Rusta AB

Quarterly Report • Dec 20, 2023

Interim Report

August 1, 2023 - October 31, 2023

Second quarter August 2023 – October 2023

• Net sales increased by 14.4% (10.4%) and amounted to MSEK 2,642 (2,309)
• LFL growth increased by 10.8% (5.7%)
• Gross profit increased by 22.5% and amounted to MSEK 1,153 (942) and the gross margin was 43.6% (40.8%)
• EBITA amounted to MSEK 141 (66) and the EBITA-margin was 5.3% (2.9%)
• Operating profit (EBIT), amounted to 139 (64) and the operating profit margin was 5.2% (2.8%)
• Net profit for the quarter amounted to MSEK 69 (14)
• Cash flow from operating activities amounted to MSEK -3 (-224)
• Earnings per share before dilution amounted to SEK 0.5 (0.1)
• There were three (four) new stores opened during the quarter
• The Rusta shares commenced trading on Nasdaq Stockholm on October 19

YTD May 2023 – October 2023

• Net sales increased by 12.9% (6.3%) and amounted to MSEK 5,601 (4,962)
• LFL growth increased by 8.5% (1.0%)
• Gross profit increased by 19.6% and amounted to MSEK 2,418 (2,022) and the gross margin was 43.2% (40.8%)
• EBITA amounted to MSEK 439 (287) and the EBITA-margin was 7.8% (5.8%)
• Operating profit (EBIT) amounted to 435 (283) and the operating profit margin was 7.8% (5.7%)
• Net profit YTD amounted to MSEK 258 (159)
• Cash flow from operating activities amounted to MSEK 761 (164)
• Earnings per share before dilution amounted to SEK 1.7 (1.0)
• There were four (six) new stores opened during the period

+14.4% Net sales Quarter

+10.8%

LFL growth Quarter

+2.9pp

Gross margin Quarter

+2.4pp

EBITA-margin Quarter

	The quarter		YTD		LTM	Full-year
MSEK	Aug 2023 -Oct 2023	Aug 2022 -Oct 2022	May 2023 -Oct 2023	May 2022 -Oct 2022	Nov 2022 -Oct 2023	May 2022 -Apr 2023
Net sales	2,642	2,309	5,601	4,962	10,841	10,202
Net sales growth, %	14.4%	10.4%	12.9%	6.3%	10.8%	7.5%
Net sales growth excl currency effects, %	13.2%	9.7%	12.0%	3.9%	9.8%	6.2%
LFL growth, %	10.8%	5.7%	8.5%	1.0%	6.9%	2.5%
Gross profit	1,153	942	2,418	2,022	4,582	4,187
Gross margin, %	43.6%	40.8%	43.2%	40.8%	42.3%	41.0%
Adjusted EBITA	150	68	468	289	722	544
Adjusted EBITA-margin, %	5.7%	3.0%	8.4%	5.8%	6.7%	5.3%
EBITA	141	66	439	287	681	529
EBITA-margin, %	5.3%	2.9%	7.8%	5.8%	6.3%	5.2%
Cashflow from operating activities	-3	-224	761	164	1,604	1,007
Net debt, excl IFRS 16 / EBITDA excl IFRS 16 R12	0.06	0.69	0.06	0.69	0.06	0.46
Number of members in the loyalty club, in thousands	5,303	4,582	5,303	4,582	5,303	4,582
Number of stores at the end of the period	205	193	205	193	205	201
Earnings per share before dilution, SEK	0.5	0.1	1.7	1.0	2.4	1.7
Earnings per share after dilution, SEK	0.4	0.1	1.7	1.0	2.4	1.7

^*Reconciliation tables and definitions for key ratios are presented at page 24-29

Growth and increased profitability on all markets

Rusta strengthens its position as a leader in the Nordic low-price market. During the second quarter of the financial year, August to October, we increased sales in all markets and improved earnings significantly. The growth accelerates in the quarter and is the result of a clear low-price position on a wide range of items that customers prioritize.

Net sales for the second quarter were MSEK 2,642 (2,309), an increase of 14.4 percent (10.4) compared to last year. The comparable growth during the same period were 10.8 percent (5.7). Our low prices and marketing campaigns continue to drive customer traffic to the stores.

The adjusted EBITA were MSEK 150 (68), an increase of 119.1 percent, which corresponds to an adjusted EBITA margin of 5.7 percent (3.0) for the quarter. We also improved the gross margin, an increase of 2.9 percent-points compared to the same quarter last year, as a result of reduced shipping costs and optimized pricing.

During the quarter, cash flow from operating activities was MSEK -3, compared to MSEK -224 in the same period last year. The cash flow in the quarter is characterized by seasonal effects and the build-up of the Christmas season.

We are proud that we have managed to carry the cost of inflation in the operations through efficiency improvements and control over our costs in the value chain which increase the earnings. At the same time, we have protected our low-price position and managed to increase volumes during the first half of the year. The numbers are a clear confirmation that Rusta stands strong both in economic upturn and downturn.

Strong increase in Home decoration and Consumables

In our largest market, Sweden, net sales were MSEK 1,502, an increase of 11.2 percent compared to the same quarter last year whereof the majority were LFL growth. We see strong sales during the quarter, with products in home decoration and consumables continuing to do well.

During the latter part of the quarter, we also saw a strong start of the christmas sale, which is an important season for Rusta and often drives additional customer traffic to the stores. The strong start in sales is a good signal for the significant christmas season.

Our second largest market, Norway, continues to grow and sales amounted to MSEK 555 for the quarter, making an increase of 11.0 percent compared to the same quarter last year. Norway had a solid second quarter with a good flow of customers compared to the same quarter last year, when customers were more cautious in their buying behavior. Like the Swedish market, we see increased sales mainly in home decorations and consumables.

The net sales for Other markets (Finland, Germany and Online) amounted to MSEK 586 for the quarter, an increase of 27,7 percent compared to the same period last year. Our Other markets shows profitability on EBITA-level in both quarter and year-to-date, a positive sign that our efforts in these markets evolves according to plan.

Further store openings and growing Club Rusta membership base

During the quarter, three new stores where opened, in Köping, Sweden, in Notodden, Norway and in Oulu, Finland, which has been well received. By the end of the quarter, we had 205 stores on four markets.

After the quarter, we have opened three more stores in Lillehammer and Bamble in Norway and in Essen in Germany. Rusta stands strong and continues to invest in growth in all markets in line with the strategy we have had for many years.

We see a continued strong membership growth in our Club Rusta loyalty program, which during the quarter reached 5,3 million fully registered members. This corresponds to an increase of 15.7 percent compared to the same quarter last year. We see it as a further proof of the attractiveness of the Rusta concept.

Rusta introduces new technology as a step towards climate neutrality in the value chain

After the end of the quarter Rusta announced the investment in a new heavy electric truck, that will enable daily emission-free transports between Rusta's central warehouse in Norrköping, Sweden, to Rusta stores in Stockholm and Mälardalen. The truck is one of the first of its kind in Sweden and we are proud to be able to reduce our climate impact with new, world-class technology.

Rusta has worked strategically to achieve a more sustainable logistics chain for a long time. The fulfillment centre in Norrköping, Sweden, was inaugurated in 2015, and it is one of the largest distribution centers in the Nordics. The strategic location of the fulfillment centre contributes to reducing the number of transports between the warehouse and the stores. The investment in the new electric truck, that enables a CO2 reduction of approx. 116,000 kg per year when fully operational, is an important step towards our goal to reach climate neutrality in the value chain by 2045.

The journey for Rusta continues as a listed company

During the quarter, Rusta carried out a successful IPO on Nasdaq Stockholm, and we received a warm welcoming from more than 20,000 new shareholders, who chose to invest in Rusta. I would like to take this opportunity to thank you for your trust and welcome all investors to Rusta. We see the large interest as proof of a great confidence in Rusta, our business model and our proven store concept.

