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Boozt
Quarterly Report • Apr 27, 2023
2896_10-q_2023-04-27_b09094bb-4341-41ef-8047-fcbfc2db5095.pdf
Quarterly Report
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Interim Financial Report Q1 2023
January 1 - March 31, 2023
Contents
| Group - Key performance indicators (KPIs) | 5 |
|---|---|
| Group Development | 6 |
| Group Development - ESG Highlights | 8 |
| Development by segment | 10 |
| Other information | 13 |
| Consolidated income statement | 15 |
| Consolidated statement of comprehensive income | 15 |
| Consolidated statement of financial position | 16 |
| Consolidated statement of changes in equity | 17 |
| Consolidated statement of cash flow | 18 |
| Note 1 - Accounting principles | 19 |
| Note 2 - Segment reporting | 19 |
| Note 3 - Financial instruments | 20 |
| Note 4 - Investments | 21 |
| Parent company income statement | 22 |
| Parent company financial position | 23 |
| Additional information | 25 |
| Information by quarter | 26 |
| Definitions and rationale for the use of certain Alternative Performance Measures (APM) |
28 |
| Financial calendar | 29 |
First Quarter Highlights
Financials
- Net revenue of SEK 1,525 and a net revenue growth of 7.1% (local currency 4.2%). Net revenue growth of 12.3% for Boozt.com and -13.7% for Booztlet.com
- Gross margin of 38.5% (39.3)
- Adjusted EBIT margin of 1.1% (0.6)
- Earnings per share before dilution of SEK -0.07 (-0.11)
- Free cash flow of SEK -731 million (-502)
- Cash and cash equivalents of SEK 965 million (1,119)
Significant events
- 2023 outlook of 5-15% net revenue growth and an adjusted EBIT between SEK 275-375 million
- Boozt announced long-term growth and profitability ambitions
Significant events after the period
• No significant events have occurred after the reporting date
| SEK million unless otherwise indicated | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change |
|---|---|---|---|
| GROUP | |||
| Net revenue | 1,524.6 | 1,424.0 | 7.1% |
| Gross profit | 586.3 | 559.6 | 4.8% |
| EBIT | -2.5 | -4.8 | -49% |
| Adjusted EBIT* | 17.0 | 8.8 | 93.5% |
| Earnings for the period | -4.9 | -7.6 | -35% |
| Free cash flow* | -730.6 | -502.0 | 45.5% |
| Net revenue growth (%) | 7.1% | 25.2% | -18.1 pp |
| Gross margin (%)* | 38.5% | 39.3% | -0.8 pp |
| EBIT margin (%) | -0.2% | -0.3% | 0.2 pp |
| Adjusted EBIT margin (%)* | 1.1% | 0.6% | 0.5 pp |
Rounding differences may affect the summations.
*The figure is an Alternative Performance Measure, for further information see page 28.
| Outlook for 2023 | Outlook as of February 10, 2023 |
|---|---|
| Net revenue growth | Between 5-15% |
| Adjusted EBIT* | SEK 275-375 million |
The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.
*The Adjusted EBIT outlook for 2023 is positively impacted by 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 market practice and by doing so the Group assesses a higher degree of comparability of EBIT towards industry peers. Compared to 2022, the positive impact on yearly depreciation on a like-for-like basis is in the level SEK 25 million.
"The first quarter of 2023 showcases solid growth and industryleading profitability, despite muted consumer spending. I remain optimistic about our Nordic Department Store strategy, and see ample opportunities for growth. I am proud of our team's resilience in tackling challenges and driving our business forward. I am pleased that we are able to reconfirm our outlook for 2023."
Co-founder & CEO Hermann Haraldsson
Group - Key performance indicators (KPIs)
| SEK million unless otherwise indicated | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 months |
|---|---|---|---|---|
| GROUP | ||||
| Net revenue | 1,524.6 | 1,424.0 | 7.1% | 6,844.0 |
| Net revenue growth (%) | 7.1% | 25.2% | -18.1pp | 12.2% |
| Gross profit | 586.3 | 559.6 | 4.8% | 2,693.6 |
| Gross margin (%)* | 38.5% | 39.3% | -0.8pp | 39.4% |
| Fulfilment cost ratio (%)* | -12.1% | -12.6% | 0.5pp | -11.3% |
| Marketing cost ratio (%)* | -10.0% | -11.0% | 1.0pp | -10.8% |
| Admin & other cost ratio (%)* | -12.5% | -12.2% | -0.2pp | -10.2% |
| Depreciation cost ratio (%)* | -4.0% | -3.8% | -0.2pp | -3.3% |
| Adjusted admin & other cost ratio (%)* | -11.2% | -11.3% | 0.1pp | -9.7% |
| EBIT | -2.5 | -4.8 | 49% | 255.4 |
| EBIT margin (%) | -0.2% | -0.3% | 0.2pp | 3.7% |
| Adjusted EBIT* | 17.0 | 8.8 | 93.5% | 293.8 |
| Adjusted EBIT margin (%)* | 1.1% | 0.6% | 0.5pp | 4.3% |
| Earnings for the period | -4.9 | -7.6 | 2.7 | 188.7 |
| Earnings per share (SEK)* | -0.07 | -0.11 | 0.04 | 2.80 |
| Earnings per share after dilution (SEK)* | -0.07 | -0.11 | 0.04 | 2.76 |
| Adjusted earnings per share (SEK) | 0.16 | 0.05 | 0.11 | 3.25 |
| Adjusted earnings per share after dilution (SEK) | 0.15 | 0.05 | 0.11 | 3.21 |
| Cash flow from operations | -696.5 | -141.9 | -554.6 | 250.7 |
| Cash flow from investments | -34.1 | -360.1 | 326.0 | -389.2 |
| Free cash flow* | -730.6 | -502.0 | -228.6 | -138.5 |
| Net working capital* | 664.0 | 471.7 | 192.3 | 664.0 |
| Net debt / -net cash* | -455.5 | -670.0 | 214.4 | -455.5 |
| Equity / asset ratio | 46.0% | 44.6% | 1.4pp | 46.0% |
| Number of employees end of period | 1,187 | 1,380 | -193 | 1,187 |
Rounding differences may affect the summations.
*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 28.
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
Group Development
The first quarter of 2023 report showcases solid growth and industry-leading profitability, despite muted consumer spending.
Income statement and cash flow items are compared with the corresponding year-earlier period. Balance sheet items refer to the position at the end of the period and are compared with the corresponding year earlier period, meaning March 31, 2022. The first quarter refers to the period January - March 2023.
Net revenue
Net revenue in the first quarter increased 7.1% to SEK 1,524.6 million (1,424.0). Currency had a positive impact on net revenue growth in the first quarter of 2.9 percentage points and relates primarily to the strengthening of DKK and EUR compared to the first quarter last year.
The year got off to a solid start with strong growth in January and a solid performance in the early parts of February. Sales were positively impacted by an attractive selection of Autumn/Winter goods supported by dedicated campaign buys. During March we saw a more muted customer engagement likely impacted by the delayed spring in the Nordics pushing more Spring/Summer sales to the second quarter.
The continued execution of our Nordic Department Store strategy enabled us to continue to grow the business and the average order value and management assesses that Boozt has gained market share in the first quarter of the year. Also, the return rate developed positively impacted by the continued growth in our adjacent categories.
