Rusta AB

Quarterly Report • Mar 14, 2024

Interim Report

November 1, 2023 - January 31, 2024

Third quarter November 2023 – January 2024

• Net sales increased by 7.0% (8.8%) and amounted to MSEK 3,247 (3,036)
• LFL growth increased by 2.5% (3.7%)
• Gross profit increased by 14.2% and amounted to MSEK 1,440 (1,261) and the gross margin was 44.3% (41.5%)
• EBITA amounted to MSEK 369 (294) and the EBITA-margin was 11.4% (9.7%)
• Operating profit (EBIT), amounted to 367 (292) and the operating profit margin was 11.3% (9.6%)
• Net profit for the quarter amounted to MSEK 243 (200)
• Cash flow from operating activities amounted to MSEK 598 (602)
• Earnings per share before dilution amounted to SEK 1.6 (1.3)
• There were three (two) new stores opened during the quarter
• From January 20, Rusta was affected by an IT incident at the hosting provider Tietoevry

YTD May 2023 – January 2024

• Net sales increased by 10.6% (7.3%) and amounted to MSEK 8,848 (7,998)
• LFL growth increased by 6.2% (2.0%)
• Gross profit increased by 17.5% and amounted to MSEK 3,858 (3,283) and the gross margin was 43.6% (41.0%)
• EBITA amounted to MSEK 808 (581) and the EBITA-margin was 9.1% (7.3%)
• Operating profit (EBIT) amounted to 802 (575) and the operating profit margin was 9.1% (7.2%)
• Net profit YTD amounted to MSEK 500 (359)
• Cash flow from operating activities amounted to MSEK 1,359 (766)
• Earnings per share before dilution amounted to SEK 3.3 (2.4)
• There were seven (eight) new stores opened during the period

+7.0% Net sales Quarter

+2.5%

LFL growth Quarter

+2.8pp

Gross margin Quarter

+1.7pp

EBITA-margin Quarter

	The quarter		YTD		LTM	Full-year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales	3,247	3,036	8,848	7,998	11,053	10,202
Net sales growth, %	7.0%	8.8%	10.6%	7.3%	10.2%	7.5%
Net sales growth excl currency effects, %	7.4%	6.2%	10.2%	3.7%	10.1%	6.2%
LFL growth, %	2.5%	3.7%	6.2%	2.0%	6.0%	2.5%
Gross profit	1,440	1,261	3,858	3,283	4,761	4,187
Gross margin, %	44.3%	41.5%	43.6%	41.0%	43.1%	41.0%
Adjusted EBITA	372	303	840	592	790	544
Adjusted EBITA-margin, %	11.4%	10.0%	9.5%	7.4%	7.1%	5.3%
EBITA	369	294	808	581	755	529
EBITA-margin, %	11.4%	9.7%	9.1%	7.3%	6.8%	5.2%
Cashflow from operating activities	598	602	1,359	766	1,599	1,007
Net debt, excl IFRS 16 / EBITDA excl IFRS 16 R12	-0.50	0.43	-0.50	0.43	-0.50	0.46
Number of members in the loyalty club, in thousands	5,497	4,785	5,497	4,785	5,497	4,785
Number of stores at the end of the period	208	195	208	195	208	201
Earnings per share before dilution, SEK	1.6	1.3	3.3	2.4	2.7	1.7
Earnings per share after dilution, SEK	1.6	1.3	3.3	2.4	2.6	1.7

^*Reconciliation tables and definitions for key ratios are presented at page 23-28

Successful Christmas season and continued growth in sales and profitability

During the third quarter of the financial year, November to January, we increased sales in all markets and at the same time Rusta improved gross margin and profit. Other markets strengthen its margins significantly and at the same time increased in sales. We have completed a successful Christmas season where sales started early, and we can conclude that our customers decorated both earlier and more, compared to last year. Rusta prioritized margin reinforcement over LFL growth during the important Christmas quarter, in order to take a clear step towards the financial targets. Though the quarter ended with a critical IT incident, Rusta continues to strengthen its position as a leader in the Nordic low-price market. The operational disruption in Rusta´s IT-systems during January generated a total loss in sales of approximately MSEK 60, with a negative EBITA effect of around MSEK 25.

Rusta's low prices and efficient campaigning continues to drive increased customer traffic to the stores. We noted good growth in sales during the third quarter, which has also been very strong during the last two financial years. Net sales increased by 7.0 precent (8.8) compared to the same quarter last year and amounted MSEK 3,247 (3,036). Volume is once again the single largest driver to the overall growth. The comparable growth during the same period were 2.5 percent (3.7). The slightly reduced pace in LFL growth is an effect of the IT incident and that Rusta has prioritized to improve margins, in order to take important steps towards our financial goals and deliver profitable growth.

The adjusted EBITA were MSEK 373 (303), an increase of 22.6 percent, which corresponds to an adjusted EBITA margin of 11.4 percent (10.0) for the quarter. The gross margin improved by 2.8 percent-points compared to the same period last year, as a result of more effective campaigns, reduced shipping costs and less sell-out effect thanks to the strong start to Christmas. During the quarter, cash flow from operating activities was MSEK 321, compared to MSEK -13 in the same period last year. The cash flow in the quarter was a consequence of an improved result and sustained decreased inventory.

A strong Christmas season

The quarter began with a good start to Christmas sales, which is an important season for Rusta and which drives further customer traffic to the stores. Compared to last year, our customers both started the Christmas shopping earlier and purchased more of our Christmas items.

A clear difference was that electricity prices were not a mayor concern for the consumer, compared to last year, which resulted in more customers buying Christmas lights and other electrical products. We also note strong sales in both consumables and home decoration during the period. Overall, the earlier start and the mix in the customer basket meant strong sales and a strengthened margin.

