Quarterly Report • Nov 17, 2023
Quarterly Report
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Björn Borg AB ¸ Interim report JanuarySeptember 2023
| SEK million | Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|
| Net sales | 262.1 | 248.6 | 674.6 | 636.8 | 873.0 | 835.2 |
| Gross proĥ t margin, % | 52.6 | 48.2 | 53.2 | 50.4 | 52.9 | 50.8 |
| Operating proĥ t | 40.9 | 30.6 | 80.4 | 65.1 | 88.2 | 72.9 |
| Operating margin, % | 15.6 | 12.3 | 11.9 | 10.2 | 10.1 | 8.7 |
| Proĥ t after tax | 32.0 | 22.2 | 61.0 | 45.6 | 66.3 | 50.9 |
| Earnings per share before dilution, SEK | 1.27 | 0.88 | 2.43 | 1.81 | 2.64 | 2.02 |
| Earnings per share after dilution, SEK | 1.27 | 0.88 | 2.43 | 1.81 | 2.64 | 2.02 |
Our positive trend from the ĥ rst six months of the year continued in the third quarter. We achieved our highest sales ever, both for a single quarter and for the year to date. Once again, we improved both our sales and our operating proĥ t compared to the previous year's quarter. Operating proĥ t increased by 34 percent, a sign of strength, and our sales increased by 5 percent to SEK 262.1 million, currencyneutral 1 percent. I am proud of this, even though our sales ambition was even higher. Despite the continuing challenging environment in which we found ourselves, we saw increased demand for our products and a brand that strengthened during the quarter. We are on the right track and moving forwards step by step, sometimes with small steps but always in the right direction, for us to reach our goal of becoming a global sports fashion brand.
When we see, time after time, that the demand for our products is increasing, then we know that we are on the right track. During the quarter, it was particularly pleasing to see the strong development in one of our most important and largest categories, underwear, which increased by 15 percent. Sports apparel continued to develop well and increased in total by 11 percent. However, we showed even greater increases in our own e-commerce, where sports apparel grew by 58 percent, bags by 59 percent and footwear by 171 percent. However, weak sales at the wholesale level meant that footwear and bags decreased overall during the quarter.
The channel strategy that we have worked with actively for several years is proving to be successful in an uncertain market, where we minimize the risks by having several strong legs to stand on. The wholesale channel, our largest channel, grew by 15 percent. Our external e-tailers developed strongly while, at the same time, we saw a very strong recovery for physical stores within the wholesale channel, which grew by 19 percent. This showed an increased demand in the retail environment, and it was gratifying to see such
good growth. Our own channels, both own e-commerce and own stores, developed very well during the quarter; signiĥ cantly better than the market, in fact, which was the result of a very competent team, strong demand for our products and the positive development of our brand. Own e-commerce grew by 25 percent with own comparable stores growing by 16 percent. Overall, however, our own stores were down by 4 percent in the quarter due to planned store closures which was fully in line with our channel strategy launched in 2019. Our distributors continued to face challenges compared to previous years. This was mainly due to their reduced purchases which was a consequence of their eĤ orts to reduce their inventory levels. In addition, we also saw a decrease in sales from our distributors to their customers.
When reviewing our various markets, we see that our two largest markets developed very well, with Sweden increasing by 23 percent and the Netherlands increasing by 13 percent. Belgium and Germany also grew. At the same time, our sales in Finland decreased, and we also saw decreases in our other smaller markets.
We have a strong quarter behind us, which makes me both proud and happy. But what makes me most proud is all our employees, the team. You who never give up, who continue forwards in both headwinds and tailwinds. Thank you very much!
The environment in which we operate continued to be very challenging during the quarter. And, of course, considering everything that is happening, our business and our challenges might appear insigniĥ cant. But we are continuing our journey to become a global sports fashion brand despite all the challenges, and with the third quarter of the year behind us, I can state that our strong development in 2023 has continued.
So, let's go!
Head coach, Henrik Bunge
The third quarter of the year showed an improvement in total operating revenue, including other revenue, of 5.1 percent to SEK 268.0 million (255.0). Adjusted for currency eĤ ects, operating revenue increased by 0.6 percent for the quarter.
The underwear product area showed increased sales of 15 percent for the third quarter of 2023, where primarily sales within the wholesale business showed a strong increase of 28 percent, while sales to external distributors decreased by 38 percent. Other channels increased overall underwear sales by 5 percent. Sports apparel increased by 11 percent, and sales to own e-commerce continued to grow particularly strongly, with an increase of 58 percent.
Sales of footwear decreased by 11 percent compared to the previous year's third quarter, and bags decreased by 26 percent. For other product areas, sales were down by 14 percent.
The largest market, Sweden, increased sharply during the third quarter of the year by 23 percent, with wholesale operations increasing by 26 percent due to strong throughsales at the larger retailers, and own e-commerce increased by 36 percent. The second largest market, the Netherlands, increased by 13 percent. Here too, own e-commerce grew strongly with an increase of 20 percent. Germany showed a small increase compared to last year's third quarter.
Finland decreased in the quarter by 11 percent due to the timing of the distribution between the quarters. Denmark was down by 13 percent due to weaker through-sales at the retailers. Belgium increased by 7 percent. The others smaller markets decreased by a total of 25 percent.
The largest channel, the wholesale business, showed an increase of 15 percent in the third quarter of 2023, with e-tailers in the wholesale business increasing by 9 percent, mainly due to strong development in the Swedish market. Physical stores increased by 19 percent, here again mainly due to strong development in the Swedish market. In total, own stores were down slightly by 4 percent compared to the previous year, due to the company's decision to close unproĥ table stores. For comparable stores, i.e., stores that were open during both comparison quarters, sales increased by 16 percent in the quarter. Own e-commerce continued to show strong growth and increased by 25 percent. Distributors decreased by 62 percent compared to the previous year, mainly due to fewer purchases from Norway.