The net revenue increase was driven by 12.3% growth for Boozt.com and -13.7% for Booztlet.com.
Other revenue (included in net revenue) decreased to SEK 48.7 million (51.6) in the first quarter. Other revenue is revenue not directly related to product sales, such as income from Boozt Media Partnership, BooztPay and breakage from gift cards.
Net revenue geographical split
Net revenue in the Nordics increased 7.6% with the strongest performance in Finland followed by Denmark and Sweden. The growth outside the Nordics came to 1.2% in Rest of Europe. For the first quarter, the most significant markets in terms of net revenue were Denmark and Sweden accounting for 34.8% and 31.6% of total net revenue respectively
NET REVENUE – GEOGRAPHICAL SPLIT
| SEK million | Jan 1 - Mar 31, 2023 |
Jan 1 - Mar 31, 2022 |
Change |
|---|---|---|---|
| Nordics | 1,396.5 | 1,297.3 | 7.6% |
| - of which Denmark | 530.6 | 492.5 | 7.7% |
| - of which Sweden | 481.9 | 447.9 | 7.6% |
| Rest of Europe | 128.2 | 126.7 | 1.2% |
| Total net revenue | 1,524.6 | 1,424.0 | 7.1% |
Gross profit
The gross profit increased 4.8% to SEK 586.3 million (559.6) in the quarter. The gross margin decreased to 38.5% (39.3) negatively impacted by continued high promotional activity in the industry with elevated inventory levels. During the quarter the company partly offset the negative impact with an attractive inventory mix supported by campaign buys.
Operational costs
The fulfilment cost ratio decreased to 12.1% (12.6). During the quarter, productivity improvements benefitted from operational initiatives along with a continued positive impact from the increasing average order value. The recent years capacity expansion has provided ample space to grow the business and the company expects to gradually increase utilisation of automation and warehouse footprint to the benefit of productivity and ultimately the cost ratio.
The marketing cost ratio decreased compared to last year at 10.0% (11.0). 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. The business continues to be managed based on the core principle of a profitable and sustainable customer acquisition cost (CAC) and customer lifetime value (CLV) with a payback between 16-18 months.
The admin & other cost ratio increased to 12.5% (12.2). The increased cost base was primarily impacted by increased costs related to share-based payments.
The adjusted admin & other cost ratio decreased slightly to 11.2% (11.3).
The deprecation cost ratio increased to 4.0% (3.8) in line with expectations. As per January 2023 the latest expansion of our 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. The increase was partly offset by the reassessment of the useful lives of selected parts of the Group's fixed assets that mainly relates to the AutoStore installations (further detail on page 14).
Adjusted EBIT
Adjusted EBIT amounted to SEK 17.0 million (8.8) in the first quarter. The adjusted EBIT margin increased with 0.5 percentage points to 1.1% (0.6). The improvement is related to a lower share of costs for fulfilment and distribution and further a marketing spend which is more in line with the historical average. The positive effects were partly offset by the higher than usual promotional activity impacting gross margin.
Total adjustments in the quarter amounted to SEK 19.4 million (13.6). Adjustments include share-based payments of SEK 19.4 million.
Share-based payments fluctuate between periods since the probability of the number of vested options under the program is dynamic, as well as 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, "Q1 Report 2023" – "Key financials".
EBIT
EBIT improved to SEK -2.5 million (-4.8) in the first quarter, while the EBIT margin improved 0.1 percentage points to -0.2% (-0.3).
Negatively impacting EBIT compared to adjusted EBIT in the period was a cost of SEK 19.4 million from share-based payments.
Financial items
The Group's financial costs amounted to SEK -9.0 million (-4.0) The financial costs were driven by interest on new loans for financing the expansion of AutoStore at the fulfilment centre and recent interest rate hikes, however, largely offset by the positive interest on our cash position. Net financial items amounted to SEK -3.3 million (-4.0).
Tax
Tax for the period amounted to SEK 0.9 million (1.2). The Group's effective tax rate for the period was 15.3% (13.8).
Earnings for the period
Earnings for the period totalled SEK -4.9 million (-7.6). Earnings per share before and after dilution amounted to SEK -0.07 (-0.11).
Working capital
The Group realised a net working capital of SEK 664.0 million (471.7) equivalent to 9.7% (7.7) of the net revenue for the last twelve months. The inventory position is attractive and healthy and the delivery of the Spring/Summer 2023 season has proceeded according to plan providing us with a confident stock position going into the second quarter of 2023. As a consequence of the weather during the first quarter the Spring/ Summer 2023 sales are naturally pushed more to the second quarter of this year.
Net debt / net cash
The Group's net cash (-) decreased to SEK -455.5 million (-670.0) impacted by the cash outflow in connection with the inventory build up for Spring/Summer 2023. The net debt / net cash excludes leasing liabilities.
Cash position
Cash and cash equivalents decreased to SEK 964.6 million (1,118.9), driven by the increased inventory position at the end of the quarter.
Lease liabilities
Lease liabilities (current and non-current) increased compared to last year and amounted to SEK 556.8 million (472.2). The increase is related to additional expansion of square metres at the fulfilment centre and the Group's headquarter, as well as the impact from adjustments to lease contracts according to the Consumer Price Index taking effect from January 1, 2023. The increase was partly offset by repayment of lease liabilities.
Interest-bearing liabilities
Interest-bearing liabilities (current and non-current) have increased to SEK 509.1 million (448.9). The increase was attributable to new loans for financing the expansion phases of AutoStore at the Fulfilment Centre.
Non-current assets
Non-current assets increased to SEK 2,009.2 million (1,654.1). The increase compared to last year was mainly driven by AutoStore and footprint expansion at the fulfilment centre increasing capacity meaningfully allowing continued growth and market share gains.
Equity
Equity attributable to the shareholders of the parent company increased to SEK 2,517.5 (2,266.1) million.
Cash flow
Cash flow for the period amounted to SEK -813.6 million (-445.5), driven by cash flow from operating activites.
Cash flow from operations
Cash flow from operating activities amounted to SEK -696.5 million (-141.9) in the quarter. Compared to last year, the Group entered the period with a lower than expected stock position as a positive consequence of the strong sales in the fourth quarter of 2022. Consequently, the Group has focused on securing additional stock via campaign buys and to ensure both an attractive selection and price points impacting working capital negatively. Additionally, the cash flow from operations
is meaningfully impacted by the timing effect of payments displayed in change in current liabilities.
Cash flow from investments
Cash flow from investing activities amounted to SEK -34.1 million (-360.1). As expected, the Group made limited investments in fixed assets 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 -82.9 million (56.5) driven by repayment on loans related to the AutoStore installations in the Group's fulfilment operations.