Growth in all segments

In our largest market, Sweden, net sales were MSEK 1,881, an increase of 5.8 percent compared to the same quarter last year. Profitability in the quarter (EBITA margin excl. IFRS 16) increased to 20.3 percent (18.0). We saw consistently strong sales during the quarter. Aside from Christmas, sales of home decoration and consumables continued to do well and also had a positive margin development during the quarter.

Our market Norway also continues to grow and sales amounted to MSEK 730 for the quarter, marking an increase of 3.4 percent compared to the same quarter last year. Sales were negatively affected as a result of the Norwegian Krone lost value against the Swedish krona during the quarter. Profitability in the quarter (EBITA margin excl. IFRS 16) amounted to 17.1 percent (17.4). All business areas had positive growth and a similar development to Sweden. Growth in EBITA continued to be positive in local currency but was slightly lower in SEK due to currency effects.

On Other Markets (Finland, Germany and Online) net sales during the quarter were MSEK 637, which corresponds to an increase of 15.2 percent compared to the same quarter last year. Profitability in the quarter (EBITA margin excl. IFRS 16) increased significantly to 4.1 percent (0.9) despite the negative operational disruptions where, above all, online sales were unavailable. This is an important step towards profitability in Rusta's smallest but fastest growing segment.

Further store openings and growing Club Rusta membership base

During the quarter, three new stores were opened, in Lillehammer and Bamble, Norge and in Essen, Germany. By the end of the quarter, Rusta had 208 stores on our four markets. Rusta is financially 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 5.5 million fully registered members. This corresponds to an increase of 14.9 percent compared to the same quarter last year. It is a sharp increase, completely in line with our ambition to recruit new customers during the recession.

Operational disruptions in Rusta's IT system

By the end of the third quarter, Rustas hosting provider Tietoevry was affected by a severe IT attack towards one of its datacenters in Sweden. The incident generated major operational disruptions in Rusta's IT systems. Despite this, all of Rusta's 208 stores could be kept open according to regular opening hours but were affected by limitations in the functionality of the checkout system. Rusta's ecommerce and website were unavailable until mid-February. The disruptions also affected Rusta's supply chain systems, which made it difficult to replenish goods efficiently. The IT systems have successively been restored and today all IT systems are back in operation.

The effects linked to the IT incident are still ongoing but have decreased significantly and are today small. It is too early to assess the total impact of the incident and Rusta is working in parallel with commercial initiatives to regain some of the lost sales in the coming quarters. Rusta estimates that the total lost sales in January, as a result of the disruptions, amounts to around MSEK 60, with a negative EBITA effect of around MSEK 25, which is slightly lower than previously communicated. The negative effect during the fourth quarter in terms of sales and its effect on EBITA is estimated to be on par with the third quarter. In addition, costs for system restoration and extraordinary measures of approx. MSEK 20 will be added. Rusta expects that the operational disruptions will not have material financial impact on the company beyond the fourth quarter of 2023/2024.

Rusta has begun evaluations of the entire incident and is currently conducting external audits of both Tietoevry, our own IT environment and our IT strategy to ensure a higher level of security going forward. Besides that, Rusta have initiated a discussion along with Tietoevry about compensation.

We conclude a strong quarter and welcome the spring season

To conclude, Rusta continues to grow in all geographic markets and also improve profitability in several segments during the third quarter. We enter spring with good momentum, well-stocked in warehouse and stores.

I want to thank all the fantastic employees at Rusta, who work hard and with great commitment every day to offer our customers low prices and the best shopping experience in the industry. It is also thanks to the efforts of my fantastic colleagues that we were able to keep the stores open and thereby limit the negative effects of the IT-incident.

Now we look forward to welcoming our customers to our stores which are filled with products for a wonderful spring season!

Göran Westerberg

CEO Rusta AB (publ)

Financial performance

Third quarter November 2023 – January 2024

Net sales

Net sales for the group amounted to MSEK 3,247 (3,036) for the quarter, marking an increase of 7,0% (8,8%). Exchange rate has affected the net sales negatively during the quarter with -0.4% (2.2%) mostly from a weaker Norwegian krone. LFL sales increased by 2.5% (3.7%) where -0.6% (2,2%) are explained by currency effects. Sales have been affected by the IT incident, see further information on page 11.

The quarter was characterized by a strong start to Christmas sales. Sales of products within home furnishings and consumables continued to do well and had a positive margin development during the quarter. The margin improvement is mainly explained by lower purchase prices from, above all, Asia. More effective campaigns, less sellouts and lower shipping costs also strengthen our gross margin during the quarter compared to the previous year. Our gross margin was 44.3% (41.5%).

Operating profit

Sales expenses increased by MSEK 63 corresponding to an increase of 6.8% and administrative expenses increased by MSEK 18 corresponding to an increase of 24.6%. The increase is mainly driven by inflation and 13 new stores that has opened since the end of the corresponding quarter last year. Administrative expenses have also been impacted by expenses related to preparation for initial public offering (IPO) of MSEK 2 (9). Operating expenses share of net sales increased with 0.3 percentage points to 31.9% (31.5%).

Other operating income and expenses, net, amount to MSEK 8 (30) 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 372 (303). The adjustments for items affecting comparability related to IPO-related costs of MSEK 2 (9). EBITA was MSEK 369 (294) and EBIT was 367 MSEK (292), an increase of 25.8%. EBITA-margin were 11.4%.

YTD May 2023 – January 2024

Net sales

Net sales for the group amounted to MSEK 8,848 (7,998) YTD, marking an increase of 10.6% (7.3%). Exchange rate has affected the net sales positively during the period with 0.4% (3.6%) mostly from a strong euro. LFL sales increased by 6.2% (2.0%) where 0.2% (1.9%) are explained by currency effects. Sales have been affected by the IT incident, see further information on page 11.