Group net sales during the third quarter amounted to SEK 262.1 million (248.6), an increase of 5.4 percent. The currency eĤ ect on sales in the quarter was positive, and adjusted for currency eĤ ects, net sales increased by 0.8 percent.
The main explanation for the variance between the quarters was that the company saw an increased demand within its own e-commerce which grew by 25 percent, and that the wholesale business was strong and grew by 15 percent. However, external distributors showed the
opposite eĤ ect and decreased by 62 percent mainly due to reduced purchases from Norway. For further details, see below under 'Development by segment'.
Group net sales during the ĥ rst nine months amounted to SEK 674.6 million (636.8), an increase of 5.9 percent. The currency eĤ ect on turnover in the quarter was positive and adjusted for currency eĤ ects, net sales increased by 1.7 percent.
The main explanation for the increase during the ĥ rst nine months was that the company saw increased demand within the Consumer direct segment, where own physical stores increased sales by 1 percent and own e-commerce increased by 32 percent. The wholesale business also developed strongly and grew by 8 percent. For further details, see below under 'Development by segment'.
The gross proĥ t margin for the third quarter increased to 52.6 percent (48.2). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 52.5 percent. It was, above all, a greater focus generally on proĥ tability in wholesale operations, and reduced discounts in own stores and own e-commerce, where certain sale-periods have been removed, that contributed to the positive eĤ ect.
Other operating income amounted to SEK 5.9 million (6.4) and referred mainly to unrealized gains on accounts receivable in foreign currency.
Operating costs in the quarter increased by SEK 7.2 million compared to the previous year's third quarter, primarily through increased marketing activities and reserves for doubtful accounts receivable.
Increased sales, higher gross proĥ t margins and planned operating costs meant that the operating proĥ t increased to SEK 40.9 million (30.6).
Net ĥ nancial items amounted to –0.3 MSEK (–0.0). The change in net ĥ nancial items compared to the previous year was mainly attributable to the revaluation of ĥ nancial assets and liabilities in foreign currency.
The period's proĥ t after tax increased to SEK 32.0 million (22.2).
The gross proĥ t margin for the ĥ rst nine months increased to 53.2 percent (50.4). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 54.2 percent. It was, above all, a greater focus generally on proĥ tability in wholesale operations, and reduced discounts in own stores and own e-commerce, where certain sale-periods have been removed, that contributed to the positive eĤ ect.
Other operating income amounted to SEK 13.4 million (21.8) and mainly referred to unrealized gains on accounts receivable in foreign currency.
Operating costs increased according to plan for the ĥ rst nine months by SEK 14.1 million compared to the previous year, primarily through increased marketing activities, where, however, lower personnel costs had the opposite positive eĤ ect on operating costs.
Increased sales, higher gross proĥ t margins and planned increased operating costs, meant that the operating proĥ t increased to SEK 80.4 million (65.1) compared to the previous year.
Net ĥ nancial items amounted to –3.8 MSEK (–1.1). The deterioration of net ĥ nancial items compared to the previous year was mainly attributable to the revaluation of ĥ nancial assets and liabilities in foreign currency.
The period's proĥ t after tax increased to SEK 61.0 million (45.6).
Björn Borg's segment reporting consists of the company's main revenue streams, which are divided into Wholesale, Own e-commerce, Own stores, Distributors, and Licensing, which is also how the business is followed up internally in the Group.
The segment's external operating income amounted to SEK 461.1 million (425.9) which was an increase of 8 percent. One explanation for the increase was that the company saw increased demand from e-tailers within the segment, i.e., players who primarily sell online, where growth for the ĥ rst nine months was up 6 percent to SEK 157 million (148). Physical stores within the segment also showed growth and increased by 9 percent to SEK 304 million (278). Within wholesale operations, the largest market, Sweden, showed strong growth of 8 percent, and the second largest market, the Netherlands, showed growth of 6 percent. The Finnish market increased by 2 percent, while Germany was in line with the previous year.
Operating proĥ t amounted to SEK 54.8 million (54.8). The fact that the operating proĥ t was on a par with the previous year despite higher sales was primarily due to higher operating costs in the form of higher reserves for possible customer losses compared to the previous year.
Own e-commerce continued to grow strongly. During the ĥ rst nine months of the year, Own e-commerce increased by 32 percent to SEK 108.5 million (82.2). The increase was mainly due to strong growth in the sports apparel product area which was up 88 percent compared to the previous year's ĥ rst nine months. The underwear product area also increased strongly and grew by 14 percent. Footwear continued to show strong momentum and grew by 76 percent.
The operating proĥ t for the ĥ rst nine months of 2023 amounted to SEK 17.0 million (13.5), an increase of 27 percent. The improvement came primarily from greatly increased sales while maintaining high gross margins.
Own physical stores increased slightly compared to the ĥ rst nine months of last year. In total, the increase was 1 percent, up to SEK 76.2 million (75.5), despite the company choosing to close ĥ ve stores in accordance with the company's strategy to close unproĥ table stores. One explanation for the increase was that the stores in the Netherlands were closed for parts of the ĥ rst nine months of last year as a result of the pandemic. For comparable stores, i.e., stores that were also open in the corresponding period of the previous year, the increase was 23 percent.
