Director's report
The Board of Directors and the CEO hereby submit the Director's report for the year 2025.
Information about the business
Rugvista Group, operating through its subsidiary Rugvista AB, sells rugs online under the Rugvista brand and is one of Europe's leading "direct-to-consumer" (D2C) retailers in the rug category. The company was founded in 2005 and offers a wide and relevant range of high-quality design and traditional rugs. The majority of the assortment consists of self-developed or carefully selected products that can only be purchased from the company. Rugvista Group offers free shipping and returns to customers within the EU. Rugvista Group AB (publ) has been listed on Nasdaq First North Premier Growth since March 18, 2021.
Employees
At the end of 2025, the company had 96 (101) employees. The number of full-time employees during the period January - December was 93.7 (98.6) and the proportion of women was 47.5% (49.8%).
Business development for the Group as a whole
Net revenue
The Group's net revenue for the period amounted to MSEK 784.4 (694.9), which corresponds to an increase of 12.9% (-1.0%). Excluding currency effects, the organic net sales growth for the year was 16.3% (-1.0%). The growth in net sales was mainly driven by an increase in the number of orders.
Profits and margins
The gross margin was 63.3% (62.2%). The product cost as a percentage of net revenue decreased slightly compared to the previous year. The cost of customer deliveries as a percentage of net revenue decreased compared to the previous year as a result of our improvement work to streamline customer deliveries.
Other external costs amounted to MSEK -285.0 (-257.3) and as a percentage of net revenue, they amounted to -36.3% (-37.0%). The marketing cost, which is included in Other external costs, is variable with the net revenue, which drives the cost increase. The proportion decreased mainly due to higher marketing efficiency.
Personnel costs amounted to MSEK -97.8 (-94.5) and as a percentage of net sales, they amounted to -12.5% (-13.6%). The proportion decreased mainly due to scale benefits from the higher net revenue.
Other operating expenses amounted to MSEK -7.1 (-2.6) and refer to changes in exchange rates.
Depreciation amounted to MSEK -27.9 (-16.9). The increase is due to the start of our new lease agreement, which is classified as a right-of-use asset, as well as depreciation of fixed assets related to investments in equipment for our new warehouse and office building.
Operating profit (EBIT) amounted to MSEK 78.5 (60.7) and the operating margin was 10.0% (8.7%). The increase in operating margin was driven by the increased net revenue, the higher gross profit, and higher marketing efficiency, which reduced the proportion of marketing costs to net revenue.
Net financial items were MSEK -1.4 (4.7) and decreased mainly due to the new lease agreement.
Taxes for the period amounted to MSEK -14.6 (-13.6).
The profit for the period was MSEK 62.5 (51.8) and the periods margin was 9.7% (7.5%).
Cash flow
Cash flow from operating activities during the period was MSEK 110.4 (76.8). The increase is mainly due to a decrease in working capital and the increased operating profit. Inventory value has increased by MSEK 11.2 (7.6) during the period.
Cash flow from investing activities during the period was MSEK -35.3 (-19.0) and the largest part concerns the investment in fixed assets for our new warehouse and office building.
Cash flow from financing activities during the period was MSEK -40.9 (-50.7) where the larger part consists of dividend payments to shareholders.
Total cash flow for the period was MSEK 34.2 (7.2).