Quarterly Report • Aug 24, 2017
Quarterly Report
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JANUARY 1 – JUNE 30 2017
Boozt AB (publ). Corp. Id. No. 556793-5183
| SEK million unless otherwise indicated |
April 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Change | Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Change | Rolling 12 months |
Jan 1 - Dec 31, 2016 |
|---|---|---|---|---|---|---|---|---|
| Net revenue | 496.1 | 357.1 | 39.0% | 917.3 | 616.8 | 48.7% | 1.696.9 | 1,396.4 |
| Transactional net revenue | 503.6 | 421.9 | 19.4% | 955.9 | 754.0 | 26.8% | 1.830.4 | 1,628.4 |
| Gross profit | 220.1 | 157.7 | 39.6% | 407.2 | 270.9 | 50.3% | 766.1 | 629.8 |
| Gross margin (%) | 44.4% | 44.2% | 0.2 pp | 44.4% | 43.9% | 0.5 pp | 45.1% | 45.1% |
| Operating profit/loss (EBIT) | -82.9 | 8.6 | -91.5 | -109.1 | -8.5 | -100.6 | -79.5 | 21.0 |
| Adjusted EBIT | 10.9 | 10.6 | 0.3 | 8.3 | -4.5 | 12.8 | 42.4 | 29.5 |
| Adjusted EBIT margin (%) | 2.2% | 3.0% | -0.7 pp | 0.9% | -0.7% | 1.6 pp | 2.5% | 2.1% |
| Profit/loss for the period | -68.3 | 8.5 | -76.8 | -86.2 | -8.7 | -77.5 | -64.6 | 12.9 |
| Cash flow from operating activities | 17.4 | 82.9 | -65.5 | -80.9 | 24.1 | -104.9 | -53.0 | 40.8 |
| Earnings per share (SEK) | -1.37 | 0.20 | -1.57 | -1.79 | -0.21 | -1.58 | -1.37 | 0.29 |
| Earnings per share after dilution (SEK) | -1.37 | 0.20 | -1.57 | -1.79 | -0.21 | -1.58 | -1.37 | 0.29 |
| SUMMARY 2 | |
|---|---|
| Comments from CEO Hermann Haraldsson 4 | |
| MANAGEMENT'S REPORT | |
| Key Performance Indicators (KPIs) 7 | |
| Second quarter 8 | |
| Segment information on transactional net revenue, net revenue | |
| and EBIT 16 | |
| INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |
| Consolidated income statement 19 |
| Consolidated statement of comprehensive income 19 | |
|---|---|
| Consolidated statement of financial position 20 | |
| Consolidated statement of changes in equity 21 | |
| Consolidated statement of cash flow 22 | |
| Note 1 – Accounting principles 23 | |
| Note 2 – Segment reporting 25 | |
| Note 3 – Financial instruments 26 | |
| Note 4 – Investments 27 | |
| Parent company income statement 28 | |
| Parent company statement of comprehensive income 28 | |
| Parent company financial postition 29 | |
| Parent company changes in equity 30 | |
| Signatures 31 |
| Specification of non-recurring items during second quarter 2017 33 | |
|---|---|
| Information by quarter 35 | |
| Definitions / glossary 36 | |
| Rationale for the use of certain Alternative Performance Measures 37 | |
| Reconciliation of total operating income 38 | |
| Reconciliation of adjusted EBIT 38 | |
| Reconciliation with financial statements according to IFRS 39 | |
| Financial calendar 40 | |
Hermann Haraldsson, Group CEO
"Our customers are loyal, they come back more frequently and they continue to give us a high Net Promoter Score."
The first half of the year marked the most exciting times of our young company yet. We started by moving a little less than 2 million items as well as our photo studio from our old warehouse to our new automated fulfilment centre in Ängelholm, equipped with an automated storage and retrieval system comprising of 130 robots operating on top of an eight-meter high grid containing 130,000 bins. The move was very well executed and completed ahead of time with only minor disturbances to the customer experience.
Having finalised the warehouse move, the next big step was to prepare and execute the listing of the company on Nasdaq Stockholm which took place on May 31. The listing was well received by investors, as we managed to attract more than 3,600 investors from the Nordic countries as well as the UK, continental Europe and the US. We would like to welcome the new investors to the Group and to thank them for their trust and confidence in Boozt.
Finally, the last major event was the launch of our physical cosmetics store Beauty by Boozt in Roskilde, Denmark at the end of March followed by the on-line launch of our beauty and cosmetics category on Boozt.com in the beginning of June.
