We will begin with the company's presentation, after which we will address your questions. You're kindly invited to submit them in writing through the Q&A window below the presentation or raise your hand and be unmuted after the presentation is over. For your convenience, the webinar is being recorded and replay will be available shortly after the session. Let me introduce today's hosts, Gunta Šulte, Management Board Member and the CEO, and Tatjana Nagle, Member of the Management Board and the CFO. Please, the floor is yours.
Thank you very much. I hope everyone hears me. Good day, dear investors, shareholders for joining. Pleasure to have you. Together with Tatjana we will go through the highlights and results of 2025. Starting off, there are two slides which are more of legal disclaimers as usual. We will skip those, but they will remain in the presentation. As mentioned, for the third consecutive year, that's the honor of mine. I'm CEO of the company, Gunta Šulte, presenting the results of the company alongside with the CFO of the company, Tatjana Nagle.
What we cover today, we will cover key events or highlights of 2025, then we will go into more details of the performance, both top line and bottom line, and then also just to leave the presentation with a taste of anticipation, then also what's to be expected of this year. As usual, the full management report at this point still are not that it can be found either through the presentation link or in Nasdaq or our webpage, investors profile. Moving on, 2025, it was a very eventful year for the company. I would really like to split the year into two, let's say, phases. First half of the year, I would call it the phase of experimentation.
I would say we did really a lot of learning and discovery exercises in the first half of the year. Second half of the year was really a slogan was focused. In terms of what we discovered working well or not working well in the first half of the year, then on those initiatives where we strongly believed there are hints and evidence of success, we really doubled down in the second half of the year. I cannot start emphasizing enough the importance of e-com first strategy that we have already for a couple of years set in motion for the entire company. Why e-com first? Because this is where discovery for the entire beauty industry happens.
I cannot start mentioning the highlights of 2025 without mentioning that we actually did somewhat of a spinal surgery for our entire e-commerce page. We migrated from one platform to another one. It might seem just words on the slides, but in reality, it was really a relentless almost a year exercise and execution of seamless migration from Magento to Shopify. Why? Two very simple words, growth and optimization. This ensures us really even more faster and agile way of learning, adapting towards acquiring new customers and selling up to the existing ones. Also in terms of cost perspective, and Tatjana also will cover in numbers later on, this also gives us much faster mobility in terms of...
not faster, but, sorry, more agile mobility in terms of cost so that we can reinvest in other verticals. I'm happy to inform that even though we plan to migrate to Shopify first half of this year, Q1, like I mentioned, the execution was very seamless and it rarely happens with such a large scale project. We already launched the Black Friday campaign, which is the largest campaign of the year already through Shopify platform. As also proudly reporting on our report, that was the biggest year to date in company's existence, Black Friday's campaign, and partially thanks to Shopify.
Another continuing e-com first approach is around scaling and diversifying across different channels. This was one of the experiments that we launched in the first half of the year, was building a TikTok presence, and more specifically, not only TikTok as communication channel, but TikTok as a sales channel, to add to our portfolio. We chose U.K. because at that point when we started, across European platform or universe, only U.K. at that point was available. If in beginning of 2025, this was just a small EUR 20,000 revenue stream, then already towards the end of the year, we managed to scale it to something already meaningful. The growth numbers, obviously, in these cases, it's beautiful to look at percentage or growth rates.
This was phenomenal. I want to emphasize that TikTok is the number 1 discovery channel for beauty industry, full stop. This is what we see from U.S. data. This is what we see from European data, not mentioning also farther Southeast Asia or actually Middle East as well. TikTok is where consumers currently discover products, and TikTok is currently one of the reliant channels how B2B buyers take their decisions. If the product is trending on TikTok, it has to be a good enough, you know, evidence for buyers in B2B to launch the product. We have also set in our strategy TikTok to be a further channel of investment where we see we gain attraction for new customers, and then alongside with that, of course, we also deliver revenue.
Third, the very important aspect, and it's further going to this experimentation doubling down, is launching a new, I would say, with a very good symbiosis on the core business vertical, around hospitality. We see definitely in the industry if you talk about rentals, vacation rentals, hotels, cafés, that there is increased demand for sustainable and let's say more upper level or premium solutions. I would not say luxury per se, but let's say premium. We see there is a really wide space where we can deliver with our brands. Why this is a win-win, it's not only a standalone channel with much higher customer lifetime value, but this also definitely is another, visibility and brand awareness channel that we can bring for MÁDARA.
