AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Boozt

Annual Report Feb 8, 2024

2896_10-k_2024-02-08_77e6835c-8553-408b-952e-cae63391c479.pdf

Annual Report

Open in Viewer

Opens in native device viewer

Interim Financial Report Q4 2023

January 1 - December 31, 2023

Contents

Financial Highlights 5
Group Development 6
ESG Highlights 11
Outlook 14
Other information 15
Financial Statements 17
Review Report 27
Additional information 28

Fourth quarter highlights

Financials

  • Net revenue of SEK 2,993 million (compared with SEK 2,438 million in Q4 2022) and net revenue growth of 23% or 20% in local currency
  • Net revenue growth of 21% for Boozt.com and 33% for Booztlet.com
  • Gross margin was 37.5% (38.3%)
  • Adjusted EBIT was SEK 230 million (170) corresponding to an adjusted EBIT margin of 7.7% (7.0)
  • Earnings per share before dilution was SEK 2.10 (1.83)
  • Free cash flow was SEK 834 million (730)
  • Repurchase of own shares of SEK 31 million (0)
  • Cash and cash equivalents of SEK 1,463 million (1,777).

Significant events

  • In October, the verdict in the case between Boozt Fashion AB and the Norwegian Tax Authority was appealed by the Tax Authority to Lagmannsretten. The case concerns the validity of the Norwegian Tax Agency's decision on September 30, 2022, to reject Boozt's application for simplified registration for value added tax
  • On 28 November, as a consequence of a solid sales development throughout November and Black Friday week, the full year outlook for 2023 was upgraded to 13-15% net revenue growth (from 11-15%) and adjusted EBIT of SEK 370-390 million (from SEK 350-390 million).

Full year highlights

Financials

  • Net revenue of SEK 7,755 million (6,743) and net revenue growth of 15% or 11% in local currency
  • Net revenue growth of 15% for Boozt.com and 15% for Booztlet.com
  • Gross margin was 39.2% (39.5)
  • Adjusted EBIT was SEK 400 million (286) corresponding to an adjusted EBIT margin of 5.2% (4.2)
  • Earnings per share before dilution was SEK 3.43 (2.76)
  • Free cash flow was SEK 6 million (90)
  • Repurchase of own shares of SEK 89 million (0)
  • Net revenue growth of 15% and adjusted EBIT of SEK 400 million compared with the latest guidance of 13-15% and SEK 370-390 million, respectively.

Outlook for 2024

  • Boozt expects net revenue growth for 2024 to be in the range of 5-15%
  • The adjusted EBIT margin for the year is expected to be in the range of 5.2-6.0%
  • CAPEX is expected to be in the range of SEK 150-250 million.
SEK million unless otherwise indicated Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Change Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022 Change
GROUP
Net revenue 2,993 2,438 22.8% 7,755 6,743 15.0%
Gross profit 1,122 933 20.2% 3,038 2,667 13.9%
EBIT 183 158 16.0% 299 253 18.3%
Adjusted EBIT* 230 170 35.2% 400 286 40.1%
Earnings for the period 143 123 16.2% 233 186 25.4%
Free cash flow* 834 730 14.2% 6 90 -93.3%
Net revenue growth (%) 22.8% 23.9% -1.1 pp 15.0% 16.0% -1.0 pp
Gross margin (%)* 37.5% 38.3% -0.8 pp 39.2% 39.5% -0.4 pp
EBIT margin (%) 6.1% 6.5% -0.4 pp 3.9% 3.8% 0.1 pp
Adjusted EBIT margin (%)* 7.7% 7.0% 0.7 pp 5.2% 4.2% 0.9 pp

Rounding differences may affect the summations.

*The figure is an Alternative Performance Measure, for further information see page 31.

Outlook for 2024 Outlook as of February 8, 2024 Reported 2023
Net revenue growth 5-15% 15%
Adjusted EBIT margin 5.2-6.0% 5.2%

The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.

"2023 was another challenging year, but after a slightly disappointing first half of the year, we managed to change gear in the second half and reap the benefits of our Nordic department store. The acceleration in growth was among other things supported by a planned increase in our inventory to strengthen our product offering as well as our updated strategy for Booztlet expanding the assortment on the platform. Q4 continued the robust momentum we saw in Q3 and we actually improved growth on both Boozt and Booztlet. Our profitability benefitted from the increased topline and we recorded the highest quarterly adjusted EBIT margin to date in the quarter."

CO-FOUNDER & CEO HERMANN HARALDSSON

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 4

Financial Highlights

SEK million unless otherwise indicated Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Change Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022 Change
GROUP
Net revenue 2,993 2,438 22.8% 7,755 6,743 15.0%
Net revenue growth (%) 22.8% 23.9% -1.1pp 15.0% 16.0% -1.0pp
Gross profit 1,122 933 20.2% 3,038 2,667 13.9%
Gross margin (%)* 37.5% 38.3% -0.8pp 39.2% 39.5% -0.4pp
Fulfilment cost ratio (%)* -9.5% -10.5% 0.9pp -10.6% -11.3% 0.7pp
Marketing cost ratio (%)* -10.0% -10.7% 0.8pp -10.3% -11.0% 0.7pp
Admin & other cost ratio (%)* -9.7% -8.2% -1.5pp -11.1% -10.2% -0.9pp
Depreciation cost ratio (%)* -2.1% -2.4% 0.3pp -3.2% -3.3% 0.1pp
Adjusted admin & other cost ratio (%)* -8.1% -7.7% -0.5pp -9.8% -9.7% -0.1pp
EBIT 183 158 16.0% 299 253 18.3%
EBIT margin (%) 6.1% 6.5% -0.4pp 3.9% 3.8% 0.1pp
Adjusted EBIT* 230 170 35.2% 400 286 40.1%
Adjusted EBIT margin (%)* 7.7% 7.0% 0.7pp 5.2% 4.2% 0.9pp
Earnings for the period 143 123 20 233 186 47
Earnings per share (SEK)* 2.10 1.83 0.27 3.43 2.76 0.66
Earnings per share after dilution (SEK)* 2.07 1.81 0.26 3.38 2.73 0.65
Adjusted earnings per share (SEK) 2.65 1.98 0.67 4.60 3.14 1.45
Adjusted earnings per share after dilution (SEK) 2.61 1.95 0.66 4.54 3.11 1.43
Cash flow from operations 861 833 29 130 805 -676
Cash flow from investments -28 -103 75 -124 -715 592
Free cash flow* 834 730 104 6 90 -84
Net working capital* 316 -109 425 316 -109 425
Net debt / -net cash* -1,040 -1,207 167 -1,040 -668 -372
Equity / asset ratio 45.7% 41.8% 3.9pp 45.7% 41.8% 3.9pp
Number of employees end of period 1,176 1,246 -70 1,176 1,246 -70

Rounding differences may affect the summations.

*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 33.

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 5

INTERIM FINANCIAL REPORT Q4 2023

Group Development

The solid momentum during the third quarter continued into Q4 driven by a relevant product assortment, competitive prices and a healthy inventory position.

Income statement and cash flow items are compared with the corresponding period last year. Balance sheet items refer to the position at the end of the period and are compared with the corresponding point of time last year, meaning December 31, 2022. The fourth quarter refers to the period October - December 2023.

Net revenue

For the fourth quarter, net revenue increased 23% (or 20% in local currency) to SEK 2,993 million (2,438).

Growth was mainly driven by an increase in the number of orders, which was supported by a significant increase in active customers. The number of orders in the quarter increased 16% to 2.9 million (2.5) while active customers (customers who made at least one order in the last 12 months) increased 7% to 3.5 million (3.3) driven by an increase in customers in all of Boozt's major markets. Additionally, the average order value (AOV) on Boozt.com and Booztlet.com continued to improve and reached record highs in the quarter at SEK 987 (959) and SEK 1,017 (861), respectively. The improvements were supported by an increase in customers putting more than one category in the basket further validating Boozt's Nordic Department Store strategy, as well as currency. In Q4 2023, 51% of customers bought from more than one category compared with 48% in Q4 2022. Finally, there was a tangible reduction in return rates compared with last year, mainly due to an increase in sales of categories outside of fashion, which on average have lower return rates.

While growth was maintained throughout the quarter, market conditions remained challenging, with continued low consumer confidence, fewer eyeballs compared with last year and high

promotional activity, in particular throughout the Black Friday week. The challenging shopping environment has, however, also presented opportunities to gain market share in relation to both local and international peers of whom many have less favourable unit economics. In the period, Boozt has continued a robust marketing pressure, while it is Boozt's assessment that peers on average have reduced their marketing activities.

