Where did most of Åpent Bakeri Drift's cash go while sales grew?

Åpent Bakeri Drift AS, an Oslo company in the bakery and food trade, raised revenue by 14.4% to NOK 248m in FY2025, against NOK 217m the year before. It stayed profitable, with a net profit of NOK 3.4m. Cash did not follow. The balance dropped by NOK 18.5m to NOK 4.0m from NOK 22.5m. Operating profit also fell, to NOK 3.9m from NOK 10.6m, so the operating margin narrowed to 1.6%. Equity ended at NOK 14.8m, an equity ratio of 28.2%.

Growth usually costs cash before it brings any in. Customers pay weeks after delivery, stock is bought ahead of sales and new capacity is paid for up front, while profit is booked when the sale is made. The accounts do not show which of these took the money. The operating margin was 7.0 pp below the median of 8 comparable companies, 8.5%, so each krone of sales leaves less room to absorb that outflow. I would watch the cash line next year. A profit that does not turn into cash is only a promise.