In the Netherlands, sales in Own stores increased by 22 percent, mainly because the stores were closed for part of the ĥ rst nine months of 2022. In Sweden, sales in Own stores decreased by 1 percent in connection with the closure of unproĥ table stores. For comparable stores in Sweden, sales increased by 8 percent. Sales in Finland and Belgium were down by 9 and 14 percent respectively as a result of fewer stores this year compared to the ĥ rst nine months of last year. For comparable stores, Finland and Belgium increased by 47 and 11 percent respectively.
Operating proĥ t for the ĥ rst nine months of 2023 amounted to –6.2 MSEK (–24.3). The improvement in the operating proĥ t was mainly due to increased sales and signiĥ cantly improved gross proĥ t margins, as well as reduced operating costs as a result of fewer stores.
The segment's external operating income decreased during the ĥ rst nine months of the year 2023 compared to 2022 and amounted to SEK 33.9 million (67.6). Sales to the two major distributor markets, Norway and Great Britain, decreased compared to the previous year, by 31 and 59 percent respectively, mainly due to large stocks and thus fewer purchases from the respective markets. For the other distributor markets, sales decreased by a total of 65 percent.
Operating proĥ t decreased to SEK 7.3 million (15.1) as a result of the lower sales.
| Operating income, SEK thousands January-September |
Operating proĥ t, SEK thousands January-September |
Operating margin,% January-September |
||||||
|---|---|---|---|---|---|---|---|---|
| Segment | Revenue type | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Wholesale | Products | 461,067 | 425,869 | 54,779 | 54,807 | 12 | 13 | |
| Own e-commerce | Products | 108,465 | 82,178 | 17,046 | 13,465 | 16 | 16 | |
| Own stores | Products | 76,192 | 75,398 | –6,164 | –24,294 | –8 | –32 | |
| Distributors | Products | 33,907 | 67,645 | 7,319 | 15,078 | 22 | 22 | |
| Licensing | Royalties | 8,427 | 7,431 | 7,400 | 6,084 | 88 | 82 | |
| Total | 688,058 | 658,520 | 80,380 | 65,140 | 12 | 10 |
The segment's external operating income increased slightly during the ĥ rst nine months of 2023 compared to 2022 and amounted to SEK 8.4 million (7.4). It was, above all, within the footwear category that royalty income increased during the ĥ rst nine months of the year.
The operating proĥ t amounted to SEK 7.4 million (6.1) for the ĥ rst nine months of 2023.
Intra-Group sales for the ĥ rst nine months of the year 2023 amounted to SEK 470.8 million (344.5).
The Björn Borg Group operates in an industry with seasonal variations. The diĤ erent quarters vary in terms of sales and proĥ ts. See diagram on 'Net sales and operating proĥ t per quarter' on page 5.
The cash Ħ ow from the ongoing operations in the Group during the ĥ rst nine months of 2023 amounted to –8.1 MSEK (–10.9).
The cash Ħ ow from investment activities was negative at SEK –8.2 million (–6.6). The larger investments related to the remodeling of the head oħ ce's showroom. Cash Ħ ow from ĥ nancing activities amounted to SEK 7.5 million (–71.5). The improvement, compared to the previous year, was due to the increased utilization of bank facilities, lower loan repayments, and a lower distribution to shareholders of –50.3 MSEK (–62.9).
The Björn Borg Group's cash and cash equivalents at the end of the period amounted to SEK 9.7 million (14.4), plus unused bank facilities of SEK 46.8 million (61.1). At the end of the third quarter of the year, the company had a net debt excluding lease liabilities of SEK 93.5 million (74.5). The company continued to have strong liquidity mainly due to increased earnings. Total interest-bearing liabilities amounted to SEK 149.9 million (140.0), where total leasing debt amounted to SEK 46.7 million (51.1), of which SEK 28.4 million was the long-term share and SEK 18.3 million was the short-term share.
The Björn Borg Group had SEK 150 million in bank facilities, of which SEK 103.2 million was utilized as of September 30, 2023. The fair value of ĥ nancial instruments corresponded in all material respects to the book value.
As a commitment to the overdraft facility, the company has undertaken to ensure that the ratio of the Group's net debt and 12-month rolling operating proĥ t before depreciation, as of the last day of each quarter, does not exceed 3.00. Furthermore, the Group must, at all times, maintain an equity ratio of at least 35 percent.
As of September 30, 2023, the ratio of the Group's net debt was 0.95 (0.87) and the equity ratio amounted to 55.4 percent (52.3).
There have been no signiĥ cant changes in collateral and contingent liabilities compared to 31 December 2022.
The average number of employees in the Group for the twelve-month period ending September 30, 2023, was 150 (154), of which 69 percent (67) were women. The reduction in personnel, compared to the previous year, was due to store closures.
Following a decision at the annual general meeting, the Björn Borg Group has introduced an incentive program under which the company invited persons in Group management and certain additional key persons within the Group to acquire warrants in the company at market value. The incentive program involves the issue of a total of 300,000 warrants, where each warrant entitles the holder to subscribe for one new share in the company. A total of 290,000 warrants were subscribed, with the remaining 10,000 warrants being held in reserve for future key personnel. For further information on the incentive program and its design, please refer to the company's website and the documentation relating to the 2023 annual general meeting.
In addition to the customary remuneration (salary, fees, and other beneĥ ts) to the CEO, senior executives, and the Board of Directors, as well as intra-Group sales, no transactions with related parties were carried out during the period.
Through its operations, the Björn Borg Group is exposed to risks and uncertainties. Information about the Group's risks and uncertainties is given on page 61 of the Annual Report for 2022.
The company notes, however, that the geopolitical situation in the world is challenging. It is currently diħ cult to determine how this is aĤ ecting the Björn Borg Group's operations ĥ nancially. The fact that the company does not have any business in either Russia or Ukraine, nor in Israel, minimizes the risk of any business impact, although declining consumer conĥ dence in the future may have an indirect, negative eĤ ect.