Revenue growth in Q4 2023 was driven by both Boozt.com and Booztlet.com, which increased revenue with 21% and 33%, respectively.

Other revenue (included in revenue from Boozt.com and Booztlet.com) was SEK 98 million (85), an increase of 15% compared with the same quarter last year. Growth was mainly driven by revenue from Boozt Data Intelligence, which supports brand partners with valuable insights into customer behaviour and product performance. Other revenue includes revenue not directly related to product sales, such as income from Boozt Media Partnership, Boozt Data Intelligence, BooztPay and breakage from gift cards.

For the full year 2023, net revenue increased 15% (or 11% in local currency) to SEK 7,755 million (6,743). The increase was driven by all product categories, however, the categories outside of fashion (Kids, Sports, Home and Beauty) increased the most, again highlighting that customers continue to embrace the Nordic department store offering.

NET REVENUE – GEOGRAPHICAL SPLIT

SEK million Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Change Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022 Change
Nordics 2,692 2,261 19.1% 7,077 6,265 13.0%
- of which Denmark 1,050 806 30.3% 2,704 2,294 17.9%
- of which Sweden 935 857 9.1% 2,540 2,416 5.2%
Rest of Europe 301 177 70.3% 679 478 41.9%
Total net revenue 2,993 2,438 22.8% 7,755 6,743 15.0%

Net revenue geographical split

Net revenue in the Nordics was SEK 2,692 million (2,261) in the quarter and increased 19% compared with the same quarter last year. The increase in the Nordics was mainly driven by Denmark, which was up 30%. The performance in Sweden improved compared with previous quarters and increased 9%. Revenue in the Rest of Europe was SEK 301 million (177) and increased 70% for the quarter. The increase was mainly driven by a very strong performance in the region for Booztlet (+128%), which saw a significant improvement in Germany.

Denmark and Sweden remain Boozt's largest markets and represented 35% and 31%, respectively, of net revenue in Q4 2023.

Gross profit

Gross profit increased 20% to SEK 1,122 million (933) in the quarter. The gross margin was 37.5% (38.3) and slightly lower than last year. However, the decline was mainly due to the conversion of a previous agent agreement into a wholesale agreement (done in Q2 2023), which had a negative impact of 0.7 percentage points in the fourth quarter. The quarter was high on promotional activity, mainly due to Black Week, however, the level of promotion was broadly in line with the same quarter last year.

For the full year 2023, gross profit increased 14% to SEK 3,038 million (2,667). The gross margin for 2023 was 39.2% compared with 39.5% last year. The decrease is explained by the aforementioned conversion of a partner agreement, which had a full year impact of 0.5 percentage points.

Operational costs

Productivity improvements continue to support the fulfilment cost ratio and in Q4 2023 the ratio decreased 1 percentage point compared with Q4 2022 to 9.5% (10.5). The improved ratio was driven by a highly competitive distribution setup with disciplined efforts to guide customers to the optimal carrier from a cost and service perspective. Additionally, improvements continued to materialise at the fulfilment center driven by productivity gains supported by strong cost control. Finally, the fulfilment ratio continues to benefit from the increase in average order value. For the full year 2023, the fulfilment cost ratio decreased to 10.6% (11.3).

In the quarter, the marketing cost ratio decreased 0.7 percentage points with Q4 2022 to 10.0% (10.7) as the Group continues to gain benefits from lower cost-per-click in the Nordic market. The company aims to continue a high marketing spend to attract new customers along with further efforts to build Boozt as a household brand in the Nordics via offline marketing efforts. For the full year 2023, the marketing cost ratio decreased to 10.3% (11.0).

The adjusted admin and other cost ratio increased to 8.1% (7.7). The ratio continues to benefit from economies of scale, however, this implied increase was offset by among other things an increase in salary costs. This was partly due to the strong performance in 2023, which has impacted incentive pay positively compared with 2022. For 2023, the adjusted admin and other cost ratio was 9.8% (9.7) and largely on par with last year.

The deprecation cost ratio decreased slightly to 2.1% (2.4) in line with expectations. For the full year, the depreciation cost ratio was 3.2% (3.3).

As per January 2023, the latest expansion of the automated warehouse capacity was taken into operation increasing depreciations and we expect to gradually grow into the current excess capacity over the next couple of years.

Adjusted EBIT

In Q4 2023, adjusted EBIT increased 35% compared with last year and amounted to SEK 230 million (170). The adjusted EBIT margin increased with 0.7 percentage points to 7.7% (7.0). The increase was driven by improvements in all cost ratios, except the admin and other cost ratio as described above.

For 2023, the adjusted EBIT was SEK 400 million (286) corresponding to an adjusted EBIT margin of 5.2% compared with 4.2% last year.

Total adjustments in the quarter amounted to SEK 47 million (13). Adjustments include share-based payments of SEK 47 million (12). For the full year 2023, adjustments amounted to SEK 101 million (33), including SEK 98 million (17) related to share-based payments.

Costs related to share-based payments fluctuate between periods as the probability of the number of performance shares under the programs are dynamic. Also, the provision for social charges are determined by the company's share price.

For a reconciliation of adjusted EBIT, please visit the Group's website www.booztgroup.com/reports-and-presentations, "Q4 Report 2023" – "Key financials".

EBIT

EBIT increased 16% to SEK 183 million (158) in Q4 2023 corresponding to an EBIT margin of 6.1% compared with 6.5% in the same quarter last year.

For the full year 2023, EBIT increased to SEK 299 million (253) corresponding to an EBIT margin of 3.9% compared with 3.8% in 2022.

Financial items

Net financial items for the quarter totalled SEK -4 million (-2). Financial income amounted to SEK 8 million (5) in Q4 2023, and was mainly related to positive interests on the company's cash position. Financial expenses were SEK 12 million (7) of which SEK 6 million (5) were related to interest on loans for financing the expansion of AutoStore and SEK 4 million (2) were related to interest on leasing contracts according to IFRS 16.

For the full year 2023, net financial items amounted to SEK -27 million (-17).

Tax

Tax for Q4 2023 amounted to SEK 36 million (32). The Group's effective tax rate for the period was 20.0% (20.6). For the fullyear 2023, the income tax amounted to SEK 39 million (50), corresponding to an effective tax rate of 14.2% (21.2). Tax for the period is negatively affected by SEK 1 million relating to the utilisation of tax losses carried forward and positively affected by SEK 15 million for the full year.

Profit for the period

Profit for the fourth quarter totalled SEK 143 million (123) resulting in earnings per share before dilution of SEK 2.10 (1.83). Earnings per share after dilution amounted to SEK 2.07 (1.81).

Year-to-date, profit for the period was SEK 233 million (186). Earnings per share before dilution amounted to SEK 3.43 (2.76), while earnings per share after dilution amounted to SEK 3.38 (2.73).

Net Working capital

Net working capital at the end of 2023 was SEK 316 million (-109) equivalent to 4.1% (-1.6) of net revenue for the full year.

The absolute increase in net working capital was mainly related to a strengthening of inventories during the third quarter of 2023. This was done to capitalise on strong growth opportunities in Q4 2023 and Q1 2024. The increase was mainly related to neverout-of-stock goods (NOOS), campaign stock bought at favourable prices as well as in-season goods. Additionally, the decision to expand and improve the offering on Booztlet.com with focus on basics and more true-to-season inventory has added to the elevated inventory level. Finally, the aforementioned conversion of an agent agreement to a wholesale agreement during Q2 2023 increased inventory as a percentage of sales by around 0.5 percentage point compared with last year. At the end of 2023, inventory was at SEK 2,281 million (2,039) corresponding to 29.4% of net revenue. This compares to 30.2% at the end of 2022.

Investments in NOOS and campaign goods carries a relatively lower inventory risk (compared to seasonal goods) as it in general is sold year round.

Furthermore, accounts payable declined to SEK 1,140 million (1,385) corresponding to 14.7% of net revenue compared with 20.5% at the end of 2022. The decline is mainly due to earlier delivery of Autumn/Winter stock compared to the previous year combined with the timing of payments associated with these goods.

Accounts receivable as a percentage of revenue and the end of 2023 were largely unchanged compared with year-end 2022. Accounts receivable at the end of the year was SEK 41 million (30).

