According to CEO Håkan Lundstedt, consumer purchasing habits remain very cautious, even though the outlook for the future is more positive after a long period of weak purchasing power. Competition for consumers is challenging. Synsam has continued to implement its growth strategy by establishing new stores.
In the third quarter, tactical choices have weakened the gross margin percentage and also increased operating expenses in the short term, which has negatively impacted the EBITDA margin. However, the growth in customer numbers and the improvement in market position will have a positive impact in the future.
1 July - 30 September 2024
Continued organic growth by consistent strategy execution.
Net sales increased to SEK 1,559 million (1,450), up 7.6 percent. Organic growth totalled 9.5 percent (7.0)
Net sales from spectacles subscriptions increased 11.0 percent (13.7)
The gross margin was 73.9 percent (74.9)
EBITDA increased to SEK 381 million (373) and the EBITDA margin was 24.1 percent (25.2)
EBITA amounted to SEK 220 million (222) and the EBITA margin was 13.9 percent (15.0)
EBIT increased to SEK 187 million (184) and the EBIT margin was 11.8 percent (12.4)
Cash flow from operating activities increased to SEK 238 million (104)
Net debt amounted to SEK 2,733 million (2,953) at the end of the period, compared with SEK 2,720 million at year-end 2023
Profit after tax amounted to SEK 66 million (90)
Earnings per share before and after dilution totalled SEK 0.44 (0.61)
Synsam is repurchasing its own shares to reduce the number of shares. Synsam also has a repurchase program for management compensation:
Synsamilta vahvaa orgaanista kasvua ja ennätys-EBIT vuodelta 2024. Osinko pysyy samassa 1,80 kruunussa. Synsam perusti vuoden 2024 aikana 46 uutta liikettä, joista 14 perustettiin neljännen vuosineljänneksen aikana.
1 October - 31 December 2024
Net sales increased to SEK 1,631 million (1,479), up 10.3 percent.
Organic growth totalled 10.1 percent (7.4)
Net sales from spectacles subscriptions increased 15.6 percent (7.2)
The gross margin increased to 77.2 percent (76.6)
EBITDA rose to SEK 387 million (348) and the EBITDA margin was 23.3 percent (23.2)
EBITA increased to SEK 219 million (200) and the EBITA margin was 13.2 percent (13.3)
EBIT increased to SEK 186 million (161) and the EBIT margin was 11.2 percent (10.7)
Cash flow from operating activities amounted to SEK 42 million (404)
Net debt amounted to SEK 3,002 million at the end of the period, compared with SEK 2,720 million at year-end 2023
Profit after tax increased to SEK 76 million (61)
Earnings per share before and after dilution increased to SEK 0.51 (0.41)
1 January - 31 December 2024
Net sales increased to SEK 6,435 million (5,905), up 9.0 percent.
Organic growth totalled 9.2 percent (10.3)
Net sales from spectacles subscriptions increased 13.4 percent (15.1)
The gross margin was 75.3 percent (75.5)
EBITDA rose to SEK 1,595 million (1,440) and the EBITDA margin was 24.5 percent (24.1)
EBITA increased to SEK 957 million (850) and the EBITA margin was 14.7 percent (14.2)
EBIT increased to SEK 819 million (696) and the EBIT margin was 12.6 percent (11.6)
Cash flow from operating activities amounted to SEK 933 million (1,150)
Profit after tax increased to SEK 366 million (311)
Earnings per share before and after dilution increased to SEK 2.48 (2.08)
The Board of Directors proposes a dividend of SEK 1.80 (1.80) per share
This thread is quite quiet, so I dare to ask if anyone has a plausible guess why the stock price tanked after the earnings report? Almost all essential metrics were on target/above, and the guidance didn’t sound bad to me either. I skimmed through the earnings materials, and at least at first glance, I couldn’t figure out what’s wrong there.
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)
Good question. I’ve been waiting for someone smart to answer. It seems that this company doesn’t interest anyone. Perhaps that’s why the stock price is constantly below the IPO price.
The figures themselves were very good and well in line with consensus. EBITDA was a few million short of forecasts. In addition, Q1 saw a significant write-down of eyewear inventory – adjusted for this, EBIT was approximately 202 MSEK.
The biggest concern at the moment is the churn of the company’s monthly subscription-based Lifestyle offering (approx. 50% of revenue at group level), which has steadily increased since Q2 2023:
The figures for Denmark are particularly worrying. Of course, Denmark is the most established market in the Nordics for these monthly subscription agreements. In the post-Q1 call, management did not comment on when churn might stabilize for each country, but the impression was that they had considered the matter and had the working figures.