Even though the second quarter was characterised by many extraordinary events, we managed to keep the momentum. Our net revenue was SEK 496.1 million, representing a growth of 39.0%. This was the first quarter without any ECCO mono brand store sales, affecting the "other" segment negatively. The other two segments Boozt.com and Booztlet.com realised a revenue growth of 45.1% respectively 31.4%.
We are especially pleased to see that the profitability in our main segment Boozt. com increased during the quarter. The adjusted EBIT for Boozt.com increased from SEK 5.8 million to SEK 12.0 million, thus increasing the adjusted EBIT margin to 2.5% compared to 1.8% in the second quarter 2016.
For the first half of the year our net revenue was SEK 917.3 million representing a growth of 48.7%. Boozt.com grew 54.9% and Booztlet.com grew 58.0% during the first half of the year. For the first half year the adjusted EBIT margin for Boozt.com increased from -2.5% to 0.7%.
The growth during the first half of the year can be attributed to a solid new customer intake as well as an increasing number of customers returning. The number of active customers on Boozt.com at the end of the first half of the year had increased by 31.8% compared to the first half of 2016. These customers bought on average 2.3 times, compared to 2.0 times in the second quarter of 2016. The "true frequency" of our customers increased from 4.7 in the second quarter of 2016 to 6.1 in the second quarter of 2017. This documents that our share of our customers wallet is increasing steadily.
The above is a testimony of our satisfied customer base. Our customers are loyal, they come back more frequently, and they continue to give us a high Net Promoter Score. Therefore, we continue to invest heavily in attracting new customers to Boozt.com, as we know that once new customers have tried our store, they are likely to return and become profitable in less than 24 months.
At the end of the quarter we exercised an option to expand the automation at the Boozt Fulfilment Centre (BFC).
Finally, I would like to say that I am very proud of our employees. They have demonstrated unique stamina and commitment in the first half of the year with several challenging initiatives. We have a very strong team that is committed to deliver an outstanding shopping experience to our customers. We took some major steps in the development of the company during the last 6 months, preparing us to continue to take more than our fair share of a fast-growing online market. We are however still at an early stage, so I would like to paraphrase Winston Churchill "this was probably just the end of the beginning".
Malmö, August 24, 2017
Hermann Haraldsson Group CEO
"We have a very strong team that is committed to deliver an outstanding shopping experience to our customers."
| SEK million unless otherwise indicated | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| GROUP | |||||
| Transactional net revenue | 503.6 | 421.9 | 955.9 | 754.0 | 1,830.4 |
| Net revenue | 496.1 | 357.1 | 917.3 | 616.8 | 1,696.9 |
| Net revenue growth (%) | 39.0% | 67.9% | 48.7% | 74.8% | 56.9% |
| Gross margin (%) | 44.4% | 44.2% | 44.4% | 43.9% | 45.1% |
| Fulfilment cost ratio (%) | -15.5% | -15.5% | -17.8% | -16.5% | -16.8% |
| Marketing cost ratio (%) | -13.3% | -14.4% | -14.1% | -15.5% | -14.1% |
| Admin & other cost ratio (%) | -30.5% | -11.1% | -23.1% | -12.6% | -17.7% |
| Depreciation cost ratio (%) | -1.8% | -0.8% | -1.3% | -0.8% | -1.1% |
| EBIT | -82.9 | 8.6 | -109.1 | -8.5 | -79.5 |
| EBIT margin (%) | -16.7% | 2.4% | -11.9% | -1.4% | -4.7% |
| Adjusted EBIT | 10.9 | 10.6 | 8.3 | -4.5 | 42.4 |
| Adjusted EBIT margin (%) | 2.2% | 3.0% | 0.9% | -0.7% | 2.5% |
| Adjusted EBITDA | 19.6 | 13.4 | 20.1 | 0.4 | 61.6 |
| Adjusted EBITDA margin (%) | 3.9% | 3.7% | 2.2% | 0.1% | 3.6% |
| Cash flow from operating activities | 17.4 | 82.9 | -80.9 | 24.1 | -53.0 |
| Net working capital | 85.9 | 34.2 | 85.9 | 34.2 | 85.9 |
| Investments | -121.7 | -3.9 | -127.1 | -23.2 | -138.8 |
| Net debt / -net cash | -433.0 | -204.7 | -433.0 | -204.7 | -433.0 |
| Equity / asset ratio | 53.5% | 49.7% | 53.5% | 49.7% | 53.5% |
