AI Terminal
Björn Borg
Quarterly Report • May 16, 2024
3142_10-q_2024-05-16_ca42db1d-9c25-4dc2-9128-27f808922f0e.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
Björn Borg AB ¸ Interim report JanuaryMarch 2024
Strong sports apparel growth
JANUARY 1 MARCH 31, 2024
- Group's net sales amounted to SEK 256.8 million (246.9), an increase of 4.0 percent. Currency neutral, net sales increased by 3.7 percent.
- Net sales for own e-commerce increased by 21 percent to SEK 40.6 million (33.4), sales for own e-commerce and e-tailers amounted to SEK 107.1 million (92.9), an increase of 15 percent.
- The gross proĥ t margin amounted to 53.3 percent (52.2). Currency-neutral, the gross proĥ t margin amounted to 53.1 percent, an increase of 0.9 percentage points.
- Operating proĥ t amounted to SEK 33.5 million (31.4), an increase of 7 percent. Currency neutral, the operating proĥ t amounted to to SEK 32.7 million, an increase of SEK 4 percent.
- Proĥ t after tax amounted to SEK 21.2 million (24.8), a decrease of 14 percent.
- Earnings per share before and after dilution amounted to SEK 0.84 (0.99).
QUOTE FROM THE CEO, HENRIK BUNGE
"What I'm most pleased with is our continued strong growth in sportswear, which amounted to 24 percent."
| SEK million | Jan-Mar 2024 |
Jan-Mar 2023 |
Apr 2023- Mar 2024 |
Full year 2023 |
|---|---|---|---|---|
| Net sales | 256.8 | 246.9 | 882.2 | 872.3 |
| Gross proĥ t margin, % | 53.3 | 52.2 | 54.3 | 54.0 |
| Operating proĥ t | 33.5 | 31.4 | 102.6 | 100.6 |
| Operating margin, % | 13.0 | 12.7 | 11.6 | 11.5 |
| Proĥ t after tax | 21.2 | 24.8 | 72.4 | 76.0 |
| Earnings per share before dilution, SEK | 0.84 | 0.99 | 2.88 | 3.02 |
| Earnings per share after dilution, SEK | 0.84 | 0.99 | 2.88 | 3.02 |
CEO comments
We started the year strongly with both sales and operating proĥ t developing very positively. What I'm most pleased with is our continued strong growth in sportswear, which amounted to 24 percent. In addition our continued strong growth within own e-commerce, which increased by 21 percent compared to the previous year's ĥ rst quarter, and our continued excellent development within sportswear, which grew by 24 percent. Despite the challenging environment, our business grew in the right direction with a brand that is becoming stronger all the time.
During spring, we have seen a strong demand for both our sportswear and our underwear collections. Sportswear has increased by 24 percent while underwear was up by 9 percent. The positive development in underwear was particularly pleasing since it applied both to women's and men's underwear. During the quarter, which was previously reported, our footwear licensing partner went bankrupt which in the short term has led to a decrease for the footwear category by 46 percent. The bankruptcy led to disruptions in the supply chain and in combination with weak sales on the part of the former partner, it resulted in decrease in turnover corresponding to over SEK 12 million. We have for a long time worked towards integrating more categories as we did with bags a few years ago. This makes that we are well prepared and our plan is to integrate footwear into our other activities. The footwear category has a very large potential for the company's future, this also applies to the remaining part of 2024. A clear sign of this potential was that we saw growth of 128 percent in our own e-commerce for footwear during the ĥ rst quarter.
We also saw continued strength in our channel strategy.
Our largest channel, the wholesale channel, grew by 4 percent. Our external e-retailers developed strongly with growth of 12 percent. Our own e-commerce continued to develop well and grew by 21 percent. Our own comparable stores grew by 1 percent. Our distributors continued to face challenges compared to the previous year and decreased by 11 percent.
When reviewing our various markets, we saw that the Netherlands, Germany and Denmark developed well. We were down in both Sweden and Finland, but this was entirely due to reduced sales for footwear. All other categories grew. To take one example, Swedish wholesale operations increased by 20 percent. Other smaller markets grew by a total of 20 percent during the quarter.
With the ĥ rst quarter of the year behind us, I can state that we have started the year very strongly. Sales increased by 4.2 percent and if we exclude footwear, we grew over 10 percent. The operating proĥ t increased from SEK 31.4 million to SEK 33.5 million and the gross proĥ t margin improved to 53.3 percent (52.2). But it was, above all, the way in which we handled the extraordinary event during the quarter when we had a partner who went bankrupt which made me feel both safe and proud, the result of ambitious and committed employees. We have a good plan. I am constantly reminded that environmental factors will not facilitate our journey towards our goals, but I am conĥ dent that we will deliver them regardless of the economic situation.
Now, let's go!
Head coach, Henrik Bunge
The Group's development
OPERATING REVENUE FIRST QUARTER 2024
The ĥ rst quarter of the year showed an improvement in total operating revenue, including other revenue, of 4.2 percent to SEK 260.8 million (250.2). Adjusted for currency e Ĥ ects, operating revenue increased by 3.9 percent for the quarter.
