More and more products from the Swiss company Rotho have started appearing in Finland. Very similar products to Orthex, but at a lower price point. A somewhat worrying sign and it will start to put pressure on Orthex’s margins in the domestic market (?)
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References apparently to Game Of Thrones or similar. Be that as it may, at least that European sales powerhouse has been posting on LinkedIn at a commendable pace again. Hopefully, growth will also be visible on the top line on the old continent.
The company is currently in a quiet period, which began on July 22nd and lasts until the interim report on August 21st. Although sometimes it feels like without these sales powerhouses’ posts, the company is in a continuous quiet period… 
Next, the Orthex investor will start to anticipate Thomas’s preliminary comments. How exciting 
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@Thomas_Westerholm anticipates that figures across the board are declining, but could there be light at the end of the tunnel?
Based on retail sales figures, Orthex’s business environment has shown cautious signs of recovery in Sweden, but overall, the demand environment has remained sluggish. We expect Q2 revenue to have decreased by 2% to EUR 20.5 million. We forecast invoiced sales in the Nordics to have grown by 1%, but weakened revenue from export markets to have pushed group-level revenue down.
We predict the company’s revenue to contract by 1% to EUR 88.7 million this year due to weakened invoiced sales in export markets. Our comparable operating profit forecast, in turn, stands at 9.8%. This year, both remain quite clearly below the company’s target of 5% revenue growth and an 18% EBITA margin. We consider the company’s growth target achievable over the cycle, but achieving the EBITA margin seems distant based on the company’s historical profitability.
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There are likely signs of improvement in the market, but unfortunately, the weaknesses of major export customers have hardly eased yet. It’s a shame that, regarding growth, the investment story seems to be moving sideways because of this. We’ll go through the report in the usual style on Thursday morning in the form of an earnings live stream 
Questions for Alexander can also be submitted below for the interview 
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Let’s try to get something out of that growth.
I recall that in previous interviews, it was mentioned in a side clause (and it seems to be already visible in the product catalog) about durable boxes for professional use (boxes that wear out). It’s a small nuance, but among bricklayers, painters, and those needing durable buckets, you most often see Orthex buckets because it’s the main product where functionality matters. Does Orthex plan, in addition to “more attractive product placement,” refining aesthetics and trendiness, to invest in this with its own sub-brand someday? In Smartstore Pro, for example, in addition to the structure, the coloring with warning colors already somewhat reaches in that direction. Or why not for hobby use, such as lure boxes or toolboxes, etc., where design ultimately matters at least as much as in everyday storage. Like, any junk sells with a Caterpillar logo, so why not make quality to challenge sales with logos.
Of course, this would be somewhat contradictory to the earlier streamlining of the product portfolio, but the world is also contradictory to what it was 4 years ago. 
Then another thing that has probably been discussed and would be discussed anyway, but what does the M&A front look like, are there opportunities to move production closer to areas where there are desires to expand?
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What does the market competition look like in the Nordics? Have there been any changes?
How have raw material prices developed? Is the reduced oil price starting to show when acquiring plastic raw materials, and could the company get help from this to maintain margins in a subdued market situation?
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Solteq’s live earnings webcast was an hour ago, but today there’s another live earnings webcast, as brother Westerholm hosts Orthex’s live earnings webcast starting at 8:55 AM 
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Among Finnish discount store chains, for example, Tokmanni has started selling very cheap storage boxes manufactured in Eastern Europe? Is this possibly one reason why trade is not booming in the Nordic countries, as consumers save and buyers purchase significantly cheaper products from Poland? Is the same phenomenon observable in Swedish discount store chains?
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At least based on this study, especially those under 35 value the domestic origin of products even more than before:
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After a long break, I jumped back in today. My own picks and justifications;
- “Compared to the second quarter of the previous year, invoiced sales in Other Europe grew a strong 22.1% to EUR 5.1 million (4.2).”
In my opinion, it is a very essential part of the investment profile and story that growth outside the Nordics is positive and as rapid as possible. An excellent growth figure, also considering that it was Orthex’s quietest and so-called weakest quarter.
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“The timing of campaigns by a few customers and slower sell-out affected the decline in sales in the Nordics.”
