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Björn Borg
Quarterly Report • Nov 15, 2024
3142_10-q_2024-11-15_cfafda17-2bb3-4f85-a3c2-708bc62c5bb8.pdf
Quarterly Report
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Sales record!
JULY 1 SEPTEMBER 30, 2024
- ¸ Group net sales amounted to SEK 285.1 million (262.1), an increase of 8.8 percent. Currency-neutral, net sales increased by 10.4 percent.
- ¸ Net sales for own e-commerce increased by 31.5 percent to SEK 49.4 million (37.6), while sales for own e-commerce and e-tailers amounted to SEK 119.7 million (95.7), an increase of 25.1 percent.
- ¸ The gross proĥ t margin amounted to 52.1 percent (52.6). Currency-neutral, the gross proĥ t margin amounted to 51.2 percent, a decrease of 1.4 percentage points.
- ¸ Operating proĥ t amounted to SEK 42.0 million (40.9), an increase of 2.8 percent. Currency-neutral, operating proĥ t amounted to SEK 41.1 million, an increase of 0.5 percent.
- ¸ Proĥ t after tax amounted to SEK 35.0 million (32.0), an increase of 9.1 percent.
- ¸ Earnings per share before and after dilution amounted to SEK 1.39 (1.27).
JANUARY 1 SEPTEMBER 30, 2024
- ¸ Group net sales amounted to SEK 755.1 million (674.6), an increase of 11.9 percent. Currency-neutral, net sales increased by 12.3 percent.
- ¸ Net sales for own e-commerce increased by 20.6 percent to SEK 130.8 million (108.5), while sales for own e-commerce and e-tailers amounted to SEK 314.8 million (265.4), an increase of 18.6 percent.
- ¸ The gross proĥ t margin amounted to 52.4 percent (53.2). Currency-neutral, the gross proĥ t margin amounted to 52.1 percent, a decrease of 1.1 percentage points.
- ¸ Operating proĥ t amounted to SEK 85.0 (80.4) million, an increase of 5.8 percent. Currency-neutral, operating proĥ t amounted to SEK 84.1 million, an increase of 4.6 percent.
- ¸ Proĥ t after tax amounted to SEK 62.7 million (61.0), an increase of 2.7 percent.
- ¸ Earnings per share before and after dilution amounted to SEK 2.49 (2.43).
QUOTE FROM THE CEO, HENRIK BUNGE
"Our chosen growth market, Germany, continued to develop very positively. During the quarter, we increased our presence with growth of 44 percent," comments CEO Henrik Bunge.
| SEK million | Jul-Sep 2024 |
Jul-Sep 2023 |
Jan-Sep 2024 |
Jan-Sep 2023 |
Oct 2023- Sep 2024 |
Full year 2023 |
|---|---|---|---|---|---|---|
| Net sales | 285.1 | 262.1 | 755.1 | 674.6 | 952.7 | 872.3 |
| Gross proĥ t margin, % | 52.1 | 52.6 | 52.4 | 53.2 | 53.3 | 54.0 |
| Operating proĥ t | 42.0 | 40.9 | 85.0 | 80.4 | 105.2 | 100.6 |
| Operating margin, % | 14.7 | 15.6 | 11.3 | 11.9 | 11.0 | 11.5 |
| Proĥ t after tax | 35.0 | 32.0 | 62.7 | 61.0 | 77.6 | 76.0 |
| Earnings per share before dilution, SEK | 1.39 | 1.27 | 2.49 | 2.43 | 3.09 | 3.02 |
| Earnings per share after dilution, SEK | 1.39 | 1.27 | 2.49 | 2.43 | 3.09 | 3.02 |
CEO comments
During the third quarter, we improved both sales and operating proĥ t compared to the previous year's third quarter. Sales amounted to SEK 285.1m which corresponds to an increase of 8.8%. Operating proĥ t increased to SEK 42m by 2.7%. The slower growth of operating proĥ t is entirely due higher Marketing spend to further support brand momentum which increased by SEK 7m to SEK 23m compared to the comparable quarter in the previous year.
By product category, the growth in the quarter was predominantly driven by Footwear with +29% and Apparel with +25%. Both are our strategic focus categories, where we see the most signiĥ cant growth opportunities. Our largest category Underwear was stable (–1%) while bags showed a temporary decline of –14% after good development since the beginning of the year.
From a market perspective our strategic focus market Germany showed the highest growth rate with +44%. Another milestone for further growing brand awareness and our business in Germany will be the opening of a Björn Borg shop-in-shop in the prestigious Alsterhaus department store in Hamburg in autumn. Also, Finland (+29%), Belgium (+23%) and Denmark (+32%) developed very positively. In Sweden, our largest market, we saw a more
mixed development. While our own e-commerce grew strongly by 34% sales to wholesalers decreased compared to the previous year. While the Netherlands as the second largest market grew by a solid 5% in the quarter.
By channel, our focus on own e-com continued to result in a high growth rate of +32% while the largest channel Wholesale expanded by a solid 5%. Own Retail Stores experienced a decline of –5% which was due to store closures. Comparable store sales would have been stable (+1%). Distributors also grew by a strong +31% compensating for a weaker development in the beginning of the year.
Moving forward we feel conĥ dent that our strategic focus areas Apparel, Footwear, own e-com and the German market will allow us to continuously realize above-market growth opportunities beyond a solid development in all other areas while maintaining our overall proĥ tability level. Having said that, the quarter's main victories were our development in Germany and the sales of Footwear via our own e-commerce, which increased by an impressive 110% in the quarter.
