Quarterly Report • Feb 23, 2024
Quarterly Report
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Björn Borg AB ¸ Year-end report JanuaryDecember 2023
"The highlights from the last quarter of the year were, without doubt, the strong development of our own e-commerce which grew by 46 percent, as well as the considerable improvement in our operating proĥ t, which increased by 160 percent," comments CEO Henrik Bunge.
| SEK million | Oct-Dec 2023 |
Oct-Dec 2022 |
Full year 2023 |
Full year 2022 |
|---|---|---|---|---|
| Net sales | 197.6 | 198.4 | 872.3 | 835.2 |
| Gross proĥ t margin, % | 56.8 | 52.1 | 54.0 | 50.8 |
| Operating proĥ t | 20.2 | 7.8 | 100.6 | 72.9 |
| Operating margin, % | 10.2 | 3.9 | 11.5 | 8.7 |
| Proĥ t after tax | 15.0 | 5.3 | 76.0 | 50.9 |
| Earnings per share before dilution, SEK | 0.59 | 0.21 | 3.02 | 2.02 |
| Earnings per share after dilution, SEK | 0.59 | 0.21 | 3.02 | 2.02 |
The highlights from the last quarter of the year were, without doubt, the strong development of our own e-commerce which grew by 46 percent, as well as the considerable improvement in our operating proĥ t, which increased by 160 percent to SEK 20.2 million (7.8).
In terms of sales, however, the last quarter of the year did not live up to our plans. Admittedly, our total revenue increased during the quarter but currency neutral, our net sales decreased by 2.7 percent. This depended entirely on very weak sales to our distributors. We can do better, and growth is now a clear focus for us.
The global environment also continued to be challenging during the fourth quarter of the year. Household consumption decreased throughout the year in all our markets. Despite this, we saw an increased demand for our products, not only at the wholesale level but above all in our own e-commerce. We also saw several clear signs that our brand was strengthening. Our strategy is right, and we are taking clear steps in the right direction to reach our goal to become a global sports fashion brand.
Our various product categories developed very diĤ erently during the quarter. All categories grew strongly in our own e-commerce, where footwear increased by 104 percent, bags by 80 percent and sports apparel by 53 percent. Totally, for all channels, we saw continued strong demand for our sports apparel, which grew by 17 percent. Footwear and underwear, on the other hand, decreased in the quarter, mainly due to the weak development of our distributors. Bags were in line with the previous year, and the other smaller product groups grew by 3 percent.
We continued to see great strength in our well-developed channel strategy. This became particularly clear during the fourth quarter of the year, where the very strong development of own e-commerce made up for many of the losses we saw from our distributors at the same time.
The wholesale channel, which is also our largest channel, grew by 2 percent. Our own channels, both own e-commerce and own stores, developed diĤ erently during the quarter. As mentioned earlier, own e-commerce grew by 46 percent, which was considerably better than the market. This was the result of a very competent team, strong demand for our products, eħ cient marketing and the positive development of our brand. Our own comparable stores showed ĥ gures which were on a par with the fourth quarter of last year. In total, however, our own stores were down by 8 percent in the quarter due to planned store closures, which was fully in line with our channel strategy from 2019. We then made the decision to signiĥ cantly, but in a controlled manner, increase and reallocate our investments to digital channels. Our distributors continued to fall, with decreased purchases to reduce their inventory levels being the main reason. But we also saw a drop in sales from our distributors to their customers.
When reviewing our various markets, we see that our two largest markets, Sweden and the Netherlands, continued to develop well. Sweden increased by 7 percent and the Netherlands by 21 percent. Belgium and Denmark also grew. At the same time, our sales in Germany and Finland decreased. We also saw a reduction in other smaller markets.
During the last quarter of the year, we also carried out our annual anonymous employee survey. It makes me both proud and happy that, together, we have created a workplace which so many think is fantastic. Committed and proud employees are guaranteed to create strong results.
Having said that, I am convinced that we are well prepared for both known and unknown challenges. We have a strong brand, a dedicated staĤ and a well-structured strategy. This will help us continue to grow and develop in the future.
So, let's go!
Head coach, Henrik Bunge
The fourth quarter of the year showed an improvement in the total operating revenue, including other revenues, by 0.6 percent to SEK 203.7 million (202.5). Adjusted for currency e Ĥ ects, operating revenue was down by 2.0 percent for the quarter.
