Strong organic growth in the first quarter
1 January-31 March 2025
Events after the end of the period
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:
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
Live Q&A in English, with possibility to ask questions
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