So, let's go!
Head coach, Henrik Bunge
The Group's development
OPERATING REVENUE 2024
The third quarter of the year showed an improvement in the total operating revenue, including other revenue, of 8.2 percent to SEK 289.8 million (268.0). Adjusted for currency e Ĥ ects, the operating income showed an increase of 9.8 percent for the quarter.
For the ĥ rst nine months of the year, the total operating revenue increased by 12.1 percent, to SEK 771.4 million (688.1). Currency-neutral, the increase was 12.5 percent.
PRODUCT AREAS 2024
The product area Underwear showed a decrease in sales of 1 percent for the third quarter of 2024. Sales of underwear through own e-commerce, however, continued to grow strongly with an increase of 17 percent. In the wholesale business, Underwear temporarily decreased by 5 percent in the quarter, and in our own stores it decreased by 6 percent, mainly as a result of fewer stores compared to last year's third quarter. Sales to external distributors showed continued recovery and grew in the product area Underwear by 12 percent.
During the ĥ rst nine months of the year 2024, Underwear grew by 4 percent in total, with own e-commerce accounting for the largest increase of 15 percent.
Sports Apparel continued to show strong development and increased by 25 percent in the third quarter of the year, where, above all, sales within own e-commerce continued to grow strongly with an increase of 42 percent. Growth continued in wholesale operations too and increased by 25 percent. Sales to external distributors also showed a strong pick-up in the product area Sports
Apparel, which grew by 178 percent, while own store sales decreased by 5 percent.
For the ĥ rst nine months of 2024, Sports Apparel grew by 29 percent in total, with wholesale operations showing a growth of 42 percent and own e-commerce 26 percent.
Footwear sales grew according to plan after the previously announced takeover of the distribution from a third party that went bankrupt. Growth during the third quarter 2024 was 29 percent compared to the previous year's third quarter, where footwear in own e-commerce grew by 110 percent. All in all, this meant that the product area Footwear grew by 33 percent during the ĥ rst nine months of the year compared to the previous year.
The product area Bags decreased overall during the third quarter by 14 percent. However, own e-commerce showed strong growth in Bags in the quarter and grew by 112 percent. For the ĥ rst nine months, the product area Bags was on par with the previous year.
Other product areas, such as swimwear, grew strongly in the quarter, and increased by 26 percent compared to the previous year.
MARKETS 2024
The largest market, Sweden, temporarily decreased by 3 percent in the quarter compared to the third quarter of the previous year, due to the timing of deliveries. The wholesale business decreased, while own e-commerce in Sweden continued to show strong growth and increased by 34 percent. For the ĥ rst nine months, Sweden showed growth of 12 percent. The second largest market, the Netherlands, increased by 5 percent in the quarter and by 20 percent for the ĥ rst nine months, where Footwear
made up a large part of the growth. Germany showed an increase of 44 percent compared to last year's third quarter due to strong sell-through at major retailers, and was up by 24 percent for the ĥ rst nine months. Finland increased in the quarter by 29 percent, where, above all, Sports Apparel and Footwear showed strong growth. Denmark increased by 32 percent and Belgium was up by 23 percent. Other smaller markets decreased by 3 percent compared to the previous year's third quarter.
SALES CHANNELS 2024
The largest channel, the wholesale business, showed an increase of 5 percent in the third quarter of 2024, with e-tailers in the wholesale business increasing by 21 percent due mainly to strong development in the German and Dutch markets. Physical stores decreased by 2 percent in the quarter. For the ĥ rst nine months of 2024, wholesale operations increased by 13 percent. Own stores decreased by 5 percent in the quarter but grew by 4 percent for the ĥ rst nine months. A signiĥ cant proportion of the increase for the ĥ rst nine months consisted of late contributions from the Dutch state in the form of Covid grants. Altogether, these contributions amounted to SEK 6 million. For comparable stores, i.e. stores that were open during both comparison quarters and cleared of government subsidies, sales increased by just under 1 percent in the quarter and 2 percent for the ĥ rst nine months. Own e-commerce continued to show strong growth and increased by 32 percent in the quarter, and by 21 percent for the ĥ rst nine months. External distributors continued their recovery in the third quarter, growing by 31 percent, and thus delivering growth of 8 percent for the ĥ rst nine months of the year.
NET SALES
Third quarter, July-September 2024
Group net sales during the third quarter 2024 amounted to SEK 285.1 million (262.1), an increase of 8.8 percent. The currency eĤ ect on sales in the quarter was negative, but adjusted for currency eĤ ects, net sales increased by 10.4 percent.
The main explanation for the increase between the quarters was due to the product area Sports Apparel, which showed continued strong growth and increased by 25 percent. A further explanation was the distribution of Footwear in what were new markets for the company. For further details, see below under "Development by segment."
The nine-month period, January-September 2024
Group net sales during the ĥ rst nine months amounted to SEK 755.1 million (674.6), an increase of 11.9 percent. The currency eĤ ect on sales was negative during the ĥ rst nine months of the year, but adjusted for currency eĤ ects, net sales increased by 12.3 percent.
The main explanation for the increase during the ĥ rst nine months was the distribution of Footwear in what were new markets for the company, as well as the fact that Sports Apparel continued to show strong growth with an increase of 29 percent. For further details, see below under "Development by segment."
