. And can I also ask you to elaborate a little bit on Finland? We've talked here about you launched six new stores in Q4. You have another six now here during the autumn. And Finland, even though there's a significant improvement in this quarter in the other divisions' profitability, we're still seeing sales and profitability and including like-for-like sales that's lagging Sweden and Norway. What gives you confidence now that you're ramping up quite a lot in Finland, that those stores are really going to pay off and that it's not going to be a drag on profitability?

4:17 No, but you're absolutely right. We've had a high tempo in Finland, the latest quarters, and that will continue in the coming quarter. Finland remains a long-term important market for us. And I don't think the question is so much whether Finland is an attractive market for us, per se, the question is more of how we can unlock the potential in a clear way. I think my early observations here is that we need to continue to strengthen our brand awareness, but we also need to sharpen our offer and our marketing communication together with Klub Rusta. And those are areas that we're reviewing at the moment. I would also like to point out that this is the exact same journey that we have done very successfully in Norway. We know that it takes time to raise profitability and sales in newer markets, but I feel that we are progressing and we have areas that we are now reviewing.

5:20 Very good, thanks. And can you also tell us a little bit about your view on the state of the consumer? I think there's been quite positive signs in Sweden. This is a year of election, a lot of subsidies and tax cuts, etc.

5:33 But what's your view here and if there's any big differences between the different markets? No, I agree on your view that both Sweden and Norway see a bit more of a positive sentiment in the customer mindset. However, both Germany and Finland continue to be tough markets with a more negative customer sentiment, even though we saw figures now coming from Finland that it has increased a bit, but it's still on a negative level. But here, of course, we make do with us being a low price leader, making sure that we invest in prices towards our customers and try to gain market share in this type of market. Very clear. Thanks for taking my questions.

6:20 Thank you. Thank you. The next question comes from Andreas Lundberg from SEB. Please go ahead. Thank you and good morning. Starting off with question about Finland. They mentioned a few things, Katrin. What's your saying on the product mix or the assortment in that market versus your other markets? Do you need to localize more or what's your thinking? I think there is a localization aspect, definitely, but I would say that it's more in the totality on how we communicate price, how we communicate around our concept, because it's very clear that the brand awareness around Rusta as a brand and as a concept is not... as strong as in our more mature markets.

7:10 So here I see that we need to strengthen in combination with, of course, sharpening both offer and marketing communication together with Klub Brusta. Will you change the previous communication or will you have more of it, so to say? I would say that we will update it slightly. That's what we're reviewing at the moment. Okay, cool. Back on other markets, first online, how much is online on other markets? Could you say that? I mean, it's low single digits, so it's a fairly small part of other markets. However, it's an important channel that we believe in going forward. It has a high share of increased sales and also good profitability. So it's definitely a channel that we want to invest in going forward.

8:04 And it performs very well. yeah and you mentioned the higher gross margin there in addition to currencies are there any other changes or improvements when it comes to the margin for your online business thank you I would say that the sales mix in the online channel this quarter has been very good so that is of course contributing Back to these FX discussions and balance sheet items. You mentioned Christmas items. I realize there's a big volume there, but would you say this is still a recurring feature, you know, when the SEC is strengthening versus the US dollar or the NOC?

8:51 Sorry, I didn't really catch the question there, but if it was the currency effect overall, I mean, just as we've said in the gross margin, it's very positive for us that the SEC has strengthened against the dollar and all other currencies, purchasing currencies. And also, of course, now the strengthening of NOC is very positive for us, which is also reflected in the Norwegian segment, where you can see that the profitability boosts a bit from the currencies. So at the moment, we're happy with the level of the currencies and how it's developing. Would you say that your balance sheet items are, so to say, partly ahead, i.e. will this effect continue if the SEC is stronger than the USR and the NOC?

9:49 On the balance sheet side, we don't like quick changes, especially not on the balance day. So a slow strengthening of the CEQ or where it doesn't bounce up and down between the quarters, that is preferable. And that is the effect that you see in the central functions as a cost in this quarter, that the dollar changed from 9.20 to almost 9.60, which had the effect in our payables for all the dollar's payables. And that we don't like. The most part of the incremental higher cost in central cost function, Yeah, that's the main reason why it's increasing.

10:43 We also have slightly higher depreciations this year compared to last year, but those two are the biggest explanations. Cool. Thank you so much. That concludes my questions. Thank you. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you so much for tuning in today and for all of your questions. So me and Sophie, we ask or we wish you a great week ahead. Thank you. Thank you.