We continue to grow and improve our profitability, at the time of writing we have opened seven stores in the financial year, across all Rusta markets. We remain optimistic about the future and to deliver on our financial targets.

Finally, I would like to thank all our fantastic employees that continues do the utmost to push prices down for our customers and at the same time creating the best shopping experience for them in all our stores.

We look forward to welcoming our customers to the final rush of christmas shopping in our stores!

Göran Westerberg CEO Rusta AB (publ)

Financial performance

Second quarter August 2023 – October 2023

Net sales

Net sales for the group amounted to MSEK 2,642 (2,309) for the quarter, marking an increase of 14.4% (10.4%). Exchange rate has affected the net sales positively during the quarter with 1.2% (0.7%) mostly from a strong Euro. LFL sales increased by 10.8% (5.7%) where 1,5% (2,2%) are explained by currency effects.

The quarter was characterized by strong growth in sales of consumables. Attractive prices and campaigns have brought many new customers through the doors of our stores. Reduced shipping costs compared to last year and an optimized pricing boosted our gross margin during the quarter compared with last year. Our gross margin was 43.6% (40.8%).

Operating profit

Sales expenses increased by MSEK 98 corresponding to an increase of 11.9% and administrative expenses increased by MSEK 17 corresponding to an increase of 21.4%. The increase is mainly driven by inflation and 12 new stores that has opened since the end of the corresponding quarter last year. Administrative expenses has also been impacted by expenses related to preparation for initial public offering (IPO) of MSEK 9 (2). However, operating expenses share of net sales decreased with 0.6 percentage points to 36.8% (37.4%).

Other operating income and expenses, net, amount to MSEK 5 (27) which corresponds to a negative effect on operating profit of MSEK 22 compared to the corresponding quarter last year. The change is explained by negative impact of exchange rate differences.

Adjusted EBITA was MSEK 150 (68). The adjustments for items affecting comparability related to IPO-related costs of MSEK 9 (2). EBITA was MSEK 141 (66) and EBIT was 139 MSEK (64), an increase of 115.1%. EBITA-margin were 5.3%.

YTD May 2023 – October 2023

Net sales

Net sales for the group amounted to MSEK 5,601 (4,962) YTD, marking an increase of 12.9% (6.3%). Exchange rate has affected the net sales positively during the quarter with 0.9% (2.5%) mostly from a strong euro. LFL sales increased by 8,5% (1,0%) where 0,3% (2,0%) are explained by currency effects.

YTD was characterized by strong growth in sales of consumables. Attractive prices and campaigns have brought many new customers through the doors of our stores. Reduced shipping costs compared to last year and an optimized pricing, boosted our gross margin during the quarter compared with last year. Our gross margin was 43.2% (40.8%).

Operating profit

Sales expenses increased by MSEK 202 corresponding to an increase of 12.5% and administrative expenses increased by MSEK 58 corresponding to an increase of 40.2%. The increase is mainly driven by inflation and 12 new stores that has opened since the end of the corresponding period last year. Administrative expenses has also been impacted by expenses related to IPO of MSEK 29 (2). Operating expenses share of net sales increased with 0.6 percentage points to 34.6% (34.0%).

Other operating income and expenses, net, amount to MSEK 45 (28) which corresponds to a positive effect on operating profit of MSEK 16 compared to the corresponding period last year. The positive impact is explained by received electricity support of MSEK 12 (0) and positive impact of exchange rate differences.

Adjusted EBITA was MSEK 468 (289). The adjustments for items affecting comparability related to IPO-related costs of MSEK 29 (2). EBITA was MSEK 439 (287) and EBIT was 435 MSEK (283), an increase of 53.6%. EBITA-margin were 7.8%.

Net sales MSEK, Gross margin %

Cont´d

Second Quarter August 2023 – October 2023

Financial items and tax

Net financial items amounted to MSEK -57 (-41) whereof MSEK -56 (-38) is related to interest costs attributable to lease liabilities. The increase is mostly driven by more stores since the end of the corresponding quarter last year as well as index adjustments. Profit before tax amounted to MSEK 81 (23). Income tax for the quarter amounted to MSEK -13 (-9).

Net profit/loss for the period

Net profit/loss for the period amounted to MSEK 69 (14). Earnings per share after dilution amounted to SEK 0.4 (0.1).

Cash flow

Cash flow from operating activities for the quarter amounted to MSEK -3 (-224). The quarter were positively impacted by a stronger operating profit and change in working capital. The increased inventory for the quarter is explained by the build-up of stock in the second quarter for upcoming seasonal sales, among others the christmas assortment.

Cash flow from investing activities in the quarter amounted to MSEK -49 (-45). Investments are mainly attributable to maintenance investments in both stores and warehouse, and by investments in new stores during the period.

Cash flow from financing activities amounted to MSEK -242 (220) and consists mainly by the change in the overdraft facility where we use MSEK 327 less of the overdraft facility compared to previous year. The change compared to last year is further explained by payment of dividend that were paid out during the third quarter last year.

YTD

May 2023 – October 2023

Financial items and tax

Net financial items amounted to MSEK -113 (-80) whereof MSEK -110 (-73) is related to interest costs attributable to lease liabilities. The increase is mostly driven by more stores since the end of the corresponding quarter last year as well as index adjustments. Profit before tax amounted to MSEK 322 (203). Income tax YTD amounted to MSEK -64 (-44) corresponding to an effective tax rate of 19.9% (21.8%).

Net profit/loss for the period

Net profit/loss YTD amounted to MSEK 258 (159). Earnings per share after dilution amounted to SEK 1,7 (1,0).

Cash flow

Cash flow from operating activities YTD amounted to MSEK 761 (164). The period were positively impacted by a stronger operating profit and change in working capital. The increased inventory for the period is explained by the build-up of stock in the second quarter for upcoming seasonal sales, among others the christmas assortment.

Cash flow from investing activities YTD amounted to MSEK -80 (-67). Investments are mainly attributable to maintenance investments in both stores and warehouse, and by investments in new stores during the period.

Cash flow from financing activities YTD amounted to MSEK -763 (-135) and consists mainly by the change in the overdraft facility where we use MSEK 682 less of the overdraft facility compared to previous year. The change compared to last year is further explained by payment of dividend that were paid out during the third quarter last year.

Financial position

The Group's cash and cash equivalents amounted to MSEK 100 (132). Net debt was MSEK 5,496 (4,956) and Net debt excl. IFRS 16* was MSEK 41 (458). Net debt excl. IFRS 16 in relation to EBITDA excl IFRS 16 for the rolling 12 months was 0.06 (0.69). Unutilized credit facilities at the end of the reporting period amounted to MSEK 710 (272).

The Group's equity at the end of the period amounted to MSEK 1,465 (1,406). The equity/assets ratio amounted to 16.4% (16.9%) and the equity/assets ratio excl IFRS 16 amounted to 42.4% (36.7%).

^*Reconciliation tables and definitions for key ratios are presented at page 24-29

Segment and season

Our segments

Rusta's operations are divided into three segments: Sweden, Norway, and Other markets. Other markets include Finland, Germany and Online. Revenues and the costs attributable to the specific market are reported for each market.

The segment is based on how well Rusta is established in each market. For Rusta, Sweden and Norway are mature, established markets with historically strong, good profitability and Rusta has a good knowledge of them. Operations in Finland and Germany as well as Online are grouped under the common segment Other markets. In Other markets, Rusta is still partly operating in project form as these are relatively new markets, but where profitability is expected to increase in the long term as awareness of Rusta increases.

For further details by segment, please refer to the upcoming segment pages and Note 8 in this interim report.

Costs for central functions

Costs for the common central functions are reported separately and consist of the company's central staff and purchasing functions. The cost for the central function amounted to MSEK 203 (187) for the quarter. The increase is mostly driven by negatively currency effects for the quarter compared to the same quarter last year but also consists of higher costs related to the IPO and negative inflation effects.