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“Due to the challenging market situation, some of our Nordic customers have been cautious in their purchasing behavior.”
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“For some of our customers, the risk of credit losses continued during the period, and as a precautionary measure, we restricted deliveries, especially during the first quarter. This negatively affected sales outside the Nordics.”
Considering the dismal market situation in the Nordics, these are quite credible explanations. Many companies have anticipated an improving year-end in the Nordics in the consumer sector, so Inderes’ zero-growth forecast before the report was quite appropriately anticipated, perhaps even a bit conservatively estimated after the report.
I believe there is a possibility for a slightly better year-end, and the forecasts for next year were already anticipating better development.
The strategic direction seems clear and good, but as @Thomas_Westerholm said in the live session, the company could push a little harder. Thanks, Thomas, for the good comments and the live session in general!
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If not others, at least I’d be interested to hear what was discussed during the visit (officially and unofficially).
Was any active member from here present? 
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I like to check from time to time how storage box sales are doing in discount stores. I’m not claiming that any far-reaching conclusions should be drawn from this, but I think some noteworthy things can be observed there. Here are a couple of things from this trip 
- SmartStore brand vs. private label products
As everyone here probably knows, Orthex also makes storage boxes for those discount store chains under their own private labels.
Under-bed storage box Orthex:
Under-bed storage box Iisi:
You don’t need to be a rocket scientist to notice that it’s the same box (in a different color and with a different brand). What’s interesting, however, is the price, which is a good couple of euros higher for Orthex’s own brand.
I asked Grok how much better the margin of private label products is compared to branded products: The margin for private label products is on average about 9–10 percentage points better than for branded products, but the exact difference depends on the product category and market area. In consumer goods, retailers particularly benefit from the fact that private label products can be priced attractively while generating a higher margin.
In my opinion, that exact percentage doesn’t really matter because the price points of the products already differ (the branded product is about 10% more expensive). Furthermore, since the private label product has a better margin, the store has no interest in selling the corresponding branded product or increasing its sales.
- Campaign Sales
Let’s continue the above discussion on product pricing and examine campaign sales. The CEO occasionally mentions in interim reports that campaigns have been sold. This presumably refers to larger quantities, volume discounts, and lower prices. This often nicely boosts sales and revenue.
My observation is that discount store chains have managed to wedge into Orthex’s campaign sales by primarily using their own private labels in campaigns.
Campaign Sales Iisi:
Any normally sighted and sane consumer would, in this case, opt for the discount store chain’s own offer instead of going to the other side of the pallets to buy a full-priced branded product.
SmartStore boxes:
Furthermore, visually inspecting, pallet sales seem to favor the private label, as it’s easy for the consumer to compare products and prices. I don’t know if this is intentional in the said retail chain, but I’ve encountered it before. So, it’s different to sell boxes from one’s own truck than from pallets that include the chain’s own private labels as well as cheap Polish boxes.
- Conclusions
Based on the company’s interim report, there were hardly any glimmers of light in the Nordics. No very far-reaching conclusions can be drawn from these observations about how things are going elsewhere in the Nordics, but based on these observations, it doesn’t look good in my opinion. Furthermore, when we add to the equation that consumer purchasing behavior is cautious, I don’t expect sales in the Nordics to recover anytime soon.
My interpretation is also that the company is more of a price-taker than a price-maker. Private label products are an excellent example of this. Revenue and profitability face headwinds not only from the market but also from the company’s inability to sell its own higher-margin product to stores. And I don’t believe the situation will change from this, even if the market situation improves. So, what’s the solution?
I see one positive aspect: the company continuously launches new products. Through these new products, sales and differentiation can be achieved. The problem, however, is that these new products haven’t been very popular in the sense that sales of one or some products would see strong growth widely in the Nordics and Europe. So, there should be strong differentiation, and the production of those ordinary boxes for discount store chains should be stopped.
The company should next rethink its strategy and focus, as the current strategy is not working. Although Orthex is undoubtedly among the best and most profitable companies in this sector, its current product portfolio does not enable reaching the set targets. The company will not succeed in bulk sales. This, in my opinion, has already been seen.