The underwear category showed a decrease in sales of 4 percent for the fourth quarter of 2023, where above all, sales to external distributors showed a large decrease of 45 percent, due to weak through-sales in the quarter. Sales to own e-commerce increased by 18 percent, while own stores underwear sales decreased by 9 percent, primarily due to the reduced number of stores. The wholesale business was at the same level as the previous year's fourth quarter.
Sports apparel increased by 17 percent where, above all, sales to own e-commerce continued to grow strongly with an increase of 53 percent. The wholesale business too grew strongly and increased by 28 percent, while sales to external distributors fell by 43 percent.
Sales of footwear decreased by 9 percent compared to the previous year's fourth quarter, while bags were at the same level as in the previous year. For other categories, sales increased by 3 percent.
The largest market, Sweden, increased in the fourth quarter of the year by 7 percent, where wholesale
operations increased by 2 percent due to strong sell-through at the larger retailers, and own e-commerce increased by 38 percent. The second largest market, the Netherlands, increased by 21 percent. Here too, own e-commerce grew strongly, with an increase of 58 percent. Germany showed a decrease against last year's fourth quarter by 27 percent due to weak sales at the major retailers. Finland was down in the quarter by 6 percent, while Denmark increased by 24 percent. Belgium increased by 14 percent. Other smaller markets decreased by a total of 16 percent.
The largest channel, the wholesale operations, showed an increase of 2 percent in the fourth quarter of 2023, where e-tailers within the wholesale operations increased by 3 percent, primarily due to strong development in the Swedish market. Physical stores increased by 2 percent, here again, mainly through strong development on the Swedish market. Own stores decreased overall compared to the previous year by 8 percent due to the company choosing to close down unproĥ table stores. For comparable stores, i.e. stores that were open during both comparison quarters, sales were on a par with the previous year's fourth quarter. Own e-commerce continued to show strong growth and was up by 46 percent, while distributors decreased by 49 percent compared to the previous year, mainly due to lower purchases from Norway.
Group net sales during the fourth quarter amounted to SEK 197.6 million (198.4), a decrease of 0.4 percent. The currency eĤ ect on net sales was positive, and adjusted for currency eĤ ects, sales decreased by 2.7 percent.
The main explanation for the variance between the quarters was that company sales to external distributors decreased as a result of weak sell-through. However, our own e-commerce continued to show increased demand and grew by 46 percent, while the wholesale business grew by 2 percent. For further details, see below under "Developments by segment".
Group net sales for the full year 2023 amounted to SEK 872.3 million (835.2), an increase of 4.4 percent. The currency eĤ ect aĤ ected net sales positively in the quarter, and adjusted for currency eĤ ects, net sales increased by 0.7 percent.
The main explanation for the increase for the full year 2023 was that the company saw an increased demand within its own e-commerce, which increased by 36 percent. The wholesale operations also developed strongly and grew by 7 percent. For further details, see below under "Developments by segment".
The gross proĥ t margin for the fourth quarter increased to 56.8 percent (52.1). Adjusted for currency eĤ ects, the gross proĥ t margin would been 56.2 percent. It was primarily a greater focus on proĥ tability in wholesale operations in general, as well as reduced discounts in own stores and own e-commerce, where, for example, certain sale periods were removed, which contributed to the positive eĤ ect.
Other operating revenue amounted to SEK 6.1 million (4.1) and mainly referred to unrealized gains on accounts receivable in foreign currency.
Operating costs in the quarter decreased by SEK 1.5 million compared to the previous year's fourth quarter, above all, through reduced personnel costs since the previous year contained costs for incentive programs, and also through reduced reserves for doubtful accounts receivable.
Higher gross proĥ t margins and reduced operating costs resulted in an increase in the operating proĥ t to SEK 20.2 million (7.8).
Net ĥ nancial items amounted to SEK 0.9 million (–1.4). 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 increased to SEK 15.0 million (5.3).
The gross proĥ t margin for the full year 2023 increased to 54.0 percent (50.8). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 54.6 percent. It was primarily a greater focus on proĥ tability in wholesale operations in general, as well as reduced discounts in own stores and own e-commerce, where, for example, certain sale periods were removed, which contributed to the positive eĤ ect.