Furthermore, the company notes that inĦ ation in the markets in which the Björn Borg Group operates continues to reach high levels, that interest rates on bank loans have risen sharply, and that the currencies in which the company trades have had an unfavorable development. Taken together, these macro-economic eĤ ects could have a further impact on consumer purchasing behavior.
Björn Borg AB (publ) mainly conducts Intra-Group operations. As of September 30, 2023, the company owned 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc, Björn Borg Services AB, Björn Borg Ltd, Baseline BV, Belgian Brand Management BVBA, Björn Borg Finland Oy and Björn Borg Denmark ApS. Furthermore, the company owned 75 percent of the shares in Bjorn Borg (China) Ltd.
The parent company's net sales for the ĥ rst nine months of 2023 amounted to SEK 75.9 million (75.8).
Proĥ t before tax amounted to –13.5 MSEK (–8.8) for the ĥ rst nine months of 2023. Cash and cash equivalents at the end of the period amounted to 0 MSEK (0).
There have been no signiĥ cant events to report since the end of the reporting period.
The number of shares in Björn Borg amounts to 25,148,384 shares no change from the previous period.
Björn Borg's long-term ĥ nancial goals for the business, which were most recently established in 2019 for a ĥ ve-year period until 2023, have been prolonged and are now valid until further notice. The ĥ nancial goals are:
Comments on the ĥ nancial targets: Comments on the ĥ nancial targets: The growth in sales is expected to come mainly from growth in sports apparel, although other product groups are also expected to grow.
The annual general meeting held on 17 May 2023 decided on a distribution of 2.00 (2.50) per share to the shareholders for the ĥ nancial year 2022. Fredrik Lövstedt, Mats H Nilsson, Heiner Olbrich, Alessandra Cama, Anette Klintfeldt, Jens Høgsted and Johanna Schottenius were re-elected to the Board. The total number of members is seven. The meeting decided that Heiner Olbrich should be re-elected as the Board's Chair.
The meeting also adopted the Board's proposal for a long-term incentive program including the issuance of warrants. For further information on the incentive program, see above under "Transactions with related parties".
This interim report in summary for the Group has been prepared in accordance with IAS 34 and applicable regulations in the . The interim report for the parent company has been prepared in accordance with 9 chapters, and RFR 2 . The accounting principles applied in the interim report are consistent with the accounting principles that were applied when preparing the Group and Annual Report for 2022 (see page 56 of the Annual Report for 2022). New and amended standards and new interpretations that apply from 1 January 2023 have not had any signiĥ cant impact on the Group's ĥ nancial reports. Changes in RFR 2 that apply from 1 January 2023 have not had any signiĥ cant impact on the parent company's ĥ nancial reports.
When preparing an interim report, management is required to make assessments and estimates regarding assumptions that aĤ ect the application of the Group's (and the parent company's) accounting principles as well as reported amounts for assets, liabilities, revenues, and costs. The eĤ ects of the negative ĥ nancial impact of the current geopolitical situation in the world have been taken into account. The outcome of the aforementioned assessments has not had any signiĥ cant impact on the Group's ĥ nancial reports. Important assessments and estimates appear in the Annual Report for 2022. No signiĥ cant changes to assessments and estimates have taken place compared to the 2022 Annual Report.
This interim report has been subject to a general review by the company's auditors. The review report can be found on page 16.
The company's policy is not to provide forecasts.
IN SUMMARY
| Note SEK thousands |
Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|
| 1 Net sales |
262,105 | 248,590 | 674,628 | 636,754 | 837,047 | 835,173 |
| Other operating revenue | 5,862 | 6,398 | 13,430 | 21,766 | 17,500 | 25,835 |
| Operating revenue | 267,967 | 254,988 | 688,058 | 658,520 | 890,547 | 861,008 |
| Goods for resale | –124,246 | –128,793 | –315,782 | –315,602 | –410,840 | –410,660 |
| 2 Other external expenses |
–57,377 | –50,396 | –153,615 | –128,424 | –206,601 | –181,411 |
| Personnel costs | –33,393 | –33,203 | –101,304 | –106,039 | –136,712 | –141,447 |
| Depreciation/amortization of tangible/ | ||||||
| intangible non-current assets | –8,106 | –8,531 | –24,911 | –26,131 | –33,519 | –34,739 |
| Other operating expenses | –3,952 | –3,468 | –12,066 | –17,184 | –14,724 | –19,842 |
| Operating proĥ t | 40,893 | 30,597 | 80,380 | 65,140 | 88,151 | 72,909 |
| Net ĥ nancial items | –341 | –52 | –3,760 | –1,084 | –5,141 | –2,465 |
| Proĥ t before tax | 40,552 | 30,545 | 76,620 | 64,056 | 83,010 | 70,444 |
| Tax | –8,507 | –8,355 | –15,600 | –18,473 | –16,697 | –19,571 |
| Proĥ t for the period | 32,045 | 22,190 | 61,020 | 45,583 | 66,313 | 50,873 |
| Proĥ t for the period attributable to | ||||||
| Parent Company shareholders | 32,045 | 22,190 | 61,020 | 45,583 | 66,313 | 50,873 |
| Non-controlling interests | – | – | – | – | – | – |
| Earnings per share before dilution, SEK | 1.27 | 0.88 | 2.43 | 1.81 | 2.64 | 2.02 |
| Earnings per share after dilution, SEK | 1.27 | 0.88 | 2.43 | 1.81 | 2.64 | 2.02 |
| Number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 |
| SEK thousands | Jul-Sep Note 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|
| Proĥ t/loss for the period | 32,045 | 22,190 | 61,020 | 45,583 | 66,313 | 50,873 |