YTD was characterized by continued strong growth in sales of home furnishings and consumables. The important Christmas sale also turned out well. Attractive prices and campaigns have driven many new customers to our stores. Reduced shipping costs and optimized pricing strengthen our gross margin during the period compared to the previous year. Our gross margin was 43.6% (41.0%).

Operating profit

Sales expenses increased by MSEK 266 corresponding to an increase of 10.4% and administrative expenses increased by MSEK 76 corresponding to an increase of 35.0%. The increase is mainly driven by inflation and 13 new stores that has opened since the end of the corresponding period last year. Administrative expenses have also been impacted by expenses related to IPO of MSEK 32 (11). Operating expenses share of net sales increased with 0.5 percentage points to 33.6% (33.1%).

Other operating income and expenses, net, amount to MSEK 53 (59) which corresponds to a negative affect on operating profit of MSEK 6 compared to the corresponding period last year, which is explained by less positive effects of exchange rate changes. The period has also been positively affected by received electricity support of MSEK 13 (0).

Adjusted EBITA was MSEK 808 (581). The adjustments for items affecting comparability related to IPO-related costs of MSEK 32 (11). EBITA was MSEK 808 (581) and EBIT was 802 MSEK (575), an increase of 39.5%. EBITA-margin were 9.1%.

Net sales MSEK, Gross margin %

Cont´d

Third Quarter November 2023 – January 2024

Financial items and tax

Net financial items amounted to MSEK -55 (-44) whereof MSEK -58 (-41) 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 313 (248). Income tax for the quarter amounted to MSEK -70 (-48).

Net profit/loss for the period

Net profit/loss for the period amounted to MSEK 243 (200). Earnings per share after dilution amounted to SEK 1.6 (1.3).

Cash flow

Cash flow from operating activities for the quarter amounted to MSEK 598 (602). The quarter were positively impacted by a stronger operating profit and change in working capital. The inventory value is lower than last year and has decreased as a result of the strong Christmas sales. Operating liabilities have decreased, which refers to an accrual effect as a result of the Chinese New Year, which this year fell in February compared to January of the previous year. This affects the timing of receiving supplier invoices for purchases from China.

Cash flow from investing activities in the quarter amounted to MSEK -23 (-65). 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 -254 (-550). The positive change compared to the previous year consists mainly by the change in the overdraft facility and that dividends were paid out in the third quarter last year.

YTD

May 2023 – January 2024

Financial items and tax

Net financial items amounted to MSEK -168 (-124) whereof MSEK -168 (-114) 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 635 (451). Income tax YTD amounted to MSEK -134 (-92) corresponding to an effective tax rate of 21.1% (20.4%).

Net profit/loss for the period

Net profit/loss YTD amounted to MSEK 500 (359). Earnings per share after dilution amounted to SEK 3.3 (2.4).

Cash flow

Cash flow from operating activities YTD amounted to MSEK 1 359 (766). The period were positively impacted by a stronger operating profit and change in working capital. The inventory value is lower than last year and has decreased as a result of the strong Christmas sales. Operating liabilities have decreased, which refers to an accrual effect as a result of the Chinese New Year, which this year fell in February compared to January of the previous year. This affects the timing of receiving supplier invoices for purchases from China.

Cash flow from investing activities YTD amounted to MSEK -103 (-132). 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 -1,017 (-685) and consists mainly by the change in the overdraft facility where we in the corresponding period last year used more of the overdraft facility.

Financial position

The Group's cash and cash equivalents amounted to MSEK 420 (119). Net debt was MSEK 5,337 (5,192) and Net debt excl. IFRS 16* was MSEK -381 (242). Net debt excl. IFRS 16 in relation to EBITDA excl IFRS 16 for the rolling 12 months was -0.50 (0.43). Unutilized credit facilities at the end of the reporting period amounted to MSEK 800 (495).

The Group's equity at the end of the period amounted to MSEK 1,672 (1,398). The equity/assets ratio amounted to 18.5% (16.7%) and the equity/assets ratio excl IFRS 16 amounted to 50.3% (40.6%).

^*Reconciliation tables and definitions for key ratios are presented at page 23-28

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 207 (186) for the quarter. The increase is mostly driven by negatively currency effects for the quarter compared to the same quarter last year and negative inflation effects. For the period the central costs reduce to MSEK 571 (573). The effects mentioned above for the quarter is the same YTD but with the addition that YTD,

accumulated, central costs are also affected by extra costs related to IPO. The period have been positive affected by contribution for electricity by MSEK 13 (0).

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 and Q4. That, together with the fact that sales are weaker in these two quarters, means that the Group utilities overdraft facilities to a greater extent during these periods. The debt/ equity ratio is therefore higher ahead of the summer- and Christmas season and at its lowest when passed the Christmas season.

YTD May 2023 – January 2024

The segments share of the net sales

Sweden 57.9% Norway 22.5% Other markets 19.6%

The quarter November 2023 – January 2024

Sweden

Continued stable net sales growth

Stores in Sweden continue to deliver strong sales growth despite loss in sales because of the IT incident on January 20 (more info in page 11). The third quarter increased by 5.8% (3.9%), of which 4.6% (2.8%) is LFL growth.

Compared to last year we clearly see that the customers want to enjoy Christmas and advent season much longer which have brought forward the Christmas sales. The customers are willing to buy Christmas lightening again, after the last years pending buying behavior due to higher electricity costs. The sale in products within home decorations and consumables continues to go strong and have a positive margin development in the quarter.

The operating expense in relation to net sales for the quarter is in line with the previous year 23.0% (23.0%) despite the negative effects for inflation. We keep freight and personnel cost at a good level and we see a positive effect of especially reduced costs for electricity compared to the previous year. The profitability in EBITA excl. IFRS 16 increased during the quarter to 20.3% (18.0%).