For the period the central costs are lower than the previous year and amounted to MSEK 364 (388). The effects mentioned above is the same YTD but with the difference that the currency effects are positive compared to previous year.

The effects of IFRS 16 leasing agreements are not allocated to the segments but are found at Group level in the segment total layout, see note 8.

In EBITA excl IFRS 16 the total cost for leases is reported as operating expense, which differs from the consolidated statement of profit/loss where the interest component is included in net financial items. This difference is shown in the reconciliation in Note 8 under the heading "Group adjustments for IFRS 16".

Seasonal variations

Rusta's operations are affected by seasonal variations. Q1 and Q3 are generally the strongest quarters in terms of sales, mainly driven by the summer and christmas season. Q4 is generally the weakest quarter in terms of sales and earnings.

Cash flow from operating activities mirrors the seasonal variation in sales. Inventory build-up takes place evenly during the year but is generally somewhat larger in Q2, which, together with the fact that sales are weaker in this quarter, means that the Group utilities overdraft facilities to a greater extent during this period. The debt/equity ratio is therefore higher ahead of the summer- and christmas season and at its lowest when passed the christmas season.

The segments share of the net sales

The quarter

YTD

Sweden

Continued strong net sales growth

Stores in Sweden continue to deliver strong sales growth. Total net sales in the second quarter increased by 11.2% (6.6%), of which 10.0% (4.0%) is LFL growth.

We see a strong sale in the quarter where products within consumableand home decorations are still going strong just like in the previous quarter. During the latter part of the quarter, we started the Christmas sale, a season that is important for Rusta, and always drives extra customers to our stores.

The operating expense in relation to net sales for the quarter have decreased to 25.8% (26,1%). Despite increased sales the expenses haven´t increased in the same pace. We have good cost control of freight and personnel cost and we see a positive effect of especially reduced costs for electricity compared to the previous year.

Rusta has currently 110 stores in its domestic market in Sweden. During the quarter one (-) new store opened in the town Köping.

The segments share of the net sales for the quarter

Sweden		The quarter		YTD	LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Net sales	1,502	1,351	3,165	2,927	6,243	6,007
Net sales growth, %	11.2%	6.6%	8.1%	4.3%	6.2%	4.3%
LFL growth, %	10.0%	4.0%	7.5%	1.3%	5.8%	2.2%
EBITA excl. IFRS 16	244	208	557	510	998	985
EBITA-margin excl. IFRS 16, %	16.3%	15.4%	17.6%	17.4%	16.0%	16.4%
Number of new stores	1	0	1	1	2	2

Norway

Norway continues to grow

Norway had a good second quarter with a good flow of customers compared to same quarter last year, when the market was more cautious in its buying behavior. Like the Swedish market, we see an increased sale within the assortment of home decoration and consumables. Carpets, eatable and pet products are examples of some of the strong product groups for the quarter. We continue to see a slightly changed customer basket with a different assortment mix compared to the same quarter last year. The change is most significant in the beginning of the quarter when sales of consumables increased while seasonal products slightly decreased. Home decoration continues to go strong.

The net sales growth excluding currency effect for the quarter is 13.8% (7.0%) and LFL growth excl currency effects is 8.6% (3.2%). Recalculated to the Groups currency of the Swedish Krona the net sales growth are 11.0% (14.5%), which is slightly lower since the Norwegian Krona lost value against the Swedish Krona during the quarter.

The cost control is good and the operating expenses as part of the net sales in Norwegian Krona has decreased to 33.6% (34.9%). We see a positive development regarding costs of freight and electricity compared to the same quarter last year.

Rusta entered the Norwegian market in 2014. Today, the chain's stores are in 45 towns around the country from Lyndal in the south to Alta in the north. During the quarter one (one) new store were opened in Notodden.

The segments share of the net sales for the quarter

Norway	The quarter		YTD		LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Net sales	555	499	1,145	1,017	2,306	2,178
Net sales growth, %	11.0%	14.5%	12.7%	2.1%	9.3%	4.3%
Net sales growth excl currency effects, %	13.8%	7.0%	17.7%	-3.0%	11.3%	1.4%
LFL growth excl currency effects, %	8.6%	3.2%	11.3%	-6.3%	6.0%	-2.7%
EBITA excl. IFRS 16	55	40	134	113	263	257
EBITA-margin excl. IFRS 16, %	9.9%	8.0%	11.7%	11.1%	11.4%	11.8%
Number of new stores	1	1	1	1	4	4

Other markets

Positive profitability development characterizes Rustas other markets

The "Other markets" segment includes the store networks in Finland and Germany, as well as total online sales for Rusta.

The net sales growth excluding currency effects is 18.1% (21.6%) for the quarter whereof LFL growth excl. currency effects are 7.7% (1.8%). Net sales growth for the quarter is 27.7% (18.3%). Currency effects had a positive impact due to that Euro is valued higher against the Swedish Krona during the quarter. We see a strong growth in both our store network in Finland and Germany and in Rusta Online compared to last year.

The cost development for the quarter as a share of the sales, is good and shows the strength of our scalability in our business model, where increased sale and growth doesn´t generate increased costs in the same pace. The profitability in terms of EBITA excl IFRS 16 increased during the quarter by 0.5% (-5.3)

During the quarter one (three) new store opened in Finland, Oulu and no (-) store opened in Germany.

Rusta's intention is to continue to invest in our growth through both new and existing stores and channels. During 2023 we plan to open further stores in Germany which is becoming an increasingly important market for us.

The segments share of the net sales for the quarter

Other markets	The quarter		YTD		LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Net sales	586	459	1,290	1,018	2,293	2,018
Net sales growth, %	27.7%	18.3%	26.7%	17.6%	27.7%	22.7%
Net sales growth excl currency effects, %	18.1%	21.6%	16.3%	15.7%	18.1%	17.3%
LFL growth excl currency effects, %	7.7%	1.8%	3.4%	-0.9%	5.3%	1.2%
EBITA excl. IFRS 16	3	-24	30	-5	-40	-50
EBITA-margin excl. IFRS 16, %	0.5%	-5.3%	2.4%	-0.5%	-1.7%	-2.5%
Number of new stores	1	3	2	4	6	8

Other information

Rusta stores

Over the next 12 months, Rusta plans to open a total of minimum ten new stores. In addition to these, there are a number of sites for establishment under consideration for which an opening during the next 24 months is possible.

At the end of the quarter, the distribution of the Group's 205 stores is as follows.

Share

The Annual General Meeting of Rusta decided on September 1, 2023, to carry out a share split (300:1), which resulted in that each share is divided into 300 shares. The number of shares have been recalculated for all periods. As of October 31, 2023 the number of shares was 151,792,800 with a quota value of approx. SEK 0,03.

Events during the period

The Rusta shares commenced trading on Nasdaq Stockholm on October 19, 2023. During the period, a long-term shareand performance-based incentive programme ("LTIP 2023") was launched as resolved by the AGM on 1 September 2023. The maximum number of shares in Rusta that can be

allocated as part of LTIP 2023 is limited to 204,794, corresponding to approximately 0,13 per cent of shares and votes in the Company. LTIP 2023 comprises of 39 employees including members of the senior executives as well as certain other key individuals in the Group.

Provided that the performance-based condition is fully achieved, the cost for LTIP 2023 before tax is estimated to approximately MSEK 11 allocated over the vesting period and shall be expensed as personnel costs. Estimated social security costs and financing cost are included in such amount. The costs are expected to have marginal effect on key ratios of the Group.

Employees

The average number of full-time employees as of 31 October was 4,497 (4,085) of which 2,869 were women (2,607).

Financial targets

The Group has the following financial targets:

Net sales growth:

Rusta targets an annual average organic* net sales growth around eight (8)% in the medium term and an annual average LFL growth above 3%.