Net debt / net cash

At the end of 2023, the Group had a net cash position of SEK 1,040 compared with SEK 1,207 million at the end of 2022. The net debt / net cash excludes leasing liabilities.

Cash position

Cash and cash equivalents decreased to SEK 1,463 million (1,777), driven among other things by the increased investments in stock to strengthen the inventory position compared with last year going into Q1 2024. Furthermore, the Company has repurchased own shares as part of its share buyback program for SEK 89 million in total during 2023.

Lease liabilities

Lease liabilities (current and non-current) were broadly unchanged compared with last year and amounted to SEK 542 million (539).

Interest-bearing liabilities

Interest-bearing liabilities (current and non-current) decreased compared with last year to SEK 423 million (570). The decrease is mainly driven by initial repayments of loans related to the AutoStore expansion in 2022.

Cash flow

Cash flow for the period amounted to SEK 760 million (751). For the full year 2023, cash flow amounted to SEK -315 million (210).

Free cash flow for the fourth quarter was SEK 834 million (730) and for the full year SEK 6 million (90). The full year decline in free cash flow compared with 2022 was mainly due to changes in net working capital.

Cash flow from operations

Cash flow from operating activities amounted to SEK 861 million (833) in the quarter. The improvement compared with last year was mainly driven by the stronger result.

For the full year 2023, cash flow from operating activities amounted to SEK 130 million compared with SEK 805 million in 2022. The majority of the decline is explained by an increase in net working capital, mainly due to timing of payments, which affected 2022 favourably.

Cash flow from investments

Cash flow from investing activities amounted to SEK -28 million (-103). Of the SEK -28 million, SEK -25 million was related to development of the Group's platform. For the full year 2023, cash flow from investment was SEK -124 million (-715). As expected, the Group made limited investments in fixed assets in 2023 as the expansion of automation in the Group's current warehouse was finalised during 2022.

Cash flow from financing

Cash flow from financing activities amounted to SEK -74 million compared with SEK 21 million in Q4 2022. The decline is mainly due to last year being positively affected by the establishment of loans related to the AutoStore expansion. Furthermore, Boozt started its first share buyback program in 2023 and during Q4 2023 repurchased shares for SEK 31 million (0) in total.

For the full year 2023, cash flow from financing amounted to SEK -321 million (120). The decline for the full year compared with 2022 is also mainly due to the establishment of loans related to the AutoStore expansion in 2022 combined with the initial repayments on these loans. Finally, during 2023, Boozt repurchased own shares for SEK 89 million (0) in total as part of the share buyback program.

Boozt.com

Net revenue

In Q4 2023, net revenue from Boozt.com was SEK 2,517 million (2,079), corresponding to an increase of 21% or 19% in local currency.

Sales growth in the quarter, which was achieved despite the continued low consumer confidence, was driven by all categories illustrating the strength of the Nordic department store model. The increased category diversification also had a positive impact on return rates as the newer categories (Beauty and Home) on average have lower return rates. Revenue increased in all of Boozt's major markets compared with last year, with Denmark (+32%) being the main contributor to growth.

The average order value increased 3% to SEK 987 (956), mainly driven by currency. For the full year 2023, the average order value increased 6% to SEK 947 (890). The full-year improvement was mainly driven by the continued execution of the Nordic Department Store strategy benefiting the number of items per basket as well as currency.

Number of active customers on Boozt.com in Q4 2023 increased 8% compared with the same quarter last year to 2.7 million (from 2.5 million). The increase was driven by the Nordic countries and Balticum, which increased 8% and 44%, respectively. The increase in the Nordics was mainly driven by Denmark and Finland. Active customers in Germany and the Netherlands continued to decline for Boozt.com as growth opportunities in the Nordics and Balticum were favoured again in the fourth quarter.

True frequency was 6.0 (5.8) with cohorts displaying encouraging buying patterns despite the ongoing pressure on consumers' disposable income. Customer satisfaction remained at a high level as shown by a Trustpilot score of 4.3 (4.4) and a Net Promoter Score of 74 (74).

For the full year 2023, net revenue on Boozt.com increased 15% (or 11% in local currency) to SEK 6,448 million (5,610).

Adjusted EBIT and EBIT Adjusted EBIT increased to SEK 186 million (170) in the quarter, while the adjusted EBIT margin decreased with 0.8 percentage points to 7.4% (8.2). The margin decline was mainly due to a lower gross margin due to the aforementioned conversion of a

partner agreement.

The adjustment in the quarter amounted to SEK 40 million (12) and consisted of share-based payments.

For the full year 2023, the adjusted EBIT increased to SEK 325 million (272), while the adjusted EBIT margin increased with 0.2 percentage points to 5.0% (4.8)

EBIT for the quarter declined to SEK 146 million (158) corresponding to an EBIT margin of 5.8% (7.6). The decline was mainly due to an increase in share-based payments. For the full year 2023 EBIT was SEK 239 million (243) corresponding to an EBIT margin of 3.7% (4.3). Share-based payments for the year increased to SEK 86 million (29).

SEK million Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Change Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
Change
Boozt.com
Net revenue 2,517 2,079 21.1% 6,448 5,610 14.9%
EBIT 146 158 -7.8% 239 243 -2.0%
EBIT margin (%) 5.8% 7.6% -1.8pp 3.7% 4.3% -0.6pp
Adjusted EBIT* 186 170 9.8% 325 272 19.6%
Adjusted EBIT margin (%)* 7.4% 8.2% -0.8pp 5.0% 4.8% 0.2pp
No. of orders (000)* 2,423 2,081 16.5% 6,395 5,954 7.4%
True frequency* 6.0 5.8 3.4% 6.0 5.8 3.4%
Average order value (SEK)* 987 956 3.2% 947 890 6.4%
Active customers (000)* 2,703 2,503 8.0% 2,703 2,503 8.0%
No. of orders per active customer* 2.37 2.38 -0.5% 2.37 2.38 -0.5%

Rounding differences may affect the summations.

*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 33.

SEK million Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Change Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
Change
Boozt.com - Net revenue
Nordics 2,313 1,945 19.0% 5,983 5,252 13.9%
- of which Denmark 920 695 32.4% 2,327 1,911 21.7%
- of which Sweden 770 724 6.4% 2,091 2,015 3.8%
Rest of Europe 204 134 52.1% 465 359 29.5%
Total Net revenue 2,517 2,079 21.1% 6,448 5,610 14.9%

Booztlet.com

Net revenue

Booztlet net revenue in Q4 2023 was SEK 476 million (359) corresponding to an increase of 33% or 30% in local currency. As was the case in Q3 2023, Booztlet.com has continued to benefit from the changes made to the site earlier in the year. As part of the updated strategy to refine the outlet to become more than mainly a clearance channel for the Group, the offering on Booztlet was expanded to include more categories (Sports, Beauty and Home) as well as more never-out-of-stock (NOOS) products.

The improved results were achieved despite a continuous highly promotional market as well as the impression that the more price-conscious customer (targeted by Booztlet) has experienced a more notable relative decline in disposable income. The latter is evident from the increasing number of customers who have reduced their shopping frequency.

Revenue from the Nordics was SEK 379 million (317) and increased 20% compared with Q4 2022, while the Rest of Europe experienced a growth of 128% to SEK 97 million (43) following increased focus on the region for Booztlet.com. Growth in all regions was supported by a very successful Black Week campaign.

The number of active customers on Booztlet.com increased 7% in Q4 2023, showing that the improvements done on Booztlet.com in the second quarter continues to attract new customers. The average order value for the quarter was SEK 1,017 (861) and increased 18% compared to the same quarter last year. The positive developments over the last year are mainly driven by an increased number of items per basket supported by the broader assortment on the site following the updated strategy.

For the full year 2023, net revenue increased 15% (or 11% in local currency) to SEK 1,307 million (1,133).

Finally, as a natural consequence of the new strategy for Booztlet, including a broader and deeper offering on the site, inventory has increased. This impacts the Group's net working capital negatively but is a prerequisite to drive the higher growth rates for Booztlet. However, the majority of the investment in inventory relates to NOOS and campaign stock which has a lower inventory risk than in-season stock.

Adjusted EBIT and EBIT

Adjusted EBIT amounted to SEK 44 million (1) in the quarter, and the adjusted EBIT margin increased to 9.2% (0.3). The increase in profitability was mainly driven by the higher topline combined with the significant increase in average order value.