| OTHER COMPREHENSIVE INCOME Components that may be reclassiĥ ed to proĥ t or loss for the period |
||||||
| Translation diĤ erence for the period | –3,546 | –821 | 3,751 | 857 | 5,484 | 2,590 |
| Total other comprehensive income for the period |
–3,546 | –821 | 3,751 | 857 | 5,484 | 2,590 |
| Total comprehensive income for the period |
28,499 | 21,369 | 64,771 | 46,440 | 71,797 | 53,463 |
| Total comprehensive income attributable to |
||||||
| Parent Company shareholders Non-controlling interests |
28,499 – |
21,369 – |
64,771 – |
46,440 – |
71,797 – |
53,463 – |
| Sep 30, | Sep 30, | Dec 31, | |
|---|---|---|---|
| Note SEK thousands |
2023 | 2022 | 2022 |
| Non-current assets | |||
| Goodwill | 37,214 | 36,065 | 36,486 |
| Trademarks | 187,532 | 187,532 | 187,532 |
| Other intangible assets | 6,459 | 8,510 | 7,561 |
| Tangible non-current assets | 17,844 | 16,483 | 16,195 |
| Deferred tax assets | 12,581 | 11,134 | 12,575 |
| Right-of-use assets | 47,693 | 52,597 | 52,571 |
| Total non-current assets | 309,323 | 312,321 | 312,920 |
| Current assets | |||
| Inventory | 150,489 | 170,016 | 201,136 |
| Accounts receivable | 164,274 | 149,775 | 104,212 |
| Other current receivables | 28,157 | 16,482 | 19,094 |
| Cash and cash equivalents | 9,739 | 14,386 | 16,032 |
| Total current assets | 352,659 | 350,659 | 340,474 |
| Total assets | 661,982 | 662,980 | 653,394 |
| Equity and liabilities | |||
| Equity | 340,186 | 317,786 | 324,809 |
| Deferred tax liabilities | 39,771 | 39,623 | 39,877 |
| Long-term lease liabilities | 28,379 | 33,059 | 32,386 |
| Current liability to credit institution | 103,698 | 88,896 | 30,000 |
| Accounts payable | 50,414 | 69,332 | 106,021 |
| Short-term lease liabilities | 18,319 | 17,978 | 19,265 |
| Other current liabilities | 81,214 | 96,306 | 101,036 |
| Total equity and liabilities | 661,982 | 662,980 | 653,394 |
| SEK thousands | Note | Equity attributable to the parent company's shareholders |
Possession without controlling inĦ uence |
Total equity |
|---|---|---|---|---|
| Opening balance, January 1, 2022 | 340,084 | –5,867 | 334,217 | |
| Total comprehensive income for the period | 47,534 | –1,094 | 46,440 | |
| Distribution for 2021 | –62,871 | – | –62,871 | |
| Closing balance, September 30, 2022 | 324,747 | –6,961 | 317,786 | |
| Opening balance, January 1, 2022 | 340,084 | –5,867 | 334,217 | |
| Total comprehensive income for the period | 54,198 | –735 | 53,463 | |
| Distribution for 2021 | –62,871 | – | –62,871 | |
| Closing balance, December 31, 2022 | 331,411 | –6,602 | 324,809 | |
| Opening balance, January 1, 2023 | 331,411 | –6,602 | 324,809 | |
| Total comprehensive income for the period | 64,911 | –140 | 64,771 | |
| Distribution for 2022 | –50,297 | – | –50,297 | |
| Warrant premium | 903 | – | 903 | |
| Closing balance, September 30, 2023 | 346,928 | –6,742 | 340,186 |
IN SUMMARY
| SEK thousands | Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Full year 2022 |
|---|---|---|---|---|---|
| Cash Ħ ow from operating activities | |||||
| Before changes in working capital | 39,676 | 36,819 | 70,855 | 92,158 | 108,024 |
| Changes in working capital | –98,307 | –100,823 | –78,964 | –103,040 | –47,524 |
| Cash Ħ ow from operating activities | –58,631 | –64,004 | –8,109 | –10,882 | 60,500 |
| Investments in intangible non-current assets | –465 | –429 | –1,144 | –740 | –265 |
| Investments in tangible non-current assets | –2,404 | –1,560 | –7,076 | –5,824 | –8,059 |
| Cash Ħ ow from investing activities | –2,869 | –1,989 | –8,220 | –6,564 | –8,324 |
| Distribution | – | – | –50,297 | –62,871 | –62,871 |
| Warrant premium | – | – | 903 | – | – |
| Amortization of loans | – | – | –30,000 | –80,000 | –80,000 |
| Amortization of lease liabilities | –6,369 | –6,994 | –16,827 | –17,572 | –23,068 |
| Newly-raised loans | – | 30,000 | – | 30,000 | 30,000 |
| Overdraft facility | 67,801 | 40,103 | 103,698 | 58,896 | – |
| Cash Ħ ow from ĥ nancing activities | 61,432 | 63,109 | 7,477 | –71,547 | –135,939 |
| Cash Ħ ow for the period | –67 | –2,884 | –8,852 | –88,993 | –83,763 |
| Cash and cash equivalents at the beginning of the | |||||
| period | 10,115 | 14,365 | 16,032 | 96,743 | 96,743 |
| Translation diĤ erence in cash and cash equivalents | –309 | 2,905 | 2,559 | 6,637 | 3,052 |
| Cash and cash equivalents at the end of the period | 9,739 | 14,386 | 9,739 | 14,386 | 16,032 |
| SEK thousands | Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|
| Gross proĥ t margin,% * | 52.6 | 48.2 | 53.2 | 50.4 | 52.9 | 50.8 |
| Operating margin,% | 15.6 | 12.3 | 11.9 | 10.2 | 10.1 | 8.7 |
| Proĥ t margin,% | 15.5 | 12.3 | 11.4 | 10.1 | 9.5 | 8.4 |
| Return on capital employed,% | 18.7 | 17.4 | 18.7 | 17.4 | 18.7 | 17.1 |
| Return on average equity,% | 20.2 | 17.6 | 20.2 | 17.6 | 20.2 | 15.4 |
| Proĥ t attributable to the Parent Company's shareholders |
32,045 | 22,190 | 61,020 | 45,583 | 66,313 | 50,873 |
| Equity/assets ratio,% * | 55.4 | 52.3 | 55.4 | 52.3 | 55.4 | 54.0 |
| Equity per share, SEK | 13.53 | 12.64 | 13.53 | 12.64 | 13.53 | 12.92 |
| Investments in intangible non-current assets | 465 | 429 | 1,144 | 740 | 1,144 | 265 |
| Investments tangible non-current assets | 2,404 | 1,560 | 7,076 | 5,824 | 8,836 | 8,059 |
| Depreciation, amortization and impairment losses for the period |
–8,106 | –8,531 | –24,911 | –26,131 | –33,519 | –34,739 |
| Average number of employees | 152 | 154 | 150 | 154 | 150 | 151 |
* The ĥ gure is an alternative performance measure (APM) and not (IFRS). It is described under deĥ nitions and explained on page 15.
