Interim Report Q1, 2026
Challenging quarter – up in Europe and US still soft
Europe continued to show good progress in the first quarter of the year, improving both sales and profitability, while Food & Beverage in the US was soft. The efficiency program began yielding benefits.
The quarter has been characterized by uncertainty due to the Middle East crisis, but so far, business impact from the crisis has been limited. However, the continued soft development in Food & Beverage in the US, and an increased negative effect from currency in Laundry contributed to a lower EBITA margin. Currency is not yet compensated by price increases.
Food & Beverage impacted by soft US
Sales of Food & Beverage declined by 3.8% organically. Sales were strong in Europe while sales in the US declined. US development has remained subdued since last summer, Sales in the Middle East were paused by customers in March due to the crisis. Sales in Japan increased somewhat after several soft quarters. EBITA margin for the segment declined due to lower sales in the US. Order intake was flat in total, despite growth in Europe.
The integration of the Royal Range assets, the US cooking company acquired in January, is progressing according to plan and the company is now included in Food & Beverage. Acquisition and integration costs were SEK –7m in the quarter.
Laundry profitability negatively impacted by currency
Sales in Laundry declined marginally, mainly related to the US. Volume grew. Sales in Japan increased after several quarters of decline. EBITA margin declined, fully explained by negative currency impact. We are increasing prices to offset currency, and benefits are expected from next quarter. Order intake increased.
Efficiency program in line with plan
The program to improve profitability that was launched in September 2025 is progressing in line with plan. The production of espresso coffee machines has already been transferred from the factory in France to the other receiving factory in France, and production is gradually starting. Parts of the production from the cooking factory in Switzerland has been transferred to Italy, although the factory is not expected to be closed until end of the year.
Uncertainty – but building blocks in place to improve profitability
Geopolitical and macroeconomic uncertainty were even more pronounced during the quarter compared to 2025, driven by the crisis in the Middle East. However, our track record shows that we are quite resilient towards external challenges.
Our internal transformation is proceeding and is strengthening competitiveness. This year, we are launching a new laundry platform and new products in horizontal cooking, boosting our sales capabilities, as well as implementing the efficiency program that will deliver savings in 2026 and 2027. These steps, together with price increases to compensate currency, support better performance.
As this is my last quarterly report before retiring on May 5, I look back with pride. Over recent years, we have made the company stronger, both structurally and financially, and it has been a privilege to work with so many talented colleagues. I am confident that Paolo Schira, who will take over from me, will continue the journey successfully.
Alberto Zanata, President and CEO