Other operating revenue amounted to SEK 19.5 million (25.8) and mainly referred to unrealized gains on accounts receivable in foreign currency.
Operating costs increased as planned for the full year 2023 by SEK 12.7 million compared to the previous year, above all, through increased marketing activities. However, lower personnel costs had an opposite positive eĤ ect on operating costs.
Higher sales, higher gross proĥ t margins and planned, increased operating costs compared to the previous year, resulted in the operating proĥ t increasing to SEK 100.6 million (72.9).
Net ĥ nancial items amounted to SEK –2.9 million (–2.5). The deterioration 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 increased to SEK 76.0 million (50.9).
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 revenue amounted to SEK 577.5 million (539.9), which was an increase of 7 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 full year 2023 was 5 percent to SEK 204 million (194). Physical stores within the segment also showed growth and increased by 8 percent to SEK 373 million (346). Within the wholesale operations, the largest market, Sweden, showed strong growth of 7 percent, and the second largest market, the Netherlands, showed growth of 9 percent. The Norwegian market increased 1 percent, while Germany decreased by 10 percent.
Operating proĥ t amounted to SEK 60.8 million (52.8). It was, above all, higher sales combined with improved margins that caused the operating proĥ t to increase by 15 percent.
Own e-commerce continued to grow strongly. In 2023 own e-commerce increased by 36 percent to SEK 154.0 million (113.4). This increase was mainly due to strong growth in the sports apparel category, which increased by 76 percent compared to the previous year. The underwear category is also increased strongly and grew by 15 percent. Footwear continued to show strong momentum and grew by 104 percent.
The operating proĥ t for 2023 amounted to SEK 28.8 million (17.7), an increase of 63 percent. The improvement was due primarily to greatly increased sales with maintained high margins.
Own physical stores decreased slightly compared to last year. In total, the reduction was 2 percent to SEK 104.7 million (106.6) after the company chose to close down two stores, in line with the company's strategy to close unproĥ table stores. For comparable stores, i.e. stores that were also open in the corresponding period last year, the increase was 15 percent.
In the Netherlands, sales in own stores also rose by 15 percent, mainly because the stores were closed at the beginning of 2022. For comparable stores in the Netherlands, sales increased by 17 percent. In Sweden, sales in own stores fell by 5 percent related to the closure of unproĥ table stores. For comparable stores in Sweden, sales increased by 4 percent. Sales in Finland and Belgium were down by 11 and 14 percent respectively as a result of fewer stores this year compared to last year. For comparable stores, Finland and Belgium increased by 33 and 9 percent respectively.
The operating proĥ t for the full year 2023 amounted to SEK –7.0 million (–24.3). The improvement in the operating proĥ t was primarily due to improved margins and reduced operating costs as a result of fewer stores.
| Operating income, SEK thousands January-December |
Operating proĥ t, SEK thousands January-December |
January-December | Operating margin,% | ||||
|---|---|---|---|---|---|---|---|
| Segment | Revenue type | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Wholesale | Products | 577,469 | 539,871 | 60,818 | 52,824 | 11 | 10 |
| Own e-commerce | Products | 153,975 | 113,411 | 28,809 | 17,669 | 19 | 16 |
| Own stores | Products | 104,713 | 106,566 | –7,009 | –24,324 | –7 | –23 |
| Distributors | Products | 46,512 | 92,298 | 9,848 | 19,558 | 21 | 21 |
| Licensing | Royalties | 9,122 | 8,862 | 8,084 | 7,182 | 89 | 81 |
| Total | 891,791 | 861,008 | 100,550 | 72,909 | 11 | 8 |
The segment's external operating revenue decreased during the full year 2023 compared to 2022, and amounted to SEK 46.5 million (92.3). Sales to the two major distributor markets, Norway and Great Britain, decreased compared to the previous year by 23 and 63 percent respectively, mainly due to large stocks and thus fewer purchases from the respective markets. For other distributor markets, sales decreased by a total of 71 percent.
Operating proĥ t decreased to SEK 9.8 million (19.6) as a result of the lower sales.
The segment's external operating revenue increased somewhat during the full year 2023 compared to 2022, and amounted to SEK 9.1 million (8,9). It was, above all, in the footwear category that royalty income increased during the year.