GROUP
| SEK thousands | Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|
| Operating revenue | ||||||
| Wholesale business | ||||||
| External revenue | 188,148 | 163,082 | 461,067 | 425,869 | 575,073 | 539,871 |
| Internal revenue | 2,442 | 1,237 | 21,040 | 3,127 | 22,783 | 4,870 |
| 190,590 | 164,319 | 482,107 | 428,996 | 597,856 | 544,741 | |
| Own e-commerce | ||||||
| External revenue | 37,575 | 30,022 | 108,465 | 82,178 | 139,698 | 113,411 |
| Internal revenue | – | –52 | 1,148 | 239 | 1,158 | 250 |
| 37,575 | 29,970 | 109,613 | 82,417 | 140,856 | 113,661 | |
| Own stores | ||||||
| External revenue | 29,940 | 31,248 | 76,192 | 75,398 | 107,360 | 106,566 |
| Internal revenue | – | 66 | – | 66 | 62 | 128 |
| 31,314 | 76,192 | 75,464 | 107,422 | 106,694 | ||
| Distributors | 29,940 | |||||
| External revenue | 10,849 | 28,860 | 33,907 | 67,645 | 58,559 | 92,298 |
| Internal revenue | 183,433 | 115,852 | 423,076 | 305,286 | 597,565 | 479,774 |
| 194,282 | 144,712 | 456,983 | 372,931 | 656,124 | 572,072 | |
| Licensing | 1,455 | 1,778 | 8,427 | 7,431 | 9,857 | 8,862 |
| External revenue | 10,721 | 1,519 | 25,541 | 35,734 | 23,092 | 33,286 |
| Internal revenue | ||||||
| 12,176 | 3,297 | 33,968 | 43,165 | 32,949 | 42,148 | |
| Less internal sales | –196,596 | –118,623 | –470,805 | –344,453 | –644,661 | –518,309 |
| Operating revenue | 267,967 | 254,989 | 688,058 | 658,520 | 890,547 | 861,008 |
| Operating proĥ t | ||||||
| Wholesale business | 28,663 | 23,156 | 54,779 | 54,807 | 52,799 | 52,824 |
| Own e-commerce | 5,884 | –8,708 | 17,046 | 13,465 | 21,250 | 17,669 |
| Own stores | 689 | 6,706 | –6,164 | –24,294 | –6,194 | –24,324 |
| Distributors | 4,373 | 7,983 | 7,319 | 15,078 | 11,798 | 19,558 |
| Licensing | 1,284 | 1,460 | 7,400 | 6,084 | 8,498 | 7,182 |
| Operating proĥ t | 40,893 | 30,597 | 80,380 | 65,140 | 88,148 | 72,909 |
The diĤ erence between operating proĥ t for segments for which information must be provided SEK 40,893 thousand (30,597) and proĥ t before tax SEK 40,552 thousand (30,545) are ĥ nancial net items, SEK –341 thousand (–52).