Profitability:

Rusta targets an EBITA margin of around eight (8)% in the medium term and earnings per share to outgrow net sales and EBITA as a result of scalability in the business model**

Dividend policy:

Rusta aims to distribute 30-50% of net profit for each financial year as dividends, taking into account the company´s financial position.

**Scalability of business model refers to margin increase as a result of organic net sales growth and higher efficiency, which increases revenue more than costs.

^*Excluding acqusitions

Sustainability

Sustainability

Sustainability is an inherent part of the Rusta business model. Our operations are defined by resource-efficiency, as well as taking a broad responsibility throughout our value chain and in the societies where we operate.

At Rusta we actively align our agenda towards the 17 Sustainable Development Goals laid out by the United Nations. We are also dedicated to adapting our operations and strategies to The Ten Principles of the United Nations Global Compact.

Rusta conduct a structured and target-based sustainability work. We have identified and prioritised five material aspects, which constitutes the foundation for our sustainability work.

	Overarching goals based on identified material aspects
Social responsibility	Increase the share of suppliers at level "Good" to 75% during the financial year 2023/2024 in accordance with the social requirements laid out in the Rusta Code of Conduct.
Logistics and packaging	Reduce CO2 emissions with more than 3% yearly, using alternative transportation modes and fuel. Eliminate consumer packaging on 25% of all Rusta products until 2026.
Products	15% less defective customer returns yearly.
Trust	Internal: Yearly increase of coworker trust index External: Yearly increase in customer survey regarding perception of Rusta as a "reliable company".
Climate	Climate neutral by 2030 (GHG scope 1, 2) Climate neutral by 2045 (GHG scope 1, 2, 3).

During the period (May-Oct), work on the follow-up of Rusta's Code of Conduct at the manufacturing units has progressed. We have evaluated a total of 151 factories in accordance with the social criteria in the Code of Conduct and 107 factories in accordance with the environmental criteria. During the period, Rusta has actively worked and discussed with expertise in the field of climate calculations. This to be able to report the Rusta Group's total climate footprint in a systematic way. Climate calculations are one of the most significant areas on the sustainability agenda for the current financial year.

Rusta´s ambition when it comes to climate impact is ambitious but not unique. We will be climate neutral within our own operations until 2030 and completely climate neutral until 2045.

Financial reports

Condensed consolidated statement of profit or loss

		The quarter		YTD		LTM	Full year
		Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	Note	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Net sales	8	2,642	2,309	5,601	4,962	10,841	10,202
Cost of goods sold		-1,489	-1,367	-3,183	-2,940	-6,259	-6,016
Gross profit		1,153	942	2,418	2,022	4,582	4,187
Sales expenses		-922	-824	-1,826	-1,623	-3,617	-3,414
Administrative expenses		-97	-80	-202	-144	-356	-298
Other operating income		49	82	118	129	205	216
Other operating expenses		-44	-55	-73	-101	-145	-173
Operating profit		139	64	435	283	670	518
Finance income		2	0	4	0	6	1
Finance expenses		-60	-41	-117	-80	-217	-179
Profit/loss before tax		81	23	322	203	459	341
Income tax expense		-13	-9	-64	-44	-99	-79
Net profit/loss for the period		69	14	258	159	360	261
Earnings per share, SEK	7
Earnings per share before dilution, SEK		0.5	0.1	1.7	1.0	2.4	1.7
Earnings per share after dilution, SEK		0.4	0.1	1.7	1.0	2.4	1.7

Condensed consolidated statement of comprehensive income

	The quarter		YTD		LTM	Full year
MSEK	Aug 2023 Note -Oct 2023	Aug 2022 -Oct 2022	May 2023 -Oct 2023	May 2022 -Oct 2022	Nov 2022 -Oct 2023	May 2022 -Apr 2023
Net profit/loss for the period	69	14	258	159	360	261
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange rate differences	-21	-1	9	1	-29	-36
Cashflow hedges, net after tax	13	-1	28	-16	-16	-60
Other comprehensive income for the period, after tax	-8	-2	37	-15	-45	-97
Total comprehensive income	61	12	295	144	315	165
Attributable to:
Parent company shareholders	61	12	295	144	315	165
Non-controlling interest	-	-	-	-	-	-

Condensed consolidated balance sheet

	The quarter	Full year
MSEK Note	31 Oct 2023	31 Oct 2022	30 Apr 2023
Assets
Intangible fixed assets
Capitalised development expenses	67	67	62
Goodwill	118	109	113
Trademarks	4	15	8
Summary, Intangible assets	189	191	183
Property plant and equipment
Right-of-use asset	5,072	4,159	5,115
Property , plant and equipment	474	443	473
Summary, Tangible assets	5,545	4,601	5,588
Financial assets
Other financial assets	0	0	0
Summary, Financial assets	0	0	0
Deferred tax receivables	197	195	199
Summary, Non-current assets	5,931	4,988	5,970
Current assets
Inventories	2,742	3,078	2,593
Accounts receivable	12	12	27
Other current receivables	43	40	40
Prepaid expenses and accrued income	81	79	42
Cash and cash equivalents	100	132	182
Summary, Current assets	2,977	3,341	2,885
Total Assets	8,909	8,328	8,855
Equity and liabilities
Equity
Share capital	5	5	5
Other contributed capital	1	1	1
Reserves	-17	28	-54
Retained earnings inc. result of the year	1,476	1,372	1,323
Total, Equity	1,465	1,406	1,275
Non-current liabilities
Liabilities to credit institutions	47	60	51
Deferred tax liabilities	123	122	115
Lease liabilities	4,586	3,775	4,616
Other longterm payables	74	98	70
Summary, Longterm liabilities	4,830	4,056	4,853
Current liabilities
Liabilities to credit institutions	93	530	386
Lease liabilities	869	723	848
Trade payables	789	805	635
Liabilities to parent company	-	14	-
Current tax liabilities	17	55	16
Provisions	23	22	22
Other current liabilities	196	176	189
Accrued expenses and deferred income	626	542	630
Summary, Current liabilities	2,614	2,867	2,727
			7,580
Summary, Liabilities	7,444	6,922

Group condensed statement of changes in equity

			Attributable to parent company´s shareholders
Amounts in MSEK	Note	Share capital	Other contribute	d capital Reserves	Retained earnings inc. result of the period	Total equity
Opening balance at 1 May 2022		5	1	43	1,213	1,262
Net profit/loss for the period					159	159
Other comprehensive income				-15		-15
Total comprehensive income		-	-	-15	159	144
Dividends					-
Total transactions with shareholders		-	-	-	-	-
Closing balances at 31 October 2022		5	1	28	1,372	1,406

		Attributable to parent company´s shareholders
		Share	Other contribute		Retained earnings inc. result of the	Total
Amounts in MSEK	Note	capital		d capital Reserves	period	equity
Opening balance at 1 May 2023		5	1	-54	1,323	1,275
Net profit/loss for the period					258	258
Other comprehensive income				37	-	37
Total comprehensive income		-	-	37	258	295
Dividends					-105	-105
Share saving program					0	0
Total transactions with shareholders					-105	-105
Closing balances at 31 October 2023		5	1	-17	1,476	1,465