On the other hand, even though churn % is rising, the Lifestyle segment is growing in absolute terms. Furthermore, management stated quite directly that a customer who has terminated the monthly service will most likely continue to be a Synsam customer in the future, as glasses are needed regardless.
It must also be remembered that the traditional Lifestyle segment is not Synsam’s only business. For example, monthly contact lens subscriptions have increased significantly in recent years, and many own brands have been added. The implementation of the new EyeView AI technology is still in progress, but very positive signals of operational efficiency have been received from Norway. Many new stores are also being opened, and operational costs are being reduced with the help of EyeView.
As a broader trend, it could also be mentioned that people’s eyesight is deteriorating at an alarming rate, especially among young people. Naturally, worsening eyesight brings more long-term business to the company.
Regarding the stock valuation: it is reasonably priced, especially if one is not scared by the rising churn.
The figures are approximately 50% below comparables. Such a large discount may not necessarily be justified.
Net debt/EBITDA at a comfortable 1.8x level.
In the near future, there may be opportunities if and when the main owner makes a full exit. The latest larger block was sold in March. If the valuation remains this low and operational performance continues to be stable, I also don’t see it as completely utopian that the company could be bought out, e.g., by EssilorLuxottica (which owns approx. 6.5% of Synsam).
Theia Holdings S.à r.l. (“Theia Holdings”), a company indirectly owned by CVC Capital Partners V (“CVC”), has successfully completed the sale of 24,425,957 shares in Synsam AB (publ) (“Synsam” or the “Company”), corresponding to approximately 16.5 per cent of the share capital and votes in Synsam, at a price of SEK 46.0 per share.
Silmäasema has acquired 10,000,000 shares, or 6.8%, of Synsam. COR Group acquired Silmäasema in a similar fashion back then, I wonder if they have the same intentions with Synsam
Synsamin orgaaninen kasvu vahvaa, mutta ongelmat Tanskassa jatkuivat.
Strong organic growth and continued focus on increased long-term profitability
1 April-30 June 2025
Net sales increased to SEK 1,841 million (1,723), up 6.9 percent. Organic growth totalled 9.1 percent (9.5)
Net sales from spectacles subscriptions increased 8.2 percent (15.1)
The gross margin was 73.1 percent (74.3)
EBITDA rose to SEK 470 million (469) and the EBITDA margin was 25.0 percent (26.9)
EBITA amounted to SEK 299 million (312) and the EBITA margin was 15.9 percent (17.9)
EBIT amounted to SEK 267 million (275) and the EBIT margin was 14.2 percent (15.8)
Cash flow from operating activities amounted to SEK 413 million (435)
Net debt amounted to SEK 3,040 million (2,753) at the end of the period, compared with SEK 3,002 million at year-end 2024. Synsam signed agreements for five-year loan facilities to refinance existing loans.
Profit after tax amounted to SEK 114 million (168)
Earnings per share before and after dilution totalled SEK 0.79 (1.14)
The Company may not repurchase more than such number of shares which entails that the total number of own shares held by the Company at any given time exceeds 10 per cent of the total number of shares in the Company. The maximum purchase amount is MSEK 160.
The purpose of the repurchases of shares under the share buy-back program is to adjust Synsam’s capital structure by reducing its share capital. Accordingly, the board of directors intends to propose to the 2026 annual general meeting that the repurchased shares are redeemed.