The adjustment in the quarter amounted to SEK 7 million (2) and consisted fully of share-based payments.

For the full year 2023, adjusted EBIT amounted to SEK 75 million (14) corresponding to an adjusted EBIT margin of 5.7% (1.2). EBIT for the fourth quarter improved compared to last year to SEK 37 million (-1) corresponding to an EBIT margin of 7.7% (-0.2). For the full year 2023, EBIT increased to SEK 61 million (10) corresponding to an EBIT margin of 4.6% (0.9).

SEK million
Oct 1 - Dec 31,
Oct 1 - Dec 31,
Change
Jan 1 - Dec 31,
2023
2022
2023
Booztlet.com
Jan 1 - Dec 31,
2022
Change
Net revenue
476
359
32.5%
1,307
1,133 15.4%
EBIT
37
-1
n.m.
61
10 511.5%
EBIT margin (%)
7.7%
-0.2%
7.9pp
4.6%
0.9% 3.8pp
Adjusted EBIT*
44
1
4174.8%
75
14 435.8%
Adjusted EBIT margin (%)*
9.2%
0.3%
9.0pp
5.7%
1.2% 4.5pp
No. of orders (000)*
456
404
13.1%
1,325
1,337 -0.9%
Average order value (SEK)*
1017
861
18.1%
955
825 15.8%
Active customers (000)*
831
775
7.2%
831
775 7.2%
No. of orders per active customer*
1.6
1.7
-7.6%
1.6
1.7 -7.6%

Rounding differences may affect the summations.

*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 33.

SEK million Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Change Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
Change
Booztlet.com - Net revenue
Nordics 379 317 19.7% 1,093 1,014 7.9%
- of which Denmark 130 111 17.1% 377 382 -1.4%
- of which Sweden 164 133 23.5% 449 401 11.9%
Rest of Europe 97 43 127.6% 214 119 79.3%
Total Net revenue 476 359 32.5% 1,307 1,133 15.4%

ESG Highlights

As the Nordic Department Store, we are dedicated to delivering a great shopping experience to our customers. In this pursuit, sustainability is a crucial building block for our long-term business success, ensuring that we meet the needs of our stakeholders. With the help of a clear vision and strategy, we intend to amplify our efforts and share best practices that can influence a more sustainable industry.

Care-For strategy

The sustainability Care-For strategy is the roadmap for how to become the leading e-commerce company in the Nordics. As part of this, Boozt has updated its Care-For strategy and goals to ensure they align with the strategic direction of the business and take into account external trends and overall development in society. To cement our efforts across the relevant areas in alignment with our commitment to the ongoing B Corp certification, Boozt's efforts are focused on four dimensions: Environment, Employees, Community and Governance. Within each dimension, Boozt is working with goal areas and has set 15 targets to support the sustainability Care-For strategy. Status on the relevant goal areas and targets can be found on page 13, 'Development per goal area'.

GOAL AREA TARGET
Reducing Greenhouse Gas
Emissions
By 2024: Set science-based targets and submit them to the Science-based
targets initiative
By 2026: Disclose 100% of relevant Scope 3 emissions categories
Minimising Waste By 2026: Increase the share of recycled waste to 80%
Driving Responsible
Production
By 2024: Develop a scorecard to assess ESG Performance in purchasing
decisions for at least 60% of our partner brands
Promoting Equality By 2024: Identify opportunites to further support the governmental parental
leave policy for all Boozt Fashion AB employees to continue to promote
equality
Engaging & Healthy Work
Environment
By 2024: Reach above 77% of the aggregated participation rate in
our internal employee survey
By 2024: Increase eNPS score to reach the TOP 10 placement in the consumer
industry
Shaping Employee
Development
By 2023: Implement a regular career development review process that
includes all Boozt Fashion AB employees
Empowering Customers By 2024: Extend ReBoozt's presence across our markets
Engaging Suppliers By 2026: Provide semi-annual events for our brand partners
By 2023: Ensure 100% of our apparel brand partners are committed to supply
chain transparency and to working with the Higg BRM tool
Involving Communities By 2024: Increase collaboration with relevant universities and research
institutions to share and learn best practices
Accelerating Transparency By 2024: Increase engagement with third-party ESG rankings and ratings
Mitigating Risks By 2026: Request at least 80% of our brand partners to identify, map and
share with us their Tier 1 and 2 suppliers
Integrating Sustainability By 2026: Increase participation to internal training on Sustainability

ESG KPIs

ESG KPIs Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
CO₂e intensity per order (kg) 0.43 0.52 0.44 0.49
Share of renewable electricity (%) 98.2 98.4 98.1 98.1
Share of recycled waste in the Fulfilment Centre (%) 74.1 68.5 74.2 60.0
Employee Net Promoter Score (eNPS) 63 45 60 42
Average aggregated participation rate of the employee
survey (%)
87 77 88 71

Notes to the ESG KPIs

CO₂e intensity per order (kg)

The CO₂e intensity per order is calculated by dividing the emissions of deliveries and returns (category Scope 3 Upstream transportation and distribution emissions) by the number of orders shipped. Emissions are reported in Well-to-Wheel (WtW). The reported value covers 99.8% of the order volume in Q4 2023 (Q4 2022: 99.5%).

Share of renewable electricity (%)

The share of renewable electricity is calculated by dividing the total renewable electricity consumption by the total electricity consumption. Renewable electricity is powered by hydropower, solar energy and wind.

Share of recycled waste in the Fulfilment Centre (%) The share of recycled waste is calculated by dividing the total recycled waste by the total waste generated. The treatment method for the remaining waste is waste-to-energy (WtE) in certified centres in Sweden, close to the Fulfilment Centre.

Employee Net Promoter Score (eNPS)

The Employee Net Promoter Score (eNPS) measures Employee Engagement at Boozt. The eNPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, the final value can range anywhere from -100 to 100. The value is calculated as the average of the quarter.

Aggregated participation rate of the employee survey (%) Calculated as the average of the quarter, the aggregated participation rate demonstrates a significant increase in Q4 2023, reaching 87% compared to 77% in Q4 2022.

Development per goal area

Environmental

Minimising Waste

• Boozt has partnered with Catena on a pilot project to assess biodiversity in preparation for the construction of a new warehouse. The project focuses on changes to biodiversity when constructing the new warehouse, as well as on options for limiting negative effects and promoting biodiversity. This pilot project is a first step to mapping the impact of Boozt's own operations on biodiversity. • In the fourth quarter, 443.4 tons of waste were recycled, which is about 74.1% of the total waste generated. In comparison with Q4 2022 (68.5%), this is a significant increase, signalling an important step towards the Care-For target of 80% recycled waste by 2026. The increase in the share of recycled waste is due to a higher amount of sorted and recycled plastic packaging and an increase in sold and reused wood.

Employees

Engaging & Healthy Work Environment

• High employee engagement with an aggregated average participation rate of 87% in Boozt's monthly employee surveys. The Employee Net Promoter Score (eNPS) of Q4 reached an average of 63 (Q4 2022: 45). Boozt's eNPS score ended in December at an alltime high of 68 placing Boozt in the top 2% of the world compared to Peakon Workdays Global Industry Peer benchmark.

Shaping Employee Development

• During the fourth quarter, Boozt had the second round of structured Development talks between managers and employees. The implementation of structured Development talks is part of Boozt's continuous desire to support its employees' development, performance and high engagement. We see internal mobility as a strategic driver and a way of preparing for the continued growth of Boozt's workforce.

Community

Empowering Customers

• Boozt deepens its commitment to responsible marketing by actively participating in a Swedish Trade Association working group focused on understanding and implementing upcoming EU Greenwashing regulations.

Involving Community

  • As part of the EU LIFE RE-ZIP project, Boozt has partnered with the Stockholm School of Economics to develop a business case that promotes circular practices among consumers. The EU LIFE RE-ZIP project aims to establish a comprehensive international infrastructure for circular packaging in the e-commerce sector.
  • Boozt has collaborated with Lund University on a case study focused on the changing marketing landscape in light of the upcoming EU Greenswashing Directive in relation to the Made With Care shop.

Engaging Suppliers

  • Higg BRM joint effort: Boozt has nominated and contacted 147 brands representing 68% of our business volume to complete the Higg BRM 2022. Out of the 147 brand partners contacted, 69 completed the Higg BRM, representing 44% of Boozt's business volume in the apparel and footwear segment.
  • Boozt co-hosted the first Fashion Transparency Summit together with Fashion Cloud and several Europe's leading retailers. Over 150 industry leaders, professionals, and sustainability experts gathered in Amsterdam for a day focused on the need for sustainabilityrelated data.