| GROUP |
|---|
| ------- |
| SEK thousands | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 262,105 | 165,631 | 246,893 | 198,420 | 248,590 | 161,544 | 226,620 | 180,576 |
| Gross proĥ t margin,% | 52.6 | 55.6 | 52.2 | 52.1 | 48.2 | 54.5 | 50.0 | 53.1 |
| Operating proĥ t/loss | 40,893 | 8,100 | 31,385 | 7,770 | 30,597 | 5,233 | 29,309 | 10,020 |
| Operating margin,% | 15.6 | 4.9 | 12.7 | 3.9 | 12.3 | 3.2 | 12.9 | 5.5 |
| Proĥ t/loss after net ĥ nancial items | 40,552 | 5,401 | 30,665 | 6,389 | 30,545 | 4,344 | 29,166 | 12,030 |
| Proĥ t margin,% | 15.5 | 3.3 | 12.4 | 3.2 | 12.3 | 2.7 | 12.9 | 6.7 |
| Earnings per share, | ||||||||
| before dilution, SEK | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 | 0.92 | 0.44 |
| Earnings per share, after dilution, SEK | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 | 0.92 | 0.44 |
| Number of Björn Borg retail stores | ||||||||
| at the end of the period | 17 | 17 | 19 | 19 | 19 | 24 | 26 | 26 |
| of which Group-owned | ||||||||
| Björn Borg retail stores | 16 | 16 | 18 | 18 | 18 | 21 | 23 | 23 |
IN SUMMARY
| SEK thousands | Note | Jul-Sep 2023 |
Jul-Sep 2022 |
Jan-Sep 2023 |
Jan-Sep 2022 |
Oct 2022- Sep 2023 |
Full year 2022 |
|---|---|---|---|---|---|---|---|
| Net sales | 25,414 | 25,457 | 75,942 | 75,795 | 101,352 | 101,205 | |
| Other operating revenue | 264 | 95 | 833 | 1,105 | 902 | 1,174 | |
| Operating revenue | 25,678 | 25,552 | 76,775 | 76,900 | 102,254 | 102,379 | |
| Goods for resale | – | – | – | –153 | – | –153 | |
| Other external expenses | 2 | –13,444 | –13,784 | –42,208 | –40,265 | –58,199 | –56,256 |
| Personnel costs | –11,321 | –12,290 | –32,663 | –38,795 | –45,374 | –51,506 | |
| Depreciation/amortization of intangible | |||||||
| and tangible non-current assets | –777 | –612 | –2,159 | –1,852 | –2,793 | –2,486 | |
| Other operating expenses | –148 | –95 | –287 | –758 | –398 | –869 | |
| Operating proĥ t | –12 | –1,229 | –542 | –4,923 | –4,510 | –8,892 | |
| Result from shares in subsidiaries | – | – | – | – | 4,493 | 4,493 | |
| Net ĥ nancial items | –5,829 | –2,483 | –12,928 | –3,919 | –14,959 | –5,950 | |
| Proĥ t/loss after ĥ nancial items | –5,841 | –3,712 | –13,470 | –8,842 | –14,976 | –10,348 | |
| Group contributions received/paid | – | – | – | – | 52,538 | 52,538 | |
| Appropriations | – | – | – | – | –360 | –360 | |
| Proĥ t/loss before tax | –5,841 | –3,712 | –13,470 | –8,842 | 37,202 | 41,830 | |
| Tax | – | – | – | – | –9,512 | –9,512 | |
| Proĥ t/loss for the period | –5,841 | –3,712 | –13,470 | –8,842 | 27,690 | 32,318 | |
| Other comprehensive income | – | – | – | – | – | – | |
| Total comprehensive income | |||||||
| for the period | –5,841 | –3,712 | –13,470 | –8,842 | 27,690 | 32,318 |
IN SUMMARY
| Sep 30, | Sep 30, | Dec 31, | ||
|---|---|---|---|---|
| SEK thousands | Note | 2023 | 2022 | 2022 |
| Non-current assets | ||||
| Intangible assets | 1,087 | 2,734 | 2,323 | |
| Tangible non-current assets | 4,806 | 2,404 | 2,510 | |
| Deferred tax | – | 4 | – | |
| Shares in Group companies | 371,813 | 279,956 | 371,813 | |
| Total non-current assets | 377,706 | 285,098 | 376,646 | |
| Current assets | ||||
| Receivables from Group companies | 460,966 | 1,142,435 | 891,508 | |
| Current receivables | 9,016 | 3,798 | 3,669 | |
| Cash and cash equivalents | – | – | 1,558 | |
| Total current assets | 469,982 | 1,146,233 | 896,735 | |
| Total assets | 847,688 | 1,431,331 | 1,273,381 | |
| Equity and liabilities | ||||
| Equity | 73,375 | 84,316 | 136,239 | |
| Untaxed reserves | 1,616 | 1,256 | 1,616 | |
| Current liabilities credit institutions | 103,206 | 88,896 | 30,000 | |
| Due to Group companies | 650,319 | 1,216,567 | 1,049,151 | |
| Accounts payable | 5,318 | 5,403 | 9,782 | |
| Other current liabilities | 13,854 | 34,893 | 46,593 | |
| Total equity and liabilities | 847,688 | 1,431,331 | 1,273,381 |
| SEK thousands | Jan-Sep 2023 |
Jan-Sep 2022 |
Full year 2022 |
|---|---|---|---|
| Opening balance | 136,239 | 156,029 | 166,792 |
| Distribution | –50,297 | –62,871 | –62,871 |
| Warrant premium | 903 | – | – |
| Total comprehensive income for the period | –13,470 | –8,842 | 32,318 |
| Closing balance | 73,375 | 84,316 | 136,239 |
The Group's net sales consist of sales of products and royalties for the use of the company's brand. Transfers of goods/royalties are made at ĥ xed points in time. Listed in the table below are markets with a net sales above 10 percent of the total.
| The group | |||
|---|---|---|---|
| Jan-Sep | Jan-Sep | ||
| SEK thousands | 2023 | 2022 | |
| Sweden | 237,708 | 228,682 | |
| Netherlands | 155,790 | 133,803 | |
| Finland | 92,299 | 89,275 | |
| Germany | 61,523 | 63,835 | |
| Others | 127,308 | 121,159 | |
| Total net sales | 674,628 | 636,754 |
| The group | Parent Company | |||
|---|---|---|---|---|
| Jan-Sep Jan-Sep |
Jan-Sep | Jan-Sep | ||
| SEK thousands | 2023 | 2022 | 2023 | 2022 |
| Cost of premises | 8,519 | 15,788 | 4,950 | 5,135 |
| Sales expenses | 52,831 | 42,319 | 848 | 2,846 |
| Marketing expenses | 52,003 | 43,596 | 25,174 | 20,515 |
| Administrative | ||||
| expenses | 34,089 | 22,407 | 10,466 | 11,123 |
| Other | 6,173 | 4,314 | 770 | 646 |
| 153,615 | 128,424 | 42,208 | 40,265 |
The company presents certain ĥ nancial measures in this year-end report that are not deĥ ned in accordance with IFRS. The company considers these measures to be valuable complementary information for investors and the company's management. Since not all companies calculate ĥ nancial measures in the same way, they are not always comparable with measures used by other companies. Consequently, these ĥ nancial measures should not be seen as a substitute for measures deĥ ned in accordance with IFRS. For more on the calculation of these key ĥ gures see:
https://corporate.bjornborg.com/en/section/investors/ interim-reports/
https://corporate.bjornborg.com/en/ĥ nancial-deĥ nitions/ https://corporate.bjornborg.com/en/ĥ nancial-data/
Total assets less non-interest-bearing liabilities and provisions.