PRODUCT AREAS FIRST QUARTER 2024
The underwear product area showed an increase in sales of 9 percent for the ĥ rst quarter of 2024, where above all sales through our own e-commerce continued to grow strongly with an increase of 15 percent. Underwear sales also grew within the wholesales business in the quarter, with an increase of 12 percent, while sales in our own stores decreased by 10 percent, mainly as a result of fewer stores compared to last year's ĥ rst quarter. Sales to external distributors continued to develop weakly within the category underwear, and were down by 22 percent.
Sportswear continued to show strong development and increased by 24 percent, where, above all, sales within the wholesale business continued to grow strongly with a increase of 34 percent. Our own e-commerce also continued to grow and increased by 12 percent. Sales to external distributors increased in the sportswear category and were up by 22 percent, while our own stores were down by 6 percent mainly as a result of closed stores.
Sales of footwear decreased in the ĥ rst quarter by 46 percent compared to the previous year's ĥ rst quarter. This was entirely due to the takeover of the distribution from a third party which went bankrupt, something which the company reported earlier. Bags were on par with the previous year. For other product areas, sales decreased by 6 percent.
MARKETS FIRST QUARTER 2024
The largest market, Sweden, decreased by 1 percent during the ĥ rst quarter of the year, where wholesale operations decreased by 2 percent, mainly due to the takeover of the distribution of footwear which created a delay in distribution between quarters. Excluding footwear, the wholesale business grew in Sweden by 20 percent. Our own e-commerce in Sweden continued to grow strongly and increased by 16 percent. The second largest market, the Netherlands, increased by 10 percent. Here too, our own e-commerce grew strongly with an increase of 32 percent. Germany showed an increase of 14 percent compared to the ĥ rst quarter of last year due to strong sales at the major retailers. Finland decreased in the quarter by 6 percent, also due to the takeover of the distribution of footwear mentioned above. Denmark increased by 6 percent, while Belgium decreased by 3 percent. Other smaller markets increased overall by 20 percent.
SALES CHANNELS FIRST QUARTER 2024
The largest channel, the wholesale business, showed an increase of 4 percent in the ĥ rst quarter of 2024, where e-tailers within the wholesale business increased by 12 percent mainly due to the strong development of the Swedish market. Physical stores were on par with the previous year. Own stores were also on par with the previous year, despite a reduction In the number of stores. For comparable stores, i.e. stores which were open during both comparison quarters, sales were up by 1 percent. Own e-commerce showed continued strong growth, and increased by 21 percent. Distributors decreased by 11 percent compared to the previous year, mainly due to low sales in the UK.
NET SALES
First quarter, January-March 2024
Group's net sales in the ĥ rst quarter amounted to SEK 256.8 million (246.9), an increase of 4.0 percent. The currency eĤ ect on sales in the quarter was positive and, adjusted for currency eĤ ects, sales increased by 3.7 percent.
The main explanation for the increase between quarters was that the company's sales within its own e-commerce continued to show strong growth and increased by 21 percent. For further details, see below under "Development by segment".
RESULTS
First quarter, January-March 2024
The gross proĥ t margin for the ĥ rst quarter increased to 53.3 percent (52.2). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 53.1 percent. It was primarily a greater general focus on proĥ tability in the wholesale business, as well as reduced discounts within direct sales to consumers, where, for example, certain sale periods have been removed, which contributed to the positive eĤ ect.
Other operating revenue amounted to SEK 4.0 million (3.3) and referred mainly to unrealized proĥ ts on accounts receivable in foreign currency.
Operating costs in the quarter increased as planned by 6.5 MSEK compared to the previous year's ĥ rst quarter, above all through increased investments in marketing.
Increased sales with a higher gross proĥ t margin, as well as slightly increased operating costs meant that the operating proĥ t increased to SEK 33.5 million (31.4).
Net ĥ nancial items amounted to –6.5 MSEK (–0.7). The change in net ĥ nancial items was mainly attributable to the revaluation of ĥ nancial assets and liabilities in foreign currency.
The period's proĥ t after tax was down to SEK 21.2 million (24.8).
Development by segment
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 monitored internally in the Group.
Wholesale business
The segment's external operating income amounted to 189.5 MSEK (182.2), which was an increase of 4 percent. One explanation for the increase was that the company saw an increase in demand from e-tailers within the segment, players who primarily sell online, where growth for the quarter was 12 percent, up to 66 MSEK (59). Physical stores within the segment were on par with the previous year and amounted to SEK 123 million (123). Within the wholesale business, Sweden, the largest market, showed an overall reduction of 2 percent as a result of the company taking over the distribution of footwear which created a delay in the distribution between the quarters. Excluding footwear, Sweden showed strong growth and increased by 20 percent. The second largest market, the Netherlands, fell by 1 percent. The Finnish market decreased by 6 percent, also here due to the takeover of footwear activities mentioned above. Excluding footwear,
Finland grew by 5 percent. Germany was up by 14 percent due to a strong sell-through at the major retailers.
Operating proĥ t amounted to SEK 28.1 million (25.1). It was, above all, higher sales together with improved margins that caused the operating proĥ t to increase by 12 percent.