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
Group Development - 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 three goal areas and has set 15 new targets to support the sustainability Care-For strategy. Status on the relevant goal areas and targets can be found under the section below 'Development in the quarter'.
| ESG KPIs | Jan 1 - Mar 31, 2023 |
Jan 1 - Mar 31, 2022 |
|---|---|---|
| CO₂e intensity per order (kg)¹ | 0.50 | 0.50 |
| Share of renewable electricity (%)² | 98.3 | 98.2 |
| Share of recycled waste in the Fulfilment Centre (%)³ |
72.4 | 61.3 |
| Employee Net Promoter Score (eNPS)⁴ | 57 | 46 |
| Average aggregated participation rate of the employee survey (%)⁴ |
87 | 71 |
Environment goals Employee goals Community goals Governance goals
| 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 |
¹ CO₂e intensity per order is related to the emissions from deliveries and returns. Emissions are reported in Well-to-Wheel (WtW). Due to higher data availability, Q1 2022 has been restated. Share of order volume covered in kg CO₂e intensity per order in Q1 2023 is 99.4% (Q1 2022: 98.8%). ² Boozt uses renewable electricity powered by solar, wind and hydropower. ³ The treatment method for the remaining waste is waste-to-energy (WtE). ⁴ Average of the quarter
Development in the quarter
Environmental
Reducing GHG Emissions
• In February Boozt completed the Scope 3 screening for 2022 emissions data with an extended boundary of our GHG Accounting. Boozt identified and measured all relevant Scope 3 categories (2021: 4 of 9 relevant categories were calculated). As a result, Scope 3 emissions account for 99.8% of the total CO₂e footprint of Boozt.
Employees
Engaging & Healthy Work Environment
• High employee engagement with an aggregated participation rate of 87% in Boozt's monthly employee survey. The resulting Employee Net Promoter Score (eNPS) has improved to a score of 57 (Q1 2022: 46).
Shaping Employee Development
• Launch of Boozt Mentorship Program. This is an initiative to build stronger relationships, development and knowledge sharing internally.
Community
Empowering Customers
• Boozt started implementing the new Made With Care criteria across all categories. This is an ongoing project throughout the year. Boozt will share progress on the development quarterly. We will publish Made With Care relevant KPIs once the process is complete.
Involving Community
- Partnership with Copenhagen Business School: participation in the panel debate with Sustainability as the main topic. The partnership includes marketing and partner events where the primary focus is bridging the gap between companies and students.
- Boozt has been supporting the charity 5 Skoler and their efforts to help children in areas of war, conflict and disaster for many years. In the aftermath of the earthquake in Syria and Turkey, Boozt and its employees donated essential items.
Engaging Suppliers
• Higg BRM joint effort: At this stage, Boozt has nominated and contacted 147 brands representing 68% of our business volume to complete Higg BRM 2022. During the year, Boozt will share more information about how many brand partners have completed Higg BRM 2022.
Governance
Accelerating Transparency
- Boozt scored B- in CDP's Supplier Engagement Rating (SER). B- is on the Management band and higher than the Europe regional average of C, and the same as the Discretionary retail sector average of B-. CDP's annual Supplier Engagement Rating (SER) is designed to evaluate and spur action on corporate supply chain engagement on climate issues, based on the CDP climate change questionnaire.
- Publication of the Annual and Sustainability Report 2022. The ESG Data Summary as well as the GRI Content Index are also accessible for download at https://www.booztgroup.com/ sustainability-reports.
Integrating Sustainability
- Sustainability Training: Introduction to our Made With Care category and Boozt Sustainability Criteria for the Customer Service Team. This training helps the team understand how Boozt works with sustainability and how to support customers with their sustainabilityrelated requests.
- The updated Care-For Strategy, highlights of the Annual and Sustainability Report 2022, and focus areas for 2023 on upcoming EU reporting legislation were presented to the Board of Directors and Audit Committee.
INTERIM FINANCIAL REPORT Q1 2023
BOOZT GROUP
Development by segment
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
PAGE – 10
Boozt.com
Net revenue
Net revenue increased 12.3% to SEK 1,278.6 million (1,138.8) in the quarter. The net revenue growth was positively impacted by currency effects from the strengthening of DKK and EUR to SEK compared to the first quarter last year.
The overall market for apparel in the Nordics continues to be challenged by the pressure on disposable income. The high promotional activity in the market continued from last year, fuelled by high industry inventory levels and more muted consumer spending.
The acceleration in sales was driven by a strong performance across categories and countries. Further, the return rate developed positively supported by the continued growth of the adjacent categories and our Fair Use initiative. The number of active customers dropped slightly compared with last year, caused by the more challenging environment with consumers experiencing additional pressure on disposable income.
The average order value continued the strong progress and increased 11.8% to SEK 938 (838). The continued execution of the Nordic Department Store strategy resulted in a further diversification of sales benefiting the number of items per basket and a structurally lower return rate driven largely by continued efforts with the Fair Use initiative. True frequency continued at a strong level of 6.9 (6.9) with cohorts displaying similar buying patterns as our historic cohorts despite the ongoing pressure on consumers' disposable income. Customer satisfaction remained at a high level as shown by a Trustpilot score of 4.5 (4.5) recovering from a slight drop in the fourth quarter of 2022 and a Net Promoter Score of 75 (74).
Adjusted EBIT and EBIT Adjusted EBIT increased to SEK 21.8 million (15.7) in the quarter, while the adjusted EBIT margin increased to 1.7% (1.4).
The increase in adjusted EBIT margin is mainly related to operational leverage on the cost base which was partly offset by the high promotional activity impacting gross margin.
The adjustment in the quarter amounted to SEK 16.3 million (11.9) and consisted fully of share-based payments. EBIT improved to SEK 5.5 million (3.8) for the quarter.
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 months |
|---|---|---|---|---|
| Boozt.com | ||||
| Net revenue | 1,278.6 | 1,138.8 | 12.3% | 5,750.2 |
| EBIT | 5.5 | 3.8 | 44.9% | 245.2 |
| EBIT margin (%) | 0.4% | 0.3% | 0.1pp | 4.3% |
| Adjusted EBIT* | 21.8 | 15.7 | 39.0% | 278.0 |
| Adjusted EBIT margin (%)* | 1.7% | 1.4% | 0.3pp | 4.8% |
| No. of orders (000)* | 1,297 | 1,277 | 1.6% | 5,974 |
| True frequency* | 6.9 | 6.9 | 0.0% | 6.9 |
| Average order value (SEK)* | 938 | 838 | 11.8% | 912 |
| Active customers (000)* | 2,508 | 2,531 | -0.9% | 2,508 |
| No. of orders per active customer* | 2.38 | 2.37 | 0.6% | 2.38 |
Rounding differences may affect the summations.
*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 28.
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 months |
|---|---|---|---|---|
| Boozt.com - Net revenue | ||||
| Nordics | 1,187.6 | 1,045.8 | 13.6% | 5,258.9 |
| Rest of Europe | 90.9 | 92.9 | -2.1% | 491.3 |
| Total Net revenue | 1,278.6 | 1,138.7 | 12.3% | 5,750.2 |
BOOZT GROUP
Booztlet.com
Net revenue
Net revenue decreased -13.7% to SEK 246.1 million (285.3) in the quarter. Booztlet's growth opportunities were negatively impacted during the second half of 2022 as well as the first quarter of 2023 due to high promotional activity both from online and offline players as a consequence of elevated inventory levels in the industry. On top, the Group estimates that the core customer group of Booztlet is likely to have experienced a more significant dilution of their disposable income displayed in the increasing number of customers who, on average, shop less.
The Group remains positive that the market for a Nordic fashion outlet is very attractive in terms of growth and profitability also for the short to medium term. The ambition for Booztlet is to return to a high growth trajectory by increasing selection and curation of the Booztlet universe. At the moment Booztlet has the organisational capacity to secure the right stock and grow the business meaningfully.