We started our first sales literally end of November, beginning of December, and we are still learning, still discovering. It's definitely a vertical where we will continue investing also in 2026. Alongside with that, we continued the route of innovation, and I think this is where MÁDARA has really excelled, and this is why we remain very relevant also with our B2B partners and continue acquiring new customers online. I want to specifically highlight the route that we started couple of years ago. It's about the science-backed skincare innovation that we deliver, and I think this is really the reason of existence for MÁDARA. This is where we merged the sustainability and being clean formulation developer alongside with bringing in science and science-backed formulations to our consumers.
Just to mention one, it's Kojic Alternative Pigment Serum, but many other innovations followed. Continuing also the route of growth, I would like to mention the change to our accelerated strategy towards B2B, where 2025 was really about reformulating teams and our how we approach channel as such, where we shifted from small fragmented retailers towards more larger pan-regional chains. This is where we also reflected our team structure against moving into regional setup with the teams. Why? Because those omni-channel, omni meaning these retailers work both in e-com and in physical space, they also play pan-regional. Like, just to mention Müller, there was a success of scaling from 10 stores in end of 2024 to 120 stores in 2025.
This channel is where we are playing across a lot of the multiple markets, Germany, Swiss, Austria, adding new ones as well. Another important highlight was entering Middle East. The first cooperation partner is in Kingdom of Saudi Arabia, parapharmacy chain called Al-Dawaa, a growing parapharmacy chain, a very dominant one with more than 1,000 point of sales, we entered almost 800 points of sales, physical and also online. This is a region which we will continue developing also in 2026. Last but not least, we reached also another highlight in terms of our commitment to both our shoppers, our shareholders, our employees, and our partners in continuous pursuit of sustainability and ethical approach on how we conduct business.
If up till now MÁDARA has been eco-certified and COSMOS certified, which really is stand for our R&D and production, then B Corp certification was yet another milestone which we reached in April last year, proving our commitment that we want to conduct matters upstream, downstream within the company towards our shareholders with really ethical approach. So we are proud B Corp certified company as of April 2025. Now I'm giving floor to Tatjana, who will explain more in details what happened in 2025.
Hello, dear shareholders, let's dive into the numbers. First of all, we will start with the revenue. Our revenue last year was EUR 23.22 million, which is 12% increase. It is like for like increase. Here to remind and maybe explain to those of you who did not follow company news then, 2024, I'm sorry, we had two very significant deals. First of all, we sold our MOSSA brand, and second of all, we sold our daughter company, Cosmetics NORD, which had a SELFNAMED.COM platform. Because of that, we report comparative results where the base is aligned with the business model what we have after these two deals took place.
If we look at comparative numbers, then revenue growth was 12%, and what is more important is the revenue growth trend. If in the first half of the year our revenue increased by 9%, then in the second half of the year we achieved 15% the revenue growth, and I'm super proud of the revenue growth trend we show. When it comes to profitability, again, it is very important to take into account these two deals which took place in 2024. Here, MOSSA alone gave us one-time income or of EUR 4 million , which is very substantial. Here to compare business as usual, we also adjusted revenue base and also profitability numbers.
When we talk about EBITDA, last year it was EUR 2.3 million, which is a 5% decline in comparison to 2024. Our margin was 10%. Here again, what is important also for me is to look at the trend. If we look at the first half of 2025, our EBITDA margin stood at 7%. With relentless work, by optimizing projects and also teams and processes, we arrived to EBITDA of 13%. Here I have to say it was not luck. It was a lot of devotion and hard work of the teams in order to achieve this profitability result.
Also, yes, first of all, there were two significant, I would say, buckets. First bucket happened in the first half of the year, and these were several pilot projects that we ran. It included also, as Gunta mentioned, TikTok. It included our e-store acceleration in the United States and also testing Brand Lab, different new business concepts. We came to universal business conclusion that not all pilot projects succeed. I have to admit, we had to learn it the hard way. It impacted our profitability in the first half of the year because all these pilot projects had direct impact on our period expenses.
What we did in order to improve profitability in the second half of the year, we also paused two of these projects, Brand Lab Cosmetics and U.S., and we focused only on TikTok. I will also give more information on the next slide, but it was really important for our company to keep and continue investing in this channel. Also it is important to mention Shopify. As Gunta already told that we moved to the new system much faster than we initially anticipated. Because of that, we had to write off our previous e-store assets much faster. It was one time cost which we wrote down last year in amount of EUR 570,000, which is very substantial amount, and it of course impacted profitability.