RESULTS
Third quarter, July-September 2024
The gross proĥ t margin for the third quarter decreased to 52.1 percent (52.6). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 51.2 percent. Above all, it was increased sales to larger customers with higher discounts that caused the said reduction. A generally greater focus on proĥ tability in the wholesale business and reduced discounts in direct-to-consumer sales, however, led to the opposite positive eĤ ect.
Other operating income amounted to SEK 4.7 million (5.9) and referred mainly to unrealized proĥ ts on accounts receivable and accounts payable in foreign currency.
Operating costs in the quarter increased as planned by SEK 8.3 million compared to the previous year's third quarter, primarily through increased investments in marketing.
Increased sales with a lower gross proĥ t margin, combined with increased operating costs, have resulted in an operating proĥ t increase to SEK 42.0 million (40.9).
Net ĥ nancial items amounted to SEK 2.0 million (–0.3). 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 35.0 million (32.0).
The nine-month period, January-September 2024
The gross proĥ t margin for the ĥ rst nine months decreased to 52.4 percent (53.2). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 52.1 percent. It was, above all, increased short-term discounts for Footwear, which in turn could be linked to the takeover of the Footwear business from a former third party that went bankrupt, that caused the said reduction. A generally greater focus on proĥ tability in the wholesale business and reduced discounts in direct-to-consumer sales, however, led to the opposite positive eĤ ect.
Other operating income amounted to SEK 16.4 million (13.4) and referred mainly to unrealized proĥ ts on accounts receivable in foreign currency and government Covid grants from the Netherlands.
Operating costs increased as planned by SEK 35 million compared to the previous year's ĥ rst nine months, primarily through increased investments in marketing.
Increased sales with a lower gross proĥ t margin, along with slightly increased operating costs, have resulted in an operating proĥ t increase to SEK 85.0 million (80.4).
Net ĥ nancial items amounted to SEK –4.9 million (–3.7). 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 62.7 million (61.0).
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 followed up internally in the Group.
Wholesale business
The segment's external operating income during the ĥ rst nine months of the year amounted to SEK 522.7 million (461.1), which was an increase of 13 percent. One explanation for the increase was the distribution of Footwear in what were new markets for the company, as well as the fact that Sports Apparel continued to show strong growth with an increase of 42 percent. Furthermore, the company saw an increased demand from e-tailers within the segment; players who primarily sell online, where the growth for the ĥ rst nine months was 17 percent amounting to SEK 184 million (157). Physical stores within the segment grew by 11 percent and amounted to SEK 339 million (304). Within the wholesale business, the largest market, Sweden, showed overall sales increase of 12 percent compared to the previous year. Sales in the second largest market, the Netherlands, increased within the segment by 17 percent since the distribution of Footwear now constituted a signiĥ cant part of the business. The Finnish market increased by 8 percent while Germany increased by 23 percent due to a strong sell-through at the larger retailers.
Operating proĥ t amounted to SEK 52.4 million (54.8). It was, above all, the planned higher operational costs combined with the takeover of the distribution of Footwear which caused the operating proĥ t to decrease by 4 percent.
Own e-commerce
Own e-commerce continued to grow strongly. During the ĥ rst nine months of the year 2024, own e-commerce increased by 21 percent to SEK 130.8 million (108.5). The increase was mainly due to strong growth in the product area Sports Apparel, which increased by 26 percent compared to the previous year. The product area Underwear also grew strongly and increased by 15 percent. Footwear continued to show strong momentum and grew by 90 percent while Bags grew by 93 percent.
The operating proĥ t for the ĥ rst nine months of 2024 amounted to SEK 22.8 million (17.0), an increase of 34 percent. The improvement came primarily from increased sales with maintained margins.
| Operating income, SEK thousands January-September |
Operating proĥ t, SEK thousands January-September |
Operating margin,% January-September |
|||||
|---|---|---|---|---|---|---|---|
| Segment | Revenue type | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Wholesale | Products | 522,695 | 461,067 | 52,440 | 54,779 | 10 | 12 |
| Own e-commerce | Products | 130,834 | 108,465 | 22,791 | 17,046 | 17 | 16 |
| Own stores | Products | 79,266 | 76,92 | 1,037 | –6,164 | 1 | –8 |
| Distributors | Products | 36,758 | 33,907 | 7,141 | 7,319 | 19 | 22 |
| Licensing | Royalties | 1,880 | 8,427 | 1,623 | 7,400 | 86 | 88 |
| Total | 771,433 | 688,058 | 85,032 | 80,380 | 11 | 12 |
Own stores
Own physical stores showed overall growth of 4 percent for the ĥ rst nine months of 2024, which amounted to SEK 79.3 million (76.2) despite the company choosing to close two stores in accordance with its strategy to liquidate unproĥ table stores. However, a signiĥ cant part of the increase consisted of late contributions from the Dutch state in the form of Covid grants. Altogether, these grants amounted to SEK 6 million for the ĥ rst nine months of 2024. For comparable stores, i.e. stores that were open during both comparison quarters, and cleared of government grants, sales increased by 2 percent for the ĥ rst nine months.
In the Netherlands, sales in own stores increased by 21 percent including the grants, and by 2 percent excluding the grants. In Sweden, sales in own stores decreased by 7 percent in connection with the closure of unproĥ table stores. For comparable stores in Sweden, turnover increased by 7 percent. Sales in Finland were on a par with the previous year both in total and for comparable stores, while Belgium was down by 21 percent overall but increased by 2 percent in comparable stores.