Growth in the Nordics amounted to -17.0% mainly impacted by the performance in Denmark and Sweden. Rest of Europe experienced a growth of 10.2% to SEK 37.3 million.
The average order value increased significantly during the first quarter reaching a record high SEK 920 (810). The positive developments over the last year are mainly driven by an increased number of items per basket as we have broadened our selection along with positive effects from currency translation.
Adjusted EBIT and EBIT
Adjusted EBIT improved to SEK -4.9 million (-6.9) in the quarter, and the adjusted EBIT margin increased marginally to -2.0% (-2.4).
The low adjusted EBIT was driven by a lower gross margin as a consequence of the promotional environment as well as diseconomies of scale on the cost base. The Group is taking immediate and necessary measures to improve the profitability of Booztlet.
The adjustment in the quarter amounted to SEK 3.1 million (1.7) and consisted fully of share-based payments.
EBIT improved slightly compared to last year at SEK -8.0 million (-8.6) and the EBIT margin decreased to -3.3% (-3.0).
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 months |
|---|---|---|---|---|
| Booztlet.com | ||||
| Net revenue | 246.1 | 285.3 | -13.7% | 1,093.8 |
| EBIT | -8.0 | -8.6 | -6.8% | 10.5 |
| EBIT margin (%) | -3.3% | -3.0% | -0.2pp | 1.0% |
| Adjusted EBIT* | -4.9 | -6.9 | -29.8% | 16.0 |
| Adjusted EBIT margin (%)* | -2.0% | -2.4% | 0.5pp | 1.5% |
| No. of orders (000)* | 258 | 345 | -25.0% | 1,251 |
| Average order value (SEK)* | 920 | 810 | 13.6% | 849 |
| Active customers (000)* | 748 | 691 | 8.2% | 748 |
| No. of orders per active customer* | 1.67 | 1.83 | -8.7% | 1.67 |
Rounding differences may affect the summations.
*The figure is an Alternative Performance Measure (APM) (non-IFRS), for further information see page 28.
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 months |
|---|---|---|---|---|
| Booztlet.com - Net revenue | ||||
| Nordics | 208.8 | 251.5 | -17.0% | 971.2 |
| Rest of Europe | 37.3 | 33.8 | 10.2% | 122.6 |
| Total Net revenue | 246.1 | 285.3 | -13.7% | 1,093.8 |
BOOZT GROUP
Other information
Significant events during the first quarter
Boozt announced long-term growth and profitability ambitions In connection with the Capital Markets Day on March 28, 2023 the Group announced new long-term ambitions for growth and profitability. Also, the company updated the capital allocation policy to reflect the maturity of the business.
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.
The company expects that when the Group's growth rate is in line with the general online fashion and lifestyle market growth in the Nordics, that its business model with best-in-industry unit economics will result in double-digit margins and strong cash generation.
Capital allocation principles:
-
- Reinvest to drive long-term value creation through profitable organic growth
-
- Return excess cash to shareholders
The company aims to return proceeds from the dual listing on Nasdaq Copenhagen in the coming three years amounting to SEK 800 million subject to stable or positively developing market conditions.
The current fulfilment facility enables the business to handle SEK 10-11 billion in net revenue. As a consequence, the company expects moderate investments in the coming years with CAPEX between SEK 150-200 million per year.
Issue and repurchase of C shares for performance-based share program
Pursuant to the authorization granted by the annual general meeting on 27 April 2022, the Board of Directors of Boozt AB ("Boozt") has resolved to issue and immediately thereafter repurchase 821,851 series C shares. The shares are issued and repurchased in accordance with the performance-based share program LTI 2022, which was adopted by the annual general meeting on 27 April 2022.
Changes in the Board of Directors of Boozt AB (publ) Ahead of the Annual General Meeting on April 26, 2023, the Nom ination Committee in Boozt AB proposed that Henrik Theilbjørn, Jón Björnsson, Cecilia Lannebo, Aileen O´Toole, Julie Wiese and Benjamin Büscher are re-elected as ordinary board members and that Henrik Theilbjørn is re-elected as Chair of the Board of Directors. The current board member Luca Martines declined reelection.
-
Significant events after the reporting date No significant events have occurred after the reporting date.
Annual General Meeting 2023
The annual general meeting was held on April 26, 2023. The AGM decided that no dividends are paid to the shareholders and that the Company's profit for 2022 are carried forward. The AGM also decided on implementation of a new long-term incentive program (LTIP 2023). More information of the outcome of the Annual General Meeting 2023 is available on the Company's website: https://www.booztgroup.com/annual-general-meeting.
Number of employees was 1,187 (1,380) at the end of the period equivalent to a decrease of 14.0 % impacted by the right-sizing of the organisation carried out with effect from July 1, 2022 as well as an increased use of consultants at the warehouse 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 16.8 million (17.8) during the quarter. The parent company has invoiced fees for management services in accordance with the Group's intra-company 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 -11.1 million (-5.5).
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 March 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 278,022 shares per day during the first quarter compared to 180,252 shares per day in the first quarter last year. As per April 27, 2023, the company had more than 17,000 shareholders, whereof the largest shareholders were BLS Capital (24.5%), Ferd (12.6%), Invesco (5.7%), ATP (5.2%), Norges Bank (3.9%) and Första AP-Fonden (3.6%).
The market value for the Company as per March 31, 2023 amounted to SEK 8,312 million. The total number of shares at the end of the reporting period amounted to 68,289,488, whereof 2,480,266 C shares are held in own custody. 821,851 C shares were issued and repurchased during the quarter under LTIP 2022/2025 pursuant to the authorization by the annual general meeting on April 27, 2022. More information of the Group's share capital can be found in the Annual report 2022 on page 107. 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 four ongoing long-term incentive programs directed to senior executives and key employees within the Group. LTIP 2020/2023, 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 3,520,000. The programs contain different performance criterions and constraints. More information of the Groups long-term incentive programs 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.
Outlook for 2023
The Group expects a net revenue growth for 2023 in the range of 5-15% and an adjusted EBIT between SEK 275-375 million.
Due to the volatile and unpredictable markets, the outlook for 2023 is more uncertain than normally.
As a consequence, the Group decided to widen the range compared to previous years for both net revenue growth and adjusted EBIT. The net revenue growth is supported by market share gains, continued online penetration and a stable or improving consumer confidence compared to the historic low of 2022.
The Adjusted EBIT outlook for 2023 is positively impacted by 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.
The conclusion based on our own experience in combination with the benchmark is that the AutoStore components have a longer useful life than what our assessment previously reflected. 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 priority is a continued high investment in growth as well as a further strengthening of the customer experience, while maintaining solid profitability driven by a sustainable high average order value and further cementing the position as the leading Nordic Department Store.
The outlook for 2023 assumes that the exchange rates will remain at the current level.
Long-term growth and profitability ambitions
In connection with the Capital Markets Day on March 28, 2023 the group announced new 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.
The company expects that when the Group's growth rate is in line with the general online fashion and lifestyle market growth in the Nordics, that its business model with best-in-industry unit economics will result in double-digit margins and strong cash generation.