Rusta has currently 110 stores in its domestic market in Sweden. During the quarter no (-) new stores opened.

The segments share of the net sales for the quarter

Sweden		The quarter		YTD	LTM	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales	1,881	1,777	5,045	4,704	6,346	6,007
Net sales growth, %	5.8%	3.9%	7.3%	4.2%	6.7%	4.3%
LFL growth, %	4.6%	2.8%	6.4%	1.9%	6.0%	2.2%
EBITA excl. IFRS 16	382	321	940	830	1,093	985
EBITA-margin excl. IFRS 16, %	20.3%	18.0%	18.6%	17.6%	17.2%	16.4%
Number of new stores	-	-	1	1	2	2

Norway

Norway continues to grow

Norway had a strong net sales growth in the third quarter despite the loss in sales as a result of the IT incident (more info on page 11). All product areas have a positive growth and like the Swedish market the growth is strongest in in the product area of Home decorations where textile is a strong product group. Other examples of growing product groups for the quarter are pets accessories and the Christmas assortment.

The net sales growth excluding currency effect for the quarter is 10.3% (4.8%) and LFL growth excl currency effects is 2.9% (0.5%). Recalculated to the Groups currency of the Swedish Krona the net sales growth are 3.4% (8.7%), which is slightly lower since the Norwegian Krone lost value against the Swedish Krona during the quarter compared to last year.

The cost control is good and the operating expenses as part of the net sales in Norwegian Krona has increased to 27.6% (26.6%). The reason for this increase is reduced sales due to the IT incident, negatively effects of inflation and opening of two new stores in the third quarter compared to one the previous year which gives higher start-up costs this year. We see a positive development when it comes to costs of freight and reduced cost of electricity compared to the same quarter last year.

Rusta entered the Norwegian market in 2014. Today, the chain's stores are in 47 towns around the country from Lyndal in the south to Alta in the north. During the quarter two (one) new stores were opened in Lillehammer, and Bamble.

The segments share of the net sales for the quarter

Norway	The quarter		YTD		LTM	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales	730	706	1,875	1,723	2,330	2,178
Net sales growth, %	3.4%	8.7%	8.9%	4.7%	7.6%	4.3%
Net sales growth excl currency effects, %	10.3%	4.8%	14.6%	0.1%	13.0%	1.4%
LFL growth excl currency effects, %	2.9%	0.5%	8.0%	-3.7%	6.7%	-2.7%
EBITA excl. IFRS 16	125	123	258	235	278	257
EBITA-margin excl. IFRS 16, %	17.1%	17.4%	13.8%	13.7%	11.9%	11.8%
Number of new stores	2	1	3	2	5	4

Other markets

Continued positive profitability development for 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 8.7% (15.3%) for the quarter whereof LFL growth excl. currency effects are -2.1% (-0.6%). Net sales growth for the quarter is 15.2% (28.5%). Currency effects had a positive impact due to that Euro is valued higher against the Swedish Krona. We see a strong growth in both our store network in Finland and Germany and in Rusta Online compared to last year. The disturbances as an effect of the IT incident (more info on page 11) have affected the segment negatively since the online website was completely unavailable during the twelve days in January and the supply to our stores was strictly limited.

The operating expenses as a share of net sales has increased during the quarter by 39.5% (38.9%). The biggest reason for this increase is the loss in sales due to the IT incident and negative effects of inflations on the cost side. The profitability in terms of EBITA excl IFRS 16 increased during the quarter by 4.1% (0.6).

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

Rusta's intention is to continue to invest in growth through both new and existing stores and channels.

The segments share of the net sales for the quarter

Other markets	The quarter		YTD		LTM	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales	637	553	1,927	1,571	2,377	2,018
Net sales growth, %	15.2%	28.5%	22.7%	21.2%	23.9%	22.7%
Net sales growth excl currency effects, %	8.7%	15.3%	13.7%	15.6%	16.4%	17.3%
LFL growth excl currency effects, %	-2.1%	-0.6%	1.5%	-0.8%	3.6%	1.2%
EBITA excl. IFRS 16	26	5	56	-0	5	-50
EBITA-margin excl. IFRS 16, %	4.1%	0.9%	2.9%	-0.0%	0.2%	-2.5%
Number of new stores	1	1	3	5	6	8

Other information

Events during the period

Rusta's IT system is affected by operational disruptions, following an incident at hosting provider Tietoevry on January 20, 2024. All of Rusta's 208 stores have been open as usual. Rusta's online sales platform and website have been inaccessible until the middle of February.

The operational disruptions affected Rusta's IT supply chain system, which made effective inventory tracking and replenishment in the stores difficult during the period. There has also been a limited capacity to conduct marketing campaigns due to the lack of website and functioning system for the loyalty program. We also had a limited capacity in the check out systems in our stores.

Rusta's IT systems have successively been restored and deployed during the period and are now fully restored and operational with full functionality as of in the middle of February.

Rusta estimated that the loss in sales of January, as a result of the IT disruptions, amounts to around MSEK 60 with a negative EBITA-effect of MSEK 25 which is slightly lower than what´s been communicated earlier. The negative effect during the fourth quarter in terms of sales and its effect on EBITA is estimated to be on par with the third quarter. In addition, costs for system restoration and extraordinary measures of approx. MSEK 20 will be added. Rusta expects that the operational disruptions will not have material financial impact on the company beyond the fourth quarter of 2023/2024.

		IT-incident	Q3 excl IT
	Q3 23/24	effect	incident
Net sales growth	7.0%	-1,9 pp	8.9%
LFL growth	2.5%	-1,9 pp	4.4%
EBITA-margin	11.4%	-0,5 pp	11.9%

Rusta stores

Over the next 12 months, Rusta plans to open a minimum of sixteen 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 208 stores is as follows.

