MEDS Apotek (MEDS) Q1 2026 earnings summary

Executive summary

• Net sales reached SEK 270 million in Q1 2026, up 12% year-over-year and 6% sequentially, with all-time high sales in March and strong prescription medicine growth.

• EBIT margin rebounded to 1.9% (SEK 5.2 million), driven by normalized gross margin and focus on profitable growth.

• Cash flow from operating activities was SEK 35.3 million, with a strong cash position of SEK 71.5 million and no debt.

• Signed lease for a new, larger logistics center with increased automation to support future growth.

Financial highlights

• Gross margin stabilized at 27.8% in Q1 2026, up from 26.7% in Q4 2025, with gross profit at SEK 75.0 million.

• Contribution II margin exceeded 10%, supporting profitable scaling.

• Adjusted EBIT improved to SEK 5.2 million (1.9% margin), up from SEK 0.3 million in Q4 2025.

• Inventory levels normalized, supporting positive cash flow.

• Marketing costs were 6.6% of sales, a strong figure for e-commerce.

Outlook and guidance

• Targeting to triple revenues over the next five to six years, aiming for an EBIT margin of 3%-5% during that period.

• Forecasts a SEK 25 million sales impact and SEK 6 million EBIT impact in the quarter of the logistics move, with a conservative ramp-up period post-move.

• Marketing spend expected to decrease temporarily during the move, especially in September.

• No dividends planned in the medium term; cash flow will be reinvested in growth.

• Plans to increase automation in logistics center from 50% to 75% for scalable expansion.