<a id="bm-comp-c5a74dca-d095-470a-bc5b-754a6b7d6167" name="bm-comp-c5a74dca-d095-470a-bc5b-754a6b7d6167" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c5a74dca-d095-470a-bc5b-754a6b7d6167" style="vertical-align: top; width:100.000000%;"><ul><li>Net sales SEK 181m, -5% vs ABGSCe</li><li>EBITA SEK 23m vs ABGSCe SEK 24m</li><li>The share is trading at 7.2-5.9x '26e EV/EBITA</li></ul></td></tr></table><a id="bm-comp-ba207d91-19f8-4b75-b8cb-a0a92957c20e" name="bm-comp-ba207d91-19f8-4b75-b8cb-a0a92957c20e" class="BMCustomAnchor"></a><table><tr><td bm-component-id="ba207d91-19f8-4b75-b8cb-a0a92957c20e" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q2 in brief: Softer growth, margins in line with forecasts</h3><p>Overall, we believe Embellence Group's Q2 report is softer than our expectations on growth, but with margins in line. Net sales of SEK 181m was -5% vs ABGSCe and corresponded to organic growth of -5%. The shortfall was concentrated in two brands: Boråstapeter SEK 61m (-7% y-o-y, -10% vs ABGSCe) on weak Swedish traditional retail, and Wall&decò SEK 19m (-14% y-o-y, -14% vs e), where management explicitly conceded its own commercial execution was not strong enough. Gross margins were 62.3%, +60bp y-o-y driven by the move to DTC, which coupled with a higher opex ratio owing to initiatives to drive future growth, e.g. the replacement of Cole & Son management, resulted in a 12.6% EBITA margin, -90bp y-o-y. EBITA of SEK 23m was -5% vs ABGSCe SEK 24 and corresponded to y-o-y growth of -12%.</p><h3 class="bm-h3">Outlook: CEO says Cole & Son will weigh less in H2</h3><p>Embellence Group gives little in terms of outlook commentary. Management reiterated the DTC/international/hospitality diversification strategy and flagged that the last 2026 platform rollout (Boråstapeter) went live in April, with conversion and data-driven-traffic work now beginning; all brands grew DTC in H1, Pappelina delivered the strongest (+130% y-o-y). On trajectory, Cole & Son's self-inflicted commercial-decision drag (net sales of SEK 30m, -12% y-o-y) is expected to be "more limited" in H2 than H1, and group resources have been reallocated to fix Wall&decò execution.</p><h3 class="bm-h3">Conclusion: The Q2 report moves our '26e EBITA by -1%</h3><p style="text-align:left;">Using yesterday's closing price and unrevised estimates, Embellence Group is trading at 7.2x-5.9x our '26e-'27e EV/EBITA vs a historical trading range of 7x-8x NTM. L3M, the share has returned -3%. The Q2 report alone moves our '26e EBITA by -1%.</p><p style="text-align:left;">The company hosts a conference call today at 10:00 CET. Call-in details can be found <a data-bm-trackable="false" href="https://events.inderes.com/embellence-group/q2-report-2026/dial-in" target="_blank">here</a>.</p></td></tr></table><a id="bm-comp-78df6ee4-74be-4ab9-83e1-e144efc89c22" name="bm-comp-78df6ee4-74be-4ab9-83e1-e144efc89c22" class="BMCustomAnchor"></a><table><tr><td bm-component-id="78df6ee4-74be-4ab9-83e1-e144efc89c22" style="vertical-align: top; width:100.000000%;"><table id="bm-img-019cc72f-3a56-40dd-8ca8-a1d02ccecd56" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="019cc72f-3a56-40dd-8ca8-a1d02ccecd56" bm-img-original-height="493" bm-img-original-width="903" bm-img-svg="image:image_upload/97771_a5927ee5-ed08-46be-a4d0-a9088ae8afa6.svg" bm-img-width-hint="100%" id="bm-id-019cc72f-3a56-40dd-8ca8-a1d02ccecd56" src="https://abgsc.bluematrix.com/images/image_upload/97771_a5927ee5-ed08-46be-a4d0-a9088ae8afa6_733.png" svg="/nas/web/clients/abgsc/images/image_upload/97771_a5927ee5-ed08-46be-a4d0-a9088ae8afa6.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, company data</td></tr></table></td></tr></table>