110 47 51 Number of stores

Sweden Norway Other markets

Employees

The average number of full-time employees as of 31 January was 3,466 (2,796) of which 2,253 were women (1,789).

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 January 31, 2024 the number of shares was 151,792,800 with a quota value of approx. SEK 0,03.

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.

Quaterly sales, R12

Adjusted EBITA, R12

^*Excluding acqusitions

^**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.

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-Jan.), work on the follow-up of Rusta's Code of Conduct at the manufacturing units has progressed. We have evaluated a total of 216 factories in accordance with the social criteria in the Code of Conduct and 154 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
		Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	Note	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales	8	3,247	3,036	8,848	7,998	11,053	10,202
Cost of goods sold		-1,807	-1,775	-4,990	-4,715	-6,291	-6,016
Gross profit		1,440	1,261	3,858	3,283	4,761	4,187
Sales expenses		-990	-926	-2,815	-2,549	-3,680	-3,414
Administrative expenses		-91	-73	-293	-217	-373	-298
Other operating income		54	61	172	191	198	216
Other operating expenses		-46	-31	-120	-132	-160	-173
Operating profit		367	292	802	575	745	518
Finance income		0	1	5	1	5	1
Finance expenses		-55	-45	-172	-125	-227	-179
Profit/loss before tax		313	248	635	451	524	341
Income tax expense		-70	-48	-134	-92	-121	-79
Net profit/loss for the period		243	200	500	359	403	261
Earnings per share, SEK	7
Earnings per share before dilution, SEK		1.6	1.3	3.3	2.4	2.7	1.7
Earnings per share after dilution, SEK		1.6	1.3	3.3	2.4	2.6	1.7

Condensed consolidated statement of comprehensive income

		The quarter		YTD		LTM	Full year
		Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	Note	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net profit/loss for the period		243	200	500	359	403	261
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange rate differences		-1	-8	8	-7	-22	-36
Cashflow hedges, net after tax		-35	-48	-7	-64	-3	-60
Other comprehensive income for the period, after		-36	-56	1	-71	-25	-97
tax
Total comprehensive income		207	144	501	288	378	165
Attributable to:
Parent company shareholders		207	144	501	288	378	165
Non-controlling interest		-	-	-	-	-	-

Condensed consolidated balance sheet

	The quarter		Full year
MSEK Note	31 Jan 2024	31 Jan 2023	30 Apr 2024
Assets
Intangible fixed assets
Capitalised development expenses	70	65	62
Goodwill	113	113	113
Trademarks	2	13	8
Summary, Intangible assets	185	191	183
Property plant and equipment
Right-of-use asset	5,327	4,605	5,115
Property , plant and equipment	440	454	473
Summary, Tangible assets	5,767	5,059	5,588
Financial assets
Other financial assets	0	0	0
Summary, Financial assets	0	0	0
Deferred tax receivables	195	198	199
Summary, Non-current assets	6,146	5,448	5,970
Current assets
Inventories	2,332	2,740	2,593
Accounts receivable	17	12	27
Other current receivables	39	37	40
Prepaid expenses and accrued income	86	39	42
Cash and cash equivalents	420	119	182
Summary, Current assets	2,895	2,947	2,885
Total Assets	9,041	8,394	8,855
Equity and liabilities
Equity
Share capital	5	5	5
Other contributed capital	1	1	1
Reserves	-53	-28	-54
Retained earnings inc. result of the year	1,719	1,420	1,323
Total, Equity	1,672	1,398	1,275
Non-current liabilities
Liabilities to credit institutions	20	57	51
Deferred tax liabilities	131	111	115
Lease liabilities	4,810	4,167	4,616
Other longterm payables	35	101	70
Summary, Longterm liabilities	4,995	4,435	4,853
Current liabilities
Liabilities to credit institutions	19	305	386
Lease liabilities	908	783	848
Trade payables	373	527	635
Current tax liabilities	46	81	16
Provisions	23	22	22
Other current liabilities	303	244	189
Accrued expenses and deferred income	702	598	630
Summary, Current liabilities	2,374	2,560	2,727
Summary, Liabilities	7,370	6,996	7,580
Total, Equity and liabilities	9,041	8,394	8,855

Group condensed statement of changes in equity

		Attributable to parent company´s shareholders
		Share	Other contribute		Retained earnings inc. result of the	Total
Amounts in MSEK Opening balance at 1 May 2022	Note	capital 5	d capital 1	Reserves 43	period 1,213	equity 1,262
Net profit/loss for the period					359	359
Other comprehensive income				-71		-71
Total comprehensive income		-	-	-71	359	288
Dividends					-152	-152
Total transactions with shareholders		-	-	-	-152	-152
Closing balances at 31 Januari 2023		5	1	-28	1,420	1,398

		Attributable to parent company´s shareholders
			Other
		Share	contribute		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					500	500
Other comprehensive income				1	-	1
Total comprehensive income		-	-	1	500	501
Dividends					-105	-105
Share saving program					1	1
Total transactions with shareholders					-104	-104
Closing balances at 31 Januari 2024		5	1	-53	1,719	1,672