I own the stock today and perhaps tomorrow too. However, many investors have already run out of patience, and there is no confidence in the company’s better performance. This is partly reflected in the stock price.
Now, time for a walk with the dog 
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Someone thinks that @Don_Jari doesn’t have other companies in their portfolio besides Orthex, as they constantly spew garbage into this thread. Well, they do. However, I had to pick a few highlights from this article with Orthex in mind
https://www.arvopaperi.fi/uutiset/a/2f2ca79a-b122-4609-ae28-a7b10fdcc568
The article discusses Family offices, such as Conficap Oy, which is, as is well known, Orthex’s largest owner. Well, the article includes, among other things, a couple of thought-provoking tables, which show that the company’s net profit and return on equity have not been at a remarkable level recently
So, making money isn’t easy for the rich either. This wasn’t the main point.
The second table in the article revealed what I last tried to ask Grok today, namely what kind of holdings Conficap Oy has in addition to Orthex. Grok mentioned YIT, Puuilo, and Talenom. Nordea was also mentioned in that table. At the same time, the table reveals that the Nordic holdings are in the range of 66 million. I assume this includes, among others, the aforementioned listed companies.
This, in turn, would mean that out of that 66 million, Orthex could account for roughly over 10 million at the current share price. If one reflects on how the investment has fared since the IPO, the AI’s (Grok) informed estimate was as follows: The value of the investment has decreased from approximately 15.5 million euros to 10.17 million euros, and considering dividends, the net loss is approximately 2.67–3.56 million euros.
So, not a good investment at all. Quite the opposite, in fact. Just like all of us who have been involved for a long time 
However, that holding is such a significant slice that it won’t be disposed of other than as a block to someone, if there’s a need to divest.
But this wasn’t the main point either. The main point was at the end of the article
So, Erik does not comment on the sales of other companies in the article, but states that the investment portfolio is being developed in an international direction. Furthermore, it is stated later that the investments are managed by a portfolio management team: Toivanen has now served as Conficap’s CEO for two years. Are has its own operational management, and Conficap’s investment portfolio is managed by a team led by David Miller, who has had a distinguished career in the investment sector in London’s financial world.
What I read from that is that the possibility of some kind of divestments or other arrangements exists in the medium term. This corporate restructuring card has been on the table since the IPO. However, there hasn’t been much to report on it. Now that the main owner has had a clear direction to divest from those other domestic holdings (perhaps through block trades?) and move towards international investments, I don’t see it as impossible that some arrangements could be underway. It must be said, of course, that Miller has been there since February 2022. However, as an investment, this has been quite a disaster for the company – there’s no getting around that.
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What the heck, a lot of text but no substance. Those ownership details are public information, so there’s no need to guess. According to the ownership list, Conficap has held 2,486,240 shares in Orthex as of July 31st ( Orthex Osakkeenomistajat - Orthex Group ). The company can also be found on YIT’s ownership list, and even though Nordea publicly lists only the 25 largest owners, one can estimate how much Conficap owns there if one doesn’t bother to ask Euroclear.
Otherwise, at its current performance level, Orthex is too expensive for my portfolio. Revenue hasn’t grown in four years, earnings are stagnant, the P/E ratio is around 14-15, and given that, the current valuation would require some credible future growth.
Orthex was presenting at the Stock Exchange Open Days, but didn’t really impress. A nice and boring company, but the ingredients for profitable growth seem to be missing.
Coincidentally, I also know the Toivanen family slightly from my youth, and based on that, I don’t believe any panic sales will occur; instead, they will wait for a situation where a buyer can be found for the holdings at a good price. The Toivanen family’s other capital company, Onvest, divested a large part of its Harvia holdings back when the share price was absolutely outrageous (over 50 euros). Of course, if the owner’s view turns strongly negative, then the shares might walk away very quickly.
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Thank you for the feedback. This warms my heart and increases my motivation to continue writing and sharing information here on the forum.
Indeed it is. I just haven’t come across Conficap’s listed investments anywhere before (as I’m not familiar with their investment company’s operations) and haven’t tried to dig them up previously. Now that I tried, there’s not much information available. The 2024 annual review had exactly this much, which is almost nothing.