The operating proĥ t amounted to SEK 8.1 million (7.2) for 2023.
Intra-Group sales for 2023 amounted to SEK 597.5 million (518.3).
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 day-to-day operations of the Group amounted to SEK 121.3 million (60.5) during the full year 2023. The improvement compared to the previous year came primarily from lower capital sums tied up in working capital.
The cash Ħ ow from investment activities was negative at SEK –11.1 million (–8.3). The larger investments primarily referred to the rebuilding of the head oħ ce showroom. The cash Ħ ow from ĥ nancing operations amounted to SEK –101.6 million (–135.9). The improvement compared to the previous year was due to lower loan repayments and a lower distribution to shareholders of SEK –50.3 million (–62.9).
The Björn Borg Group's cash and cash equivalents at the end of the period amounted to SEK 26.6 million (16.0), plus unused bank facilities of SEK 150.0 million (120.0). At the end of the year's fourth quarter, the company had a net cash balance of SEK 26.6 million, excluding lease liabilities, to be compared with a net debt in the previous year of SEK 14.0 million. The company had continued strong liquidity mainly due to increased earnings. Total interestbearing liabilities amounted to SEK 42.9 million (81.7) which, in its entirety consisted of a leasing liability of SEK 42.8 million (51.7), of which SEK 25.5 million was the long-term share and SEK 17.4 million was the short-term share.
The Björn Borg Group had SEK 150 million in bank facilities, of which SEK 0.0 million was utilized as of December 31, 2023. The fair value of ĥ nancial instruments corresponded in all material respects to the book value.
As a commitment for the overdraft, 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 December 31, 2023, the ratio of the Group's net debt was + 0.24, as compared to a negative ratio of 0.17 the previous year, and the equity ratio amounted to 59.6 percent (54.0).
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 December 31, 2023, was 151 (151) of which 69 percent (67) were women.
Following a decision at the annual general meeting, the Björn Borg Group introduced an incentive program under which the company oĤ ered persons in Group management and certain additional key persons within the Group the opportunity to acquire warrants in the company at market value. The incentive program involves an issue of a total of 300,000 warrants, where each warrant entitles the holder to subscribe to 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 about 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 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 remains challenging. It is currently diħ cult to determine how it is aĤ ecting the Björn Borg Group operations ĥ nancially, but the fact that the company does not conduct business with Russia, Ukraine or Israel minimizes the possible risks of impact on the business albeit that consumers' declining faith in the future could have an indirect, negative eĤ ect.
Furthermore, the company notes that inĦ ation in the markets in which the Björn Borg Group operates continue to be at 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 buying behaviour.
Björn Borg AB (publ) mainly conducts intra-Group operations. As of December 31, 2023, 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. During the fourth quarter, Björn Borg Services AB was merged with Björn Borg AB (publ).
The parent company's net sales for 2023 amounted to SEK 101.2 million (101.2).
Proĥ t before tax amounted to SEK 84.9 million (41.8). Cash and cash equivalents at the end of the period amounted to SEK 18.4 million (1.6).
Since the end of the reporting period, Björn Borg has been informed that Unlimited Footwear Group B.V., whose subsidiary Serve&Volley B.V., as licensee is responsible for Björn Borg's product category shoes, has initiated restructuring proceedings in the Netherlands. Serve&Volley's responsibility for shoes means that the company designs and manufactures shoes for Björn Borg, and that they are responsible for distributing the products in Europe, with the exception of Sweden, Finland and Denmark where Björn Borg is responsible for distribution. Björn Borg notes that orders already placed for the spring/summer collection are currently in Europe ready to be delivered to customers, and that the risk of decreased sales in the short term is therefore assessed to be low. Björn Borg's CEO Henrik states that the distribution of shoes is already an integrated part in Björn Borg's business in Sweden, Finland and Denmark and that footwear has a great future potential for Björn Borg. For further information, please see the press release Björn Borg issued on February 20, 2024.
The number of shares in Björn Borg amounts to 25,148,384 shares (25,148,384) i.e. no change from the previous period.
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:
Comments on the ĥ nancial targets: Sales growth is expected to come from growth in, above all, sports apparel, although other product groups are expected to grow as well.
