Polygiene Group reported sales declined 17.7 percent in the fourth quarter and 6.6 percent for the year. The Swedish maker of antimicrobial fabric treatments said the results continue to reflect market uncertainties that are causing project delays but also indicated that sales are recovering.

Sandrine Garnier, who succeeded Ulrika Björk as CEO at the close of the year, said in Polygiene’s financial report, “The past year has been challenging, influenced by market uncertainty, currency fluctuations and shifting customer ordering patterns. In the final quarter, Polygiene’s performance was affected by timing factors, including later customer orders. This did not reflect a loss of underlying demand, and across the Group, full-year volumes were broadly in line with last year, demonstrating the resilience of both Polygiene and Addmaster. Addmaster experienced a strong recovery towards year-end, successfully capturing previously postponed orders.”

Sales in the fourth quarter ended December 30 amounted to SEK 36.8 million ($4.1 mm), including a currency effect of approximately negative 11 percent. Gross margin was 68.2 percent against 76.1 percent a year ago, including a currency effect of approximately negative 5 percent.

EBITDA amounted to negative SEK 1.3 million against a positive EBITDA of SEK 5.9 million. The net loss in the quarter totaled SEK 13.1 million, compared with a profit of SEK 7.4 million a year ago.

For the year, sales totaled SEK 146.6 million, down 6.6 percent from SEK 156.9 million, reflecting an average negative currency effect of approximately 6 to 7 percent. Gross margin 67.6 percent against 70.8 percent, including a currency effect of negative 2 percent. EBITDA declined 81.5 percent to SEK 3.5 million from SEK 19.0 million a year ago. The net loss in the year was SEK 33.7 million, compared with a profit of SEK 16.8 million.

Garnier said, “Profitability and cash flow were affected by the sales mix, a weaker US dollar, and the timing of dividend payments rather than structural issues. Underlying costs, excluding those related to the leadership transition, remained lower than the previous year, reflecting disciplined cost management.”

By region in the quarter, sales in EMEA totaled SEK 18.8 million, slightly down from SEK 19.8 million a year ago. Sales in the APAC region were SEK 12.7 million, slightly up from SEK 11.5 million. Sales in the Americas amounted to SEK 3.6 million, down sharply from SEK 8.9 million the prior year.

Garnier commented on the regional performance, “Performance varied across regions, with strong growth in Asia Pacific, stability in EMEA, and ongoing pressure in the Americas, particularly in textiles. The agreement announced in May generated lower volumes than initially anticipated, and we are working closely with the customer to increase our share over time, with a view to achieving higher volumes in 2026.”

Outlook
Garnier concluded, “Having previously led Addmaster UK and supported its integration into Polygiene, I step into this role with a deep understanding of the Group and its people. Over the past weeks, I have met with colleagues across all parts of the organization, reinforcing my conviction that significant potential exists to be unlocked through sharper commercial execution, operational efficiency and an even stronger focus on customer relevance.

“A near-term challenge is the unprecedented rise in silver prices, driven by strong industrial demand and ongoing supply constraints. This will impact input costs in 2026, and we are taking a disciplined and proactive approach to mitigate its effects.

“Returning Addmaster to more stable revenue levels is also a priority, supported by efficiency initiatives, innovation and closer customer engagement.

“For Polygiene, continued commercialization of recent product launches and investment in innovation remain essential. The recent patent application for our mosquito repellent technology demonstrates our ability to expand the portfolio into new, attractive areas while recognizing the regulatory work required for global expansion.

“With clear leadership, a strong focus on sales and value creation, and innovation at the core of our strategy, I am confident in Polygiene Group’s ability to progress into its next phase. I look forward to building on the solid foundations in place and to delivering long-term, sustainable growth. I look forward to building on the solid foundations in place and to delivering long-term, sustainable growth.”

Image courtesy Polygiene