BOOZT GROUP
Consolidated income statement Consolidated statement of
comprehensive income
| CONSOLIDATED INCOME STATEMENT | ||||
|---|---|---|---|---|
| SEK million unless otherwise indicated | Note | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Rolling 12 month |
| OPERATING INCOME | ||||
| Net revenue | 2 | 1,524.6 | 1,424.0 | 6,844.0 |
| Other operating income | 0.0 | 7.6 | 0.0 | |
| Total operating income | 1,524.6 | 1,431.7 | 6,844.0 | |
| OPERATING COSTS | ||||
| Goods for resale | -938.4 | -864.5 | -4,150.5 | |
| Other external costs | -338.4 | -341.2 | -1,450.2 | |
| Cost of personnel | -178.2 | -176.5 | -744.4 | |
| Depreciation and amortisation of tangible and intangible assets | -60.9 | -54.3 | -229.1 | |
| Other operating costs | -11.2 | 0.0 | -14.4 | |
| Total operating costs | -1,527.1 | -1,436.4 | -6,588.6 | |
| OPERATING PROFIT (EBIT) | 2 | -2.5 | -4.8 | 255.4 |
| FINANCIAL INCOME AND EXPENSES | ||||
| Financial income | 5.7 | 0.0 | 10.6 | |
| Financial expenses | 3 | -9.0 | -4.0 | -27.0 |
| Net financial items | -3.3 | -4.0 | -16.3 | |
| PROFIT BEFORE TAX | 2 | -5.8 | -8.8 | 239.1 |
| Income tax | 0.9 | 1.2 | -51.3 | |
| PROFIT FOR THE PERIOD | -4.9 | -7.6 | 187.7 | |
| ATTRIBUTABLE TO: | ||||
| Parent company's shareholders | -4.9 | -7.6 | 187.7 | |
| Non-controlling interest | - | - | - | |
| PROFIT FOR THE PERIOD | -4.9 | -7.6 | 187.7 | |
| Average number of shares (000) | 67,504 | 67,089 | 67,477 | |
| Average number of shares after dilution (000) | 68,326 | 67,502 | 68,259 | |
| Earnings per share (SEK) | -0.07 | -0.11 | 2.78 | |
| Earnings per share after dilution (SEK) | -0.07 | -0.11 | 2.75 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Rolling 12 month |
|---|---|---|---|
| RESULT FOR THE PERIOD | -4.9 | -7.6 | 187.7 |
| ITEMS THAT MAY BE RE-CLASSIFIED TO THE INCOME STATEMENT: | |||
| Translation differences | 5.7 | 2.8 | 0.0 |
| TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD | 0.8 | -4.8 | 187.7 |
| ATTRIBUTABLE TO | |||
| Parent company's shareholders | 0.8 | -4.8 | 187.7 |
| Non-controlling interest | - | - | - |
Rounding differences may affect the summations.
BOOZT GROUP
Consolidated statement of financial position
| SEK million unless otherwise indicated | Note | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2022 | SEK million unless otherwise indicated | Note | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2022 |
|---|---|---|---|---|---|---|---|---|---|
| ASSETS | EQUITY AND LIABILITIES | ||||||||
| Non-current assets | EQUITY | ||||||||
| Intangible assets | Share capital | 5.6 | 5.6 | 5.6 | |||||
| Trademarks | 4 | 94.7 | 86.9 | 93.6 | Other capital contributions | 2,243.8 | 2,219.7 | 2,234.4 | |
| Goodwill | 4 | 303.3 | 278.5 | 299.8 | Reserves | 45.1 | 6.4 | 34.6 | |
| Web platform | 4 | 174.7 | 143.0 | 164.6 | Retained earnings including profit for the period | 223.0 | 34.3 | 227.9 | |
| Total intangible assets | 572.7 | 508.4 | 558.0 | Equity attributable to parent company shareholders | 2,517.5 | 2,266.1 | 2,502.6 | ||
| Tangible assets | Non-controlling interest | - | - | 0.0 | |||||
| Right of use asset | 543.6 | 461.1 | 526.1 | Total equity | 2,517.5 | 2,266.1 | 2,502.6 | ||
| Machinery and equipment | 4 | 850.7 | 669.9 | 866.5 | |||||
| Total tanbgible assets | 1,394.3 | 1,131.0 | 1,392.6 | Non-current liabilities | |||||
| Non-current interest bearing liabilities | 3 | 359.2 | 290.3 | 402.1 | |||||
| Other assets | Non-current lease liabilities | 3 | 471.2 | 401.9 | 457.4 | ||||
| Deposits | 8.2 | 8.3 | 8.0 | Other non-current liabilities | 3 | - | - | 0.2 | |
| Shares in associated companies | 27.7 | - | 27.2 | Other non-current provisions | 3 | 35.4 | 39.8 | 30.1 | |
| Deferred tax asset | 6.3 | 6.4 | 6.3 | Deferred tax liabilities | 18.9 | 17.6 | 18.6 | ||
| Total other assets | 42.2 | 14.7 | 41.5 | Total non-current liabilities | 884.7 | 749.5 | 908.4 | ||
| Total non-current assets | 2,009.2 | 1,654.1 | 1,992.1 | ||||||
| Current liabilities | |||||||||
| Current assets | Current interest bearing liabilities | 3 | 149.9 | 158.7 | 168.0 | ||||
| Inventory | 2,260.3 | 2,028.2 | 2,038.6 | Current lease liabilities | 3 | 85.5 | 70.4 | 81.1 | |
| Accounts receivable | 3 | 33.0 | 47.4 | 30.3 | Accounts payable | 3 | 1,301.8 | 1,188.5 | 1,384.9 |
| Other receivables | 3 | 80.8 | 122.9 | 68.7 | Current tax liabilities | 39.5 | 41.2 | 82.1 | |
| Current tax receivables | 9.5 | 8.8 | 1.7 | Other liabilities | 3 | 192.2 | 233.0 | 386.2 | |
| Prepaid expenses and accrued income | 113.6 | 103.7 | 83.5 | Accrued expenses and prepaid income | 299.8 | 376.5 | 478.9 | ||
| Cash and cash equivalents | 3 | 964.6 | 1,118.9 | 1,777.2 | Total current liabilities | 2,068.7 | 2,068.3 | 2,581.1 | |
| Total current assets | 3,461.8 | 3,429.9 | 4,000.1 | Total liabilities | 2,953.4 | 2,817.9 | 3,489.5 | ||
| TOTAL ASSETS | 5,470.9 | 5,084.0 | 5,992.2 | TOTAL EQUITY AND LIABILITIES | 5,470.9 | 5,084.0 | 5,992.2 |
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
PAGE – 16
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 | 5.6 | 2,201.9 | 3.6 | -34.6 | 2,176.5 | 121.1 | 2,297.7 |
| Profit for the period | - | - | - | -7.6 | -7.6 | - | -7.6 |
| Other comprehensive income | - | - | 2.8 | - | 2.8 | - | 2.8 |
| COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD | 0.0 | 0.0 | 2.8 | -7.6 | -4.8 | 0.0 | -4.8 |
| Share capital increase | 0.0 | - | - | -0.0 | 0.0 | - | 0.0 |
| Share based compensation | - | 17.8 | - | - | 17.8 | - | 17.8 |
| Acquisition of minority shares | - | - | - | 76.5 | 76.5 | -121.1 | -44.6 |
| Total transaction with owners | 0.0 | 17.8 | 0.0 | 76.5 | 94.3 | -121.1 | -26.8 |
| Equity carried forward Mar 31, 2022 | 5.6 | 2,219.7 | 6.4 | 34.3 | 2,266.1 | -0.0 | 2,266.1 |
| 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 | 5.6 | 2,229.6 | 39.4 | 228.0 | 2,502.6 | 0.0 | 2,502.6 |
| Profit for the period | - | - | - | -4.9 | -4.9 | - | -4.9 |
| Other comprehensive income | - | - | 5.7 | - | 5.7 | - | 5.7 |
| COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD | 0.0 | 0.0 | 5.7 | -4.9 | 0.7 | 0.0 | 0.7 |
| Share capital increase | 0.0 | - | - | 0.0 | 0.0 | - | 0.0 |
| Share based compensation | - | 14.2 | - | - | 14.2 | - | 14.2 |