| Number of employees and end of period | 213 | 161 | 213 | 161 | 213 |
| Boozt.com | |||||
| Transactional net revenue | 490.7 | 353.5 | 892.5 | 611.0 | 1,651.8 |
| Net revenue | 481.9 | 332.0 | 879.2 | 567.5 | 1,614.8 |
| EBIT | -79.4 | 4.3 | -108.4 | -17.4 | -81.0 |
| EBIT margin (%) | -16.5% | 1.3% | -12.3% | -3.1% | -5.0% |
| Adjusted EBIT | 12.0 | 5.8 | 6.1 | -14.3 | 36.9 |
| Adjusted EBIT margin (%) | 2.5% | 1.8% | 0.7% | -2.5% | 2.3% |
| Site visits (000) | 21,056 | 14,980 | 40,793 | 29,322 | 74,526 |
| No. of orders (000) | 641 | 449 | 1.151 | 803 | 2.112 |
| Conversion rate (%) | 3.05% | 3.00% | 2.82% | 2.74% | 2.83% |
| True frequency | 6.1 | 4.7 | 6.1 | 4.7 | 6.1 |
| Average order value (SEK) | 765 | 787 | 775 | 761 | 782 |
| Active customers (000) | 916 | 695 | 916 | 695 | 916 |
| No. of orders per active customer | 2.30 | 2.03 | 2.30 | 2.03 | 2.30 |
| Booztlet.com | |||||
| Transactional net revenue | 12.1 | 9.2 | 23.1 | 14.6 | 39.6 |
| Net revenue | 11.9 | 9.1 | 22.8 | 14.5 | 39.1 |
| EBIT | -1.9 | 1.4 | -1.2 | 2.0 | 0.8 |
| EBIT margin (%) | -15.9% | 15.8% | -5.4% | 14.1% | 2.1% |
| Adjusted EBIT | 0.4 | 1.4 | 1.7 | 2.1 | 3.8 |
| Adjusted EBIT margin (%) | 3.7% | 15.9% | 7.5% | 14.3% | 9.8% |
| Other | |||||
| Transactional net revenue | 0.8 | 59.1 | 40.4 | 128.4 | 139.0 |
| Net revenue | 2.3 | 15.9 | 15.2 | 34.8 | 43.0 |
| EBIT | -1.6 | 2.8 | 0.6 | 6.8 | 0.6 |
| EBIT margin (%) | -70.7% | 17.8% | 3.7% | 19.6% | 1.4% |
| Adjusted EBIT | -1.6 | 3.3 | 0.6 | 7.8 | 1.6 |
| Adjusted EBIT margin (%) | -70.7% | 20.8% | 3.7% | 22.3% | 3.8% |
Income statement items and cash flows are compared with the corresponding year-earlier period. Balance sheet items refers to the position at the end of the period and compared with the corresponding year-earlier period and December 31, 2016. The second quarter refers to the period April – June 2017.
Net revenue for the period increased with 39.0% to SEK 496.1 million (357.1). The increase was mainly attributable to the Boozt.com and Booztlet.com segments with a growth of 45.1% and 31.4% respectively. The second quarter is the first full quarter where the ECCO mono brand store is no longer a part of the operations. This affected the net revenue negatively with SEK 13.6 million compared to the second quarter in 2016.
Transactional net revenue for the quarter increased with 19.4% to SEK 503.6 million (421.9). The transactional net revenue for the quarter is negatively affected by the commission sales agreement with ECCO that was terminated end of March 2017. This affected the transactional net revenue negatively with SEK 58.3 million compared to the second quarter in 2016.
The gross profit increased with 39.6% to SEK 220.1 million (157.7) during the quarter. The gross margin increased with 0.2 percentage points to 44.4%. The increase is mainly attributable to an improved gross profit in the Boozt.com segment, which is partly offset by the terminated commission sales agreement with ECCO, which generated a gross margin of 100%.
EBIT amounted to SEK -82.9 million (8.6). The decrease in EBIT is attributable to one time costs related to listing of the company's shares of a total SEK -42.8 million including lock-up bonuses and transactional bonuses for Group Management of SEK -17.5 million. Costs for share based compensations to employees was SEK -49.4 million of which SEK -24.1 million was related to social charges for the warrant program 2012/2022, SEK -21.6 million was related to social charges for the warrant program 2015/2025 and SEK -3.7 million was related to share based compensations for the warrant program 2015/2025 which also had a negative impact on EBIT.
Although the warehouse move was finalised in the first quarter, the Group experienced additional move related costs of SEK 1.6 million during the second quarter which affected EBIT.
The fulfilment cost ratio remained unchanged despite that the period was negatively impacted by costs relating to the launch of beauty- and cosmetics as a new product category on Boozt.com, as well as costs for the unused overcapacity available in the fulfilment centre with purpose to enable a continued strong expansion.