Purpose: Capital employed measures capital use and eħ ciency.
Sales for own retail stores that were also open in the previous period.
Purpose: To obtain comparable sales between periods for own retail stores.
Proĥ t after tax in relation to the weighted average number of shares during the period. Purpose: This indicator is used to assess an investment from an owner's perspective.
Earnings per share adjusted for any dilution eĤ ect. Purpose: This indicator is used to assess the investment from an owner's perspective.
Equity as a percentage of total assets adjusted for lease liabilities.
Purpose: This indicator shows ĥ nancial risk, expressed as a share of the total restricted equity ĥ nanced by the owners.
Net sales less costs of goods sold divided by net sales. Purpose: Gross margin is used to measure operating proĥ tability.
Net sales less cost of goods sold divided by net sales. Purpose: Gross proĥ t margin before acquisitions is used to measure operating proĥ tability adjusted for acquisition eĤ ects.
Gross proĥ t margin calculated using the previous year's exchange rate.
Purpose: To obtain a currency-neutral gross proĥ t margin.
Net sales calculated using the previous year's exchange rate.
Purpose: To obtain comparable and currency-neutral net sales.
Interest-bearing liabilities excluding leasing liabilities less investments and cash and cash equivalents. Purpose: Net debt reĦ ects the company's total debt situation.
Interest-bearing liabilities excluding lease liabilities less investments and cash and cash equivalents divided by operating proĥ t before depreciation/amortizartion. Purpose: To show the company's ability to pay debts.
Financial income less ĥ nancial expenses. Purpose: To describe the company's ĥ nancial activities.
Operating proĥ t as a percentage of net sales. Purpose: The operating margin is used to measure operating proĥ tability.
Proĥ t before tax plus net ĥ nancial items. Purpose: : This indicator facilitates comparisons of proĥ tability regardless of the company's tax rate and independent of the company's ĥ nancing structure.
Proĥ t before tax as a percentage of net sales. Purpose: Proĥ t margin shows the company's proĥ t in relation to its sales.
Proĥ t before tax (per rolling 12-month period) plus ĥ nancial expenses as a percentage of average capital employed. Average capital employed is calculated by adding equity at January 1 to equity at December 31 and dividing by two. Purpose: This indicator is the key measure to quantify the return on all the capital used in operations.
Proĥ t for the period/year attributable to the Parent Company's shareholders (for rolling 12 months) according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two. Purpose: This indicator shows, from an owner's perspective, the return generated on the owners' invested capital.
The Board of Directors and the CEO certify that the interim report provides a true and fair overview of the operations, ĥ nancial position and results of the Parent Company and the Group and describes the signiĥ cant risks and uncertainties faced by the Parent Company and the companies in the Group.
Stockholm den 17 november 2023
Heiner Olbrich Chairman of the Board
Alessandra Cama Jens Högsted Board member Board member
Johanna Schottenius Anette Klintfeldt Board member Board member
Fredrik Lövstedt Mats H Nilsson Board member Board member
Henrik Bunge CEO
We have reviewed the interim report for Björn Borg AB (publ) for the period January 1 to September 30, 2023. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements (ISRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review consists of making inquiries, primarily of persons responsible for ĥ nancial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with the International Standards of Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all signiĥ cant matters that might be identiĥ ed in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material aspects, prepared in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company.
Stockholm, November 17, 2023 BDO Mälardalen AB
Johan Pharmanson Carl-Johan Kjellman Authorized Public Accountant Authorized Public Accountant Responsible auditor
The year-end report 2023 will be released at 7.30 a.m. on February 23, 2024.
Annual report 2023 in late April 2024.
Annual General Meeting 2024 will be held on May 16, 2024.
Financial reports can be downloaded from the company's website, www.bjornborg.com or ordered by phone +46 8 506 33 700, or by e-mail [email protected].
Henrik Bunge, CEO Email: [email protected] Telephone: +46 8 506 33 700
Jens Nyström, CFO Email: [email protected] Telephone: +46 8 506 33 700
The Björn Borg Group owns the Björn Borg brand, and the focus of the business is sports apparel, underwear and bags. In addition, footwear and glasses are also oĤ ered via licensees. Björn Borg products are sold in around twenty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has its own operations at all levels, from brand development to consumer sales in its own Björn Borg stores. In total, the Group's net sales in 2022 amounted to SEK 835.2 million and the average number of employees was 151. Björn Borg has been listed on Nasdaq Stockholm since 2007.
The images in the interim report are taken from Björn Borg's spring and summer 2024 collektion.
Björn Borg AB Frösundaviks allé 1 169 70 Solna www.bjornborg.com
Denna information är sådan information som Björn Borg AB (publ) är skyldigt att oĤ entliggöra enligt EU:s marknadsmissbruksförordning. Informationen lämnades, genom ovanstående kontaktpersons försorg, för oĤ entliggörande den 17 november 2023 kl 07.30.
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