The operating proĥ t for the ĥ rst nine months of 2024 amounted to SEK 1.0 million (–6.2). The improvement in operating proĥ t was mainly explained by improved margins and reduced operational costs as a result of fewer stores, as well as above mentioned contributions of Covid grants.
Distributors
The segment's external operating income increased by 8 percent during the ĥ rst nine months of 2024 compared to 2023 and amounted to SEK 36.8 million (33.9). Sales to the largest distributor market, Norway, increased by 29 percent, while Great Britain and other smaller distributors were down compared to the previous year by a total of 21 percent, mainly due to large stocks and thus fewer purchases from the respective markets.
Operating proĥ t decreased slightly to SEK 7.1 million (7.3) as a result of slightly lower gross proĥ t margins.
Licensing
The segment's external operating income decreased during the ĥ rst nine months of 2024 compared to 2023 and amounted to SEK 1.9 million (8.4). This was as a result of the company taking over the distribution of Footwear which previously accounted for a signiĥ cant part of the revenue in the segment.
The operating proĥ t for the ĥ rst nine months of 2024 amounted to SEK 1.6 million (7.4).
Intra-Group sales
Intra-Group sales for the ĥ rst nine months of 2024 amounted to SEK 528.9 million (470.8).
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 diagram with 'Net sales and operating proĥ t per quarter' on page 5.
INVESTMENTS AND CASH FLOW
The cash Ħ ow from the current operations in the Group during the ĥ rst nine months of 2024 amounted to SEK –67.6 million (–8.1). The decrease, compared to the previous year, came primarily from a higher capital commitment due to the integration of the Footwear business.
The cash Ħ ow from investment activities was negative at SEK –11.6 million (–8.2). The major investments primarily related to the remodeling of the oħ ce in the Netherlands. Cash Ħ ow from ĥ nancing activities amounted to SEK 54.6 million (7.5). The growth in positive cash Ħ ow is a result of increased use of the overdraft facility and lower loan repayments.
FINANCIAL POSITION AND LIQUIDITY
At the end of the period, the Björn Borg Group's cash and cash equivalents amounted to SEK 3.7 million (9.7), plus unused bank facilities of SEK 57.5 million (46.8). At the end of the third quarter of the year, the company had a net debt, excluding lease liabilities, of SEK 138.8 million (93.5). Total interest-bearing liabilities amounted to SEK 189.0 million (149.9), where total leasing debt amounted to SEK 46.5 million (46.7), of which SEK 25.7 million was the long-term share and SEK 20.8 million was the short-term share.
The Björn Borg Group has SEK 200 million in bank facilities, of which SEK 142.5 million was utilized as of September 30, 2024. The fair value of ĥ nancial instruments corresponded 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 September 30, 2024, the ratio was 1.21 (0.95) and the equity ratio amounted to 46.7 percent (51.4).
There have been no signiĥ cant changes in collateral and contingent liabilities compared to December 31, 2023.
PERSONNEL
The average number of employees in the Group for the twelve-month period which ended on September 30, 2024, was 152 (150), of which 67 percent (69) were women.
TRANSACTIONS WITH RELATED PARTIES
In addition to the customary remuneration (salary, fees and other beneĥ ts) to the CEO, the senior executives and the Board of Directors, as well as intra-Group sales, no transactions with related parties were carried out during the period.
MATERIAL RISKS AND UNCERTAINTIES
Through its operations, the Björn Borg Group is exposed to risks and uncertainty factors. Information about the Group's risks and uncertainty factors is given 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 these challenges aĤ ect the Björn Borg Group's operations ĥ nancially, but the fact that the company does not do business in either Russia, Ukraine or Israel minimizes any risks which might impact the business, although falling consumer conĥ dence in the future may have an indirect, negative eĤ ect.
Furthermore, the company notes that interest rates in the markets in which the Björn Borg Group operates continue to be at high levels. Taken together, these macroeconomic eĤ ects could have an additional impact on consumer purchasing behavior.
THE PARENT COMPANY
Björn Borg AB (publ) mainly conducts intra-Group operations. As of September 30, 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 nine months of 2024 amounted to SEK 80.3 million (75.9).
Proĥ t before tax amounted to SEK –15.8 million (–13.5). Cash and cash equivalents at the end of the period amounted to SEK 0 million (0).
EVENTS AFTER THE END OF THE REPORTING PERIOD
There are no signiĥ cant events to report after the end of the reporting period.
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: Sales growth is expected to come from growth in, above all, sports apparel and from the footwear business as well, although other product groups are expected to grow as well.
ANNUAL GENERAL MEETING
The Annual General Meeting held on May 16, 2024 approved on a distribution of SEK 3.00 (2.00) per share to the shareholders for the ĥ nancial year 2023. Fredrik Lövstedt, Mats H Nilsson, Heiner Olbrich, Alessandra Cama, Anette Klintfeldt, Jens Høgsted and Johanna Schottenius were re-elected to the Board of Directors. The total number of members is seven. The Meeting resolved to re-elect Heiner Olbrich as Chairman of the Board of Directors.
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). New and amended standards and new interpretations that apply from 1 January 2024 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 been subject to a general review by the company's auditors. The review report can be found on page 16.
OUTLOOK 2024
The company's policy is not to provide forecasts.