Governance

Accelerating Transparency

  • Boozt scored 33 (out of 100) in the 2023 S&P Global Corporate Sustainability Assessment (2022: 25 (out of 100)). The average score within the industry group for retailing is 19.
  • In 2023, Boozt actively engaged with Sustainalytics for the first time, providing feedback for the management indicator report as part of the comprehensive framework research process. Boozt's ESG Risk Rating falls within the medium risk category, with a score of 22.2, representing a slight improvement from previous years' assessment of 22.8.
  • Boozt has engaged with and provided feedback to Carnegie's sustainability guide 2023. Carnegie's sector-based ESG ranking has been developed to promote sustainability work and reporting among the companies in their coverage. In 2023, Boozt ranked Top 3 in the sector "Specialty stores & retail" with a score of 72%. This is an improvement from rank 6 with a score of 69% in 2022.

Mitigating Risks

  • With the goal of ensuring the Board of Directors' expertise in the CSRD's requirements, Boozt organized a training session conducted by Boozt's auditors to enhance the board members' ability to effectively manage the CSRD implications.
  • To prepare for the implementation of the CSRD, Boozt initiated the process of conducting a comprehensive gap analysis and double materiality assessment. This evaluation aims to identify any gaps between current practices and CSRD requirements and to ensure that Boozt adequately identifies and addresses the company's most significant ESG impacts.

Integrating Sustainability

• In December, Boozt's Sustainability team hosted a series of informative lunches where employees had the opportunity to ask questions, share their thoughts, and gain a deeper understanding of Boozt's sustainability strategy. These open forums facilitated transparency and encouraged employee participation in the company's sustainability journey.

Outlook

Outlook 2024

For the full year 2024, Boozt expects a net revenue growth in the range of 5-15% and an adjusted EBIT margin of 5.2-6.0%

Revenue growth for 2024 is expected to be supported by market share gains as well as an increase in online penetration across Boozt's product categories.

Boozt expects the market to continue to be volatile, however, the outlook assumes a stable to improving consumer confidence following two difficult years.

Profitability is expected to continue to benefit from economies of scale as well as potential cost initiatives across the Group.

CAPEX for 2024 is expected to be in the range of SEK 150-250 million. This will mainly be related to IT development costs as expansion of the Company's fulfilment capacity is not expected to commence before 2025.

The outlook for 2024 assumes that the exchange rates will remain at the current level. Assuming current exchange rates versus the Swedish Krona, the impact from currency on revenue growth is expected to be around -1%.

Long-term growth and profitability ambitions In connection with the Capital Markets Day on March 28, 2023 the Group announced updated long-term ambitions for growth and profitability.

Long-term growth and profitability ambitions:

  • Market share around 10% of the fashion and lifestyle market in the Nordics
  • Profitability: Adjusted EBIT margin exceeding 10%

Boozt has successfully managed to grow net revenue significantly faster than the Nordic market since 2017. The market in the Nordics remains attractive and the company expects to continue the accelerated market share gains supported by the position as the leading Nordic Department Store.

When the Company's growth rate is in line with the Nordic online fashion and lifestyle market, Boozt believes that its business model with best-in-industry unit economics will result in dou ble-digit margins and strong cash generation. However, the target to reach an adjusted EBIT margin of 10% is the ambition already in five years.

Other information

Significant events during the fourth quarter Norwegian Tax Agency appealed Oslo Tingrett's verdict On 6 October, the verdict in the case between Boozt Fashion AB and the Norwegian Tax Authority (case number: 23-029281TVI-TOSL/02) was appealed by the Tax Authority to Lagmannsretten.

The case concerns the validity of the Norwegian Tax Agency's decision on September 30, 2022 to reject Boozt's application for simplified registration for value added tax.

The appeal court in Lagmannsretten is planned for March 2024. Boozt currently has no information about when Lagmannsretten may be expected to issue a verdict in the case.

Nomination Committee appointed On 9 October, the Nomination Committee was formed in accord ance with the principles adopted by the Annual General Meeting and has the following composition:

-

  • Anders Lund (appointed by BLS Capital), Chairman of the Nomination Committee
  • Joakim Gjersøe (appointed by Ferd AS)
  • Claus Wiinblad (appointed by ATP)
  • Henrik Theilbjørn, Chairman of the Board of Boozt AB (publ)

The Nomination Committee submits proposals to the AGM regarding the composition of the Board, remuneration of the Board, election of auditors and auditor fees.

Guidance upgraded

Boozt upgraded its financial guidance on 7 November in connec tion with the Q3 2023 interim report. Revenue growth guidance was increased to 11-15% (previously 7.5-12.5%) while guidance for the adjusted EBIT margin was increased to SEK 350-390 million (previously SEK 300-350 million).

Subsequently, on 28 November following a strong Black Friday week, the guidance was updated to net revenue growth of 13-15% and adjusted EBIT of SEK 370-390 million.

BOOZT GROUP

Repurchase program of own shares

On June 21, 2023 the Board of Directors initiated a share buyback program. The purpose of the program was to enable Boozt to adapt its capital structure to its capital needs over time and thereby contribute to an increased shareholder value.

During the fourth quarter of 2023, 288,949 shares were pur chased within the program, corresponding to SEK 32 million.

The total amount used for the repurchase program is SEK 89 million as per the date of the release of this report corresponding to 854,319 shares. As per the date of this report, the number of treasury shares was 2,599,186 whereof 1,744,867 are C-shares.

INTERIM FINANCIAL REPORT Q4 2023

The intention is that the repurchased shares shall be cancelled through resolutions by future general meetings. The total number of shares that may be repurchased may not result in that the Company's shareholding (including holdings of C-shares) exceeds 10 per cent of the total number of shares in the Company at any given time and the amount to be paid for repurchased shares may in the aggregate not exceed SEK 200 million.

The program was initiated on 21 June 2023 and repurchases may be made at the longest until the annual general meeting 2024 on 25 April.

Significant events after the reporting date There have been no significant events after the reporting date.

Dividends

The Board of Directors proposes to the annual general meeting 2024 that no dividends are paid to the shareholders for the finan cial year 2023.

Annual General Meeting

Boozt's Annual General Meeting will be held on Wednesday April 25, 2024, at 08:00 CET at Setterwalls Advokatbyrå, Stortorget 23, 211 34 Malmö, Sweden. Notice to attend the AGM along with proposals from the Nomination Committee will be published on the company's website no later than March 28, 2024.

Employees

Number of employees was 1,176 (1,246) at the end of the period equivalent to a decrease of 6%. The decline was partly facilitated by an increased use of consultants at the warehouse operations to ensure flexibility of the workforce.

Seasonal variances

Seasonal variances affect the Group since purchases are cyclical and inventories are built up before each season. However, each quarter is comparable between years. Traditionally the fourth quarter has the highest net revenue, whereas the first quarter has the lowest. Inventory levels in the industry can be affected by an early or late start to the season impacting the promotional activities needed to clear inventory. To illustrate the long-term development trend the Group reports rolling twelve months' figures, where applicable.

Parent company

Boozt AB (publ), Corp. Id. No. 556793-5183, is the parent company of the Group. Boozt AB (publ) is incorporated and registered in Sweden.

Since May 31, 2017, Boozt AB (publ) has been listed on Nasdaq Stockholm and since November 20, 2020, secondary listed on Nasdaq Copenhagen. Since January 3, 2022, Boozt AB (publ) has been traded on Nasdaq Large Cap. The address to the head office is Hyllie Boulevard 35, 215 37 Malmö, Sweden.

Net revenue of the parent company amounted to SEK 82 million (34) during the quarter. The parent company has invoiced fees for management services in accordance with the Group's intracompany agreements to other Group companies during the period. Costs for the period are mainly attributable to costs related to personnel costs for the Group Management and remuneration to the Board of Directors. The result for the quarter totalled SEK 27 million (1) and SEK 27 million (1) for the full year 2023.

Risks and uncertainties

Boozt has developed a risk management framework with the purpose to strengthen the structure of how risk management is carried out throughout the Group. Identified risks are reviewed by the Board of Directors continuously. No recognisable risk for the Group's ability to continue as a going concern has been identified. All identified risks as well as the risk management process is described in the Group's Annual Report 2022 on pages 36-38. No additional risk has been identified as of December 31, 2023.