The Board has decided to propose to the annual general meeting 2023 that a distribution of SEK 3.00 (2.00) per share shall be paid for the ĥ nancial year 2023, corresponding to 99 percent (99) of the proĥ t after tax. The distribution is proposed to take place through an automatic redemption procedure, where each share is divided into one ordinary and one redemption share. The redemption share will then be automatically redeemed for SEK 3.00 per share. Payment for the redemption share, subject to approval at the annual general meeting, is expected to be carried out at the end of June 2024. The Board's proposal corresponds to a transfer to the shareholders of SEK 75.4 million (50.3). In addition, the Board has decided to request authorization by the AGM to buy back company's own shares.
The annual report for the ĥ nancial year 2023 will be published and available on the company's website no later than April 25, 2024.
The AGM for the ĥ nancial year 2023 will be held at 17.30 on 16 May 2024.
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 not been the subject of a general review by the company's auditors.
The company's policy is not to provide forecasts.
IN SUMMARY
| Oct-Dec | Oct-Dec | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK thousands | Note | 2023 | 2022 | 2023 | 2022 |
| Net sales | 1 | 197,632 | 198,420 | 872,261 | 835,173 |
| Other operating revenue | 6,101 | 4,069 | 19,530 | 25,835 | |
| Operating revenue | 203,733 | 202,489 | 891,791 | 861,008 | |
| Goods for resale | –85,350 | –95,058 | –401,132 | –410,660 | |
| Other external expenses | 2 | –52,692 | –52,987 | –206,307 | –181,411 |
| Personnel costs | –33,726 | –35,408 | –135,029 | –141,447 | |
| Depreciation/amortization of tangible/intangible non-current assets | –8,104 | –8,609 | –33,015 | –34,739 | |
| Other operating expenses | –3,689 | –2,657 | –15,758 | –19,842 | |
| Operating proĥ t | 20,172 | 7,770 | 100,550 | 72,909 | |
| Net ĥ nancial items | 901 | –1,381 | –2,859 | –2,465 | |
| Proĥ t before tax | 21,073 | 6,389 | 97,691 | 70,444 | |
| Tax | –6,122 | –1,099 | –21,722 | –19,571 | |
| Proĥ t for the period | 14,951 | 5,290 | 75,969 | 50,873 | |
| Proĥ t for the period attributable to | |||||
| Parent Company shareholders | 14,951 | 5,290 | 75,969 | 50,873 | |
| – | – | – | |||
| Non-controlling interests | – | ||||
| Earnings per share before dilution, SEK | 0.59 | 0.21 | 3.02 | 2.02 | |
| Earnings per share after dilution, SEK | 0.59 | 0.21 | 3.02 | 2.02 | |
| Number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 |
| Note SEK thousands |
Oct-Dec 2023 |
Oct-Dec 2022 |
Full year 2023 |
Full year 2022 |
|---|---|---|---|---|
| Proĥ t/loss for the period | 14,951 | 5,290 | 75,969 | 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 | –4,319 | 1,733 | –567 | 2,590 |
| Total other comprehensive income for the period | –4,319 | 1,733 | –567 | 2,590 |
| Total comprehensive income for the period |
10,632 | 7,023 | 75,402 | 53,463 |
| Total comprehensive income attributable to Parent Company shareholders Non-controlling interests |
10,632 – |
7,023 – |
75,402 – |
53,463 – |
| IN SUMMARY | ||
|---|---|---|
| ------------ | -- | -- |
| Note SEK thousands |
Dec 31, 2023 |
Dec31, 2022 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 36,422 | 36,486 |
| Trademarks | 187,532 | 187,532 |
| Other intangible assets | 6,401 | 7,561 |
| Tangible non-current assets | 17,663 | 16,195 |
| Deferred tax assets | 12,310 | 12,575 |
| Right-of-use assets | 43,942 | 52,571 |
| Total non-current assets | 304,270 | 312,920 |