The good news are it was one time, so it won't impact our profitability in 2026. Which is also important to stress here is that the asset value of the new e-store, Shopify, is much, much lower. Also depreciation this year is expected to be lower than it was in 2025. Yes, both of these impacted our profitability last year. If we talk about pre-tax profit, then of course, this write-off of our previous e-store system affected it quite a lot. When we look at markets and sales distribution by regions, there are, in reality, no big shifts.
Although if you look at the pie chart, you see that the share of Latvia has increased by six percentage points, and it is again related to sale of SELFNAMED.COM. After the sale, you know, of Selfnamed, revenue that we still generate through this channel goes to sales in Latvia. Actually, we see our sales to Cosmetics NORD or Selfnamed under sales in Latvia. If we look at the MÁDARA brand, then there are actually no substantial changes across these big regions. If we dive a bit deeper in sales of MÁDARA and what are the countries that contribute the most to our revenue growth for MÁDARA, then there are a number of countries which performed very, very well, actually.
I will start with our home markets and I'm very proud of Latvian market. In Latvia, we continued growing despite the fact that saturation in Latvian market is already quite high. Team managed to achieve growth, and it was 7%. If we look at markets outside of Latvia, we continued growing in Germany with 13%, in France with 8%, and also there is a number of markets where growth was positive. I'm also super happy about results in Spain, both in B2B and also in e-commerce. I think this is also one of the top investment markets last year, where our team uncovered this growth opportunity and went after it. At the moment, we see that Spain is already our 6th largest export market.
Some changes with Finland. Unfortunately, as you know, we have been struggling with Finland for a number of a period. Also in 2025, our sale of MÁDARA in Finland was decreasing, and the revenue declined by 11%. Of course, we are not very happy with that result. Because of the fact that there is a distributor on side of Finland, we are not very flexible when it comes to different growth opportunities, which we apply in other markets. There was an agreement which took place in the end of 2025 with the Finnish distributor. As a result of this agreement, MÁDARA Cosmetics takes over e-store, which is actually a very big turning point for us.
We are planning investments in this year. Our team will test and try to recover the channel. If we talk about product category, then here again, our focus remains quite solid for the past years. Our core competence is skincare products, including SPF. This is the largest category where we grow and where we produce new innovations. Of course, there are some other categories which we also have in our portfolio. Overall, regarding product category, I wouldn't say that there were many changes, and the focus still remains on skincare. Last year, we launched over 20 new products, or we rebranded existing ones. When it comes to rebrands, then I'm super proud that we improved both formulas.
Team looks at opportunities how to make the packaging even more sustainable, which is also what happened to a number of products what we rebranded last year. One of the most famous ones is Time Miracle line, which last year was rebranded to new Age Pro line. Also what is very important for us is to review our portfolio. Last year, we took the decision to discontinue 21 SKU. It will happen gradually when the packaging finishes. Yes, overall, products are not only introduced, but also the ones that perform not that good are discontinued. Speaking about the channels, as Gunta mentioned already in the beginning, e-commerce is and will be very important sales channel for us.
Here, what we see is our direct e-commerce revenue share increased by 3 percentage points last year, and it includes also Amazon and TikTok. If we look at our own e-store, then new customer share actually decreased by 2 percentage points. Here the explanation is that in 2025, we focused less on attracting new customers also because of our target to improve profitability and increase EBITDA margin. The decision was to invest less money into new customers because the return does not come in a very short period of time. Nonetheless, our e-store revenue increased by 9%. Amazon increased by 65%.
As Gunta mentioned, regarding TikTok, our revenue growth when we compare second half of the year with the first half of the year, we saw really good scalability. Revenue increased by 28 times, which is very good number. If we look at levels also, revenue level was substantial. In TikTok, we achieved EUR 223,000 of revenue. Here what is even more important that we see more and more spillover effect to other sales channels. TikTok also helps us to discover what are the needs of our customers and later on to reapply the knowledge from TikTok to other sales channels as well.
It is even more noticeable already this year, but we see that for some specific products, we are starting to running out of stock across different sales channels, not only TikTok. Yes, I have to agree with Gunta that TikTok is really powerful. Again, small comment about the Black Friday. Already in 2025, our Black Friday campaign was run on our Shopify platform, and we also saw very substantial increase in conversion rate. Although the write-off of previous e-store assets impacted our profitability, I still see that it was a very correct decision of the management to start Shopify as fast as possible and to get the positive effects of what the system could offer.