| Total transaction with owners | 0.0 | 14.2 | 0.0 | 0.0 | 14.2 | 0.0 | 14.2 |
| Equity carried forward Mar 31, 2023 | 5.6 | 2,243.8 | 45.0 | 223.0 | 2,517.5 | 0.0 | 2,517.5 |
Consolidated statement of cash flow
| SEK million | Note Jan 1 - Mar 31, 2023 |
Jan 1 - Mar 31, 2022 |
Rolling 12 month | SEK million Note |
Jan 1 - Mar 31, 2023 |
Jan 1 - Mar 31, 2022 |
Rolling 12 month |
|---|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL | CASH FLOW FROM INVESTING ACTIVITIES | ||||||
| Operating profit | -2.5 | -4.8 | 255.4 | Acquisition of operations, net liquidity effect 4 |
0.0 | -163.9 | -31.4 |
| Adjustments for non-cash items: | Investments in fixed assets 4 |
-10.3 | -177.5 | -278.6 | |||
| Non-cash remuneration from share based payments (social charges) | 14.2 | -9.3 | 6.8 | Change in financial assets 4 |
-0.2 | -0.1 | 0.2 |
| Non-cash remuneration from share based payments | 5.3 | 17.8 | 15.2 | Investments in intangible assets 4 |
-23.6 | -18.6 | -79.3 |
| Change in other provisions | 0.1 | -0.1 | -4.3 | CASH FLOW FROM INVESTING ACTIVITIES 4 |
-34.1 | -360.1 | -389.2 |
| Depreciation | 60.9 | 54.3 | 229.1 | ||||
| Other items not included in cash flow | 2.2 | -0.5 | 3.5 | CASH FLOW FROM FINANCING ACTIVITIES | |||
| Interest received | 5.7 | 0.0 | 10.6 | Share capital increases | 0.0 | 0.0 | 0.0 |
| Interest paid | 3 -9.4 |
-4.0 | -27.4 | New loans | 58.0 | 167.5 | 343.6 |
| Paid income tax | -49.0 | 21.5 | -51.1 | Repayments of loans | -119.0 | -91.8 | -283.4 |
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL | 27.3 | 74.9 | 437.7 | Repayments of lease liability | -21.9 | -19.2 | -79.9 |
| CASH FLOW FROM FINANCING ACTIVITIES | -82.9 | 56.5 | -19.8 | ||||
| CASH FLOW FROM CHANGES IN WORKING CAPITAL | |||||||
| Changes in inventory | -222.2 | -296.2 | -232.8 | ||||
| Changes in current assets | -44.8 | -27.7 | 45.1 | Cash flow for the period | -813.6 | -445.5 | -158.3 |
| Changes in current liabilities | -456.8 | 106.9 | 0.7 | Currency exchange gains/losses in cash and cash equivalents | 0.9 | -0.5 | 3.9 |
| Cash flow from changes working capital | -723.8 | -216.9 | -187.0 | Cash and cash equivalents beginning of period | 1,777.1 | 1,564.9 | 1,118.9 |
| CASH FLOW FROM OPERATING ACTIVITIES | -696.5 | -141.9 | 250.7 | CASH AND CASH EQUIVALENTS END OF PERIOD | 964.5 | 1,118.9 | 964.5 |
Rounding differences may affect the summations.
BOOZT GROUP
Note 1 - Accounting principles Note 2 - Segment reporting
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 the first quarter of 2023 is SEK 6.25 million.
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.
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Change | Rolling 12 month |
|---|---|---|---|---|
| NET REVENUE | ||||
| Boozt.com | 1,278.6 | 1,138.8 | 139.8 | 5,750.2 |
| Booztlet.com | 246.1 | 285.3 | -39.2 | 93.8 |
| TOTAL NET REVENUE | 1,524.6 | 1,424.0 | 100.6 | 5,844.0 |
| EBIT | ||||
| Boozt.com | 5.5 | 3.8 | 1.8 | 245.2 |
| Booztlet.com | -8.0 | -8.6 | 0.6 | 10.5 |
| TOTAL EBIT | -2.5 | -4.8 | 2.3 | 255.7 |
| EARNINGS BEFORE TAX | ||||
| Boozt.com | 2.3 | 0.6 | 1.8 | 231.0 |
| Booztlet.com | -8.6 | -9.3 | 0.8 | 7.9 |
| EARNINGS BEFORE TAX | -6.3 | -8.8 | 2.5 | 238.9 |
Rounding differences may affect the summations.
BOOZT GROUP
Note 3 - Financial instruments
| Mar 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 |
|---|---|---|---|---|---|
| Financial assets | |||||
| Deposits | 8.3 | - | - | 8.3 | 8.3 |
| Accounts receivables | 47.4 | - | - | 47.4 | 47.4 |
| Other receivables | 121.7 | - | 1.2 | 122.9 | 122.9 |
| Cash and cash equivalents | 1,118.9 | - | - | 1,118.9 | 1,118.9 |
| Total financial assets | 1,296.3 | - | 1.2 | 1,297.5 | 1,297.5 |
| Financial liabilities | |||||
| Liabilities to credit institutions | - | 448.9 | - | 448.9 | 448.9 |
| Accounts payables | - | 1,188.5 | - | 1,188.5 | 1,188.5 |
| Other liabilities | - | 229.0 | 8.1 | 237.1 | 237.1 |
| Lease liabilities | - | 472.2 | - | 472.2 | 472.2 |
| Total financial liabilities | 0.0 | 2,338.7 | 8.1 | 2,346.8 | 2,346.8 |
| Mar 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 | 8.2 | - | - | 8.2 | 8.2 |
| Accounts receivables | 33.0 | - | - | 33.0 | 33.0 |
| Other receivables | 80.8 | - | 0.0 | 80.8 | 80.8 |
| Cash and cash equivalents | 964.6 | - | - | 964.6 | 964.6 |
| Total financial assets | 1,086.5 | - | 0.0 | 1,086.5 | 1,086.5 |
| Financial liabilities | |||||
| Liabilities to credit institutions | - | 509.1 | - | 509.1 | 509.1 |
| Accounts payables | - | 1,301.8 | - | 1,301.8 | 1,301.8 |
| Other liabilities | - | 192.2 | 2.0 | 194.2 | 194.2 |
| Lease liabilities | - | 556.8 | - | 556.8 | 556.8 |
| Total financial liabilities | 0.0 | 2,559.8 | 2.0 | 2,561.8 | 2,561.8 |
Calculation of fair value
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 assets amount to SEK 0.0 million (1.2). Other financial liabilities measured at fair value via income statement consists of earn-out from acquisitions of operations of SEK 2.0 million (8.1), 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 | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Rolling 12 months |
|---|---|---|---|
| Interest expenses | 5.7 | 0.0 | 10.6 |
| Interest expenses leasing | -6.8 | -2.2 | -18.7 |
| Interest expense leases | -2.2 | -1.9 | -8.3 |
| Change in fair value | - | - | 0.0 |
| Total net financial items | -3.3 | -4.0 | -16.3 |
INTERIM FINANCIAL REPORT Q1 2023
Note 4 - Investments
| SEK million | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 | Rolling 12 months |
|---|---|---|---|
| Acquisition of fixed assets (other capex) | -5.9 | -2.6 | -12.7 |
| Acquisition of fixed assets (warehouse capex) | -4.5 | -174.9 | -265.9 |
| -10.3 | -177.5 | -278.6 | |
| Acquisition of subsidiaries | 0.0 | -163.9 | -31.4 |
| Change in financial assets | -0.2 | -0.1 | 0.2 |
| -0.2 | -164.0 | -31.3 | |
| Acquisition of intagible assets (capitalised development costs) | -22.8 | -17.1 | -70.5 |
| Acquisition of intagible assets (other) | -0.8 | -1.5 | -8.8 |
| -23.6 | -18.6 | -79.3 | |
| Cash flow from investments | -34.1 | -360.1 | -389.2 |
• Acquisition of fixed assets (warehouse capex) relates to the expansion phases of AutoStore at the Fulfilment Centre.