| Current assets | ||
| Inventory | 184,361 | 201,136 |
| Accounts receivable | 99,379 | 104,212 |
| Other current receivables | 16,869 | 19,094 |
| Cash and cash equivalents | 26,646 | 16,032 |
| Total current assets | 327,255 | 340,474 |
| Total assets | 631,525 | 653,394 |
| Equity and liabilities | ||
| Equity | 350,817 | 324,809 |
| Deferred tax liabilities | 39,701 | 39,877 |
| Long-term lease liabilities | 25,470 | 32,386 |
| Current liability to credit institution | – | 30,000 |
| Accounts payable | 135,792 | 106,021 |
| Short-term lease liabilities | 17,379 | 19,265 |
| Other current liabilities | 62,366 | 101,036 |
| Total equity and liabilities | 631,525 | 653,394 |
IN SUMMARY
| Equity attributable to the parent company's |
Possession without controlling |
Total | ||
|---|---|---|---|---|
| SEK thousands | Note | shareholders | inĦ uence | equity |
| 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 | 75,103 | 299 | 75,402 | |
| Distribution for 2022 | –50,297 | – | –50,297 | |
| Warrant premium | 903 | – | 903 | |
| Closing balance, December 31, 2023 | 357,120 | –6,303 | 350,817 |
IN SUMMARY
| SEK thousands | Oct-Dec 2023 |
Oct-Dec 2022 |
Full year 2023 |
Full year 2022 |
|---|---|---|---|---|
| Cash Ħ ow from operating activities | ||||
| Before changes in working capital | 23,506 | 15,866 | 94,361 | 108,024 |
| Changes in working capital | 105,886 | 55,516 | 26,921 | –47,524 |
| Cash Ħ ow from operating activities | 129,392 | 71,382 | 121,282 | 60,500 |
| Investments in intangible non-current assets | –948 | – | –2,092 | –265 |
| Investments in tangible non-current assets | –1,973 | –2,235 | –9,049 | –8,059 |
| Cash Ħ ow from investing activities | –2,921 | –2,235 | –11,141 | –8,324 |
| Distribution | – | – | –50 297 | –62,871 |
| Warrant premium | – | – | 903 | – |
| Amortization of loans | – | – | –30,000 | –80,000 |
| Amortization of lease liabilities | –5,330 | –5,496 | –22,157 | –23,068 |
| Newly-raised loans | – | – | – | 30,000 |
| Overdraft facility | –103,698 | –58,896 | – | – |
| Cash Ħ ow from ĥ nancing activities | –109,028 | –64,392 | –101,551 | –135,939 |
| Cash Ħ ow for the period | 17,443 | 4,755 | 8,590 | –83,763 |
| Cash and cash equivalents at the beginning of the period | 9,739 | 14,386 | 16,032 | 96,743 |
| Translation diĤ erence in cash and cash equivalents | –536 | –3,109 | 2,024 | 3,052 |
| Cash and cash equivalents at the end of the period | 26,646 | 16,032 | 26,646 | 16,032 |
| SEK thousands | Oct-Dec 2023 |
Oct-Dec 2022 |
Full year 2023 |
Full year 2022 |
|---|---|---|---|---|
| Gross proĥ t margin,% * | 56.8 | 52.1 | 54.0 | 50.8 |
| Operating margin,% | 10.2 | 3. | 11.5 | 8.7 |
| Proĥ t margin,% | 10.7 | 3.2 | 11.2 | 8.4 |
| Return on capital employed,% | 25.2 | 17.1 | 25.2 | 17.1 |
| Return on average equity,% | 22.5 | 15.4 | 22.5 | 15.4 |
| Proĥ t attributable to the Parent Company's shareholders | 14,951 | 5,290 | 75,969 | 50,873 |
| Equity/assets ratio,% * | 59.6 | 54.0 | 59.6 | 54.0 |
| Equity per share, SEK | 13.95 | 12.92 | 13.95 | 12.92 |
| Investments in intangible non-current assets | 948 | – | 2,092 | 265 |
| Investments tangible non-current assets | 1,973 | 2,054 | 9,049 | 8,059 |
| Depreciation, amortization and impairment losses for the period | –8,104 | –8,609 | –33,015 | –34,739 |
| Average number of employees | 151 | 147 | 151 | 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
| Oct-Dec | Oct-Dec | Full year | Full year | |
|---|---|---|---|---|
| SEK thousands | 2023 | 2022 | 2023 | 2022 |
| Operating revenue | ||||