Own e-commerce
Own e-commerce continued to grow strongly. During the ĥ rst quarter of 2024, own e-commerce increased by 21 percent to SEK 40.6 million (33.4). The increase was mainly due to strong growth in the Underwear product area, which increased by 15 percent compared to the previous year. The product area Sportswear also increased sharply and grew by 12 percent. Footwear continued to show strong momentum and grew by 128 percent, and Bags were up by 82 percent.
The operating proĥ t for the ĥ rst quarter of 2024 amounted to SEK 5.6 million (6.9), a decrease of 19 percent. The deterioration mainly came from higher marketing investments.
Own stores
Own physical stores overall were on a par with the previous year and amounted to SEK 21.0 million (20.9), despite the fact that the company chose to close a store in accordance with the company's strategy to liquidate unproĥ table stores. For comparable stores, i.e. stores that were also open corresponding period last year, the increase was 1 percent.
In the Netherlands, sales in own stores were up by 24 percent, mainly due to the afore-mentioned government contribution. Excluding the contribution mentioned above, sales in the segment in the Netherlands were at the same level as the previous year. In Sweden, sales in own stores were down by 12 percent due to the closure of unproĥ table stores. For comparable stores in Sweden, turnover increased by 5 percent. Sales in Finland overall and for comparable stores decreased by 4 percent, while Belgium was down by 33 percent in total but increased by 12 percent in comparable stores.
The operating proĥ t for the ĥ rst quarter of 2024 amounted to SEK –3.4 million (–5.8). The improvement in operating proĥ t was due mainly to improved margins as well as reduced operating costs as a result of the fewer number of stores.
Distributors
The segment's external operating income decreased during the ĥ rst quarter 2024 compared to 2023, and amounted to SEK 8.4 million (9.4). Sales to the largest distributor market, Norway, increased by 10 percent, while Great Britain and other smaller distributors were down on the previous year by a total of 21 percent, mainly due to large stocks and thus fewer purchases from the respective markets.
However, the operating proĥ t increased to SEK 2.0 million (1.3) due to lower operating costs associated with the segment.
Licensing
The segment's external operating income decreased during ĥ rst quarter 2024 compared to 2023, and amounted to SEK 1.4 million (4.4). This was as a result of the company taking over the distribution of footwear which previously accounted for a signiĥ cant part of the income in the segment.
Operating proĥ t amounted to SEK 1.2 million (3.9) for 2024.
Intra-Group sales
Intra-Group sales amounted to SEK 190.4 million (169.0).
SEASONAL VARIATIONS
The Björn Borg Group operates in an industry with seasonal variations. The diĤ erent quarters vary in terms of sales and proĥ ts. See the diagram with net sales and operating proĥ t per quarter on page 5.
| Operating income, Operating proĥ t, SEK thousands January-March |
SEK thousands January-March |
Operating margin,% January-March |
|||||
|---|---|---|---|---|---|---|---|
| Segment | Revenue type | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Wholesale | Products | 189,504 | 182,171 | 28,101 | 25,135 | 15 | 14 |
| Own e-commerce | Products | 40,574 | 33,404 | 5,594 | 6,918 | 14 | 21 |
| Own stores | Products | 20,950 | 20,874 | –3,441 | –5,816 | –16 | –28 |
| Distributors | Products | 8,353 | 9,367 | 1,974 | 1,264 | 24 | 13 |
| Licensing | Royalties | 1,430 | 4,406 | 1,242 | 3,884 | 87 | 88 |
| Total | 260,811 | 250,222 | 33,470 | 31,385 | 13 | 13 |
INVESTMENTS AND CASH FLOW
The Group´s cash Ħ ow from operating activites in the ĥ rst quarter of 2024 amounted to SEK –103.2 million (–27.1). The deterioration compared to the previous year came primarily from higher capital sums tied up due to the integration of the footwear business.
The cash Ħ ow from investment activities was negative at SEK –4.5 million (–2.7). The larger investments primarily referred to the rebuilding of the oħ ce in the Netherlands. The cash Ħ ow from ĥ nancing operations amounted to SEK 90.7 million (22.7). The improvement compared to the previous year was due to increased utilization of bank facilities.
FINANCIAL POSITION AND LIQUIDITY
The Björn Borg Group's cash and cash equivalents at the end of the period amounted to SEK 6.8 million (10.2), plus unutilized bank facilities of SEK 54.0 million (91.7). The company had, at the end of the ĥ rst quarter of the year, a net debt, excluding leasing liabilities, of SEK 89.2 million (48.1). The company continued to have strong liquidity mainly due to increased earnings. Total interest-bearing liabilities amounted to SEK 129.0 million (106.1), where the total leasing debt amounted to SEK 39.8 million (47.9), of which SEK 23.6 million was the long-term share and 16.2 MSEK was the short-term share.
The Björn Borg Group has SEK 150 million in bank facilities, of which SEK 96.0 million was utilized as of March 31, 2024. The fair value of ĥ nancial instruments corresponds in all material respects to the book value.
COMMITMENTS AND CONTINGENT LIABILITIES
As a commitment for 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 March 31, 2024, the ratio was 0.76 (0.53) and the equity ratio amounted to 54.9 percent (57.1).
No signiĥ cant changes have taken place with regard to pledged assets and contingent liabilities compared to 31 December, 2023.
PERSONNEL
The average number of employees in the Group for the twelve-month period ending March 31, 2024, was 151 (150) of which 69 percent (67) were women.