Group condensed consolidated cash flow statement

	The quarter		YTD		LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK Note	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Operating profit	139	64	435	283	670	518
Adjustments for non-cash items
Depreciation, amortization and impairment losses p g / / p	235	206	463	402	898	837
fixed assets	-	-	-	-	1	1
Other	-1	4	-	-	8	8
Provisions	0	0	1	0	1	1
Interest received	2	0	4	0	6	1
Interest paid	-60	-41	-117	-80	-217	-179
Paid tax	-40	-34	-60	-66	-134	-140
Cash flow from operating activities before changes
in working capital	277	199	726	540	1,234	1,048
Cash flow from changes in working capital
Increase (-)/decrease (+) in inventories	-178	-216	-127	-243	351	235
Increase (-)/decrease (+) in operating receivables	17	6	1	53	16	68
Increase (+)/decrease (-) in operating liabilities	-118	-213	161	-186	2	-344
Cashflow from operating activities	-3	-224	761	164	1,604	1,007
Investing activities
Investments in intangible assets	-10	-4	-13	-6	-19	-12
Investments in tangible assets	-40	-41	-67	-61	-167	-161
Cash flow from investing activities	-49	-45	-80	-67	-185	-172
Financing activities
Change in the overdraft facility, net	60	387	-301	381	-503	180
Amortization of borrowings	-3	-3	-6	-207	-14	-215
Repayment of lease liabilities	-195	-164	-351	-308	-681	-638
Dividends to shareholders	-105	-	-105	-	-257	-152
Cash flow from financing activities	-242	220	-763	-135	-1,454	-826
Cash flow for the period	-294	-49	-82	-38	-36	9
Cash and cash equivalents at the beginning of the
period	394	181	182	170	132	170
Exchange difference in cash and cash equivalents	-	-	-0	0	-0	4
Cash and cash equivalents at the end of the
period	100	132	100	132	100	182

Parent company condensed statement of profit or loss

		The quarter		YTD		Full year
		Aug 2023	Aug 2022	May 2023	May 2022	May 2022
Amounts in MSEK	Note	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Apr 2023
Net sales		2,236	2,011	4,534	4,187	8,546
Cost of goods sold		-1,488	-1,376	-3,003	-2,811	-5,767
Gross profit		748	635	1,531	1,376	2,780
Sales expenses		-596	-541	-1,188	-1,080	-2,311
Administrative expenses		-89	-68	-186	-126	-270
Other operating income		46	81	113	128	212
Other operating expenses		-40	-52	-66	-97	-165
Operating profit		70	55	203	201	246
Finance income		5	1	9	1	5
Finance expenses		-10	-5	-18	-9	-23
Profit/loss before tax		65	50	195	194	228
Appropriations		-	-	-	-	-29
Income tax expense		0	2	0	2	-42
Net profit/loss for the period		65	52	195	196	157

Parent company condensed statement of comprehensive income

	The quarter		YTD		Full year
	Aug 2023	Aug 2022	May 2023	May 2022	May 2022
Amounts in MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Apr 2023
Net profit/loss for the year	65	52	195	196	157
Other comprehensive income
Items that may be reclassified to profit or loss
Cashflow hedges, net after tax	13	-1	28	-16	-60
Other comprehensive income for the period, after tax	13	-1	28	-16	-60
Total comprehensive income	78	51	223	180	97

Parent company condensed balance sheet

	The quarter	Full year
MSEK Note	31 Oct 2023	31 Oct 2022	30 Apr 2023
Assets
Fixed assets
Intangible fixed assets
Capitalised development expenses	61	61	56
Property plant and equipment
Property , plant and equipment	248	256	257
Financial assets
Investments in group companies	77	77	77
Deferred tax receivables	2	3	3
Total non-current assets	388	397	394
Current assets
Inventories etc
Goods in transit	207	250	107
Inventories	1,948	2,274	1,928
Current receivables
Accounts receivable	8	15	16
Receivables from Group companies	252	246	150
Current tax receiables	73	32	26
Other current receivables	33	32	32
Prepaid expenses and accrued income	136	158	118
Cash and cash equivalents	47	42	106
Total current assets	2,705	3,048	2,483
Total assets	3,092	3,446	2,877
Equity and liabilities
Eget kapital
Restricted equtiy
Share capital	5	5	5
Reserve fund	1	1	1
Non-restricted equity
Retained earnings inc. Net profit/loss for the period	846	960	766
Net profit for the period	195	196	157
Total equity	1,048	1,162	929
Liabilities
Deferred taxes	558	529	558
Non-current liabilities
Deferred tax asset	6	11	-
Current liabilities
Liabilities to credit institutions Trade payables	215 722	492 740	294 524
Liabilities to parent company	-	14	-
Provisions	23	21	22
Other current liabilities	48	51	61
Accrued expenses and deferred income	473	425	489
Total liabilities	2,045	2,284	1,948
Total equity and liabilities	3,092	3,446	2,877

Notes

Note 1. General information

Rusta AB (publ), here referred to as the "Company" with org.reg. no. 556280-2115 is a company with its registered office in Upplands Väsby. The parent company is a retail company that markets and sells products to end consumers through a network of stores. The stores are run under the name RUSTA, and subsidiaries are in Sweden, Norway, Finland and Germany. All stores in the Group are wholly owned.

Rusta offers the market a broad range of functional home and leisure products that provide value for money for many people. Seasonal articles and specially designed articles mean that the product range in stores is constantly renewed.

Purchasing is mainly sourced through direct imports from Asia and Europe or directly from manufacturers in Sweden. The largest and most important import country is China. The Company's market primarily consists of end consumers.

Note 2. Accounting principles

The interim report for the Group has been prepared in accordance with IAS 34 Interim Reporting issued by the International Accounting Standards Board (IASB), as well as applicable provisions of the Swedish Annual Accounts Act.

The interim report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2, Reporting for legal entities. The accounting principles that have been applied in this interim report are the same as those applied in the annual report for 2022/2023 for both the Group and the parent company, beside the exemption rule for unlisted companies not to apply "IFRS 8 Operating Segments" and "IAS 33 Earnings per share" that have been applied in this interim report. The accounting principles for "IFRS 8 Operating Segments" and "IAS 33 Earnings per share" that has been applied in preparation of this interim report are the same that has been applied in the financial reports in the Groups prospectus published October 9, 2023.

There are no new accounting principles applicable from May 1, 2023, that significantly impacts the Group. However, there are explanatory notes included to explain events and transactions that are material to an understanding of changes in the consolidated financial position and earnings. Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences.

Note 3. Significant estimates and assessments

Group management makes estimates and assumptions about the future, as well as conducting assessment of how the accounting principles should be applied when preparing the financial statements. The estimates and assessments are evaluated on an ongoing basis and assumptions are based on historical experience and other factors, including expectations of future events that are considered reasonable in the circumstances. By the definition the resulting accounting estimates will rarely be equivalent to the actual outcome. The significant estimates made by management in the application of the Group accounting policies and the main sources of uncertainty in the estimates are the same as described in Note 3 to the consolidated annual report for 2022/2023.

Note 4. Financial instruments

Financial assets and financial liabilities measured at fair value in the balance sheet only include derivatives (currency futures). For other financial assets and financial liabilities valued at amortized cost, the carrying amounts are deemed to be a good approximation of the fair values since the term and/or fixed interest is short-term, which means that discounting based on current market conditions is not expected to have any significant impact.

The methods and assumptions primarily used to determine the fair value of the financial instruments presented below are the same as described in Note 4 in the consolidated Annual Report for 2022/2023.

The fair value of currency derivatives is based on quotations from counterparties at the balance sheet date. The company has hedged futures in USD. These have been recorded at their fair value at the balance sheet date. All currency derivatives are attributable to level 2 of the fair value hierarchy and amount to MSEK 28 (54).

Notes cont´d

Note 5. Related party transactions

Transactions with subsidiaries, which are related parties to the company, have been eliminated in the consolidation process and disclosure of these transactions is therefore not submitted in this note. The related parties identified are the Board of directors, senior executives, and their related parties. Transactions during the quarter amounted to MSEK 1 (0) and for the period to MSEK 1 (1) and relate to salaryrelated remuneration to board members who are also employed by Rusta AB (publ) as well as invoiced consultancy fees from family members of senior executives. Related party transactions have taken place on market terms.

Note 6. Risks and uncertainties

Rusta's operations and earnings are affected by a number of external factors, which means there is a risk the company may not meet set targets. Rusta is primarily exposed to operational and financial risks. Operational risks mainly consist of opening new stores in all markets, purchasing in Asia, the product range, competition, logistics, strikes, key employees and social responsibility. Financial risks comprise inflation, commodity costs, shipping costs and currency exposure. Rusta's significant risks and uncertainties are described in the 2022/2023 annual report.