It includes both, as I mentioned, conversion rates were very good. It was more than 60% improvement in comparison to the previous platform. Also the way of adding different new features is much more fast and cheaper when we compare it to the previous system. Overall, I think this is very prominent element of our growth also when it comes to 2026. Now I give floor back to Gunta.
Thank you. We already did some sneak peek what's to be expected from 2026. Just to recap, and give some other angles as well. We will continue the started route of e-commerce first strategy execution. I believe Shopify is definitely one starting point when it comes to more efficient and faster running operations. It also comes to... Did we lose the slides? No, it came back. It also comes to how we approach both diversification of e-commerce when it comes to our side. On not only our e-com Shopify page, but also different channels like Amazon, TikTok. Also when it comes to B2B evaluation.
Whether those customers understand e-com, whether they rely on omni-channel strategy or pure e-commerce strategy. We will definitely also prioritize over such types of customers. Why? Because we see that as much cheaper way and faster way of both new user acquisition, but then also driving brand awareness with our level of budget and initiatives. That's definitely why e-com first is so, so important for the company. Another important aspect will be further channel diversification, or I will say overall diversification. It comes only for geographical diversification, but like I already touched upon, also different sales channel diversification and new user acquisition channel diversification. When it comes to new geographies, we will strategically continue expanding outside EU. EU doesn't go anywhere. We will still...
Our biggest markets are within EU, so Germany, France. Like Tatiana mentioned, we are growing high double digit in Spain, and we also see the same growth continuing in 2026. Nonetheless, we will also explore other geographies, Middle East being one of them. Currently, it's a bit, let's say, sophisticated momentum, so we definitely have to monitor how this develops in the mid-term. Also just to, like, it is already at the beginning, also looking at other geographies as well, that we can more balance and be less reliant on one specific country or one specific region. Second is TikTok. TikTok, again, it's not just pursuing a single standalone channel, TikTok itself, but we really see massive spillover to other channels, both to our e-com, Amazon, but also to third parties.
For example, in 2026, we already see that the products that are sold on TikTok, they are sold out on Amazon, they are sold out on Zalando, they are sold out on Feelunique. Again, product discovery for beauty starts on TikTok, full stop. And third, but not least, it's also different business verticals, which are complementary, so not cannibalizing on the core business hospitality. We will continue growing this segment. Obviously, this requires different skill. Our ambition is predominantly going after or pursuing the model, which is more B2C-focused. This is more running it through Shopify and user acquisition through Shopify. By user, I mean hospitality players.
Like I mentioned, I believe this is a strong complementary sales vertical to all of the existing MÁDARA channels. Another exciting news that I'm very excited to announce, it's about investment into our manufacturing. This year we have decided to buy new machinery which will allow us to even further accelerate and diversify our portfolio. That specific machinery will be focused on stick or solid format type of pencil manufacturing, and by pencil I mean its different diameter bullets. Which leads us to the third point. Once that new machinery is employed, we already have innovation pipeline in place, especially for a lip category which is growing at very fast pace at this moment. Different type of stick formats.
For example, we already have existing format of SPF sticks, bringing new innovations, in similar like and look product, not only SPF, it also covers makeup, it also covers hybrid formats and skincare formats. Last but not least, also, teasing soon to be hitting the shelves, it's another breakthrough science backed innovation. We will also pursue in 2026 this standpoint that we are not compromising neither on sustainability nor on product efficacy. MÁDARA is the brand that actually does both, science-backed innovations but being ethical and clean. Lots of exciting things to come. With that, management commitment, a similar last year's is of minimum 10% growth. We see at the moment overall industries hitting at 2%-3% growth run rate.
Our ambition remains to grow way faster than the average of the industry. Ten percent minimum, which would equal to EUR 25.5 million revenue consolidated. Continuing already what we promised and ensured and delivered last year second half is delivering sustainable double-digit EBITA margin. Again, 2025 was impacted by a lot of one-offs. We have much more clean slate in 2026. Both growing faster than the industry and delivering sustainable profitability to our investors will be a commitment of management also for 2026. With that, thank you for your attention. We have concluded reporting the results and also sneak peek into 2026. We did not receive any questions. Ieva, are you taking over moderation now?
Yes, thank you. Thank you for your presentation. Let's continue with the interactive part of our call, the questions and answers session. There are three questions at the given moment. We'll take them one by one. For other participants, you can type your questions in writing either through the Q&A box or raise your hand and be unmuted. The first question: What is the number percentage what MÁDARA is targeting when it comes to sales revenue outside the EU?
