Nick's e-commerce grows – but major customer backs out in the American market

Stefan Lagerqvist, CEO with the team in the background

After million-dollar losses.

Luthman Backlund Foods, the company behind the sugar-free brand Nick's and its associated e-commerce business, is closing the books for 2025. The group reports increased sales while losses decrease. However, at the beginning of the new year, one of the company's major retailers in the North American market has chosen to reduce purchases, which now leads management to take action with restructuring.

At the group level, revenue landed at SEK 558.6 million in 2025, representing an increase of nearly 12 percent compared to the previous year's SEK 500.3 million. Operating profit amounted to SEK -85.3 million at the same time. This is an improvement of 56 percent compared to 2024, when operating profit was SEK -195.2 million.

For the Swedish subsidiary Luthman Backlund Foods Europe AB, which operates the company's e-commerce business, revenue totaled SEK 317.6 million. This is an increase of 24 percent from SEK 256.1 million the year before. Operating profit for this company decreased by 11 percent to SEK -26.6 million.

Restructuring in the West

But shortly after the books for 2025 were closed, a new challenge emerged across the Atlantic.

In early 2026, a major retailer in the USA announced that it would significantly reduce the number of listings of the company's products. This prompted CEO Stefan Lagerqvist and the board of directors to take action. In order to manage the reduced order flow, management has now pulled the handbrake and cut costs locally, while also redrawing the map and working on a new strategy for continued presence in the North American market.

We are conducting a strategic review of the US operations and have reduced costs pending a new, long-term plan being in place, management writes in the annual report.

In addition to the investment in North America, the company has built up an international presence with sales in Sweden and North Macedonia. In the Macedonian city of Bitola, it also operates its own production facility.

The puzzle of companies is topped by the parent company Luthman Backlund Foods AB, which in turn controls the e-commerce driven Luthman Backlund Foods Europe AB, the American branch Luthman Backlund Foods USA Inc and the production company Luthman Backlund Foods Production LLC Bitola.

External capital finances operations

To keep the machinery running and secure liquidity for international operations, the company has turned to external financing.

The books show, among other things, a convertible loan of USD 6.5 million, which corresponds to a book value of SEK 62.2 million. This loan carries an interest rate of 15 percent. Added to this are long-term liabilities to credit institutions of SEK 29.9 million and short-term liabilities of SEK 1.1 million.

Editorial Staff