Like other companies, Rusta faces challenges as a result of changes in the macroeconomy and the geopolitical situation in the world. Russia's invasion of Ukraine has increased uncertainty for the global economy, such as supply and logistics chain disruptions and increased volatility in the energy market, along with higher interest and inflation rates.

As a consequence, there is a risk of further disruption to supplier chains and increased distribution costs, as well as impacts on consumer behavior.

Note 7. Earnings per share

	The quarter q		The quarter		LTM	Full-year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
Earnings per share before dilution, SEK	-Oct 2023 0.5	-Oct 2022 0.1	-Oct 2023 1.7	-Oct 2022 1.0	-Oct 2023 2.4	-Apr 2023 1.7
Earnings per share after dilution, SEK	0.4	0.1	1.7	1.0	2.4	1.7
Profit/loss for the period connected to the shareholders of the Group, MSEK	69	14	258	159	360	261
Total number of shares, thousands	151,793	151,793	151,793	151,793	151,793	151,793
Weighted average number of shares before dilution, thousands	151,793	151,793	151,793	151,793	151,793	151,793
Weighted average number of shares after dilution, thousands	152,984	151,793	153,030	151,793	152,418	151,793

Notes cont´d

Note 8. Revenue and operating segment

The Group reports revenue in segments; Sweden, Norway, Other markets. All revenue refers to sales of goods to external customers and all segments is reported in the accounting currency of SEK. See the below chart for details and the previous pages in this interim report, showing analysis of changes per segment in the central functions and for the Group.

Net sales per segment	The quarter		YTD		LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Sweden	1,502	1,351	3,165	2,927	6,243	6,007
Norway	555	499	1,145	1,017	2,306	2,178
Other markets	586	459	1,290	1,018	2,293	2,018
Total net sales from external customers	2,642	2,309	5,601	4,962	10,841	10,202

^*Intercompany net sales invoiced from central functions amount to MSEK 725 (642) for the quarter, YTD MSEK 1,302 (1,191) and are fully eliminated in the group.

EBITA excl IFRS 16 per segment	The quarter		YTD		LTM	Full year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Sweden	244	208	557	510	998	985
Norway	55	40	134	113	263	257
Other markets	3	-24	30	-5	-40	-50
EBITA excl. IFRS 16 for the segments	302	223	721	617	1,221	1,192
Central functions	-203	-187	-364	-388	-690	-788
EBITA excl. IFRS 16	99	37	358	230	531	404
Group adjustments of IFRS 16	41	29	81	57	150	126
EBITA	141	66	439	287	681	529
EBITA-margin, %	5.3%	2.9%	7.8%	5.8%	6.3%	5.2%
Depreciation of acquisition related assets, not allocated to segments	-2	-2	-4	-4	-11	-11
EBIT	139	64	435	283	670	518
EBIT-margin, %	5.2%	2.8%	7.8%	5.7%	6.2%	5.1%
Financial items, net	-57	-41	-113	-80	-211	-178
Profit/loss before tax	81	23	322	203	459	341

^*Reconciliation tables and definitions for key ratios are presented at page 24-29

Note 9. Events after the end of the period

No significant events have occurred after the end of the period.

Signatures

The Board of Directors and the CEO assure that the interim report provides a fair overview of the Group and the parent company operations, position and earnings and reports significant risks and uncertainties faced by the Group and parent company.

Stockholm, December 20, 2023 Rusta AB (publ) Org.no 556280-2115

Erik Haegerstrand

(Chairman of the board)

Anders Forsgren (Boardmember)

Ann-Sofi Danielsson (Boardmember)

Björn Forssell (Boardmember)

Claes Eriksson (Boardmember)

Maria Edsman (Boardmember)

Victor Forsgren (Boardmember)

Göran Westerberg (CEO)

Auditor´s report

Rusta AB (publ) reg no 556280-2115

Introduction

We have reviewed the condensed interim financial information (interim report) of Rusta AB as of 31 October 2023 and the six-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish 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 Report 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 is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

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

Stockholm, 20 December 2023 Öhrlings PricewaterhouseCoopers AB

Cesar Moré Authorized Public Accountant

Definitions

Key ratio	Definitions	Justification for using the key ratio
Net sales growth, %	Growth in net sales. Net sales in current period divided by net sales in the comparative period.	To analyze the Group's total net sales growth in order to compare it against competitors and the market as a whole.
Currency effect, %	The increase/decrease in profit/loss line items for the period attributable to the effects of exchange rate fluctuations divided by profit/loss line items in the comparative period recalculated to the foreign exchange rate applicable for the comparative period.	To monitor the Group's underlying growth in profit/loss line items attributable to changes in exchange rates.
LFL growth, %	Change in comparable sales between the current and comparative periods, where comparable sales are sales in comparable stores that have been operational throughout the entire current and comparative period. For a store to be classified as comparable, it must have been open for a full financial year.	Tracks the development in net sales over time in stores that have been operational during the entire current period and the comparative period, i.e. existing stores. The measure makes it possible to analyze the net sales growth for all existing stores in the Group.
Net sales growth excl. currency effects, %	Net sales growth adjusted for currency effects.	To monitor the Group's underlying growth in net sales.
LFL growth excl currency effects, %	LFL growth adjusted for currency effects. LFL growth excl currency effects is only reported for the segments.	Tracks the underlying development in net sales over time in existing stores.
Items affecting comparability	Income and expense items recognized separately as a result of their nature and their amounts. All included items are bigger and significant during certain periods, or non-existent in other periods.	Items affecting comparability is used by the management to explain trends in historical earnings. Separate recognition and specification of items affecting comparability allows readers of the financial reports to understand and evaluate the adjustments made by the management when the adjusted earnings are reported. Taking into account items that affect comparability increases the comparability of data and thereby enhances understanding of the Group's financial development.
Gross profit	Net sales less the cost of goods sold including the inbound cost of the goods.	To analyze the profit from sales. The Group's gross profit shows what is left to finance other costs once the goods are sold.
Gross margin, %	Gross profit divided by net sales.	To analyze the profit from sales. The Group's gross margin shows the profitability after the cost for merchandise including take-home cost has been incurred, which allows for the comparison of the average gross margin for sold merchandise over time.
Operating profit (EBIT)	Earnings before financial items and taxes.	Indicates the Group´s profit or loss generated from ongoing operations independent of capital and tax structures.
EBITA	Operating profit before amortization of intangible assets arising in connection with business acquisitions.	Provides an overarching picture of the profit generated in the operational business before amortization of intangible assets arising from business combinations.
EBITA excl. IFRS 16	Operating profit before amortization of intangible assets arising in connection with business acquisitions adjusted for the effects of IFRS 16. The effects of IFRS 16 on EBITA is that the total cost for leases is reported as operating expense, which differs from the consolidated statement of profit/loss where the interest component is included in net financial items.	Provides a profit measure reflecting EBITA before the effects of IFRS 16 accounting.
Adjusted EBITA	EBITA excluding items affecting comparability.	Provides a more comparable profit measure which is more closely reflecting the underlying EBITA of the business over time.
Operating profit, margin (EBIT margin), %	Operating profit (EBIT) divided by net sales.	Provides a measure of profitability generated from ongoing operations independent of capital and tax structures.