The Boozt share

The Boozt share is listed on Nasdaq Stockholm with secondary listing on Nasdaq Copenhagen. The Boozt share is traded on Nasdaq Stockholm under the ticker BOOZT and Nasdaq Copenhagen under the ticker BOOZT DKK. The ISIN-code for the Boozt share is SE0009888738.

The combined average turnover of the Boozt share on Nasdaq Stockholm and Nasdaq Copenhagen was 217,438 shares per day during Q4 2023 compared to 332,710 shares per day in the same quarter last year. As per December 31, 2023, the company had around 16,800 shareholders, whereof the largest shareholders were BLS Capital (24.5%), Ferd (12.1%) and ATP (5.0%).

The market value for the Company as per December 31, 2023 amounted to SEK 9,240 million. The total number of shares at the end of the reporting period amounted to 68,289,488, of which 2,599,186 shares are held in own custody (854,319 A shares and 1,744,867 C shares). More information of the Group's share capital can be found in the Annual report 2022 on page 107, or from March 22, 2024 in the Annual report 2023. Beyond shares,

the Company has issued long-term incentive programs where participants can receive or have the right to receive or acquire shares under specific terms and conditions.

Long-term incentive program

The Group has currently three ongoing long-term incentive programs directed to senior executives and key employees within the Group. LTIP 2021/2024, LTIP 2022/2025 and LTIP 2023/2026 are performance share programs where the maximum number of shares that can be granted to the participants amounts to 2,480,000. No programs have been implemented or expired during the quarter.

The programs contain different performance criterions and con straints. More information of the Groups long-term incentive pro grams can be found in the Annual report 2022 on pages 99-100.

Related party transactions

Boozt's related parties and the extent of transactions with its related parties are described in Note 26 in the Annual Report 2022. No material changes occurred during the quarter or the year for the Group or the parent company in relations or extent of transactions with its suppliers, classified as related parties, compared with the disclosures in the Annual Report 2022.

There have not been any transactions with members of Group Management during the quarter.

Financial Statements

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 17

Consolidated income statement Consolidated statement

of comprehensive income

SEK million unless otherwise indicated Note Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
OPERATING INCOME
Net revenue 2 2,993 2,438 7,755 6,743
Total operating income 2,993 2,438 7,755 6,743
OPERATING COSTS
Goods for resale -1,872 -1,505 -4,717 -4,077
Other external costs -608 -529 -1,669 -1,520
Cost of personnel -266 -193 -812 -676
Depreciation and amortisation of tangible and intangible
assets
-64 -59 -252 -222
Other operating costs -1 5 -6 4
Total operating costs -2,811 -2,281 -7,456 -6,490
OPERATING PROFIT (EBIT) 2 183 158 299 253
FINANCIAL INCOME AND EXPENSES
Financial income 8 5 24 5
Financial expenses 3 -12 -7 -52 -22
Net financial items -4 -2 -27 -17
PROFIT BEFORE TAX 2 179 155 272 236
Income tax -36 -32 -39 -50
PROFIT FOR THE PERIOD 143 123 233 186
Average number of shares (000) 68,289 67,468 68,096 67,374
Average number of shares after dilution (000) 69,289 68,318 68,983 68,056
Earnings per share (SEK) 2.10 1.83 3.43 2.76
Earnings per share after dilution (SEK) 2.07 1.81 3.38 2.73
SEK million Note Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
PROFIT FOR THE PERIOD 143 123 233 186
ITEMS THAT MAY BE RE-CLASSIFIED TO THE INCOME
STATEMENT:
Translation differences -16 9 -3 36
TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD 128 132 230 222
ATTRIBUTABLE TO
Parent company's shareholders 128 132 230 222

Rounding differences may affect the summations.

Consolidated statement of financial position

SEK million unless otherwise indicated Note Dec 31, 2023 Dec 31, 2022 SEK million unless otherwise indicated Note Dec 31, 2023 Dec 31, 2022
ASSETS EQUITY AND LIABILITIES
Non-current assets EQUITY
Intangible assets Share capital 6 6
Trademarks 4 93 94 Other capital contributions 2,307 2,230
Goodwill 4 298 300 Reserves 36 39
Web platform 4 205 165 Retained earnings including profit for the period 372 228
Total intangible assets 596 558 Total equity 2,721 2,503
Tangible assets Non-current liabilities
Right of use asset 526 526 Non-current interest bearing liabilities 3 326 402
Machinery and equipment 4 785 866 Non-current lease liabilities 3 456 457
Total tangible assets 1,311 1,393 Other non-current liabilities 3 - 0
Other non-current provisions 22 30
Other assets Deferred tax liabilities 19 19
Deposits 8 8 Total non-current liabilities 824 908
Shares in associated companies 15 27
Deferred tax asset 18 6 Current liabilities
Total other assets 42 42 Current interest bearing liabilities 3 97 168
Total non-current assets 1,948 1,992 Current lease liabilities 3 86 81
Accounts payable 3 1,140 1,385
Current assets Current tax liabilities 52 82
Inventory 2,281 2,039 Other liabilities 3 527 386
Accounts receivable 3 41 30 Accrued expenses and prepaid income 513 479
Other receivables 3 147 69 Total current liabilities 2,415 2,581
Current tax receivables 7 2 Total liabilities 3,239 3,490
Prepaid expenses and accrued income 70 84 TOTAL EQUITY AND LIABILITIES 5,959 5,992
Cash and cash equivalents 3 1,463 1,777
Total current assets 4,010 4,000
TOTAL ASSETS 5,959 5,992

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 19

Consolidated statement of changes in equity

SEK million Share capital Other capital
contributions
Reserves Profit brought forward incl.
period's profit/loss for the year
Total equity attributable to
parent company shareholders
Non-controlling
interest
Total equity
Equity brought forward Jan 1, 2022 6 2,202 4 -35 2,177 121 2,298
Profit for the period - - - 186 186 - 186
Other comprehensive income - - 36 - 36 - 36
COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD 0 0 36 186 222 0 222
Share capital increase 0 - - -0 - - -
Sharebased compensation - 28 - - 28 - 28
Acquisition of non-controlling interest - - - 77 77 -121 -45
Total transaction with owners 0 28 0 77 104 -121 -17
Equity carried forward Dec 31, 2022 6 2,230 39 228 2,503 0 2,503
SEK million Share capital Other capital contributions Reserves Profit brought forward incl.
period's profit/loss for the year
Total equity attributable to parent
company shareholders
Non-controlling interest Total equity
Equity brought forward Jan 1, 2023 6 2,230 39 228 2,503 0 2,503
Profit for the period - - - 233 233 - 233
Other comprehensive income - - -3 - -3 - -3
COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD 0 0 -3 233 231 0 231
Share capital increase 0 - - -0 - - 0
Sharebased compensation - 77 - - 77 - 77
Share buyback - - - -89 -89 - -89
Total transaction with owners 0 77 0 -89 -12 0 -12
Equity carried forward Dec 31, 2023 6 2,307 37 372 2,721 0 2,721

Rounding differences may effect the summations

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

Consolidated statement of cash flow

SEK million Note Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
SEK million
Note
Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN
WORKING CAPITAL
CASH FLOW FROM INVESTING ACTIVITIES
Operating profit 183 158 299 253 Acquisition of subsidiaries, net liquidity effect
4
-0 -9 -3 -195
Investments in fixed assets
4
-4 -75 -21 -446
Adjustments for non-cash items: Change in financial assets
4
1 1 -0 0
Non-cash remuneration from share based payments (social charges) 13 8 -5 -17 Investments in intangible assets
4
-25 -20 -100 -74
Non-cash remuneration from share based payments 34 -2 77 28 CASH FLOW FROM INVESTING ACTIVITIES
4
-28 -103 -124 -715
Change in other provisions -0 6 -0 -5
Depreciation 65 59 252 222 CASH FLOW FROM FINANCING ACTIVITIES
Other items not included in cash flow - 1 - 1 Share buyback -31 - -89 -
Interest received 8 5 24 5 New loans - 69 58 453
Interest paid 3 -12 -7 -39 -22 Repayments of loans -24 -28 -205 -256
Paid income tax -12 -5 -86 20 Repayments of lease liability -18 -20 -84 -77
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN
WORKING CAPITAL
280 222 521 485 CASH FLOW FROM FINANCING ACTIVITIES -74 21 -321 120
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Changes in inventory 796 202 -243 -307 Cash flow for the period 760 751 -315 210
Changes in current assets 60 51 -76 62 Currency exchange gains/losses in cash and cash equivalents -2 2 0 2
Changes in current liabilities -274 358 -72 564 Cash and cash equivalents beginning of period 704 1,024 1,777 1,565
Cash flow from changes working capital 582 611 -392 320 CASH AND CASH EQUIVALENTS END OF PERIOD 1,462 1,777 1,463 1,777
CASH FLOW FROM OPERATING ACTIVITIES 861 833 130 805

Rounding differences may affect the summations.