Additionally, for me, the article itself contained a lot of new information, such as the euro amount of Conficap’s Nordic investments. If my interpretation was correct, I considered Orthex’s share to be quite large in relation to other investments. This, in my opinion, adds pressure to do something if a large part of the capital performs poorly or even negatively.
Everyone, of course, assesses how relevant this information is. However, I will state that Orthex is a company where investing involves significant owner risk for both the Toivonen and Rosenlew families, as both have over 10 percent ownership. Therefore, I believe it’s not entirely irrelevant how the company performs.
I don’t think I’ve ever painted a picture of panic sales at any point. I don’t believe that the professional portfolio management team mentioned in the article would have a need for that.
This is precisely what worries me in this case: the company’s almost continuous underperformance and stagnation since its listing. I would venture to guess that the matter has at least been discussed within the investment team.
Now we come to how to get rid of about a 15 percent stake if and when the company continues to underperform, because I claim they won’t watch this go on until the end of the world. I can’t really think of any other way with this turnover than a block sale or some kind of corporate arrangement. And I didn’t say this would happen this quarter or next. However, the situation is complicated by Rosenlew’s over 10 percent ownership.
Now, by popular demand, I’m taking a break from this thread and the forum, so I don’t share or write anything superfluous and trivial here. Tack och adjö
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I understood the point of your post, @Don_Jari, and it was a good post. I also liked your “box post” earlier. Just keep them coming. There isn’t too much discussion here, and not every message needs to be absolutely brilliant as long as it stays on topic 
Regarding the matter itself, I’d say that Conficap did indeed divest from Talenom at the bottom (at least the current bottom). The Rosenlews are certainly not very eager to divest, as this is Alexander’s creation in its current form.
In my opinion, Orthex is interestingly priced now that the non-Nordic region is showing good growth figures again, and if the Nordic consumer also wakes up from this. The only thing that worries me a bit now is the potentially intensifying competition in the Nordic countries, which was dismissed in the report more as a temporary challenge, but it should probably be monitored closely.
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Orthex Corporation, Stock Exchange Release, September 1, 2025 at 1:30 p.m.
Aurélien Chabannier has been appointed Orthex’s Sales Director for Europe and International Markets, effective today, September 1, 2025. He will become a member of the company’s Management Team and will report to CEO Alexander Rosenlew in his role.
Chabannier (born 1989) is a French national and holds a Master’s degree in Management. Chabannier joined the company in 2016 as Sales Manager for France and currently leads the business unit comprising France and Germany.
CEO Alexander Rosenlew: “We are pleased to appoint Aurélien Chabannier as the new Sales Director, with responsibility for Europe and International Markets. His excellent achievements in building and growing Orthex’s position in France have laid a strong foundation for our growth in Europe. Aurélien has demonstrated exceptional drive, market knowledge, and leadership, and I am convinced that he will play a key role in our journey towards becoming a truly European company. My warmest congratulations to him on this well-deserved appointment and best of luck in his new role.”
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Kesko’s July and August sales reports have indicated growth in consumer goods sales in Citymarkets. One cannot draw a direct line to Orthex’s sales, but in my opinion, it indicates that consumers are showing renewed interest in categories significant to Orthex. For comparison, the same category grew in Q2 in April and declined in May and June. Let’s hope that the recovering housing market will also encourage people to acquire more quality storage solutions again.
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@Antti_Leinonen has written a comprehensive and good article about Orthex.
In the second quarter, Orthex’s net debt decreased to 20 million euros. Orthex reduced its debt by three million euros compared to the previous year. Net debt is 1.4 times the EBITDA, clearly below the company’s target. If profitability remains at its current level or improves, there is ample room for an acquisition on the balance sheet.
An acquisition is hardly expected by the markets and analysts. Several competitors larger than Orthex have performed poorly, so Orthex might find acquisition targets among smaller companies. In acquisitions as well as growth investments in general, CEO Alexander Rosenlew emerges as a thoughtful leader who carefully weighs the input-output ratio. The possibilities of an acquisition have been speculated ever since the IPO.
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Fresh talk around Orthex:
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