- Acquisition of subsidiaries relates to the acquisition of the remaining shares in Nordic Brand Hub A/S (was Everyday Luxury Feeling A/S).
- Acquisition of intangible assets relates to capitalised development costs on the Group's own developed platforms.
Parent company income statement
PARENT COMPANY INCOME STATEMENT
| SEK million unless otherwise indicated | Jan 1 - Mar 31, 2023 | Jan 1 - Mar 31, 2022 |
|---|---|---|
| OPERATING INCOME | ||
| Net revenue | 16.8 | 17.8 |
| Total operating income | 16.8 | 17.8 |
| OPERATING COSTS | ||
| Other external costs | -1.9 | -2.0 |
| Cost of personnel | -28.8 | -22.6 |
| Total operating costs | -30.7 | -24.7 |
| OPERATING PROFIT (EBIT) | -14.0 | -6.9 |
| FINANCIAL INCOME AND EXPENSES | ||
| Financial expenses | -0.0 | -0.0 |
| Net financial items | -0.0 | -0.0 |
| PROFIT AFTER FINANCIAL ITEMS | -14.0 | -6.9 |
| Income tax | 2.9 | 1.4 |
| PROFIT FOR THE PERIOD | -11.1 | -5.5 |
Rounding differences may affect the summations.
Parent company financial position
| SEK million | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in Group companies | 1,138.7 | 1,138.1 | 1,138.1 |
| Shares in associated companies | 27.2 | - | 27.2 |
| Total non-current assets | 1,165.9 | 1,138.1 | 1,165.3 |
| Current assets | |||
| Other receivables | 0.4 | 0.5 | 0.4 |
| Receivables from Group companies | 792.7 | 804.5 | 786.8 |
| Current tax assets | 0.1 | 0.0 | 0.1 |
| Prepaid expenses and accrued income | 0.8 | 0.7 | 0.2 |
| Cash and cash equivalents | 4.5 | 2.7 | 4.5 |
| Total current assets | 798.5 | 808.4 | 792.0 |
| TOTAL ASSETS | 1,964.5 | 1,946.5 | 1,957.3 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 5.6 | 5.6 | 5.6 |
| 5.6 | 5.6 | 5.6 | |
| Unrestricted equity | |||
| Share premium reserve | 2,146.0 | 2,127.5 | 2,136.4 |
| Retained earnings | -266.5 | -266.5 | -266.5 |
| Earnings for the period | 0.0 | 0.0 | 0.7 |
| 1,879.5 | 1,860.9 | 1,870.6 | |
| TOTAL EQUITY | 1,885.1 | 1,866.6 | 1,876.2 |
| SEK million | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2022 |
|---|---|---|---|
| LIABILITIES | |||
| Non-current liabilities | |||
| Other provisions | 22.6 | 22.6 | 19.0 |
| Total non-current liabilities | 22.6 | 22.6 | 19.0 |
| Current liabilities | |||
| Accounts payable | 0.9 | 0.0 | 0.4 |
| Liabilities to Group companies | 37.8 | 37.8 | 37.8 |
| Other liabilities | 3.5 | 2.9 | 8.0 |
| Accrued expenses and prepaid income | 14.7 | 16.6 | 26.0 |
| Total current liabilities | 56.8 | 57.4 | 72.1 |
| TOTAL LIABILITIES | 79.4 | 79.9 | 91.1 |
| TOTAL EQUITY AND LIABILITIES | 1,964.5 | 1,946.5 | 1,967.4 |
BOOZT GROUP
Audit This report has not been subject to a limited review by the Group's auditors.
Signatures
The undersigned certify 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.