Synsamin myynnin ja liikevoiton vahva kasvu jatkui:
1 July-30 September 2025
Net sales increased to SEK 1,731 million (1,559), up 11.0 percent. Organic growth totalled 12.4 percent (9.5)
Net sales from spectacles subscriptions increased 10.8 percent (11.0)
The gross margin was 73.1 percent (73.9)
EBITDA rose to SEK 418 million (381) and the EBITDA margin was 23.9 percent (24.1)
EBITA increased to SEK 239 million (220) and the EBITA margin was 13.6 percent (13.9)
EBIT increased to SEK 207 million (187) and the EBIT margin was 11.8 percent (11.8)
Cash flow from operating activities amounted to SEK 235 million (238)
Net debt amounted to SEK 3,088 million (2,733) at the end of the period, compared with SEK 3,002 million at year-end 2024. Synsam’s share buy-back programme has negatively impacted net debt by SEK 262 million in 2025
Profit after tax increased to SEK 130 million (66)
Earnings per share before and after dilution increased to SEK 0.90 (0.44)
Net sales increased to SEK 1,784 million (1,631), up 9.4 percent. Organic growth increased to 11.4 percent (10.1)
Net sales from spectacles subscriptions increased 10.4 percent (15.6)
The gross margin was 76.5 percent (77.2)
EBITDA rose to SEK 426 million (387) and the EBITDA margin was 23.2 percent (23.3)
EBITA increased to SEK 246 million (219) and the EBITA margin increased to 13.4 percent (13.2)
EBIT increased to SEK 215 million (186) and the EBIT margin increased to 11.7 percent (11.2)
Cash flow from operating activities increased to SEK 308 million (42)
Net debt amounted to SEK 2,975 million at the end of the period, compared with SEK 3,002 million at year-end 2024. Synsam’s share buy-back programme negatively impacted net debt by SEK 262 million in 2025
Profit after tax increased to SEK 123 million (76)
Earnings per share before and after dilution increased to SEK 0.85 (0.51)
1 January-31 December 2025
Net sales increased to SEK 7,065 million (6,435), up 9.8 percent. Organic growth increased to 11.4 percent (9.2)
Net sales from spectacles subscriptions increased 10.4 percent (13.4)
The gross margin was 74.2 percent (75.3)
EBITDA rose to SEK 1,689 million (1,595) and the EBITDA margin was 23.5 percent (24.5)
EBITA increased to SEK 991 million (957) and the EBITA margin was 13.8 percent (14.7)
EBIT increased to SEK 862 million (819) and the EBIT margin was 12.0 percent (12.6)
Cash flow from operating activities increased to SEK 1,266 million (933)
Profit after tax increased to SEK 454 million (366)
Earnings per share before and after dilution increased to SEK 3.14 (2.48)
The Board of Directors proposes a dividend of SEK 1.80 (1.80) per share
Events after the end of the period
After the end of the period, 755,000 own shares in Synsam have been purchased for SEK 49 million under the previously communicated share buy-back programme with the aim of adjusting the company’s capital structure
President and CEO Håkan Lundstedt comments:
"The fourth quarter delivered clear proof of Synsam’s strength, with robust growth, improved EBIT and a stronger market position. Organic growth for the Group during the quarter was 11.4 percent and like-for-like growth was 9.1 percent, in a consumer market that largely remained cautious. In 2025, organic growth amounted to 11.4 percent and the EBIT margin was 12.0 percent, which is within the range for our medium-term financial target. Our consistent focus on the customer, ability to innovate and competitive offering led to both growth and profitability, confirming the direction of our strategy.
Continued strong development in subscriptions and the cash business
Net sales from the Synsam Lifestyle spectacles subscription increased 10.4 percent during the quarter. The number of customers with spectacles subscriptions amounted to approximately 756,000 (approximately 703,000) at the end of the quarter, a net increase of 7.5 percent in the customer base in line with our announced ambition. The total number of subscription customers (spectacles and contact lenses) amounted to approximately 901,000 (approximately 840,000) on 31 December 2025. With high levels of customer satisfaction and loyalty, subscriptions remain a key engine of stable, profitable growth. Growth in net sales for the cash business increased 8.2 percent for the quarter compared with the corresponding period previous year.
This shows that our concept continues to attract customers to both of our businesses, throughout the entire Nordic region.
Strong growth in three out of four markets
Sweden, our most important market, posted strong organic growth of 11.2 percent in the fourth quarter and the gross margin improved. Synsam EyeView contributed to increased availability. The EBIT margin for the quarter declined somewhat compared with the previous year. Organic growth in Norway amounted to 8.6 percent for the quarter and the EBIT margin improved. Synsam EyeView also contributed to increased availability in Norway. Finland had another strong quarter, with organic growth of 27.1 percent in a highly competitive market. The segment also generated a higher gross margin and an improved EBIT margin for the quarter. Organic growth in Denmark was negative 2.1 percent for the fourth quarter. We are taking actions to address the change in credit legislation that impacts new sales of Lifestyle subscriptions and, since the first quarter of 2025, also extensions.
The number of establishments is ahead of plan for 2024-2026
Our establishment goal for 2024-2026 is 90 new stores. Synsam established 24 new stores during 2025, five of which were established during the fourth quarter. With a total of 70 stores established in 2024 and 2025, we are ahead of schedule. In the first quarter of 2026, we plan to open three to five new stores.