Group condensed consolidated cash flow statement

	The quarter		YTD		LTM	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK Note	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Operating profit	367	292	802	575	745	518
Adjustments for non-cash items
Depreciation, amortization and impairment losses p g / / p	236	207	699	609	927	837
fixed assets	-	-	-	-	1	1
Other	-	-	-	-	8	8
Provisions	1	0	2	0	2	1
Interest received	6	1	11	1	11	1
Interest paid	-61	-45	-178	-125	-233	-179
Paid tax	-24	-36	-84	-101	-122	-140
Cash flow from operating activities before changes
in working capital	525	420	1,251	959	1,340	1,048
Cash flow from changes in working capital
Increase (-)/decrease (+) in inventories	394	345	267	102	400	235
Increase (-)/decrease (+) in operating receivables	-35	-32	-34	21	13	68
Increase (+)/decrease (-) in operating liabilities	-286	-130	-125	-316	-154	-344
Cashflow from operating activities	598	602	1,359	766	1,599	1,007
Investing activities
Investments in intangible assets	-9	-3	-22	-9	-25	-12
Investments in tangible assets	-14	-62	-81	-123	-119	-161
Cash flow from investing activities	-23	-65	-103	-132	-143	-172
Financing activities
Change in the overdraft facility, net	-71	-244	-372	137	-329	180
Amortization of borrowings	-12	-8	-18	-215	-18	-215
Repayment of lease liabilities	-171	-146	-523	-454	-707	-638
Dividends to shareholders	-	-152	-105	-152	-105	-152
Cash flow from financing activities	-254	-550	-1,017	-685	-1,158	-826
Cash flow for the period	321	-13	238	-50	297	9
Cash and cash equivalents at the beginning of the
period	100	132	182	170	119	170
Exchange difference in cash and cash equivalents	-	-	-0	0	-0	4
Cash and cash equivalents at the end of the

Parent company condensed statement of profit or loss

		The quarter		YTD		Full year
		Nov 2023	Nov 2022	May 2023	May 2022	May 2022
Amounts in MSEK	Note	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Apr 2023
Net sales		2,634	2,488	7,168	6,675	8,546
Cost of goods sold		-1,678	-1,694	-4,681	-4,504	-5,767
Gross profit		956	794	2,487	2,171	2,780
Sales expenses		-647	-614	-1,835	-1,694	-2,311
Administrative expenses		-85	-67	-271	-193	-270
Other operating income		48	60	161	188	212
Other operating expenses		-43	-29	-109	-126	-165
Operating profit		229	145	432	346	246
Finance income		3	2	12	3	5
Finance expenses		-4	-6	-21	-15	-23
Profit/loss before tax		228	140	423	334	228
Appropriations		-	-	-	-	-29
Income tax expense		-	-0	0	2	-42
Net profit/loss for the period		228	140	423	336	157

Parent company condensed statement of comprehensive income

		The quarter		YTD	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	May 2022
Amounts in MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Apr 2023
Net profit/loss for the year	228	140	423	336	157
Other comprehensive income
Items that may be reclassified to profit or loss
Cashflow hedges, net after tax	-35	-48	-7	-64	-60
Other comprehensive income for the period, after tax	-35	-48	-7	-64	-60
Total comprehensive income	193	92	416	272	97

Parent company condensed balance sheet

		The quarter	Full year
MSEK	Note	31 Jan 2024	31 Jan 2023	30 Apr 2024
Assets
Fixed assets
Intangible fixed assets
Capitalised development expenses		65	59	56
Property plant and equipment
Property , plant and equipment		234	258	257
Financial assets
Investments in group companies		77	77	77
Deferred tax receivables		5	4	3
Total non-current assets		382	398	394
Current assets
Inventories etc
Goods in transit		210	162	107
Inventories		1,606	2,051	1,928
Current receivables
Accounts receivable		13	15	16
Receivables from Group companies		166	156	150
Current tax receiables		96	51	26
Other current receivables		34	32	32
Prepaid expenses and accrued income		148	117	118
Cash and cash equivalents		82	39	106
Total current assets		2,356	2,623	2,483
Total assets		2,738	3,022	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		812	760	766
Net profit for the period		423	336	157
Total equity		1,241	1,102	929
Liabilities
Deferred taxes		558	529	558
Non-current liabilities
Deferred tax asset		-	-	-
Current liabilities
Liabilities to credit institutions		-	371	294
Trade payables		324	481	524
Provisions		23	22	22
Other current liabilities		56	47	61
Accrued expenses and deferred income		536	471	489
Total liabilities		1,497	1,920	1,948

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 -25 (-16).

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 (1) and for the period to MSEK 2 (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
	Nov 2023 -Jan 2024	Nov 2022 -Jan 2023	May 2023 -Jan 2024	May 2022 -Jan 2023	Feb 2023 -Jan 2024	May 2022 -Apr 2023
Earnings per share before dilution, SEK	1.6	1.3	3.3	2.4	2.7	1.7
Earnings per share after dilution, SEK	1.6	1.3	3.3	2.4	2.6	1.7
Profit/loss for the period connected to the shareholders of the Group, MSEK	243	200	500	359	403	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	153,107	151,793	153,046	151,793	152,743	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
	Nov 2023 Nov 2022		May 2023 May 2022		Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Sweden	1,881	1,777	5,045	4,704	6,346	6,007
Norway	730	706	1,875	1,723	2,330	2,178
Other markets	637	553	1,927	1,571	2,377	2,018
Total net sales from external customers	3,247	3,036	8,848	7,998	11,053	10,202

^*Intercompany net sales invoiced from central functions amount to MSEK 744 (697) for the quarter, YTD MSEK 2,046 (1,888) and are fully eliminated in the group.