TRANSACTIONS WITH RELATED PARTIES
Other than 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, there were no transactions with related parties during the period.
SIGNIFICANT RISKS AND UNCERTAINTY FACTORS
The Björn Borg Group is, through its operations exposed to risks and uncertainties. Information regarding the Group's risks and uncertainties is available on page 60 of the Annual Report for 2023.
The company notes, however, that the geopolitical situation in the world remains challenging. It is currently diħ cult to determine how this aĤ ects the Björn Borg Group's operations ĥ nancially, but the fact that the company does not do business in Russia, Ukraine or Israel should minimize any risk of business impact, although declining consumer conĥ dence in the future may have an indirect, negative eĤ ect.
Furthermore, the company notes that inĦ ation and interest rates in the markets in which the Björn Borg Group operates continue to reach high levels. Overall, these macroeconomic eĤ ects may have additional impact on consumer buying behavior.
THE PARENT COMPANY
Björn Borg AB (publ) is mainly engaged in intra-Group activities. As of March 31, 2024, the company owned 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc, 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 quarter 2024 amounted to SEK 26.9 million (25.1).
Proĥ t before tax amounted to –9.7 MSEK (–5.2). Cash and cash equivalents at the end of the period amounted to SEK 0 million (0).
EVENTS AFTER THE END OF THE REPORTING PERIOD
As the company previously announced, the footwear product category has now been integrated into its operating activities. This happened after the Björn Borg Group's former license partner for the product category footwear, Serve & Volley BV, went bankrupt. Thus, going forward, Björn Borg will now design, product develop, and distribute products within the category in all markets. Although the integration in the short term may pose certain challenges in terms of maintaining the same sales and margins, the takeover of the footwear business is expected to give signiĥ cant future growth opportunities.
NUMBER OF SHARES
The number of shares in Björn Borg amounts to 25,148,384 shares (25,148,384) i.e. no change from the previous period.
FINANCIAL GOALS
Björn Borg's long-term ĥ nancial goals for the business, which were last set in 2019 for a ĥ ve-year period to 2023, have been extended and now apply until further notice. The ĥ nancial goals are:
- ¸ Annual sales growth of at least 5 percent.
- Annual operating margin of at least 10 percent.
- An annual dividend of at least 50 percent of net proĥ t after tax.
- The equity ratio should not fall below 35 percent.
Comments on the ĥ nancial targets: While we plan to grow all of our categories continuously, we expect strong growth particularly in sports apparel and as a consequence of integration also in footwear.
ANNUAL GENERAL MEETING
The Annual General Meeting for the ĥ nancial year 2023 will be held at 17:30 on May 16, 2024. The Board has decided to propose to the Annual General Meeting 2024 that a distribution of SEK 3.00 (2.00) per share shall be paid to the shareholders for the ĥ nancial year 2023, corresponding to 99 percent (99) of proĥ t after tax. The distribution is proposed to take place through an automatic redemption procedure, where each share is divided into one ordinary share and one redemption share. The redemption share will then automatically be redeemed for SEK 3.00 per share. The payment for the redemption share, subject to approval of the Annual General Meeting, is expected to be carried out on June 20, 2024. The Board's proposal corresponds to a transfer to the shareholders of SEK 75.4 million (50.3).
ACCOUNTING PRINCIPLES
This interim report summary for the Group has prepared in accordance with IAS 34 and all of the applicable regulations. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, as well as RFR 2, Accounting for legal entities. The accounting principles applied in the interim report are consistent with the accounting principles that were applied when preparing the Group Annual Report 2023 (see page 56 in the Annual Report for 2023). No new standars apply as of 1 January 2024 and amended standards that apply from this time have not had any signiĥ cant impact on the Group's ĥ nancial reports.
IMPORTANT ASSESSMENTS AND ESTIMATES
When drawing up an interim report, it is required that the company management make judgments 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, revenue and costs. The eĤ ects of the current geopolitical situation and its possible negative ĥ nancial impact have been considered. The outcome of the said assessments has not made any signiĥ cant impact on the Group 's ĥ nancial reports. Important estimates and judgments appear in the Annual Report for 2023. No signiĥ cant changes to the estimates or judgments have occurred compared to the 2023 Annual Report.
AUDIT
This interim report has not been the subject of a general review by the company's auditors.
OUTLOOK 2024
The company's policy is not to provide forecasts.