Our new stores are quickly achieving profitability thanks to strong concepts and well-developed method for analysis, location selection and establishment. Our increased focus on smaller towns has proven successful. We are quickly seeing clear demand and building loyalty early on while also benefiting from more competitive rent levels. This gives a positive effect on both growth and profitability. We continue to see great potential for establishing stores in smaller towns.
Important progress in 2025
The full implementation of Synsam EyeView in Sweden was an important milestone, with the service now fully implemented in both Sweden and Norway. This is a key part of our technological strategy, as it increases capacity and availability, strengthens our eye health offering and enables more eye examinations, including on evenings and weekends. Approximately 20 percent of the eye examinations carried out in Sweden and Norway during the fourth quarter used Synsam EyeView, and that number continues to rise.
In the autumn, we took an important step in our innovation agenda when Synsam launched smart glasses, a new concept where spectacles and AI are interwoven, from leading brands like Ray-Ban Meta and Oakley Meta, as well as our new product Nuance: smart glasses with hearing enhancement for individuals who want to hear better in their daily lives without traditional hearing aids. Sales of smart glasses are not included in our target for organic growth. They represent a new product area with excellent future potential. Our ambition is clear: Synsam will take a leading position in smart glasses in the Nordic region.
To meet growing online demand, we established Synsam’s new e-commerce warehouse during the year. The establishment was completed according to plan and without any impact on operating activities or customer deliveries. The investment strengthens our long-term capacity and efficiency, enabling better service to customers across the entire Nordic region.
Synsam Group’s Made in Sweden portfolio continues to grow. During the year, the new brand Isa Nord™ and a new collection from Peter Forsberg was launched. By owning the entire chain, from design and production to sales in our own stores, we become more competitive and expand our customers’ range of choices. Since the production and innovation centre in Frösön opened in 2022, Synsam Group has established itself as the leading spectacles manufacturer in the Nordic region. The factory is profitable and produced 100,000 number of frames in 2025. Our expected production for 2026 is 200,000 number of frames. After the end of the period, we have launched another collection, the new spectacle brand Isak V™, which is produced in Frösön.
We also launched Lifestyle 6.0 during the fourth quarter, a more flexible and developed subscription solution to reflect a greater freedom of choice and to include the option of smart glasses. This improves the relevance of the subscription service and increases our ability to meet changing customer needs.
Demand for second-handspectacles continues to grow, not least among customers who are looking for affordable and sustainable style options. During the year, we integrated second-hand frames directly into the ordinary assortment offered in all of Synsam’s stores. This makes it easier for more customers to choose fashionable, sustainable frames at a lower price under the same roof as the rest of Synsam’s offering.
Following a strong end to 2025, we can now look back on a year in which Synsam continued to position itself as the leading optical retail and eye health provider in the Nordic region. Our growing customer base, strong cash business, quick profitability in new stores and continued technological developments have provided us with a strong foundation. In 2026, we will focus on continuing to scale up our subscriptions, increasing our capacity in eye examinations through Synsam EyeView, accelerating our position in smart glasses and continuing to expand the store network. All this will be implemented while maintaining discipline in terms of profitability. We are entering 2026 with strengthened momentum and high confidence."
I think Synsam is flying a bit under the radar. Aging population, subscription-based service. The story is progressing nicely I don’t feel the need to trim my position after these results. Denmark needs to start working as a market. It stands out a bit negatively among the other Nordic countries.
Improved profitability and cash flow in a challenging environment
1 January-31 March 2026
Net sales increased to SEK 1,773 million (1,708), up 3.8 percent. Organic growth totalled 5.6 percent (12.8)
Net sales from spectacles subscriptions increased 6.1 percent (12.5)
The gross margin increased to 75.8 percent (74.1)
EBIT increased to SEK 186 million (174) and the EBIT margin increased to 10.4 percent (10.0)
Cash flow from operating activities increased to SEK 374 million (310)
Net debt amounted to SEK 2,864 million (2,944) at the end of the period, compared with SEK 2,975 million at year-end 2025. Synsam’s share buy-back programme has increased net debt by SEK 56 million in 2026
Profit after tax increased to SEK 131 million (87)
Earnings per share before and after dilution increased to SEK 0.92 (0.60)
Events after the end of the period
After the end of the period, Synsam announced an exclusive, strategic partnership with the global star Erling Haaland. The partnership, which includes the launch of a collection of eyewear, sunglasses and sports eyewear, also marks Synsam’s launch of online sales in selected European markets
President and CEO Håkan Lundstedt comments:
"We delivered higher profitability in the quarter, both in absolute terms and in terms of margins, and noted a strong increase in profit after tax. We improved all of our margin measures in Sweden, which is our most important market and accounts for nearly half of the Group’s net sales.