Consolidated income statement
IN SUMMARY
| Apr-Sep | Apr-Sep | Jan-Sep | Jan-Sep | Oct 2023- | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK thousands | Note | 2024 | 2023 | 2024 | 2023 | Sep 2024 | 2023 |
| Net sales | 1 | 285,087 | 262,105 | 755,080 | 674,628 | 952,713 | 872,261 |
| Other operating revenue | 4,744 | 5,862 | 16,353 | 13,430 | 22,453 | 19,530 | |
| Operating revenue | 289,831 | 267,967 | 771,433 | 688,058 | 975,166 | 891,791 | |
| Goods for resale | –136,683 | –124,246 | –359,454 | –315,782 | –444,804 | –401,132 | |
| Other external expenses | 2 | –64,593 | –57,377 | –182,505 | –153,615 | –235,197 | –206,307 |
| Personnel costs | –33,412 | –33,393 | –108,509 | –101,304 | –142,234 | –135,029 | |
| Depreciation/amortization of tangible/ | |||||||
| intangible non-current assets | –8,079 | –8,106 | –24,289 | –24,911 | –32,393 | –33,015 | |
| Other operating expenses | –5,019 | –3,952 | –11,644 | –12,066 | –15,333 | –15,758 | |
| Operating proĥ t | 42,046 | 40,893 | 85,032 | 80,380 | 105,205 | 100,550 | |
| Net ĥ nancial items | 2,035 | –341 | –4,925 | –3,760 | –4,023 | –2,859 | |
| Proĥ t before tax | 44,081 | 40,552 | 80,107 | 76,620 | 101,182 | 97,691 | |
| Tax | –9,129 | –8,507 | –17,423 | –15,600 | –23,546 | –21,722 | |
| Proĥ t for the period | 34,952 | 32,045 | 62,684 | 61,020 | 77,636 | 75,969 | |
| Proĥ t for the period attributable to | |||||||
| Parent Company shareholders | 34,952 | 32,045 | 62,684 | 61,020 | 77,636 | 75,969 | |
| Non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 | |
| Earnings per share before dilution, SEK | 1.39 | 1.27 | 2.49 | 2.43 | 3.09 | 3.02 | |
| Earnings per share after dilution, SEK | 1.39 | 1.27 | 2.49 | 2.43 | 3.09 | 3.02 | |
| Number of shares | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 | 25,148,384 | |
Consolidated statement of comprehensive income
IN SUMMARY
| Apr-Sep | Apr-Sep | Jan-Sep | Jan-Sep | Oct 2023- | Full year | |
|---|---|---|---|---|---|---|
| Note SEK thousands |
2024 | 2023 | 2024 | 2023 | Sep 2024 | 2023 |
| Proĥ t/loss for the period | 34,952 | 32,045 | 62,684 | 61,020 | 77,636 | 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 | –596 | –3,546 | 2,200 | 3,751 | –2,118 | –567 |
| Total other comprehensive income | ||||||
| for the period | –596 | –3,546 | 2,200 | 3,751 | –2,109 | –567 |
| Total comprehensive income for | ||||||
| the period | 34,356 | 28,499 | 64,884 | 64,771 | 75,518 | 75,402 |
| Total comprehensive income | ||||||
| attributable to | ||||||
| Parent Company shareholders | 34,122 | 28,499 | 64,968 | 64,771 | 75,163 | 75,103 |
| Non-controlling interests | 234 | 13 | –84 | –140 | 355 | 299 |
Consolidated statement of ĥ nancial position
IN SUMMARY
| Note SEK thousands |
Sep 30, 2024 |
Sep30, 2023 |
Dec 31, 2023 |
|---|---|---|---|
| Non-current assets | |||
| Goodwill | 36,830 | 37,214 | 36,422 |
| Trademarks | 187,532 | 187,532 | 187,532 |
| Other intangible assets | 6,437 | 6,459 | 6,401 |
| Tangible non-current assets | 21,172 | 17,844 | 17,663 |
| Deferred tax assets | 10,339 | 12,581 | 12,310 |
| Right-of-use assets | 44,971 | 47,693 | 43,942 |
| Total non-current assets | 307,281 | 309,323 | 304,270 |
| Current assets | |||
| Inventory | 190,465 | 150,489 | 184,361 |
| Accounts receivable | 192,881 | 164,274 | 99,379 |
| Other current receivables | 35,282 | 28,157 | 16,869 |
| Cash and cash equivalents | 3,707 | 9,739 | 26,646 |
| Total current assets | 422,335 | 352,659 | 327,255 |
| Total assets | 729,616 | 661,982 | 631,525 |
| Equity and liabilities | |||
| Equity | 340,520 | 340,186 | 350,817 |
| Deferred tax liabilities | 39,604 | 39,771 | 39,701 |
| Long-term lease liabilities | 25,702 | 28,379 | 25,470 |
| Current liability to credit institution | 142,525 | 103,698 | – |
| Accounts payable | 64,339 | 50,414 | 135,792 |
| Short-term lease liabilities | 20,776 | 18,319 | 17,379 |
| Other current liabilities | 96,151 | 81,214 | 62,366 |
| Total equity and liabilities | 729,616 | 661,982 | 631,525 |
Consolidated statement of changes in equity
IN SUMMARY
| Equity attributable to | Possession without |
|||
|---|---|---|---|---|
| the parent company's | controlling | Total | ||
| SEK thousands | Note | shareholders | inĦ uence | equity |