Consolidated income statement
IN SUMMARY
| Jan-Mar | Jan-Mar | Apr 2023- | Full year | ||
|---|---|---|---|---|---|
| SEK thousands | Note | 2024 | 2023 | Mar 2024 | 2023 |
| Net sales | 1 | 256,788 | 246,893 | 882,156 | 872,261 |
| Other operating revenue | 4,023 | 3,329 | 20,224 | 19,530 | |
| Operating revenue | 260,811 | 250,222 | 902,380 | 891,791 | |
| Goods for resale | –119,939 | –117,960 | –403,111 | –401,132 | |
| Other external expenses | 2 | –59,674 | –55,020 | –210,961 | –206,307 |
| Personnel costs | –36,895 | –33,959 | –137,965 | –135,029 | |
| Depreciation/amortization of tangible/intangible non-current assets | –8,150 | –8,623 | –32,542 | –33,015 | |
| Other operating expenses | –2,683 | –3,275 | –15,166 | –15,758 | |
| Operating proĥ t | 33,470 | 31,385 | 102,635 | 100,550 | |
| Net ĥ nancial items | –6,516 | –720 | –8,655 | –2,859 | |
| Proĥ t before tax | 26,954 | 30,665 | 93,980 | 97,691 | |
| Tax | –5,743 | –5,880 | –21,584 | –21,722 | |
| Proĥ t for the period | 21,211 | 24,785 | 72,396 | 75,969 | |
| Proĥ t for the period attributable to | |||||
| Parent Company shareholders | 21,211 | 24,785 | 72,396 | 75,969 | |
| Non-controlling interests | – | – | – | – | |
| Earnings per share before dilution, SEK | 0.84 | 0.99 | 2.88 | 3.02 | |
| Earnings per share after dilution, SEK | 0.84 | 0.99 | 2.88 | 3.02 | |
| Number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 |
Consolidated statement of comprehensive income IN SUMMARY
| Note SEK thousands |
Jan-Mar 2024 |
Jan-Mar 2023 |
Apr 2023- Mar 2024 |
Full year 2023 |
|---|---|---|---|---|
| Proĥ t/loss for the period | 21,211 | 24,785 | 72,396 | 75,969 |
| OTHER COMPREHENSIVE INCOME Components that may be reclassiĥ ed to proĥ t or loss for the period |
||||
| Translation diĤ erence for the period | 4,745 | 1,706 | 2,472 | –567 |
| Total other comprehensive income for the period | 25,956 | 1,706 | 2,472 | –567 |
| Total comprehensive income for the period | 25,956 | 26,491 | 74,868 | 75,402 |
| Total comprehensive income attributable to | ||||
| Parent Company shareholders | 26,304 | 26,431 | 74,977 | 75,103 |
| Non-controlling interests | –348 | 60 | –109 | 299 |
Consolidated statement of ĥ nancial position
| IN SUMMARY |
|---|
| Mar 31, | Mar 31, | Dec 31, | |
|---|---|---|---|
| Note SEK thousands |
2024 | 2023 | 2023 |
| Non-current assets | |||
| Goodwill | 37,279 | 36,782 | 36,422 |
| Trademarks | 187,532 | 187,532 | 187,532 |
| Other intangible assets | 6,134 | 7,203 | 6,401 |
| Tangible non-current assets | 19,957 | 17,042 | 17,663 |
| Deferred tax assets | 12,912 | 12,918 | 12,310 |
| Right-of-use assets | 41,018 | 48,508 | 43,942 |
| Total non-current assets | 304,832 | 309,985 | 304,270 |
| Current assets | |||
| Inventory | 145,313 | 148,469 | 184,361 |
| Accounts receivable | 202,094 | 132,158 | 99,379 |
| Other current receivables | 27,810 | 14,136 | 16,869 |
| Cash and cash equivalents | 6,799 | 10,244 | 26,646 |
| Total current assets | 382,016 | 305,007 | 327,255 |
| Total assets | 686,848 | 614,992 | 631,525 |
| Equity and liabilities | |||
| Equity | 376,773 | 351,300 | 350,817 |
| Deferred tax liabilities | 39,607 | 39,805 | 39,701 |
| Long-term lease liabilities | 23,629 | 28,966 | 25,470 |
| Current liability to credit institution | 95,993 | 58,298 | – |
| Accounts payable | 39,980 | 38,949 | 135,792 |
| Short-term lease liabilities | 16,208 | 18,885 | 17,379 |
| Other current liabilities | 94,658 | 78,789 | 62,366 |
| Total equity and liabilities | 686,848 | 614,992 | 631,525 |
Consolidated statement of changes in equity
IN SUMMARY
| Equity attributable to the parent company's |
Possession without controlling |
Total | ||
|---|---|---|---|---|
| TSEK | Note | shareholders | inĦ uence | equity |
| Opening balance, January 1, 2023 | 331,411 | –6,602 | 324,809 | |
| Total comprehensive income for the period | 26,431 | 60 | 26,491 | |
| Closing balance, March 31, 2023 | 357,842 | –6,542 | 351,300 | |
| Opening balance, January 1, 2023 | 331,411 | –6,602 | 324,809 | |
| Total comprehensive income for the period | 75,103 | 299 | 75,402 | |