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 21

Note 1 - Accounting principles

The report is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish annual Accounts Act. Information required by IAS 34 p.16 A is provided in notes and other sections in the interim report. The accounting principles and calculations method have remained unchanged from those applied in the 2022 Annual Report. Amended or new standards taking effect from January 1, 2023 have not had any material impact on the Group's financial reports for the period.

The Group has carried out a reassessment of the useful lives of selected parts of the Group's fixed assets that mainly relates to the AutoStore installations. The reassessment is carried out to better reflect the actual useful life on a component level based on the experience obtained after operating our AutoStore setup for the past six years. In addition, we have performed a benchmark for companies operating similar setups.

By extending the useful lives, the Group assesses a higher degree of comparability of EBIT towards industry peers. In conclusion, the positive impact on yearly depreciation on a like-for-like basis is in the level SEK 25 million, compared to 2022. The impact for Q4 2023 is SEK 6.25 million and SEK 25 million for the full year 2023.

Important estimates and assessments

Preparation of the financial reports in accordance with IFRS requires management to make assessments and estimates and assumptions that affect application of the accounting policies and the recognised amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and assumptions are continually evaluated. Changes in estimates are recognised in the period the change is made if the change only affected that period or in the period the change is made and in future periods if the change affects both current and future periods.

Important estimates and assessments are disclosed in the 2022 Annual Report on page 95.

Parent company

For the Parent Company Boozt AB (publ), the financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The reporting currency is SEK and all figures in the interim report are rounded to the nearest million with one decimal point.

Note 2 - Segment reporting

SEK million Oct 1 - Dec 31,
2023
Oct 1 - Dec 31,
2022
Change Jan 1 - Dec 31,
2023
Jan 1 - Dec 31,
2022
Change
NET REVENUE
Boozt.com 2,517 2,079 438 6,448 5,610 838
Booztlet.com 476 359 117 1,307 1,133 174
TOTAL NET REVENUE 2,993 2,438 555 7,755 6,743 1,012
EBIT
Boozt.com 146 158 -12 239 243 -5
Booztlet.com 37 -1 37 61 10 51
TOTAL EBIT 183 158 25 299 253 46
EARNINGS BEFORE TAX
Boozt.com 143 156 -13 211 229 -18
Booztlet.com 35 -1 36 62 7 54
EARNINGS BEFORE TAX 179 155 23 272 236 36

Rounding differences may affect the summations.

PAGE – 22

Note 3 - Financial instruments

Dec 31, 2022 Finacial assets
valued at
amortised cost
Finacial liabilities
valued at
amortised cost
Financial instruments
measured at fair value
via income statement
Total carrying amount Fair value Calculation of fair value
Financial assets
Deposits 8 - - 8 8
Accounts receivables 30 - - 30 30
Other receivables 69 - - 69 69
Cash and cash equivalents 1,777 - - 1,777 1,777
Total financial assets 1,884 0 0 1,884 1,884
Financial liabilities
Liabilities to credit institutions - 570 - 570 570
Accounts payables - 1,385 - 1,385 1,385
Other liabilities - 386 2 388 388
Lease liabilities - 539 - 539 539
Total financial liabilities 0 2880 2 2882 2882 via income statement
Dec 31, 2023 Finacial assets
valued at
amortised cost
Finacial liabilities
valued at
amortised cost
Financial instruments
measured at fair value
via income statement
Total carrying amount Fair value
Financial assets
Deposits 8 - - 8 8
Accounts receivables 41 - - 41 41
Other receivables 147 - - 147 147
Cash and cash equivalents 1,463 - - 1,463 1,463
Total financial assets 1,660 0 0 1,660 1,660
Financial liabilities
Liabilities to credit institutions - 423 - 423 423
Accounts payables - 1,140 - 1,140 1,140
Other liabilities - 525 2 527 527
Lease liabilities - 542 - 542 542
Total financial liabilities 0 2,630 2 2,632 2,632

The Group has derivative instruments that comprise of foreign exchange forward used for hedging purposes, which are measured at fair value according to Level 2 of the valuation hierarchy. Derivative liabilities amount to SEK 0.2 million (0.0). Other financial liabilities measured at fair value via income statement consists of earn-out from acquisitions of operations of SEK 2 million (5), of which some parts are conditional. Other financial

liabilities measured at fair value can be found at Level 3 of the valuation hierarchy. The Group's other financial assets and liabilities are considered to be close to the carrying amount, after which the carrying amount is estimated to be the same as the fair value. For a more detailed description of the Group's classification and valuation of financial instruments please see Note 1 on page 94 and Note 28 on page 111 in the Annual Report 2022.

SEK million Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
Interest income 8 5 24 5
Interest expenses -6 -5 -27 -14
Interest expense leases -4 -2 -12 -8
Net change in value of receivables measured at fair value
via income statement
-1 - -13 -
Total net financial items -4 -2 -27 -17

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

Note 4 - Investments

SEK million Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
Acquisition of fixed assets (other capex) -0 -0 -6 -9
Acquisition of fixed assets (warehouse capex) -4 -75 -15 -436
-4 -75 -21 -446
Acquisition of operations -0 -9 -3 -195
Change in financial assets 1 1 -0 0
1 -8 -3 -195
Acquisition of intagible assets (capitalised development costs) -25 -19 -93 -72
Acquisition of intagible assets (other) 0 -1 -7 -2
-25 -20 -100 -74
Cash flow from investments -28 -103 -124 -715
  • Acquisition of fixed assets (warehouse capex) relates to the expansion phases of AutoStore at the Fulfilment Centre.
  • Acquisition of operations refers to earn out payments regarding the acquisition of operation of Boozt Technology Baltics UAB.
  • Acquisition of intangible assets relates to capitalised development costs on the Group's own developed platforms.

Parent company income statement

SEK million unless otherwise indicated Oct 1 - Dec 31, 2023 Oct 1 - Dec 31, 2022 Jan 1 - Dec 31, 2023 Jan 1 - Dec 31, 2022
OPERATING INCOME
Net revenue 82 34 166 90
Total operating income 82 34 166 90
OPERATING COSTS
Other external costs -2 -3 -9 -9
Cost of personnel -70 -32 -160 -90
Total operating costs -73 -35 -169 -99
OPERATING PROFIT (EBIT) 9 -2 -3 -9
FINANCIAL INCOME AND EXPENSES
Financial income 0 0 27 0
Financial expenses 0 -0 0 -0
Net financial items 0 -0 27 -0
PROFIT AFTER FINANCIAL ITEMS 10 -2 24 -9
Group contributions 18 3 3 10
RESULT BEFORE TAX 27 1 27 1
Income tax -0 0 -0 0
PROFIT FOR THE PERIOD 27 1 27 1

Rounding differences may affect the summations.

Parent company financial position

SEK million Dec 31, 2023 Dec 31, 2022
ASSETS
Non-current assets
Shares in Group companies 831 1,138
Shares in associated companies 27 27
Deferred tax asset 0 0
Total non-current assets 858 1,165
Current assets
Other receivables 0 0
Receivables from Group companies 1,078 797
Current tax assets -0 0
Prepaid expenses and accrued income 1 0
Cash and cash equivalents 36 5
Total current assets 1,114 802
TOTAL ASSETS 1,973 1,967
SEK million Dec 31, 2023 Dec 31, 2022
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 6 6
6 6
Unrestricted equity
Share premium reserve 2,182 2,136
Retained earnings -355 -267
Earnings for the period 27 1
1,854 1,871
TOTAL EQUITY 1,860 1,876
LIABILITIES
Non-current liabilities
Other provisions 14 19
Total non-current liabilities 14 19
Current liabilities
Accounts payable 1 0
Liabilities to Group companies 38 38
Other liabilities 17 8
Accrued expenses and prepaid income 43 26
Total current liabilities 98 72
TOTAL LIABILITIES 113 91
TOTAL EQUITY AND LIABILITIES 1,973 1,967

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

Signatures

The undersigned certifies that this interim report gives a true and fair overview of the Parent Company's and the Group's operations, financial position, performance and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.

