The company explains the negative development with macroeconomic factors. The company states that the 2025 financial year has been characterized by a challenging market situation where a combination of demographic factors such as low birth rates, competition and price pressure have negatively impacted sales volumes.
Operating profit accounts for approximately half of the year's reported loss. The remaining part is explained by, among other things, financial items and write-downs of the shares in the wholly-owned subsidiary Stor & Liten AB, which is based on a cautious valuation based on current market conditions.
Subsidiaries
The wholly-owned subsidiary Stor & Liten AB did increase its net sales by almost ten percent to 33.9 million Swedish kronor, which the company describes as positive in a challenging market. Despite the increase in sales, however, the result deteriorated to minus 7.8 million Swedish kronor, compared to minus 3.4 million the previous year. The loss is explained by fierce price competition, macroeconomic challenges and a write-down of the value of the shares in the subsidiary OnTheMoon AB by approximately 48 percent.
OnTheMoon AB operates the e-commerce platform Litenleker.se and net sales there fell from 11.8 million Swedish kronor to 7.7 million Swedish kronor. The result landed on minus 1 million Swedish kronor.
Handed over warehouse space
To manage the situation, Babyland has implemented several efficiency measures. The warehouse structure has been optimized through clearing of obsolete goods and strategic sales. The company has also reduced its fixed costs by renting out surplus warehouse space to external parties. Already at the end of 2025, it became clear that logistics company Brizo had taken over the operation of approximately 7,000 square meters in Babyland's premises in Morgongåva, a collaboration that was initiated precisely to utilize capacity more smartly and benefit the entire Babyland Group.
Despite the red figures, the company management is positive about the effects of the savings programs. Management assesses that the company has created a more stable platform for the coming years by lowering fixed costs and tightening the balance sheet, which is expected to strengthen the company's competitiveness and profit potential in 2026.
Needs new capital
The forecast for 2026 indicates a continued deficit and the board of directors states that the company needs external financing and capital injection. The annual report states that the board cannot guarantee that the company's operations can be financed throughout the year, as there is no issued capital coverage guarantee. The company points out at the same time that they have a strong majority owner who has historically guaranteed the company's survival and that structural deals are being discussed.
Babyland Online Nordic AB is a subsidiary of Laulima AB, which owns 69.5 percent of the shares in the company. Laulima AB, which is also known as the parent company behind the online pharmacy Apotea, thus functions as Babyland's parent company. The majority owner of Laulima AB is e-commerce profile Pär Svärdson through his personal company Tromelin AB. In addition to Svärdson, there are another twenty or so shareholders in Laulima.