Synsam

Strong organic growth in the first quarter

1 January-31 March 2025

• Net sales increased to SEK 1,708 million (1,521), up 12.3 percent. Organic growth totalled 12.8 percent (7.7)
• Net sales from spectacles subscriptions increased 12.5 percent (11.6)
• The gross margin was 74.1 percent (75.7)
• EBITDA rose to SEK 375 million (358) and the EBITDA margin was 21.6 percent (23.3)
• EBITA increased to SEK 206 million (205) and the EBITA margin was 11.9 percent (13.4)
• EBIT increased to SEK 174 million (171) and the EBIT margin was 10.0 percent (11.1)
• Cash flow from operating activities increased to SEK 310 million (218)
• Net debt amounted to SEK 2,944 million (2,756) at the end of the period, compared with SEK 3,002 million at year-end 2024
• Profit after tax increased to SEK 87 million (56)
• Earnings per share before and after dilution increased to SEK 0.60 (0.38)   

Events after the end of the period

• In accordance with the Annual General Meeting's resolution on 23 April 2025, 2,135,506 own shares were cancelled, and the total number of shares subsequently amounts to 147,864,494.

President and CEO Håkan Lundstedt comments:

"By focusing on the customer and making it easier for people to access eye health services, Synsam further strengthened its market position during the first quarter of the year. Organic growth was 12.8 percent and like-for-like growth was 8.9 percent, in a market in which consumers generally continued to refrain from spending. Our strategy - based on the right types of establishments, focusing on both Synsam Lifestyle and the cash business, our own House Brands, an efficient organisation and the market's best service offering - is yielding results.

Continued positive trend in subscriptions and the cash business

Net sales from the Synsam Lifestyle spectacles subscription increased 12.5 percent during the quarter. The number of Lifestyle customers amounted to approximately 718,000 (approximately 645,000) at the end of the quarter and the churn rate for the first quarter was 2.84 percent. We have overall high levels of customer satisfaction and loyalty among our subscription customers. As of 31 March 2025, the total number of subscription customers (those who have either a Lifestyle subscription or a contact lens subscription) amounted to approximately 858,000.

Growth in net sales from the cash business remained strong during the quarter, increasing 12 percent.

Quarter characterised by varying market conditions

In Norway, Synsam further increased its market share, with organic growth of 21 percent in the first quarter of 2025 and a stronger EBITDA margin. The implementation of EyeView, which is now complete, contributes here, as well as a positive impact compared with last year due to the fact that Easter fell in the second quarter this year. Finland also had a strong quarter, successfully generating organic growth of 26 percent and a higher gross margin in a highly competitive market.

After a period of positive development in Denmark, organic growth in the first quarter was negative.

We are strengthening our presence and advancing our position in Denmark by upgrading our stores and expanding our offering. This includes a specific investment in the Copenhagen region, with the opening of a flagship store in central Copenhagen on 21 January. The store is Denmark's largest optical retail store with the widest range of branded frames and a destination for eye health and fashionable eyewear.

Sweden's organic growth was also slightly lower than in the year-earlier quarter. The gross margin and EBITDA margin also declined compared with the previous year, due in part to the roll-out of Synsam EyeView.

Synsam established five new stores in the Group during the first quarter. Between 9 and 11 new stores will be established in the second quarter.

Building blocks for profitable growth

We experienced strong organic growth in the first quarter. At the same time the high rate of establishment in 2024, with several stores now being ramped up, had a negative impact on the EBITDA margin for the quarter, as did the introduction of Synsam EyeView in Sweden and a lower gross margin, mainly due to a change of valuation method for lenses in stock with a negative effect of SEK 28 million. We continuously calibrate profitability and growth and our efficiency programs are important building blocks in ensuring sustainable growth and profitability and the effects of our investments will be significant in the long term:

• Our establishments of stores are quickly achieving profitability and are strengthening Synsam in the long term. To calibrate growth and profitability, somewhat fewer establishments are planned in 2025 and 2026 compared to 2024.
• The plan is to fully implement Synsam EyeView in Sweden by summer 2025, followed by anticipated positive effects on optician capacity and costs for consultant opticians as well as a reduction in temporary extra costs associated with the implementation phase. During the first quarter, we noted positive effects in Norway, where the roll-out of Synsam EyeView was completed at the end of 2024. Of the total eye examinations in Sweden during the first quarter, 12 percent were carried out using Synsam EyeView. The corresponding share in Norway was 20 percent.
• We also see potential in strengthening our gross margin, for example through reinforced supplier negotiations and the launch of additional House Brands.
• The third cost programme introduced in 2024 will also largely be realised in 2025.

Growing e-commerce - new warehouse and second-hand workshop opened

Synsam's e-commerce operations, featuring popular products such as contact lenses and sunglasses, are continuing to expand in line with increasing customer demand for vision aids. To meet these growing volumes, Synsam opened a new, expanded e-commerce warehouse in Spånga, north of Stockholm, during the quarter. The premises also include Synsam's second-hand workshop for its circular second-hand offering. With this new warehouse space spanning 2,700 square metres, twice as much as the previous premises, we have secured long-term capacity and efficiency, enabling better customer service throughout the Nordic region.

We are now further expanding our brand portfolio and will shortly launch a new store destination directed at a new customer group. Every customer gives us a chance to improve eye health for more people.

By making it easier for people to access eye care and high-quality products, in a market largely driven by medical needs and new technical solutions, we are ensuring profitable growth for many years to come. Synsam's journey has only begun."

Live Q&A in Swedish, with possibility to ask questions

• Date and time: 16 May 2025, at 09.30 CEST.
• Place: Webcast.

• Speakers: President and CEO Håkan Lundstedt and CFO Per Hedblom.

• Link to participate in the Q&A session: Synsam Group Q1

Live Q&A in English, with possibility to ask questions

• Date and time: 16 May 2025, at 10.30 CEST.
• Place: Webcast.
• Link to participate in the Q&A session: Synsam Group Q1

The presentation material will be available on the website at 07:30 a.m. CEST today. www.synsamgroup.com/investor-relations

For further information, please contact:
Per Hedblom, CFO Synsam Group
E-mail: per.hedblom@synsam.com
Tel: +46 (0)8 619 28 60
Website: https://www.synsamgroup.com

This information is such that Synsam AB (publ) is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 a.m. CEST on 16 May 2025.

Synsam Group is a leading optician group in the Nordic region, with a differentiated and affordable subscription offering. Synsam Group offers a wide range of products and services for eye health and eye fashion, catering to the customer's different lifestyles and needs. The group has approximately 4,000 employees, net sales of approximately SEK 6.6 billion (rolling twelve months until March 2025) and almost 600 stores in the Nordics, operating under the brands Synsam, Synsam Outlet and Profil Optik in Denmark. Through digitalization, subscription services and other innovative concepts, Synsam Group is at the forefront of innovation in the Nordic optical retail market across multiple dimensions including customer journey, product offering and ESG. Synsam Group's share is traded on Nasdaq Stockholm (SYNSAM). www.synsamgroup.com