Key ratio	Definitions	Justification for using the key ratio
EBITA margin, %	EBITA divided by net sales.	Provides an overarching picture of the profitability generated in the operational business before amortization of intangible assets arising from business combinations.
Adjusted EBITA margin, %	EBITA excluding items affecting comparability divided by net sales.	Provides a comparable profitability measure which is more closely reflecting the underlying EBITA margin of the business over time.
EBITDA	Earnings before tax, financial items, depreciation and amortization.	Provides a profit measure which more closely represents the cash surplus generated from operations.
EBITDA margin, %	EBITDA divided by net sales.	Provides a measure of profitability which more closely represents the cash surplus generated from operations as a share of net sales.
EBITDA excl. IFRS 16	EBITDA excluding the effects of IFRS 16. The effects of IFRS 16 on EBITDA is that the total cost for leases is reported as operating expense, which differs from the consolidated statement of profit/loss where the interest component is included in net financial items.	Provides a profit measure reflecting EBITDA before the effects of IFRS 16 accounting.
Adjusted net profit/loss	Profit after tax excluding items affecting comparability after tax and depreciation and amortization of intangible assets arising in connection with business acquisitions after tax.	Provides a comparable measure of the net profits generated by the business, reflecting all underlying costs incurred during operations over time.
Adjusted net profit/loss margin, %	Adjusted net profit/loss divided by net sales.	Provides a comparable net profitability measure reflecting all underlying costs incurred during operations as a share of sales over time.
Net profit/loss-margin, %	Net profit/loss divided by net sales.	Provides a net profitability mease reflecting all underlyfing costs incurred during operations as a share of sales.
Net debt	Total current and long-term interest-bearing liabilities less cash and cash equivalents.	This measure provides an overview of the Group's total indebtness and indication of upcoming payment obligations.
Net debt excl. IFRS 16	Sum of short-term and long-term interest-bearing debt excluding leasing liabilities recorded in accordance with IFRS 16 and less cash and cash equivalents.	This measure provides an overview of the Group's financial indebtness and indication of upcoming financial payment obligations.
Net debt excl. IFRS 16 / EBITDA excl. IFRS 16, LTM (multiple)	Net debt excl. IFRS 16 divided with adjusted EBITDA excl. IFRS 16 for the last twelve months.	Describes the Group's capacity to repay its interest bearing debt excluding leasing liabilities. This is used to analyze the financial leverage excluding leasing liabilities and the impact of IFRS 16 on EBITDA.
Equity/assets ratio, %	Total equity divided by total assets.	Describes the Group's long-term ability to make payments.
Equity/assets ratio excl. IFRS 16, %	Total equity divided by total assets less leasing liabilities recorded in accordance with IFRS 16. Right-of-use assets recorded in accordance with IFRS 16 are included in total assets and not adjusted for.	Describes the Group's long-term ability to make payment adjusted for leasing liabilities recorded in accordance with IFRS 16.
Return on equity, %	Profit for the last twelve months in relation to shareholder's equity	Measure of profitability in relation to the carrying amount of equity. Shows how investments are used to generate increased income.
Operating expenses	Operating expenses are measured as sales expenses and administrative expenses excluding depreciation and amortization of property, plant and equipment and intangible assets.	Operating expenses are expenses incurred from operations. The change in operating expenses is compared to the net sales growth to monitor that the change is at the same rate.

Definitions – operating ratios

Number of loyalty club	The number of unique individuals who actively opt to be
members	members of the Rusta membership club.
Number of customers	The number of visitors to Rusta's stores or Rusta's Online webstore

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Key ratios

	The quarter		The quarter			LTM	Full-year
	Aug 2023	Aug 2022		May 2023	May 2022		Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	∆	-Oct 2023	-Oct 2022	∆	-Oct 2023	-Apr 2023
Sales measure
Net sales	2,642	2,309	14.4%	5,601	4,962	12.9%	10,841	10,202
Net sales growth, %	14.4%	10.4%	4.0pp	12.9%	6.3%	6.5pp	10.8%	7.5%
LFL growth, %	10.8%	5.7%	5.0pp	8.5%	1.0%	7.5pp	6.9%	2.5%
Net sales growth excl currency effects, %	13.2%	9.7%	3.6pp	12.0%	3.9%	8.1pp	9.8%	6.2%
Result measure
Operating profit, EBIT	139	64	115.1%	435	283	53.6%	670	518
Adjusted EBIT	148	67	122.2%	464	285	62.8%	712	533
EBITA	141	66	112.1%	439	287	53.0%	681	529
Adjusted EBITA	150	68	119.1%	468	289	62.1%	722	544
EBITDA	374	270	38.4%	898	685	31.1%	1,568	1,355
Net profit/loss for the period	69	14	387.8%	258	159	62.1%	360	261
Adjusted net profit/loss	78	17	350.1%	284	164	73.7%	402	282
Margin measures
Gross margin, %	43.6%	40.8%	2.9pp	43.2%	40.8%	2.4pp	42.3%	41.0%
EBIT-margin, %	5.2%	2.8%	2.5pp	7.8%	5.7%	2.1pp	6.2%	5.1%
Adjusted EBIT-margin, %	5.6%	2.9%	2.7pp	8.3%	5.7%	2.5pp	6.6%	5.2%
EBITA-margin, %	5.3%	2.9%	2.5pp	7.8%	5.8%	2.1pp	6.3%	5.2%
Adjusted EBITA-margin, %	5.7%	3.0%	2.7pp	8.4%	5.8%	2.6pp	6.7%	5.3%
EBITDA-margin, %	14.1%	11.7%	2.4pp	16.0%	13.8%	2.2pp	14.5%	13.3%
Net profit/loss-margin, %	2.6%	0.6%	2.0pp	4.6%	3.2%	1.4pp	3.3%	2.6%
Adjusted net profit/loss-margin, %	2.9%	0.7%	2.2pp	5.1%	3.3%	1.8pp	3.7%	2.8%
Cashflow measures Cashflow from operating activities	-3	-224	98.8%	761	164	363.6%	1,604	1,007
Capital structure Net debt	5,496	4,956	10.9%	5,496	4,956	10.9%	5,496	5,720
Net debt excl IFRS	41	458	-91.0%	41	458	-91.0%	41	255
Net debt, excl IFRS 16 / EBITDA excl IFRS 16 R12	0.06	0.69	-91.5%	0.06	0.69	-91.5%	0.06	0.46
Equity	1,465	1,406	4.2%	1,465	1,406	4.2%	1,465	1,275
Total assets	8,909	8,328	7.0%	8,909	8,328	7.0%	8,909	8,855
			(0.4)pp
Equity/assets ratio, % Equity/assets, excl IFRS 16 %	16.4% 42.4%	16.9% 36.7%	5.7pp	16.4% 42.4%	16.9% 36.7%	(0.4)pp 5.7pp	16.4% 42.4%	14.4% 37.6%
Return
Return on equity	24.6%	25.8%	(1.2)pp	24.6%	25.8%	(1.2)pp	24.6%	20.5%
Share
Number of shares at the end of the period,
thousands	151,793	151,793	-	151,793	151,793	-	151,793	151,793
Weighted avarage number of shares during the period, thousands	151,793	151,793	-	151,793	151,793	-	151,793	151,793
Earnings per share before dilution, SEK	0.5	0.1	387.8%	1.7	1.0	62.1%	2.4	1.7

Reconciliation tables

Rusta applies the Guidelines on Alternative Performance Measures by ESMA (The European Securities and Markets Authority). An alternative performance measure is a of historical or future financial performance, financial position or cash flows that is not defined or specified in IFRS.

Rusta believes that these measures provide valuable supplementary information to company management, investors, and other stakeholders in evaluating the company's performance. These alternative performance measures are not always comparable with the measures used by other companies since not all companies calculate these measures in the same way. These should therefore be seen as a supplement to the measures defined according to IFRS. For definitions of key figures, refer to page 24-25. For relevant reconciliations of the alternative performance measures that cannot be directly read in or derived from the financial statements, refer to the tables below.