April 27, 2023
Hermann Haraldsson Group CEO In accordance with authorisation given by the Board of Directors
Additional information
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
PAGE – 25
Information by quarter
| SEK million unless otherwise indicated | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NET REVENUE | ||||||||||||
| Boozt.com | 1,278.6 | 2,078.6 | 1,116.1 | 1,276.9 | 1,138.8 | 1,697.9 | 1,031.8 | 1,270.8 | 937.6 | 1,247.9 | 796.2 | 1,070.1 |
| Booztlet.com | 246.1 | 359.5 | 212.0 | 276.3 | 285.3 | 270.0 | 200.3 | 205.5 | 199.8 | 177.3 | 143.9 | 158.1 |
| NET REVENUE | 1,524.6 | 2,438.1 | 1,328.1 | 1,553.2 | 1,424.0 | 1,967.9 | 1,232.1 | 1,476.3 | 1,137.4 | 1,425.1 | 940.1 | 1,228.2 |
| OPERATING PROFIT/LOSS (EBIT) | ||||||||||||
| Boozt.com | 5.5 | 158.4 | 32.0 | 49.1 | 3.8 | 113.1 | 11.1 | 67.4 | 44.9 | 85.4 | 37.1 | 101.2 |
| Booztlet.com | -8.0 | -0.5 | 3.5 | 15.6 | -8.6 | 4.9 | -3.7 | 13.5 | 13.3 | 16.6 | 10.8 | 19.1 |
| OPERATING PROFIT/LOSS (EBIT) | -2.5 | 157.9 | 35.5 | 64.7 | -4.8 | 117.9 | 7.4 | 80.9 | 58.3 | 102.0 | 47.9 | 120.3 |
| OPERATING PROFIT/LOSS (EBIT) % | ||||||||||||
| Boozt.com | 0.4% | 7.6% | 2.9% | 3.8% | 0.3% | 6.7% | 1.1% | 5.3% | 4.8% | 6.8% | 4.7% | 9.5% |
| Booztlet.com | -3.3% | -0.2% | 1.7% | 5.6% | -3.0% | 1.8% | -1.8% | 6.6% | 6.7% | 9.4% | 7.5% | 12.1% |
| OPERATING PROFIT/LOSS (EBIT) % | -0.2% | 6.5% | 2.7% | 4.2% | -0.3% | 6.0% | 0.6% | 5.5% | 5.1% | 7.2% | 5.1% | 9.8% |
| EARNINGS BEFORE TAX | ||||||||||||
| Boozt.com | 2.3 | 156.5 | 27.6 | 44.7 | 0.6 | 106.8 | 5.8 | 65.2 | 42.1 | 81.5 | 35.4 | 97.7 |
| Booztlet.com | -8.6 | -0.9 | 2.7 | 14.7 | -9.3 | 3.8 | -3.7 | 12.2 | 12.7 | 17.5 | 8.8 | 19.2 |
| EARNINGS BEFORE TAX | -6.3 | 155.7 | 30.2 | 59.3 | -8.8 | 110.7 | 2.1 | 77.4 | 54.8 | 99.0 | 44.2 | 116.9 |
| ADJUSTED EBIT | ||||||||||||
| Boozt.com | 21.8 | 169.6 | 23.5 | 63.1 | 15.7 | 140.7 | 25.6 | 84.6 | 53.6 | 120.1 | 55.8 | 119.4 |
| Booztlet.com | -4.9 | 1.0 | 1.9 | 18.0 | -6.9 | 8.8 | -1.3 | 15.5 | 15.1 | 20.6 | 13.8 | 21.6 |
| ADJUSTED EBIT | 17.0 | 170.7 | 25.3 | 81.0 | 8.8 | 149.5 | 24.3 | 100.1 | 68.7 | 140.7 | 69.7 | 141.1 |
| ADJUSTED EBIT % | ||||||||||||
| Boozt.com | 1.7% | 8.2% | 2.1% | 4.9% | 1.4% | 8.3% | 2.5% | 6.7% | 5.7% | 9.6% | 7.0% | 11.2% |
| Booztlet.com | -2.0% | 0.3% | 0.9% | 6.5% | -2.4% | 3.3% | -0.6% | 7.5% | 7.6% | 11.6% | 9.6% | 13.7% |
| ADJUSTED EBIT % | 1.1% | 7.0% | 1.9% | 5.2% | 0.6% | 7.6% | 2.0% | 6.8% | 6.0% | 9.9% | 7.4% | 11.5% |
Rounding differences may affect the summations.
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
PAGE – 26
Information by quarter
| SEK million unless otherwise indicated | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EBIT MARGIN (%) | ||||||||||||
| Gross margin (%) | 38.5% | 38.3% | 40.1% | 41.3% | 39.3% | 41.0% | 40.4% | 39.9% | 40.3% | 43.0% | 42.8% | 41.5% |
| Fulfillment cost ratio (%) | -12.1% | -10.5% | -11.6% | -11.4% | -12.6% | -12.1% | -12.2% | -11.4% | -11.1% | -11.0% | -11.6% | -11.1% |
| Marketing cost ratio (%) | -10.0% | -10.7% | -11.4% | -11.0% | -11.0% | -10.2% | -12.0% | -9.6% | -10.6% | -10.1% | -11.4% | -8.0% |
| Admin & other cost ratio (%) | -12.5% | -8.2% | -10.3% | -11.3% | -12.2% | -10.4% | -12.0% | -10.8% | -10.1% | -12.4% | -11.5% | -10.1% |
| Depreciation (%) | -4.0% | -2.4% | -4.2% | -3.5% | -3.8% | -2.4% | -3.5% | -2.6% | -3.3% | -2.3% | -3.3% | -2.4% |
| EBIT MARGIN (%) | -0.2% | 6.5% | 2.7% | 4.2% | -0.3% | 6.0% | 0.6% | 5.5% | 5.1% | 7.2% | 5.1% | 9.8% |
| Adjusted admin & other cost ratio (%) | -11.2% | -7.7% | -11.0% | -10.2% | -11.3% | -8.8% | -10.7% | -9.5% | -9.2% | -9.7% | -9.1% | -8.4% |
| Net working capital - percent of LTM net revenue | 9.7% | -1.6% | 8.4% | 9.6% | 7.7% | 4.8% | 9.7% | 7.5% | 7.8% | 1.7% | 0.3% | 2.3% |
| BOOZT.COM | ||||||||||||
| No. of orders (000) | 1,297 | 2,081 | 1,184 | 1,413 | 1,277 | 1,943 | 1,200 | 1,574 | 1,163 | 1,543 | 982 | 1,317 |
| True frequency | 6.9 | 5.8 | 7.0 | 6.6 | 6.9 | 5.9 | 6.9 | 6.3 | 6.7 | 6.0 | 7.1 | 7.3 |
| Average order value (SEK) | 938 | 959 | 872 | 853 | 838 | 837 | 807 | 803 | 815 | 819 | 808 | 820 |
| Active customers (000) | 2,508 | 2,503 | 2,471 | 2,477 | 2,531 | 2,503 | 2,331 | 2,257 | 2,158 | 2,043 | 1,852 | 1,774 |
| No. of orders per active customer | 2.38 | 2.38 | 2.35 | 2.35 | 2.37 | 2.35 | 2.35 | 2.33 | 2.32 | 2.30 | 2.33 | 2.36 |
| BOOZTLET.COM | ||||||||||||
| No. of orders (000) | 258 | 404 | 247 | 342 | 345 | 361 | 264 | 292 | 277 | 255 | 209 | 233 |
| Average order value (SEK) | 920 | 861 | 833 | 791 | 810 | 723 | 714 | 669 | 705 | 640 | 666 | 682 |
| Active customers (000) | 748 | 775 | 738 | 733 | 691 | 657 | 594 | 564 | 539 | 469 | 396 | 340 |
| No. of orders per active customer | 1.67 | 1.73 | 1.75 | 1.79 | 1.83 | 1.82 | 1.83 | 1.83 | 1.81 | 1.79 | 1.78 | 1.77 |
| NET REVENUE - GEOGRAPHICAL SPLIT | ||||||||||||
| Nordics | 1,396.5 | 2,257.7 | 1,257.1 | 1,453.2 | 1,297.2 | 1,802.9 | 1,154.7 | 1,370.3 | 1,051.2 | 1,311.8 | 893.4 | 1,132.3 |
| Rest of Europe | 128.2 | 180.5 | 71.0 | 100.0 | 126.7 | 165.0 | 77.3 | 106.0 | 86.2 | 113.3 | 46.7 | 95.9 |
| TOTAL NET REVENUE | 1,524.6 | 2,438.1 | 1,328.1 | 1,553.2 | 1,424.0 | 1,967.9 | 1,232.1 | 1,476.3 | 1,137.4 | 1,425.1 | 940.1 | 1,228.2 |
Rounding differences may affect the summations.
BOOZT GROUP
INTERIM FINANCIAL REPORT Q1 2023
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, "Q1 Report 2023" – "Key financials".
Financial calendar
August 18, 2023 Half-year report January-June 2023
November 7, 2023 Interim report January-September 2023
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:
Ronni Funch Olsen, Head of Investor Relations [email protected] / +45 31 22 04 56
or
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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on April 27, 2023.
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