The marketing cost ratio decreased with 1.1 percentage points during the period.
The admin & other cost ratio increased from 11.1% to 30.5%. The increase is primarily attributable to costs related to listing of the company's shares and share based payments to employees as described above.
Adjusted EBIT amounted to SEK 10.9 million (10.6). Items affecting comparability of a total SEK -93.8 million (-2.0) was recorded during the period. Items affecting comparability includes costs for listing of the company's shares of SEK -25.3 million, lock-up bonuses to Group Management of SEK -15.3 million and transactional bonuses to Group Management of SEK -2.3 million as well as share based payments to employees of SEK -49.4 million. Adjustment was also made for additional costs for the warehouse move of a total SEK -1.6 million.
In the additional information, a specification of items affecting comparability for the period in relation to expected costs published in the prospectus prior to the listing of the company's shares is presented.
The adjusted EBIT margin decreased with 0.7 percentage points to 2.2% (3.0%).
Financial costs amounted to SEK -0.7 million (-0.1) and financial income amounted to SEK 2.7 million (0.0) in the period. The financial costs are attributable to a loan from ALMI and costs for an overdraft facility. The loan from ALMI was redeemed in the period when the Group entered into a new credit facility agreement with Danske Bank. The financial income for the period is attributable to the change of value of the Group's currency hedging contracts.
During the quarter, the effective tax rate was -15.6% compared to 0.0% in the year-earlier period. Tax for the period consists of change in the deferred tax asset for tax losses carried forward. The Group has historically not accounted for tax per quarter since accumulated losses have been of substantial nature, which affect comparability to the year-earlier period.
Deferred tax assets for tax losses carried forward are reported to the extent that it is likely that they will be able to be used. The Group expects to utilise the deferred tax assets recognised within the coming 2-3 years. There is no time limitation for the deferred tax asset relating to tax losses carried forward.
The net loss for the period totalled SEK -68.3 million (8.5). Earnings per share before dilution amounted to SEK -1.37 (0.20). Earnings per share after dilution amounted to SEK -1.37 (0.20).
Cash flow for the quarter amounted to SEK 433.6 million (182.9).
Cash flow from operating activities amounted to SEK 17.4 million (82.9). However, the cash flow from changes in working capital amounted to SEK 81.5 million (69.7).
Cash flow from investing activities amounted to SEK -121.7 million (-3.9) and is mainly attributable to investments in fixed assets for the new fulfilment centre of SEK -113.6 million (-2.6). Investments in financial assets of SEK -5.5 million are mainly related to a deposit for expansion of the automated storage and retrieval system AutoStore modules which was contracted during the period. Capitalised development costs for the Group's web platform amounted to SEK -2.5 million (-1.3) for the period.
Cash flow from financing activities amounted to SEK 537.8 million (104.0) in the period. The new share issue performed at the time of listing the company's shares gave a net share capital increase of SEK 431.2 million. The liabilities raised during the period, attributable to the Group's fulfilment centre amounted to SEK 124.2 million. During the period, a re-payment of an interest bearing liability to ALMI amounting to SEK 12.0 million was made as well as a first amortisation of the interest bearing liabilities raised during the period of a total SEK 5.6 million.
On May 31, 2017, the shares of Boozt AB (publ) was listed on Nasdaq Stockholm's main list. The listing of the Company's shares has given the Group access to the capital markets and has enabled the establishment of a diversified base of Swedish and international shareholders. The listing was an important milestone for the Group in the journey of becoming the primary e-commerce fashion retailer in the Nordic region.
For more information on the listing, see page 13-14 in this report.
During the second quarter, the Group performed final quality
tests and inspections of the automated storage and retrieval system AutoStore. All performed tests have been satisfactory why the asset has been transferred to the company from the financier as per June 30, 2017. Consequently, the company has recognised an asset of SEK 104.9 million, whereof SEK 99.4 million relates to AutoStore and SEK 5.5 million relates to installations and other related assets. The company has financed the acquisition through a bank loan amounting to 70% of the value of the asset, why a liability corresponding to this amount is recorded in the Group's financial statements.
Considering the achieved efficiency improvements during the second quarter, the Group entered into a new agreement to expand the first AutoStore-module with a new module and a packing tunnel with 13 new packing stations. The construction of the new module is expected to be completed in the beginning of the fourth quarter of 2017, with planned purchases of additional bins and picking robots in 2018 as volume increases in the BFC. Investments in the new AutoStore module during 2017 are expected to amount to approximately SEK 44 million. After completion during 2018, the total investment in AutoStore is expected to amount to approximately SEK 80 million.