| Distribution for 2022 | –50,297 | – | –50,297 | |
| Warrant premium | 903 | – | 903 | |
| Closing balance, December 31, 2023 | 357,20 | –6,303 | 350,817 | |
| Opening balance, January 1, 2024 | 357,120 | –6,303 | 350,817 | |
| Total comprehensive income for the period | 26,304 | –348 | 25,956 | |
| Closing balance, March 31, 2024 | 383,424 | –6,651 | 376,773 |
Consolidated statement of cash Ħ ows
IN SUMMARY
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK thousands | 2024 | 2023 | 2023 |
| Cash Ħ ow from operating activities | |||
| Before changes in working capital | 26,619 | 19,087 | 94,361 |
| Changes in working capital | –129,863 | –46,153 | 26,921 |
| Cash Ħ ow from operating activities | –103,244 | –27,066 | 121,282 |
| Investments in intangible non-current assets | –537 | – | –2,092 |
| Investments in tangible non-current assets | –3,957 | –2,690 | –9,049 |
| Cash Ħ ow from investing activities | –4,494 | –2,690 | –11,141 |
| Distribution | – | – | –50,297 |
| Warrant premium | – | – | 903 |
| Amortization of loans | – | –30,000 | –30,000 |
| Amortization of lease liabilities | –5,318 | –5,607 | –22,157 |
| Overdraft facility | 95,993 | 58,298 | – |
| Cash Ħ ow from ĥ nancing activities | 90,675 | 22,691 | –101,551 |
| Cash Ħ ow for the period | –17,603 | –7,065 | 8,590 |
| Cash and cash equivalents at the beginning of the period | 26,646 | 16,032 | 16,032 |
| Translation diĤ erence in cash and cash equivalents | –2,784 | 1,277 | 2,024 |
| Cash and cash equivalents at the end of the period | 6,799 | 10,244 | 26,646 |
Key ĥ gures
GROUP
| SEK thousands | Jan-Mar 2024 |
Jan-Mar 2023 |
Apr 2023- Mar 2024 |
Full year 2023 |
|---|---|---|---|---|
| Gross proĥ t margin,% * | 53.3 | 52.2 | 54.3 | 54.0 |
| Operating margin,% | 13.3 | 12.7 | 11.6 | 11.5 |
| Proĥ t margin,% | 10.5 | 12.4 | 10.7 | 11.2 |
| Return on capital employed,% | 21.7 | 16.6 | 21.7 | 25.2 |
| Return on average equity,% | 19.9 | 14.8 | 19.9 | 22.5 |
| Proĥ t attributable to the Parent Company's shareholders | 21,211 | 24,785 | 72,396 | 75,969 |
| Equity/assets ratio,% * | 54.9 | 57.1 | 54.9 | 59.6 |
| Equity per share, SEK | 14.98 | 13.97 | 14.98 | 13.95 |
| Investments in intangible non-current assets | 537 | – | 2,629 | 2,092 |
| Investments tangible non-current assets | 3,957 | 2,690 | 10,316 | 9,049 |
| Depreciation, amortization and impairment losses for the period | –8,150 | –8,623 | –32,542 | –33,015 |
| Average number of employees | 147 | 147 | 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.
Summary per segment
GROUP
| Jan-Mar | Jan-Mar | Apr 2023- | Full year | |
|---|---|---|---|---|
| SEK thousands | 2024 | 2023 | Mar 2024 | 2023 |
| Operating revenue | ||||
| Wholesale business External revenue |
189,504 | 182,171 | 584,802 | 577,469 |
| Internal revenue | 1,385 | 1,896 | 22,812 | 23,323 |
| Own e-commerce | 190,889 | 184,067 | 607,614 | 600,792 |
| External revenue | 40,574 | 33,404 | 161,145 | 153,975 |
| Internal revenue | 62 | 1,139 | 77 | 1,154 |
| 40,636 | 34,543 | 161,222 | 155,129 | |
| Own stores External revenue |
20,950 | 20,874 | 104,790 | 104,713 |
| Internal revenue | – | – | – | – |
| 20,874 | 104,790 | 104,713 | ||
| Distributors | 20,950 | |||
| External revenue | 8,353 | 9,367 | 45,498 | 46,512 |
| Internal revenue | 178,768 | 155,780 | 563,704 | 540,716 |
| 187,121 | 165,147 | 609,202 | 587,228 | |
| Licensing | ||||
| External revenue | 1,430 | 4,406 | 6,146 | 9,122 |
| Internal revenue | 10,185 | 10,203 | 32,322 | 32,340 |
| 11,615 | 14,609 | 38,468 | 41,462 | |
| Less internal sales | –190,400 | –169,018 | –618,915 | –597,533 |
| Operating revenue | 260,811 | 250,222 | 902,380 | 891,791 |
| Operating proĥ t | ||||
| Wholesale business | 28,101 5,594 |
25,135 6,918 |
63,784 27,484 |
60,818 28,809 |
| Own e-commerce Own stores |
–3,441 | –5,816 | –4,634 | –7,009 |
| Distributors | 1,974 | 1,264 | 10,558 | 9,848 |
| Licensing | 1,242 | 3,884 | 5,442 | 8,084 |
| Operating proĥ t | 33,470 | 31,385 | 102,635 | 100,550 |
| Interest income and similar income items | 151 | 905 | 708 | 3,264 |
| Interest expenses and similar income items | –6,667 | –1,625 | –9,363 | –6,123 |