	The quarter		The quarter		LTM	Full-year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Net sales growth, %
Net sales, current period	2,642	2,309	5,601	4,962	10,841	10,202
Net sales, comparative period	2,309	2,092	4,962	4,667	9,785	9,490
Net sales growth, %	14.4%	10.4%	12.9%	6.3%	10.8%	7.5%
Currency effect, %
Net sales, current period	2,642	2,309	5,601	4,962	10,841	10,202
Net sales current period adjusted for currency effect	2,615	2,293	5,556	4,847	10,742	10,082
Currency effect	27	16	45	115	99	121
Net sales, comparative period	2,309	2,092	4,962	4,667	9,785	9,490
Currency effect, %	1.2%	0.7%	0.9%	2.5%	1.0%	1.3%
LFL growth, %
LFL sales in the comparative period	2,223	1,988	4,787	4,480	9,527	9,011
LFL sales in the current period	2,462	2,102	5,193	4,524	10,184	9,236
LFL growth, %	10.8%	5.7%	8.5%	1.0%	6.9%	2.5%
Net sales growth excl currency effects, %
Net sales growth, %	14.4%	10.4%	12.9%	6.3%	10.8%	7.5%
Currency effect, %	-1.2%	-0.7%	-0.9%	-2.5%	-1.0%	-1.3%
Net sales growth excl currency effects, %	13.2%	9.7%	12.0%	3.9%	9.8%	6.2%
Grossprofit and gross margin, %
Net sales	2,642	2,309	5,601	4,962	10,841	10,202
Cost of goods sold	-1,489	-1,367	-3,183	-2,940	-6,259	-6,016
Gross profit	1,153	942	2,418	2,022	4,582	4,187
Gross profit	1,153	942	2,418	2,022	4,582	4,187
Net sales	2,642	2,309	5,601	4,962	10,841	10,202
Gross margin, %	43.6%	40.8%	43.2%	40.8%	42.3%	41.0%

Cont´d

	The quarter		The quarter		LTM	Full-year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
EBITA, adjusted EBITA and EBITA exkl IFRS 16
Operating profit (EBIT)	139	64	435	283	670	518
Amortization of acquisition-related assets	2	2	4	4	11	11
EBITA	141	66	439	287	681	529
Items affecting comparability
whereof expenses related to preparation for initial	9	2	29	2	42	15
public offering (IPO)
Adjusted EBITA	150	68	468	289	722	544
EBITA	141	66	439	287	681	529
less lease expenses (IFRS 16)	-41	-29	-81	-57	-150	-126
EBITA excl. IFRS 16	99	37	358	230	531	404
Net sales	2,642	2,309	5,601	4,962	10,841	10,202
Operating profit-margin, (EBIT-margin), %	5.2%	2.8%	7.8%	5.7%	6.2%	5.1%
EBITA-margin, %	5.3%	2.9%	7.8%	5.8%	6.3%	5.2%
Adjusted EBITA-margin, %	5.7%	3.0%	8.4%	5.8%	6.7%	5.3%
Adjusted net profit and adjusted net proft-margin, %
Net profit/loss for the period	69	14	258	159	360	261
Amortization of acquisition-related assets	2	2	4	4	11	11
Items affecting comparability
whereof expenses related to preparation for initial
public offering (IPO)	9	2	29	2	42	15
Tax on adjustment items	-2	-1	-7	-1	-11	-5
Adjusted net profit/loss	78	17	284	164	402	282
Net sales	2,642	2,309	5,601	4,962	10,841	10,202
Adjusted net profit/loss-margin, %	2.9%	0.7%	5.1%	3.3%	3.7%	2.8%
Net profit/loss-margin, %	2.6%	0.6%	4.6%	3.2%	3.3%	2.6%
Net debt and Net debt excl. IFRS 16/ EBITDA excl IFRS
16, LTM
Liabilities to credit institutions	47	60	47	60	47	51
Lease liabilities Liabilities to credit institutions, current	4,586 93	3,775 530	4,586 93	3,775 530	4,586 93	4,616 386
Lease liabilities, current	869	723	869	723	869	848
Cash and cash equivalents	-100	-132	-100	-132	-100	-182
Net debt	5,496	4,956	5,496	4,956	5,496	5,720
less lease liabilities	-5,455	-4,498	-5,455	-4,498	-5,455	-5,465
Net debt excl IFRS 16	41	458	41	458	41	255
EBIT	139	64	435	283	670	518
Depreciation and amortization	235	206	463	402	898	837
EBITDA	374	270	898	685	1,568	1,355
less lease expenses (IFRS 16)	-229	-195	-455	-381	-871	-797
EBITDA excl IFRS 16	144	75	443	304	697	559
EBITDA excl IFRS 16, LTM	697	663	697	663	697	559
Net debt excl. IFRS 16/ EBITDA excl IFRS 16, LTM	0.06	0.69	0.06	0.69	0.06	0.46

Cont´d

	The quarter		The quarter		LTM	Full-year
	Aug 2023	Aug 2022	May 2023	May 2022	Nov 2022	May 2022
MSEK	-Oct 2023	-Oct 2022	-Oct 2023	-Oct 2022	-Oct 2023	-Apr 2023
Equity/assets ratio and Equity/assets ratio excl IFRS 16, %
Total equity	1,465	1,406	1,465	1,406	1,465	1,275
Total assets	8,909	8,328	8,909	8,328	8,909	8,855
Equity/assets ratio, %	16.4%	16.9%	16.4%	16.9%	16.4%	14.4%
Total equity	1,465	1,406	1,465	1,406	1,465	1,275
Total assets	8,909	8,328	8,909	8,328	8,909	8,855
less lease liabilities	-5,455	-4,498	-5,455	-4,498	-5,455	-5,465
Equity/assets ratio excl IFRS 16, %	42.4%	36.7%	42.4%	36.7%	42.4%	37.6%
Return on equity
Net profit/loss, LTM	360	362	360	362	360	261
Total equity	1,465	1,406	1,465	1,406	1,465	1,275
Return on equity	24.6%	25.8%	24.6%	25.8%	24.6%	20.5%
Operating expenses
Sales expenses	922	824	1,826	1,623	3,617	3,414
Administrative expenses	97	80	202	144	356	298
Depreciation and amortization of intangible assets and property, plant and equipment	-47	-40	-90	-78	-177	-166
Operating expenses	972	864	1,938	1,689	3,795	3,546

Rusta in brief

Rusta is the retail chain that offers a wide range of home and leisure products at surprisingly low prices. We currently have 205 stores in Sweden, Norway, Finland and Germany, as well as a growing and profitable e-commerce operation.

The Rusta success story began in 1986 and ever since we have been enabling the masses to buy great quality products for low prices. We have a detailed understanding of the market, a sure instinct for how to develop attractive promotions and an efficient value chain from end to end.

Visiting a Rusta store should be a positive and inspiring experience. All we want is to be the obvious first choice when customers come to renew and replenish their homes.

With a range spanning the categories of home decoration, consumables, seasonal products, leisure and Do It Yourself (DIY), we offer almost anything you might need to live life at home – and always at surprisingly low prices. Affordability is worth more when it is also responsible. We believe in giving the customer value for money just as much as when it comes to quality and price as we do when it comes to reliability and safety. For us, this means we that we are always working to be a more responsible retailer as we strive to integrate our approach to sustainability into everything we do.

Financial calendar

Report/info	Period	Date
Interim report Q3 23/24	2023-11-01—2024-01-31	2024-03-14
Interim report Q4 23/24	2024-02-01—2024-04-30	2024-06-13
Annual Report		2024-08-23
Annual General Meeting 2024		2024-09-20

Contacts

Göran Westerberg Sofie Malmunger

Group CEO goran.westerberg@rusta.com

Address:

Box 5064 194 05 Upplands Väsby

Rusta AB (publ)

Organisationsnumber 556280–2115

Group CFO sofie.malmunger@rusta.com

Cecilia Gärdestad

Investor Relations Manager +46 701 664 873 cecilia.gardestad@rusta.com

This information is such that Rusta AB (publ) is obligated to disclose in accordance with the EU Market Abuse Regulation. The Information was submitted for publication, through the agency of the contact person set out above, at 07.00 pm on 2023-12-20.

This interim report is published in Swedish and English. The Swedish version represents the original version and has been translated into English.