EBITA excl IFRS 16 per segment		The quarter		YTD	LTM	Full year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Sweden	382	321	940	830	1,093	985
Norway	125	123	258	235	278	257
Other markets	26	5	56	-0	5	-50
EBITA excl. IFRS 16 for the segments	533	448	1,255	1,065	1,375	1,192
Central functions	-207	-186	-571	-573	-782	-788
EBITA excl. IFRS 16	326	262	684	492	594	404
Group adjustments of IFRS 16	43	32	124	88	161	126
EBITA	369	294	808	581	755	529
EBITA-margin, %	11.4%	9.7%	9.1%	7.3%	6.8%	5.2%
Depreciation of acquisition related assets, not allocated to segments	-2	-2	-6	-6	-10	-11
EBIT	367	292	802	575	745	518
EBIT-margin, %	11.3%	9.6%	9.1%	7.2%	6.7%	5.1%
Financial items, net	-55	-44	-168	-124	-221	-178
Profit/loss before tax	313	248	635	451	524	341

^*Reconciliation tables and definitions for key ratios are presented at page 23-28

Note 9. Events after the end of the period

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

Stockholm, March 14, 2024 Rusta AB (publ) Org.no 556280-2115

Göran Westerberg

CEO

This report has not been subject to review by the company´s auditors.

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

Key ratios

		The quarter			The quarter		LTM	Full-year
	Nov 2023	Nov 2022		May 2023	May 2022		Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	∆	-Jan 2024	-Jan 2023	∆	-Jan 2024	-Apr 2023
Sales measure
Net sales	3,247	3,036	7.0%	8,848	7,998	10.6%	11,053	10,202
Net sales growth, %	7.0%	8.8%	(1.9)pp	10.6%	7.3%	3.4pp	10.2%	7.5%
LFL growth, %	2.5%	3.7%	(1.2)pp	6.2%	2.0%	4.2pp	6.0%	2.5%
Net sales growth excl currency effects, %	7.4%	6.2%	1.1pp	10.2%	3.7%	6.5pp	10.1%	6.2%
Result measure
Operating profit, EBIT	367	292	25.8%	802	575	39.5%	745	518
Adjusted EBIT	370	301	22.7%	834	586	42.2%	780	533
EBITA	369	294	25.6%	808	581	39.1%	755	529
Adjusted EBITA	372	303	22.6%	840	592	41.8%	790	544
EBITDA	603	499	20.8%	1,501	1,184	26.8%	1,672	1,355
Net profit/loss for the period	243	200	21.3%	500	359	39.4%	403	261
Adjusted net profit/loss	246	209	17.7%	530	373	42.2%	438	282
Margin measures
Gross margin, %	44.3%	41.5%	2.8pp	43.6%	41.0%	2.6pp	43.1%	41.0%
EBIT-margin, %	11.3%	9.6%	1.7pp	9.1%	7.2%	1.9pp	6.7%	5.1%
Adjusted EBIT-margin, %	11.4%	9.9%	1.5pp	9.4%	7.3%	2.1pp	7.1%	5.2%
EBITA-margin, %	11.4%	9.7%	1.7pp	9.1%	7.3%	1.9pp	6.8%	5.2%
Adjusted EBITA-margin, %	11.4%	10.0%	1.5pp	9.5%	7.3%	2.2pp	7.1%	5.3%
EBITDA-margin, %	18.6%	16.4%	2.1pp	17.0%	14.8%	2.2pp	15.1%	13.3%
Net profit/loss-margin, %	7.5%	6.6%	0.9pp	5.7%	4.5%	1.2pp	3.6%	2.6%
Adjusted net profit/loss-margin, %	7.6%	6.9%	0.7pp	6.0%	4.7%	1.3pp	4.0%	2.8%
Cashflow measures Cashflow from operating activities	598	602	-0.8%	1,359	766	77.3%	1,599	1,007
Capital structure
Net debt	5,337	5,192	2.8%	5,337	5,192	2.8%	5,337	5,720
Net debt excl IFRS	-381	242	-257.5%	-381	242	-257.5%	-381	255
Net debt, excl IFRS 16 / EBITDA excl IFRS 16 R12	-0.50	0.43	-215.4%	-0.50	0.43	-215.4%	-0.50	0.46
Equity	1,671	1,398	19.5%	1,671	1,398	19.5%	1,671	1,275
Total assets	9,041	8,394	7.7%	9,041	8,394	7.7%	9,041	8,855
Equity/assets ratio, %	18.5%	16.7%	1.8pp	18.5%	16.7%	1.8pp	18.5%	14.4%
Equity/assets, excl IFRS 16 %	50.3%	40.6%	9.7pp	50.3%	40.6%	9.7pp	50.3%	37.6%
Return
Return on equity	24.1%	25.9%	(1.8)pp	24.1%	25.9%	(1.8)pp	24.1%	20.5%
Share
Number of shares at the end of the period,	151,793	151,793	-	151,793	151,793	-	151,793	151,793
thousands 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	1.6	1.3	21.3%	3.3	2.4	39.4%	2.7	1.7

<-- PDF CHUNK SEPARATOR -->

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 23-24. 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 period		LTM	Full-year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Net sales growth, %
Net sales, current period	3,247	3,036	8,848	7,998	11,053	10,202
Net sales, comparative period	3,036	2,789	7,998	7,456	10,032	9,490
Net sales growth, %	7.0%	8.8%	10.6%	7.3%	10.2%	7.5%
Currency effect, %
Net sales, current period	3,247	3,036	8,848	7,998	11,053	10,202
Net sales current period adjusted for currency effect	3,260	2,963	8,815	7,733	11,045	10,082
Currency effect	-12	73	33	265	8	121
Net sales, comparative period	3,036	2,789	7,998	7,456	10,032	9,490
Currency effect, %	-0.4%	2.6%	0.4%	3.6%	0.1%	1.3%
LFL growth, %
LFL sales in the comparative period	2,905	2,643	7,692	7,124	9,672	9,011
LFL sales in the current period	2,978	2,742	8,171	7,266	10,257	9,236
LFL growth, %	2.5%	3.7%	6.2%	2.0%	6.0%	2.5%
Net sales growth excl currency effects, %
Net sales growth, %	7.0%	8.8%	10.6%	7.3%	10.2%	7.5%
Currency effect, %	0.4%	-2.6%	-0.4%	-3.6%	-0.1%	-1.3%
Net sales growth excl currency effects, %	7.4%	6.2%	10.2%	3.7%	10.1%	6.2%
Grossprofit and gross margin, %
Net sales	3,247	3,036	8,848	7,998	11,053	10,202
Cost of goods sold	-1,807	-1,775	-4,990	-4,715	-6,291	-6,016
Gross profit	1,440	1,261	3,858	3,283	4,761	4,187
Gross profit	1,440	1,261	3,858	3,283	4,761	4,187
Net sales	3,247	3,036	8,848	7,998	11,053	10,202
Gross margin, %	44.3%	41.5%	43.6%	41.0%	43.1%	41.0%