| 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 | |
| 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 | |
| Opening balance, January 1, 2024 | 357,120 | –6,303 | 350,817 | |
| Total comprehensive income for the period | 64,968 | –84 | 64,884 | |
| Distribution for 2023 | –75,445 | – | –75,445 | |
| Warrant premium | 264 | – | 264 | |
| Closing balance, September 30, 2024 | 346,907 | –6,387 | 340,520 |
Consolidated statement of cash Ħ ows
IN SUMMARY
| Apr-Sep | Apr-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK thousands | 2024 | 2023 | 2024 | 2023 | 2023 |
| Cash Ħ ow from operating activities | |||||
| Before changes in working capital | 42,474 | 39,676 | 78,594 | 70,855 | 94,361 |
| Changes in working capital | –127,953 | –98,307 | – 146,173 | –78,964 | 26,921 |
| Cash Ħ ow from operating activities | –85,479 | –58,631 | –67,579 | –8,109 | 121,282 |
| Investments in intangible non-current assets | –943 | –465 | –2,104 | –1,144 | –2,092 |
| Investments in tangible non-current assets | –2,394 | –2,404 | –9,543 | –7,076 | –9,049 |
| Cash Ħ ow from investing activities | –3,337 | –2,869 | –11,647 | –8,220 | –11,141 |
| Distribution | – | – | –75,445 | –50,297 | –50,297 |
| Warrant premium | 264 | – | 264 | 903 | 903 |
| Amortization of loans | – | – | – | –30,000 | –30,000 |
| Amortization of lease liabilities | –2,589 | –6,369 | –12,790 | –16,827 | –22,157 |
| Overdraft facility | 81,862 | 67,801 | 142,525 | 103,698 | – |
| Cash Ħ ow from ĥ nancing activities | 79,537 | 61,432 | 54,554 | 7,477 | –101,551 |
| Cash Ħ ow for the period | –9,279 | –67 | –24,672 | –8,852 | 8,590 |
| Cash and cash equivalents at the beginning of the period | 9,449 | 10,115 | 26,646 | 16,032 | 16,032 |
| Translation diĤ erence in cash and cash equivalents | 3,537 | –309 | 1,733 | 2,559 | 2,024 |
| Cash and cash equivalents at the end of the period | 3,707 | 9,739 | 3,707 | 9,739 | 26,646 |
Key ĥ gures
GROUP
| SEK thousands | Apr-Sep 2024 |
Apr-Sep 2023 |
Jan-Sep 2024 |
Jan-Sep 2023 |
Oct 2023- Sep 2024 |
Full year 2023 |
|---|---|---|---|---|---|---|
| Gross proĥ t margin,% * | 52.1 | 52.6 | 52.4 | 53.2 | 53.3 | 54.0 |
| Operating margin,% * | 14.7 | 15.6 | 11.3 | 11.9 | 11.0 | 11.5 |
| Proĥ t margin, *% | 15.5 | 15.5 | 10.6 | 11.4 | 10.6 | 11.2 |
| Return on capital employed,% * | 21.3 | 18.7 | 21.3 | 18.7 | 21.3 | 25.9 |
| Return on average equity,% * | 22.8 | 20.2 | 22.8 | 20.2 | 22.8 | 22.5 |
| Proĥ t attributable to the Parent Company's | ||||||
| shareholders | 34,952 | 32,045 | 62,684 | 61,020 | 77,636 | 75,969 |
| Equity/assets ratio,% * | 46.7 | 51.4 | 46.7 | 51.4 | 46.7 | 55.6 |
| Equity per share, SEK * | 13.54 | 13.53 | 13.54 | 13.53 | 13.54 | 13.95 |
| Investments in intangible non-current assets | 943 | 465 | 2,104 | 1,144 | 3,052 | 2,092 |
| Investments tangible non-current assets | 2,394 | 2,404 | 9,543 | 7,076 | 11,516 | 9,049 |
| Depreciation, amortization and impairment losses for the period |
–8,079 | –8,106 | –24,289 | –24,911 | –32,393 | –33,015 |
| Average number of employees | 154 | 152 | 152 | 150 | 152 | 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
| SEK thousands | Apr-Sep 2024 |
Apr-Sep 2023 |
Jan-Sep 2024 |
Jan-Sep 2023 |
Oct 2023- Sep 2024 |
Full year 2023 |
|---|---|---|---|---|---|---|
| Operating revenue | ||||||
| Wholesale business | ||||||
| External revenue | 197,442 | 188,148 | 522,695 | 461,067 | 639,097 | 577,469 |
| Internal revenue | 755 | 2,442 | 3,792 | 21,040 | 6,075 | 23,323 |
| 198,197 | 190,590 | 526,487 | 482,107 | 645,172 | 600,792 | |
| Own e-commerce | ||||||
| External revenue | 49,428 | 37,575 | 130,834 | 108,465 | 176,344 | 153,975 |
| Internal revenue | 115 | – | 274 | 1,148 | 281 | 1,154 |
| 49,543 | 37,575 | 131,108 | 109,613 | 176,625 | 155,129 | |
| Own stores | ||||||
| External revenue | 28,854 | 29,940 | 79,266 | 76,192 | 107,787 | 104,713 |
| Internal revenue | – | – | – | – | – | – |
| 28,854 | 29,940 | 79,266 | 76,192 | 107,787 | 104,713 | |
| Distributors | ||||||
| External revenue | 14,197 | 10,849 | 36,758 | 33,907 | 49,363 | 46,512 |
| Internal revenue | 191,202 | 183,433 | 495,585 | 423,076 | 613,226 | 540,716 |
| 205,399 | 194,282 | 532,343 | 456,983 | 662,589 | 587,228 | |
| Licensing | ||||||