Malmö, February 8, 2024

HERMANN HARALDSSON GROUP CEO In accordance with authorization given by the Board of Directors

Review Report

BOOZT AB (PUBL), CORP. ID: 556793-5183

Introduction

We have reviewed the interim report for Boozt AB (publ) for the period January 1 – December 31, 2023. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Malmö, February 8, 2024 Deloitte AB

Didrik Roos Authorized Public Accountant

Additional information

Information by quarter

SEK million unless otherwise indicated Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
NET REVENUE
Boozt.com 2,517 1,272 1,381 1,279 2,079 1,116 1,277 1,139 1,698 1,032 1,271 938
Booztlet.com 476 278 307 246 359 212 276 285 270 200 206 200
NET REVENUE 2,993 1,550 1,687 1,525 2,438 1,328 1,553 1,424 1,968 1,232 1,476 1,137
OPERATING PROFIT/LOSS (EBIT)
Boozt.com 146 38 49 6 158 32 49 4 113 11 67 45
Booztlet.com 37 15 17 -8 -1 4 16 -9 5 -4 14 13
OPERATING PROFIT/LOSS (EBIT) 183 53 66 -2 158 36 65 -5 118 7 81 58
OPERATING PROFIT/LOSS (EBIT) %
Boozt.com 5.8% 3.0% 3.6% 0.4% 7.6% 2.9% 3.8% 0.3% 6.7% 1.1% 5.3% 4.8%
Booztlet.com 7.7% 5.3% 5.6% -3.3% -0.2% 1.7% 5.6% -3.0% 1.8% -1.8% 6.6% 6.7%
OPERATING PROFIT/LOSS (EBIT) % 6.1% 3.4% 3.9% -0.2% 6.5% 2.7% 4.2% -0.3% 6.0% 0.6% 5.5% 5.1%
EARNINGS BEFORE TAX
Boozt.com 144 24 41 2 157 28 45 1 107 6 65 42
Booztlet.com 36 14 21 -9 -1 3 15 -9 4 -4 12 13
EARNINGS BEFORE TAX 181 37 62 -6 156 30 59 -9 111 2 77 55
ADJUSTED EBIT
Boozt.com 186 50 68 22 170 24 63 16 141 26 85 54
Booztlet.com 44 18 18 -5 1 2 18 -7 9 -1 16 15
ADJUSTED EBIT 230 67 86 17 171 25 81 9 149 24 100 69
ADJUSTED EBIT %
Boozt.com 7.4% 3.9% 4.9% 1.7% 8.2% 2.1% 4.9% 1.4% 8.3% 2.5% 6.7% 5.7%
Booztlet.com 9.2% 6.3% 5.9% -2.0% 0.3% 0.9% 6.5% -2.4% 3.3% -0.6% 7.5% 7.6%
ADJUSTED EBIT % 7.7% 4.3% 5.1% 1.1% 7.0% 1.9% 5.2% 0.6% 7.6% 2.0% 6.8% 6.0%

Rounding differences may affect the summations.

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

Information by quarter

SEK million unless otherwise indicated Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3
2021
Q2
2021
Q1
2021
EBIT MARGIN (%)
Gross margin (%) 37.5% 39.8% 42.3% 38.5% 38.3% 40.1% 41.3% 39.3% 41.0% 40.4% 39.9% 40.3%
Fulfillment cost ratio (%) -9.5% -10.7% -11.2% -12.1% -10.5% -11.6% -11.4% -12.6% -12.1% -12.2% -11.4% -11.1%
Marketing cost ratio (%) -10.0% -10.5% -11.1% -10.0% -10.7% -11.4% -11.0% -11.0% -10.2% -12.0% -9.6% -10.6%
Admin & other cost ratio (%) -9.7% -11.1% -12.3% -12.5% -8.2% -10.3% -11.3% -12.2% -10.4% -12.0% -10.8% -10.1%
Depreciation (%) -2.1% -4.1% -3.7% -4.0% -2.4% -4.2% -3.5% -3.8% -2.4% -3.5% -2.6% -3.3%
EBIT MARGIN (%) 6.1% 3.4% 3.9% -0.2% 6.5% 2.7% 4.2% -0.3% 6.0% 0.6% 5.5% 5.1%
Adjusted admin & other cost ratio (%) -8.1% -10.2% -11.1% -12.5% -7.7% -11.0% -10.2% -11.3% -8.8% -10.7% -9.5% -9.2%
Net working capital - percent of LTM net revenue 4.1% 12.9% 11.1% 9.7% -1.6% 8.4% 9.6% 7.7% 4.8% 9.7% 7.5% 7.8%
BOOZT.COM
No. of orders (000) 2,423 1,228 1,447 1,297 2,081 1,184 1,413 1,277 1,943 1,200 1,574 1,163
True frequency 6.0 7.0 6.8 6.9 5.8 7.0 6.6 6.9 5.9 6.9 6.3 6.7
Average order value (SEK) 987 954 893 938 959 872 853 838 837 807 803 815
Active customers (000) 2,703 2,522 2,503 2,508 2,503 2,471 2,477 2,531 2,503 2,331 2,257 2,158
No. of orders per active customer 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.3 2.4 2.3 2.3
BOOZTLET.COM
No. of orders (000) 456 272 339 258 404 247 342 345 361 264 292 277
Average order value (SEK) 1,017 989 872 920 861 833 791 810 723 714 669 705
Active customers (000) 800 775 753 748 775 738 733 691 657 594 564 539
No. of orders per active customer 1.6 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8
NET REVENUE - GEOGRAPHICAL SPLIT
Nordics 2,692 1,433 1,555 1,396 2,261 1,254 1,453 1,297 1,803 1,148 1,367 1,051
- of which Denmark 1,050 534 590 531 806 455 540 492 703 437 530 459
- of which Sweden 935 516 575 515 857 511 560 488 644 446 499 355
Rest of Europe 301 117 132 128 177 75 100 127 165 84 110 86
TOTAL NET REVENUE 2,993 1,550 1,687 1,525 2,438 1,328 1,553 1,424 1,968 1,232 1,476 1,137

BOOZT GROUP

INTERIM FINANCIAL REPORT Q4 2023

PAGE – 30

Definitions and rationale for the use of certain Alternative Performance Measures (APM)

The quarterly report contains certain performance measures that are not defined in accordance with IFRS (alternative performance measures). The performance measures included are used by investors, securities analysts and other stakeholders as additional measures of performance and financial position. The Group's alternative performance measures are not necessarily comparable to similar measurements presented by other companies and have certain limitations as analytical tools. They should therefore not be considered separately from, or as a substitute for, the Group's financial information prepared in accordance with IFRS.

Definitions, calculations, and rationale behind the use of included alternative performance measures are available on the Group's website www.booztgroup.com/reports-and-presentations, "Q4 Report 2023" – "Key financials".

Financial calendar

March 22, 2024 Annual report 2023

April 25, 2024 Annual General Meeting 2024

April 26, 2024 Interim Financial Report for Q1 2024

August 16, 2024 Interim Financial Report for Q2 2024

November 5, 2024 Interim Financial Report for Q3 2024

Financial reports

Consolidated financial statements are available at www.booztgroup.com. Boozt AB (publ) is a public limited company. In case of enquiries or questions to the Group, please contact:

Magnus Thorstholm Jensen, Head of Investor Relations [email protected] / +45 30 50 44 02

Sandra Gadd, Group CFO [email protected] / +46 768 27 61 18

The interim report is such information as Boozt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on February 8, 2024.

This report may contain forward-looking information that is based on the present expectations of Boozt's management. No assurance may be given that these expectations will prove to be correct. Actual outcomes may deviate significantly from what is reflected in the forward-looking information due to changed conditions relating to the economy, market or competition, changes in legal requirements and other political measures, fluctuations in exchange rates and other factors outside of Boozt's control.

Contact details

Adress: Hyllie Boulevard 35 215 37 Malmö, Sweden Phone: +46 40 12 80 05

E-mail: [email protected] www.booztgroup.com

Org. nr: 556793-5183 VAT nr: SE556793518301

Talk to a Data Expert

Have a question? We'll get back to you promptly.