| Proĥ t before tax | 26,954 | 30,665 | 93,980 | 97,691 |
Quarterly data
GROUP
| SEK thousands | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 256,788 | 197,632 | 262,105 | 165,631 | 246,893 | 198,420 | 248,590 | 161,544 |
| Gross proĥ t margin,% | 53.3 | 56.8 | 52.6 | 55.6 | 52.2 | 52.1 | 48.2 | 54.5 |
| Operating proĥ t/loss | 33,470 | 20,172 | 40,893 | 8,100 | 31,385 | 7,770 | 30,597 | 5,233 |
| Operating margin,% | 13.0 | 10.2 | 15.6 | 4.9 | 12.7 | 3.9 | 12.3 | 3.2 |
| Proĥ t/loss after net ĥ nancial items | 26,954 | 21.073 | 40,552 | 5,401 | 30,665 | 6,389 | 30,545 | 4,344 |
| Proĥ t margin,% | 10.5 | 10.7 | 15.5 | 3.3 | 12.4 | 3.2 | 12.3 | 2.7 |
| Earnings per share, | ||||||||
| before dilution, SEK | 0.84 | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 |
| Earnings per share, after dilution, SEK | 0.84 | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 |
| Number of Björn Borg retail stores | ||||||||
| at the end of the period | 16 | 17 | 17 | 17 | 19 | 19 | 19 | 24 |
| of which Group-owned | ||||||||
| Björn Borg retail stores | 15 | 16 | 16 | 16 | 18 | 18 | 18 | 21 |
Parent company income statement
IN SUMMARY
| SEK thousands | Note | Jan-Mar 2024 |
Jan-Mar 2023 |
Apr 2023- Mar 2024 |
Full year 2023 |
|---|---|---|---|---|---|
| Net sales | 26,934 | 25,102 | 103,024 | 101,192 | |
| Other operating revenue | 90 | 148 | 872 | 930 | |
| Operating revenue | 27,024 | 25,250 | 103,896 | 102,122 | |
| Goods for resale | – | – | – | – | |
| Other external expenses | 2 | –17,094 | –16,433 | –59,721 | –59,070 |
| Personnel costs | –12,236 | –10,563 | –45,025 | –43,352 | |
| Depreciation/amortization of intangible and tangible non-current assets | –734 | –643 | –3,054 | –2,963 | |
| Other operating expenses | –83 | –48 | –475 | –441 | |
| Operating proĥ t | –3,123 | –2,447 | – 4,378 | –3,704 | |
| Result from shares in subsidiaries | – | – | – | – | |
| Net ĥ nancial items | –6,543 | –2,742 | –10,880 | –7,079 | |
| Proĥ t/loss after ĥ nancial items | –9,666 | –5,189 | –15,258 | –10,783 | |
| Group contributions received/paid | – | – | 95,000 | 95,000 | |
| Appropriations | – | – | 720 | 720 | |
| Proĥ t/loss before tax | –9,666 | –5,189 | 80,461 | 84,937 | |
| Tax | – | – | –19,184 | –19,184 | |
| Proĥ t/loss for the period | –9,666 | –5,189 | 61,277 | 65,753 | |
| Other comprehensive income | – | – | – | – | |
| Total comprehensive income for the period | –9,666 | –5,189 | 61,277 | 65,753 |
Parent company balance sheet
IN SUMMARY
| SEK thousands | Note | Mar 31, 2024 |
Mar 31, 2023 |
Dec 31, 2023 |
|---|---|---|---|---|
| Non-current assets | ||||
| Intangible assets | 371 | 1,910 | 679 | |
| Tangible non-current assets | 5,150 | 3,546 | 5,431 | |
| Shares in Group companies | 177,868 | 371,813 | 177,868 | |
| Total non-current assets | 183,389 | 377,269 | 183,978 | |
| Current assets | ||||
| Receivables from Group companies | 500,302 | 538,760 | 448,586 | |
| Current receivables | 5,711 | 4,214 | 3,968 | |
| Cash and cash equivalents | – | – | 18,414 | |
| Total current assets | 506,013 | 542,974 | 470,968 | |
| Total assets | 689,402 | 920,243 | 654,946 | |
| Equity and liabilities | ||||
| Equity | 147,983 | 131,050 | 157,648 | |
| Untaxed reserves | 896 | 1,616 | 896 | |
| Current liabilities credit institutions | 95,993 | 58,298 | – | |
| Due to Group companies | 421,931 | 676,366 | 465,254 | |
| Accounts payable | 8,538 | 8,606 | 7,891 | |
| Other current liabilities | 14,061 | 44,307 | 23,257 | |
| Total equity and liabilities | 689,402 | 920,243 | 654,946 |
Parent company statement of changes in equity IN SUMMARY
| SEK thousands | Jan-Mar 2024 |
Jan-Mar 2023 |
Full year 2023 |
|---|---|---|---|
| 157,648 | 136,239 | 136,239 | |
| Opening balance | |||
| Distribution | – | – | –50,297 |
| Warrant premium | – | – | 903 |
| Merger results | – | – | 5,050 |
| Total comprehensive income for the period | –9,665 | –5,189 | 65,753 |
| Closing balance | 147,983 | 131,050 | 157,648 |
Supplementary disclosures
NOTE 1 NET SALES
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.
