During the quarter, we executed two major campaigns that successfully engaged both consumers and suppliers. We also maintained sound cost control, particularly in operating expenses and staffing.
Both our Nordic and European operations are showing solid profitability trajectories in line with developments in the previous quarter. In a demanding market, we have managed to stay competitive, grow efficiently, and protect profitability.

RETAIL-TAINMENT, LYKO ON WHEELS!
Our physical store expansion continues to drive strong engagement and brand visibility. During the quarter, we opened a new store in Helsinki and launched a mobile pop-up concept that toured ten cities across Norway. The customer response exceeded expectations, boosting brand awareness and laying the groundwork for the opening of a new store in Stavanger this autumn.
We also successfully launched the influencer brand Daar Cosmetics in our flagship stores. Following its strong reception, the brand is now available across our entire retail network.
In Europe, profitability is developing according to plan. While sales remain somewhat volatile, margins continue to improve, and all markets are showing positive momentum.

STORIES THAT STICK, COMMUNITY ENGAGEMENT RISING
Lyko Community, our own social platform in the app, continues to expand and thrive, driven by engaging new features such as Stories, which allow posts to stay visible for 24 hours and encourage spontaneous, high-frequency interaction.
During June we saw an average of 350 posts per day and a peak of 4,5 million post views during a week, reflecting the strength and vitality of our growing community.

ABSOLUTE GROWTH IN OUR OWN BRANDS
Our Own Brands share of B2C ad up to 7.8% on a rolling 12-month basis, with growth in absolute numbers. During the quarter, Scandinavian Soap Factory was successfully introduced to our growing portfolio of own brands. This constitutes yet another brand we have nurtured from conceptualization to production and now into active sales.

STRONG FINISH TO THE QUARTER AND A PROMISING START
June closed the quarter with double-digit growth, followed by a strong start in July. The high volumes have pushed our current warehouse capacity to the limit, and we are now at the perfect moment to kick off our automation expansion.

The warehouse expansion project is progressing smoothly. All tests and simulations have performed exceptionally well, and we are now entering the ramp-up phase to ensure full operational readiness by peak periods like Black Week and Christmas.

Simultaneously, production of our popular advent calendars is in full swing, allowing us to meet strong demand while maximizing our market positioning.

Thanks to the outstanding efforts of our Lyko-stars, the first half of the year has been truly remarkable. With great momentum and strong foundations in place, we’re well positioned for continued success in the second half.

Rickard Lyko, CEO July 18th, 2025