| Wholesale business | ||||
| External revenue | 116,403 | 114,004 | 577,469 | 539,871 |
| Internal revenue | 2,282 | 1,744 | 23,323 | 4,870 |
| 118,685 | 115,748 | 600,792 | 544,741 | |
| Own e-commerce | ||||
| External revenue | 45,510 | 31,233 | 153,975 | 113,411 |
| Internal revenue | 6 | 10 | 1,154 | 250 |
| 45,516 | 31,243 | 155,129 | 113,661 | |
| Own stores | ||||
| External revenue | 28,521 | 31,167 | 104,713 | 106,566 |
| Internal revenue | – | 62 | – | 128 |
| 28,521 | 31,229 | 104,713 | 106,694 | |
| Distributors | ||||
| External revenue | 12,604 | 24,655 | 46,512 | 92,298 |
| Internal revenue | 117,642 | 174,488 | 540,716 | 479,774 |
| 130,246 | 199,143 | 587,228 | 572,072 | |
| Licensing | ||||
| External revenue | 696 | 1,431 | 9,122 | 8,862 |
| Internal revenue | 6,799 | –2,449 | 32,340 | 33,286 |
| 7,495 | –1,018 | 41,462 | 42,148 | |
| Less internal sales | –126,729 | –173,856 | –597,533 | –518,309 |
| Operating revenue | 203,733 | 202,489 | 891,791 | 861,008 |
| Operating proĥ t | ||||
| Wholesale business | 6,040 | –1,983 | 60,818 | 52,824 |
| Own e-commerce | 11,762 | 4,204 | 28,809 | 17,669 |
| Own stores | –845 | –30 | –7,009 | –24,324 |
| Distributors | 2,530 | 4,480 | 9,848 | 19,558 |
| Licensing | 685 | 1,099 | 8,084 | 7,182 |
| Operating proĥ t | 20,172 | 7,770 | 100,550 | 72,909 |
The diĤ erence in the fourth quarter between operating proĥ t for segments for which information must be provided SEK 20,172 thousand (7,770) and proĥ t before tax SEK 21,073 thousand (6,389) is net ĥ nancial items, SEK 901 thousand (–1,381). The diĤ erence for the full year 2023 between operating proĥ t for segments for which information must be provided SEK 100,550 thousand (72,909) and proĥ t before tax SEK 97,691 thousand (70,444) is net ĥ nancial items, SEK –2,859 thousand (–2,465).
GROUP
| SEK thousands | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 197,632 | 262,105 | 165,631 | 246,893 | 198,420 | 248,590 | 161,544 | 226,620 |
| Gross proĥ t margin,% | 56.8 | 52.6 | 55.6 | 52.2 | 52.1 | 48.2 | 54.5 | 50.0 |
| Operating proĥ t/loss | 20,172 | 40,893 | 8,100 | 31,385 | 7,770 | 30,597 | 5,233 | 29,309 |
| Operating margin,% | 10.2 | 15.6 | 4.9 | 12.7 | 3.9 | 12.3 | 3.2 | 12.9 |
| Proĥ t/loss after net ĥ nancial items | 21,073 | 40,552 | 5,401 | 30,665 | 6,389 | 30,545 | 4,344 | 29,166 |
| Proĥ t margin,% | 10.7 | 15.5 | 3.3 | 12.4 | 3.2 | 12.3 | 2.7 | 12.9 |
| Earnings per share, | ||||||||
| before dilution, SEK | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 | 0.92 |
| Earnings per share, after dilution, SEK | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 | 0.88 | 0.01 | 0.92 |
| Number of Björn Borg retail stores | ||||||||
| at the end of the period | 17 | 17 | 17 | 19 | 19 | 19 | 24 | 26 |
| of which Group-owned | ||||||||
| Björn Borg retail stores | 16 | 16 | 16 | 18 | 18 | 18 | 21 | 23 |
IN SUMMARY
| SEK thousands | Note | Oct-Dec 2023 |
Oct-Dec 2022 |
Full year 2023 |
Full year 2022 |
|---|---|---|---|---|---|
| Net sales | 25,250 | 25,411 | 101,192 | 101,205 | |
| Other operating revenue | 97 | 69 | 930 | 1,174 | |
| Operating revenue | 25,347 | 25,480 | 102,122 | 102,379 | |
| Goods for resale | – | – | – | –153 | |
| Other external expenses | 2 | –16,862 | –15,991 | –59,070 | –56,256 |
| Personnel costs | –10,689 | –12,711 | –43,352 | –51,506 | |
| Depreciation/amortization of intangible and tangible non-current assets | –804 | –634 | –2,963 | –2,486 | |
| Other operating expenses | –154 | –110 | –441 | –869 | |
| Operating proĥ t | –3,162 | –3,966 | –3,704 | –8,892 | |