We reported organic growth of 5.6 percent for the quarter and like-for-like growth was 3.8 percent, in a market characterised by continued restraint in consumer spending. This confirms our ability to grow our existing business while investing in future expansion.
Our strategy remains firm: create customer value through innovation, availability, fashion and function, while building an even stronger, more scalable and profitable business for the future.
Stable development in subscriptions and the cash business
Net sales from the Synsam Lifestyle spectacles subscription increased 6.1 percent during the quarter. The number of customers with spectacles subscriptions amounted to approximately 770,000 (approximately 718,000) at the end of quarter, a net increase of 7.2 percent. The total number of subscription customers (spectacles and contact lenses) on 31 March 2026 amounted to approximately 916,000 (approximately 858,000). With high levels of customer satisfaction and loyalty, subscriptions remain a key engine of stable, profitable growth. Net sales for the cash business increased 1.0 percent in the quarter compared with the same period last year.
Positive organic growth in all markets
In Sweden, which is our most important market and accounts for nearly half of the Group’s net sales, we continued to deliver a strong performance in the first quarter. Organic growth totalled 6.5 percent and all margin measures improved. The EBIT margin was 21.2 percent, clearly underlining the strength of our business model. Sweden continues to be the market where we are furthest ahead in terms of new concepts and innovations, with Synsam EyeView contributing to increased availability for our customers during the quarter. Organic growth in Norway amounted to 4.2 percent in the quarter. Synsam EyeView also contributed to increased availability in Norway. Finland had another strong quarter, with organic growth of 18.7 percent in a highly competitive market. The segment also generated a higher gross margin. Organic growth in Denmark was positive at 4.8 percent for the first quarter, we continue our action program to strengthen profitability.
New establishments
Synsam established four new stores during the first quarter. NK Eyewear & Optics opened in Gothenburg after the end of the quarter. The establishment, built on the successful concept in Stockholm, strengthens our position in the premium segment by bringing together exclusive brands, clinical expertise and personal advice for a customer experience centred on both eye health and fashion.
Between seven and nine new stores will be established in the second quarter, in line with our store establishment target for 2026-2029.
Our new stores are quickly achieving profitability thanks to strong concepts and well-developed method for analysis, location selection and establishment. We can see that there is still a great deal of potential for establishment and expansion in the Nordic region.
Exclusive partnership with football star Erling Haaland
Having advanced our business in the Nordic region, we now hold strong positions in all four of our Nordic markets - including Finland, where we have strengthened our position from number six to number three in recent years. Synsam EyeView has been fully implemented in Sweden and Norway and is contributing to our growth. Synsam Lifestyle is continuing to perform well, displaying good growth in the customer base and sales. Smart glasses have been introduced, and we have a strong portfolio of House Brands with international potential. Having entered into an exclusive partnership with Erling Haaland in April, we have an opportunity to carry out a focused, cost-effective and low-risk international expansion of our e-commerce platform. This marks an important step in our efforts to further strengthen Synsam’s offering, brand and digital reach. The partnership, which includes a new collection of eyewear, sunglasses and sports eyewear, is aligned with our strategy of combining fashion, function and innovation in an attractive and differentiated customer offering. The initiative is also important in terms of growth and expansion. In addition to being sold in our own stores and online in our core Nordic markets, the collection is also being launched via synsam.com in selected European markets. This marks a further step in our digital development and also creates opportunities to enter new markets and sales channels outside the Nordics.
I see this partnership as a clear example of how we continue to develop Synsam by combining commercial innovation with a strong customer offering and a scalable business model.
With a strong position in our core markets and a continued focus on organic growth and profitability, we are well positioned for the next phase of Synsam’s development. Our ambition is clear: to continue to strengthen Synsam through an attractive customer offering, innovation and scalable in-house channels."
Silmäasema is being sold to Terveystalo, so it remains to be seen what Coronaria intends to do with its Synsam shares. According to the release, the Synsam shares are not part of the deal.
The ownership stake currently appears to be 7.3% (last summer they reported a 6.8% holding).
I don’t feel the need to trim my position after these results. Denmark needs to start working as a market. It stands out a bit negatively among the other Nordic countries.