| Jan-Mar 2024 The group, SEK thousands |
Sweden | Finland | Netherlands | Germany | Other | Total |
|---|---|---|---|---|---|---|
| Wholesale business | 73,887 | 31,700 | 32,613 | 29,238 | 22,067 | 189,504 |
| Own e-commerce | 12,545 | 1,079 | 13,532 | 1,433 | 11,986 | 40,574 |
| Own stores | 5,070 | 3,364 | 10,303 | 2,213 | 20,950 | |
| Distributors | 8,353 | 8,353 | ||||
| Licensing | 321 | 1,109 | 1,430 | |||
| Operating revenue | 91,822 | 36,144 | 57,557 | 30,670 | 44,619 | 260,811 |
| Of which other operating revenue | 991 | –9 | 2,140 | 892 | 9 | 4,023 |
| Net sales | 90,830 | 36,153 | 55,417 | 29,779 | 44,609 | 256,788 |
| Jan-Mar 2023 The group, SEK thousands |
Sweden | Finland | Netherlands | Germany | Other | Total |
|---|---|---|---|---|---|---|
| Wholesale business | 74,885 | 33,826 | 32,919 | 25,683 | 14,858 | 182,171 |
| Own e-commerce | 10,024 | 1,106 | 10,317 | 1,280 | 10,677 | 33,404 |
| Own stores | 5,738 | 3,521 | 8,282 | 3,333 | 20,874 | |
| Distributors | 9,367 | 9,367 | ||||
| Licensing | 387 | 4,019 | 4,406 | |||
| Operating revenue | 91,034 | 38,454 | 55,536 | 26,963 | 38,235 | 250,220 |
| Of which other operating revenue | 3,036 | 2,638 | 375 | 313 | –3,033 | 3,329 |
| Net sales | 87,999 | 35,815 | 55,162 | 26,650 | 41,268 | 246,893 |
NOTE 2 OTHER EXTERNAL EXPENSES
| The group | Parent Company | |||
|---|---|---|---|---|
| SEK thousands | Jan-Mar 2024 | Jan-Mar 2023 | Jan-Mar 2024 | Jan-Mar 2023 |
| Cost of premises | 3,190 | 2,918 | 1,858 | 1,670 |
| Sales expenses | 21,511 | 16,483 | 333 | 247 |
| Marketing expenses | 20,939 | 17,327 | 10,530 | 10,796 |
| Administrative expenses | 11,718 | 16,176 | 4,063 | 3,450 |
| Other | 2,316 | 2,116 | 310 | 280 |
| 59,674 | 55,020 | 17,094 | 16,443 |
Deĥ nitions
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/
CAPITAL EMPLOYED
Total assets less non-interest-bearing liabilities and provisions.
Purpose: Capital employed measures capital use and eħ ciency.
COMPARABLE STORE SALES
Sales for own retail stores that were also open in the previous period.
Purpose: To obtain comparable sales between periods for own retail stores.
EARNINGS PER SHARE °DEFINED ACCORDING TO IFRS±
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 AFTER DILUTION °DEFINED ACCORDING TO IFRS±
Earnings per share adjusted for any dilution eĤ ect. Purpose: This indicator is used to assess the investment from an owner's perspective.
EQUITY²ASSETS RATIO
Equity as a percentage of total assets. Purpose: This indicator shows ĥ nancial risk, expressed as a share of the total restricted equity ĥ nanced by the owners.
EQUITY PER SHARE
Equity, including those with non-controlling interests, divided by the average number of shares. Purpose: To show the share price in relation to the company's book value.
GROSS PROFIT MARGIN
Net sales less costs of goods sold divided by net sales. Purpose: Gross margin is used to measure operating proĥ tability.
GROSS PROFIT MARGIN EXCLUDING CURRENCY EFFECTS
Gross proĥ t margin calculated using the previous year's exchange rate.
Purpose: To obtain a currency-neutral gross proĥ t margin.
GROUP NET SALES EXCLUDING CURRENCY EFFECTS
Net sales calculated using the previous year's exchange rate.
Purpose: To obtain comparable and currency-neutral net sales.
NET DEBT °+±²NET CASH °±
Interest-bearing liabilities excluding leasing liabilities less investments and cash and cash equivalents. Purpose: Net debt reĦ ects the company's total debt situation.
NET DEBT TO EBITDA RATIO
Interest-bearing liabilities excluding leasing 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.
NET FINANCIAL ITEMS
Financial income less ĥ nancial expenses. Purpose: To describe the company's ĥ nancial activities.
OPERATING MARGIN
Operating proĥ t as a percentage of net sales. Purpose: The operating margin is used to measure operating proĥ tability.
OPERATING PROFIT
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.
PROFIT MARGIN
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.
RETURN ON CAPITAL EMPLOYED
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.
RETURN ON EQUITY
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, May 16, 2024
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
CALENDAR 2024
The Interim report January-June 2024 will be issued at 07:30 on August 16, 2024.
The Interim report January-September 2024 will be issued at 07:30 on November 15, 2024.
The Year-end report 2024 will be issued at 07:30 on February 21, 2025.
FINANCIAL REPORTS
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].
SHAREHOLDER CONTACTS
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 IN BRIEF
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 2023 amounted to SEK 872.3 million and the average number of employees was 151. Björn Borg has been listed on Nasdaq Stockholm since 2007.
THE PICTURES IN THE INTERIM REPORT
The images in the interim report are taken from Björn Borg's spring and summer 2024 collection and the high summer 2024 collection.
Björn Borg AB Frösundaviks allé 1 169 70 Solna Sweden www.bjornborg.com
This information is such information that Björn Borg AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the above contact person, for publication on May 16, 2024 at 17.30.