MG International: Net Profit Drops by 47%, Dolphin Robots Under Chinese Pressure
MG International reviews a contrasting year in 2025. Caught between a deteriorating market environment and intensifying competition, particularly from new Chinese players in the cleaning robot sector, the company managed to preserve its operational profitability by tightening its expenses. However, this performance barely conceals the reality: the pool market continues to contract, weighing on the group's growth, while its flagship Dolphin robot segment faces increasing price pressure.
Revenue and Sectoral Challenges
MG International recorded a revenue of €49.2 million in 2025, reflecting the ongoing contraction in demand. The group was hit hard by the slowdown in the pool sector, affected by a gloomy economic context, purchasing power tensions, and drought-related constraints. This pressure was uneven across different activities. The Alarms division showed better resilience, while the Dolphin cleaning robots suffered from the massive arrival of new Chinese competitors present across all distribution channels, as well as stock adjustments by distributors. The pool cover segment also suffered from a slowdown in new constructions and a shift in demand towards less expensive solutions. The only positive note: despite this pressure on selling prices, the gross margin improved by 0.9 points, reaching 31.1%, thanks to efforts in operational optimization and industrial efficiency improvement.
Operational Results and Strategic Limitations
The 45% drop in operating income, which fell to €748k from €1.36 million in 2024, illustrates the limitations of the defensive strategy implemented by the company. MG International reduced its operating expenses by 12%, particularly by limiting the use of subcontracting and temporary work and by tightening its administrative management. However, the group maintained a significant level of investment in marketing and product development to preserve its competitiveness and support its brands. Net profit thus decreased by 47% to €739k, offset by a neutral financial result, thanks to the compensation of interest charges on loans by the financial products generated from the placement of surplus cash. Meanwhile, the Public Pool division recorded a 7% decrease in its revenue, penalized by the slowdown in public investments in Europe.
Financial Health and Outlook for 2026
The financial health of MG International remains an asset. The company maintains high equity at €33.5 million and a comfortable cash position of €12.6 million as of December 31, 2025. The total balance sheet reached €42.8 million, with strict management of working capital requirements and progressive repayment of medium-term debt. The advance granted to the parent company Maytronics was fully repaid. However, the group remains cautious about 2026. Although slight signs of a rebound appeared at the end of 2025, particularly driven by the acceleration of the renovation market, uncertainty remains. Adapting the offer to new market expectations and the strength of the Dolphin brand, the undisputed leader of the French market, should allow the group to maintain its leadership position in a sector structurally transformed by Chinese competition.