Cont´d

	The quarter		The period		LTM	Full-year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
EBITA, adjusted EBITA and EBITA exkl IFRS 16
Operating profit (EBIT)	367	292	802	575	745	518
Amortization of acquisition-related assets	2	2	6	6	10	11
EBITA	369	294	808	581	755	529
Items affecting comparability whereof expenses related to preparation for initial
public offering (IPO)	2	9	32	11	35	15
Adjusted EBITA	372	303	840	592	790	544
EBITA	369	294	808	581	755	529
less lease expenses (IFRS 16)	-43	-32	-124	-88	-161	-126
EBITA excl. IFRS 16	326	262	684	493	594	404
Net sales	3,247	3,036	8,848	7,998	11,053	10,202
Operating profit-margin, (EBIT-margin), %	11.3%	9.6%	9.1%	7.2%	6.7%	5.1%
EBITA-margin, %	11.4%	9.7%	9.1%	7.3%	6.8%	5.2%
Adjusted EBITA-margin, %	11.4%	10.0%	9.5%	7.4%	7.1%	5.3%
Adjusted net profit and adjusted net proft margin, %
Net profit/loss for the period	243	200	500	359	403	261
Amortization of acquisition-related assets	2	2	6	6	10	11
Items affecting comparability
whereof expenses related to preparation for initial
public offering (IPO)	2	9	32	11	35	15
Tax on adjustment items	-1	-2	-8	-4	-9	-5
Adjusted net profit/loss	246	209	530	373	438	282
Net sales	3,247	3,036	8,848	7,998	11,053	10,202
Adjusted net profit/loss-margin, %	7.6%	6.9%	6.0%	4.7%	4.0%	2.8%
Net profit/loss-margin, %	7.5%	6.6%	5.7%	4.5%	3.6%	2.6%
Net debt and Net debt excl. IFRS 16/ EBITDA excl IFRS 16, LTM
Liabilities to credit institutions	20	57	20	57	20	51
Lease liabilities	4,810	4,167	4,810	4,167	4,810	4,616
Liabilities to credit institutions, current	19	305	19	305	19	386
Lease liabilities, current	908	783	908	783	908	848
Cash and cash equivalents	-420	-119	-420	-119	-420	-182
Net debt	5,337	5,192	5,337	5,192	5,337	5,720
less lease liabilities	-5,718	-4,949	-5,718	-4,949	-5,718	-5,465
Net debt excl IFRS 16	-381	242	-381	242	-381	255
EBIT	367	292	802	575	745	518
Depreciation and amortization	236	207	699	609	927	837
EBITDA	603	499	1,501	1,184	1,672	1,355
less lease expenses (IFRS 16)	-234	-197	-689	-578	-907	-797
EBITDA excl IFRS 16	369	302	813	606	765	559
EBITDA excl IFRS 16, LTM	765	560	765	560	765	559
Net debt excl. IFRS 16/ EBITDA excl IFRS 16, LTM	-0.50	0.43	-0.50	0.43	-0.50	0.46

Cont´d

	The quarter		The period		LTM	Full-year
	Nov 2023	Nov 2022	May 2023	May 2022	Feb 2023	May 2022
MSEK	-Jan 2024	-Jan 2023	-Jan 2024	-Jan 2023	-Jan 2024	-Apr 2023
Equity/assets ratio and Equity/assets ratio excl
IFRS 16, %
Total equity	1,672	1,398	1,672	1,398	1,672	1,275
Total assets	9,041	8,394	9,041	8,394	9,041	8,855
Equity/assets ratio, %	18.5%	16.7%	18.5%	16.7%	18.5%	14.4%
Total equity	1,672	1,398	1,672	1,398	1,672	1,275
Total assets	9,041	8,394	9,041	8,394	9,041	8,855
less lease liabilities	-5,718	-4,949	-5,718	-4,949	-5,718	-5,465
Equity/assets ratio excl IFRS 16, %	50.3%	40.6%	50.3%	40.6%	50.3%	37.6%
Return on equity
Net profit/loss, LTM	403	362	403	362	403	261
Total equity	1,672	1,398	1,672	1,398	1,672	1,275
Return on equity	24.1%	25.9%	24.1%	25.9%	24.1%	20.5%
Operating expenses
Sales expenses	990	926	2,815	2,549	3,680	3,414
Administrative expenses	91	73	293	217	373	298
Depreciation and amortization of intangible assets	-45	-42	-135	-120	-181	-166
and property, plant and equipment
Operating expenses	1,035	958	2,973	2,647	3,873	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 208 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 Q4 23/24	2024-02-01—2024-04-30	2024-06-13
Annual Report 23/24	2024-05-01—2024-04-30	2024-08-23
Interim Report Q1 24/25	2024-05-01—2024-07-31	2024-09-12
Annual General Meeting 2024		2024-09-20

Contacts

Göran Westerberg Sofie Malmunger

CEO

goran.westerberg@rusta.com

Address:

Box 5064

194 05 Upplands Väsby

Rusta AB (publ)

Organisationsnumber 556280–2115

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 2024-03-14.

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