| External revenue | 179 | 1,455 | 1,880 | 8,427 | 2,576 | 9,22 |
| Internal revenue | 11,598 | 10,721 | 29,206 | 25,541 | 36,005 | 32,340 |
| 11,777 | 12,176 | 31,086 | 33,968 | 38,581 | 41,462 | |
| Less internal sales | –203,670 | –196,596 | –528,858 | –470,805 | –655,587 | –597,533 |
| Operating revenue | 289,831 | 267,967 | 771,433 | 688,058 | 975,166 | 891,791 |
| Operating proĥ t | ||||||
| Wholesale business | 27,261 | 28,663 | 52,440 | 54,779 | 58,482 | 60,818 |
| Own e-commerce | 11,000 | 5,884 | 22,791 | 17,046 | 34,554 | 28,809 |
| Own stores | 899 | 689 | 1,037 | –6,164 | 192 | –7,009 |
| Distributors | 2,716 | 4,373 | 7,141 | 7,319 | 9,670 | 9,848 |
| Licensing | 169 | 1,284 | 1,623 | 7,400 | 2,307 | 8,084 |
| Operating proĥ t | 42,046 | 40,893 | 85,032 | 80,380 | 105,205 | 100,550 |
| Interest income and similar income items | 3,970 | 1,684 | 931 | 699 | 3,495 | 3,264 |
| Interest expenses and similar income items | –1,934 | –2,025 | –5,856 | –4,460 | –7,519 | –6,123 |
| Proĥ t before tax | 44,081 | 40,552 | 80,107 | 76,620 | 101,182 | 97,691 |
Quarterly data
GROUP
| SEK thousands | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 285,087 | 213,205 | 256,788 | 197,632 | 262,105 | 165,631 | 246,893 | 198,420 |
| Gross proĥ t margin,% | 52.1 | 51.8 | 53.3 | 56.8 | 52.6 | 55.6 | 52.2 | 52.1 |
| Operating proĥ t/loss | 42,046 | 9,517 | 33,470 | 20,172 | 40,893 | 8,100 | 31,385 | 7,770 |
| Operating margin,% | 14.7 | 4.5 | 13.0 | 10.2 | 15.6 | 4.9 | 12.7 | 3.9 |
| Proĥ t/loss after net ĥ nancial items | 44,081 | 9,073 | 26,954 | 21,073 | 40,552 | 5,401 | 30,665 | 6,389 |
| Proĥ t margin,% | 15.5 | 4.3 | 10.5 | 10.7 | 15.5 | 3.3 | 12.4 | 3.2 |
| Earnings per share, | ||||||||
| before dilution, SEK | 1.39 | 0.26 | 0.84 | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 |
| Earnings per share, after dilution, SEK | 1.39 | 0.26 | 0.84 | 0.59 | 1.27 | 0.17 | 0.99 | 0.21 |
| Number of Björn Borg retail stores | ||||||||
| at the end of the period | 14 | 16 | 16 | 17 | 17 | 17 | 19 | 19 |
| of which Group-owned | ||||||||
| Björn Borg retail stores | 13 | 15 | 15 | 16 | 16 | 16 | 18 | 18 |
Parent company income statement
IN SUMMARY
| SEK thousands | Note | Apr-Sep 2024 |
Apr-Sep 2023 |
Jan-Sep 2024 |
Jan-Sep 2023 |
Oct 2023- Sep 2024 |
Full year 2023 |
|---|---|---|---|---|---|---|---|
| Net sales | 26,558 | 25,414 | 80,273 | 75,942 | 105,523 | 101,192 | |
| Other operating revenue | 70 | 264 | 268 | 833 | 365 | 930 | |
| Operating revenue | 26,628 | 25,678 | 80,541 | 76,775 | 105,887 | 102,122 | |
| Goods for resale | – | – | – | – | – | – | |
| Other external expenses | 2 | –17,448 | –13,444 | –54,068 | –42,208 | –70,930 | –59,070 |
| Personnel costs | –9,710 | –11,321 | –34,406 | –32,663 | –45,095 | –43,352 | |
| Depreciation/amortization of intangible | |||||||
| and tangible non-current assets | –554 | –777 | –1,834 | –2,159 | –2,638 | –2,963 | |
| Other operating expenses | –69 | –148 | –287 | –287 | –421 | –441 | |
| Operating proĥ t | –1,153 | –12 | –10,034 | –542 | –13,195 | –3,704 | |
| Result from shares in subsidiaries | – | – | – | – | – | – | |
| Net ĥ nancial items | 1,527 | –5,829 | –5,791 | –12,928 | 58 | –7,079 | |
| Proĥ t/loss after ĥ nancial items | 374 | –5,841 | –15,825 | –13,470 | –13,137 | –10,783 | |
| Group contributions received/paid | – | – | – | – | 95,000 | 95,000 | |
| Appropriations | – | – | – | – | 720 | 720 | |
| Proĥ t/loss before tax | 374 | –5,841 | –15,825 | –13,470 | 82,583 | 84,937 | |
| Tax | – | – | – | – | –19,184 | –19,184 | |
| Proĥ t/loss for the period | 374 | –5,841 | –15,825 | –13,470 | 63,399 | 65,753 | |
| Other comprehensive income | – | – | – | – | – | – | |
| Total comprehensive income for the period |
374 | –5,841 | –15,825 | –13,470 | 63,399 | 65,753 |
Parent company balance sheet
IN SUMMARY
| Sep 30, | Sep30, | Dec 31, | |
|---|---|---|---|
| Note SEK thousands |
2024 | 2023 | 2023 |
| Non-current assets | |||
| Intangible assets | 494 | 1,087 | 679 |
| Tangible non-current assets | 4,553 | 4,806 | 5,431 |
| Shares in Group companies | 177,868 | 371,813 | 177,868 |
| Total non-current assets | 182,915 | 377,706 | 183,978 |
| Current assets | |||
| Receivables from Group companies | 445,136 | 460,966 | 448,586 |