Yeah, I will take this one. There is not exact percentage we are targeting. I would say this is more strategic approach in which regions we see market is growing faster than the average. Definitely one being Middle East, that's for sure, and we see this market is accelerating online and offline. Other region which is very interesting is, and I'm not saying there are exact works in progress, is definitely Southeast Asia, which is growing. Another is Northern Africa, which is growing. U.S. definitely is on the map.
I would not like to commit on a specific percentage, just saying that we strategically see where we have brand relevance, with that saying MÁDARA brand relevance and where we can form really long-standing, and what is very important also, profitable relationships with B2B partners.
Thank you. Which specific countries outside the European Union are planned for market expansion?
We will continue doubling down on Middle East. Like I mentioned, this is what we believe a very prosperous and with a, let's say, promising future outlook region. We started with the Kingdom of Saudi Arabia. There are more markets in discussions at this moment. I can mention Kuwait, I can mention Oman, I can mention a couple of Emirates like Dubai. Again, like I mentioned in one of the previous webinars, B2B is a much slower discipline. It doesn't come or it doesn't convert as easily as, for example, e-commerce.
Each of the markets, like for example, Middle East, each of the markets have their own specific regulation, regulatory that we have to comply with, different requirements in terms of delivery, of packaging, even product labeling. It's not a fast, moving, let's say, discipline that we can adjust to. Middle East definitely will be one of the focus areas for the nearby future.
Thank you. Talking about the investments into your product portfolio, how much will the company invest to expand its product range?
I will also take this.
I can take.
Oh, you can. Tanja, go.
Yes. If we look at the numbers then, besides employee costs, it is roughly EUR 200,000 per year what we invest in a new product development, and this year won't be differentNumber one be higher despite the new product actual category what we will be developing. If we look together with the employee cost, then this number is closer to EUR 1 million each year what we spend on new product development. Here, what is maybe less seen by public eye is how much we also gain from participating in different European Union projects, which support innovation. This year I can tell that we...
where it is possible and our innovations classify as qualify as innovations, then we of course also participate and we receive very good funding also from these programs. So I would say that around 20% is received back from different funds for actually running these innovations.
Thank you. One more question to go. What is the main problem in Finland? Is Transmeri pushing MOSSA, which they bought from MÁDARA?
I can take this one. MOSSA and MÁDARA, I would not say these are necessarily competing forces, 'cause MOSSA is much more represented in mass market chains such as Kesko, while MÁDARA is definitely big. Portion of sales is sold through Sokos, which is number one channel, and the second channel definitely is direct e-commerce. Having said that, a continuous problem I would say we identified too, and we discussed it openly also with Transmeri team, is definitely number one is attracting new customers. We call it an e-commerce leaking buckets type of scenario that we had in Finland for a couple of years that the team was not able to attract new customers to the brand. This is a normal cycle that every brand go through, especially in cosmetics.
It's not, it's very rarely you see a consumer would stay with you for two, three, five years. It doesn't happen like that. Solely the business relies on how efficiently you can acquire new customers. This is, I think where we and I say we because obviously, we are managing the distributor. We failed in Finland. We're also, I have to be honest, distribute their model margins were not allowing us to be as aggressive as we would like to be with our e-com.
Hence the decision number one, that we will take over direct e-commerce channel, which we see in other markets like Germany, to be honest, like Latvia as well, which by the structure is similar market like Finland, 'cause it is saturated in Latvia and it's also saturated in Finland, but also markets like in Spain. We see where we managed to acquire new customers via our own direct eShop e-com. It also has a positive spillover to B2B channel. Hence the discussion and decision on taking over direct e-commerce channel so we can more aggressively focus on new customer acquisition.
Another very important aspect is of brand positioning, where we believe over the years MÁDARA was, if you compared to the rest of Europe, positioned at the more premium level than other European markets. This is also a factor we discussed with Transmeri how to change that perception of the brand, which also is related about product affordability, 'cause Finnish buyer is a very sensitive customer. In Finland, the product has been positioned by the distributor more premium than in the rest of Europe, which is not consistent. Again, we are not working in a closed or isolated market, so customers so easy can compare what's the brand costing in one or the other market.
That's another I would say more marketing and brand, even more essentially brand topic we addressed with the distributors. I really believe that we have a good enough and successful enough outcome in terms of decisions we took together with Transmeri that we can turn brand back to growth in Finland, 'cause we have successfully done it in Latvia.
Thank you for taking time to explain. As no new questions have come in, we'll be concluding our Q&A session. Participants, thank you for joining us today.