| Result from shares in subsidiaries | – | 4,493 | – | 4,493 | |
| Net ĥ nancial items | 5,849 | –2,031 | –7,079 | –5,950 | |
| Proĥ t/loss after ĥ nancial items | 2,687 | –1,504 | –10,783 | –10,348 | |
| Group contributions received/paid | 95,000 | 52,538 | 95,000 | 52,538 | |
| Appropriations | 720 | –360 | 720 | –360 | |
| Proĥ t/loss before tax | 98,407 | 50,674 | 84,937 | 41,830 | |
| Tax | –19,184 | –9,512 | –19,184 | –9,512 | |
| Proĥ t/loss for the period | 79,223 | 41,162 | 65,753 | 32,318 | |
| Other comprehensive income | – | – | – | – | |
| Total comprehensive income for the period | 79,223 | 41,162 | 65,753 | 32,318 |
IN SUMMARY
| SEK thousands | Note | Dec 31, 2023 |
Dec31, 2022 |
|---|---|---|---|
| Non-current assets | |||
| Intangible assets | 679 | 2,323 | |
| Tangible non-current assets | 5,431 | 2,510 | |
| Shares in Group companies | 177,868 | 371,813 | |
| Total non-current assets | 183,978 | 376,646 | |
| Current assets | |||
| Receivables from Group companies | 448,586 | 891,508 | |
| Current receivables | 3,968 | 3,669 | |
| Cash and cash equivalents | 18,414 | 1,558 | |
| Total current assets | 470,968 | 896,735 | |
| Total assets | 654,946 | 1,273,381 | |
| Equity and liabilities | |||
| Equity | 157,648 | 136,239 | |
| Untaxed reserves | 896 | 1,616 | |
| Current liabilities credit institutions | – | 30,000 | |
| Due to Group companies | 465,254 | 1,049,151 | |
| Accounts payable | 7,891 | 9,782 | |
| Other current liabilities | 23,257 | 46,593 | |
| Total equity and liabilities | 654,946 | 1,273,381 |
| SEK thousands | Full year 2023 |
Full year 2022 |
|---|---|---|
| Opening balance | 136,239 | 166,792 |
| Distribution | –50,297 | –62,871 |
| Warrant premium | 903 | – |
| Merger results | 5,050 | – |
| Total comprehensive income for the period | 65,753 | 32,318 |
| Closing balance | 157,648 | 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 | |||
|---|---|---|---|
| Full year | Full year | ||
| SEK thousands | 2023 | 2022 | |
| Sweden | 298,777 | 286,541 | |
| Netherlands | 209,141 | 178,912 | |
| Finland | 113,376 | 111,865 | |
| Germany | 82,283 | 93,292 | |
| Others | 168,684 | 164,563 | |
| Total net sales | 872,261 | 835,173 |
| The group | Parent Company | |||
|---|---|---|---|---|
| Full year | Full year | Full year | Full year | |
| SEK thousands | 2023 | 2022 | 2023 | 2022 |
| Cost of premises | 11,813 | 19,727 | 6,628 | 6,711 |
| Sales expenses | 71,751 | 54,601 | 1,203 | 1,073 |
| Marketing expenses | 75,752 | 68,287 | 36,465 | 33,028 |
| Administrative | ||||
| expenses | 38,715 | 32,629 | 13,800 | 14,523 |
| Other | 8,276 | 6,167 | 974 | 921 |
| 206,307 | 181,411 | 59,070 | 56,256 |
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.
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.
Net sales less costs of goods sold divided by net sales. Purpose: Gross margin is used to measure operating proĥ tability.
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 / Net cash 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, February 23, 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
The Annual Report 2023 will be published at the end of April, 2024.
The Annual General Meeting 2024 will be held on May 16, 2024.
The Interim report January-March 2024 will be issued at 17:30 on May 16, 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 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 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 February 23, 2024 at 07:30.
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