| Current receivables | 14,760 | 9,016 | 3,968 |
| Cash and cash equivalents | – | – | 18,414 |
| Total current assets | 459,896 | 469,982 | 470,968 |
| Total assets | 642,811 | 847,688 | 654,946 |
| Equity and liabilities | |||
| Equity | 66,642 | 73,375 | 157,648 |
| Untaxed reserves | 896 | 1,616 | 896 |
| Current liabilities credit institutions | 142,525 | 103,206 | – |
| Due to Group companies | 408,010 | 650,319 | 465,254 |
| Accounts payable | 10,255 | 5,318 | 7,891 |
| Other current liabilities | 14,483 | 13,854 | 23,257 |
| Total equity and liabilities | 642,811 | 847,688 | 654,946 |
Parent company statement of changes in equity
IN SUMMARY
| SEK thousands | Jan-Sep 2024 |
Jan-Sep 2023 |
Full year 2023 |
|---|---|---|---|
| Opening balance | 157,648 | 136,239 | 136,239 |
| Distribution | –75,455 | –50,297 | –50,297 |
| Warrant premium | 264 | 903 | 903 |
| Merger results | – | – | 5,050 |
| Total comprehensive income for the period | – 15,825 | –13,470 | 65,753 |
| Closing balance | 66,642 | 73,375 | 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-Sep 2024 | ||||||
|---|---|---|---|---|---|---|
| The group, SEK thousands | Sweden | Finland | Netherlands | Germany | Other | Total |
| Wholesale business | 206,054 | 81,832 | 96,409 | 76,418 | 61,981 | 522,695 |
| Own e-commerce | 39,291 | 4,021 | 44,496 | 4,807 | 38,218 | 130,833 |
| Own stores | 20,307 | 14,194 | 37,538 | – | 7,227 | 79,266 |
| Distributors | – | – | – | – | 36,758 | 36,758 |
| Licensing | 770 | – | 1,109 | – | – | 1,880 |
| Operating revenue | 266,423 | 100,047 | 179,553 | 81,225 | 144,184 | 771,433 |
| Of which other operating revenue | 7,748 | 28 | 6,714 | 1,575 | 288 | 16,353 |
| Net sales | 258,676 | 100,019 | 172,839 | 79,650 | 143,896 | 755,080 |
| Jan-Sep 2023 The group, SEK thousands |
Sweden | Finland | Netherlands | Germany | Other | Total |
|---|---|---|---|---|---|---|
| Wholesale business | 184,406 | 75,558 | 82,676 | 62,238 | 56,188 | 461,067 |
| Own e-commerce | 33,054 | 3,614 | 35,858 | 3,551 | 32,389 | 108,465 |
| Own stores | 21,906 | 14,230 | 30,900 | – | 9,157 | 76,191 |
| Distributors | – | – | – | – | 33,908 | 33,908 |
| Licensing | 635 | – | 7,791 | – | – | 8,426 |
| Operating revenue | 240,001 | 93,401 | 157,225 | 65,789 | 131,641 | 688,058 |
| Of which other operating revenue | 2,292 | 1,103 | 1,435 | 4,267 | 4,333 | 13,430 |
| Net sales | 237,708 | 92,299 | 155,790 | 61,523 | 127,308 | 674,628 |
NOTE 2 OTHER EXTERNAL EXPENSES
| The group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK thousands | Jan-Sep 2024 | Jan-Sep 2023 | Jan-Sep 2024 | Jan-Sep 2023 | |
| Cost of premises | 10,008 | 8,519 | 5,553 | 4,950 | |
| Sales expenses | 65,877 | 52,831 | 920 | 848 | |
| Marketing expenses | 67,412 | 52,003 | 34,150 | 25,174 | |
| Administrative expenses | 31,824 | 34,089 | 12,389 | 10,466 | |
| Other | 7,384 | 6,173 | 1,056 | 770 | |
| 182,505 | 153,615 | 54,068 | 42,208 |
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 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 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 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 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, November 15, 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
REVIEW REPORT
INTRODUCTION
We have reviewed the interim report for Björn Borg AB (publ) for the period January 1 to September 30, 2024 and the nine-month period ending on that date. 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.
SCOPE OF 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.
CONCLUSION
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
Stockholm, November 15, 2024 BDO Mälardalen AB
Johan Pharmanson Carl-Johan Kjellman Authorized Public Accountant Authorized Public Accountant Responsible auditor
CALENDAR 2024
The Year-end report 2024 will be issued at 07:30 on February 21, 2025.
Annual report 2023 in late April 2025.
Annual General Meeting 2025 will be held on May 15, 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
Telephone: +46 8 506 33 700
Henrik Bunge, CEO Email: [email protected]
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 autumn and winter 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 November 15, 2024 at 07.30.