With AutoStore we have been able to create a more efficient picking process and to reduce costs. The expansion of AutoStore modules gives us good flexibility and enables expanding capacity in line with increased order volumes.
On June 8, 2017, the beauty- and cosmetics category was launched on Boozt.com. The assortment includes more than 70 brands such as Estée Lauder, Lancôme, Bobbi Brown, Clinique, YSL, Clarins, Shiseido, Helena Rubinstein, Biotherm, Tom Ford and Zarco perfumes.
The Group considers the beauty and cosmetics category as a natural development of the existing assortment on Boozt.com. The offered range of products in the new category complements our existing range of products and is an important product category since the expected rebuying rate within the product category is strong.
In April 2017, the Group signed an agreement with Castellum regarding rent of office space for the Group's headquarters. The agreement covers 5 years and is effective as per January 1, 2019. The contractual agreement totals SEK 64.0 million for the 5-year contractual period. At the effective date, the company is released from contractual obligations related to the existing rental agreement with Castellum.
Net revenue for the first six months 2017 increased with 48.7% to SEK 917.3 million (616.8). The transactional net revenue increased with 26.8% to SEK 955.9 million (754.0) during the corresponding period. The increase in net revenue and transactional net revenue is mainly attributable to the Boozt.com segment. The transactional net revenue is negatively impacted by the commission sales agreement with ECCO that was terminated end of March 2017.
The gross profit for the first six months increased with 50.3% to SEK 407.2 million (270.9) and the gross margin increased with 0.5 percentage points to 44.4%. The increase in gross profit is mainly attributable to an increased gross profit for the Boozt.com segment, which is partly offset by the terminated commission sales agreement with ECCO which generated a gross margin of 100%.
EBIT amounted to SEK -109.1 million (-8.5) which corresponds to a decrease of 79.5%. Items affecting comparability of a total SEK -117.4 million affected EBIT during 2017 and include costs for listing of the company's shares of SEK -45.4 million, costs for share based payments to employees of SEK of -3.7 million, cost for share based payment's to employees (social charges) of SEK -47.7 million and costs for the warehouse move of SEK 20.6 million.
Loss before tax amounted to SEK -104.2 million (-8.7) and the loss for the period amounted to SEK -86.2 million (-8.7). The effective tax rate was -17.3% compared to 0.0% in the yearearlier period. The tax for the period consists of change in the deferred tax asset for tax losses carried forward. The Group has historically not accounted for tax per quarter since accumulated losses have been of substantial nature, which affect comparability to the year-earlier period.
Cash flow for the period amounted to SEK 329.9 million (105.8). Cash flow from operating activities amounted to SEK -80.9 million (24.1). Cash flow from investing activities amounted to SEK -127.1 million (-23.2). The investing activities are mainly attributable to investments in tangible assets within the new fulfilment centre made during the second quarter. Cash flow from financing activities amounted to SEK 537.8 million (105.0) in the period. The cash flow from financing activities in amounted to SEK 537.8 million and are equal to the activities in the second quarter.
The increase of tangible fixed assets is affected with SEK 99.4 million for the acquisition of the automated storage and retrieval system AutoStore and with SEK 9.6 million for a conveyer belt for the fulfilment centre. The acquisition has been financed with a hire-purchase agreement where 30% of the assets value is paid at the transfer of the assets, and the remaining 70% is re-paid during a 5-year period. At the reporting date, the financial liabilities relating to the assets acquired amounted to a total of SEK 118.6 million, which exceeds the total value of the acquired assets. This is due to the down-payment of the initial 30% being settled in July 2017. The liabilities at the reporting date also includes VAT for the acquired assets that was paid by the financier. The VAT will be settled with the financier during the third quarter of 2017 and since the VAT is deductible for the company a receivable with the corresponding amount will be settled with the tax authorities.
The Group also made other smaller investments in the BFC, where a fire proof storage facility for storage of cosmetics and beauty products is the largest item.
The Group's increased deposits are attributable to a down-payment for expansion of the AutoStore that was contracted during the second quarter.
Increased inventory volumes due to realised and expected revenue growth, also increased the Group's accounts payables. The Group's strong cash position and short-term liabilities are affected by employee income tax and social charges related to the warrant program 2012/2022 which was redeemed at the time of listing the shares of Boozt AB (publ). The company is liable of the employee income tax on warrants for employees living outside of Sweden, for precautionary reasons the company decided to facilitate payment of employee income tax for all employees included in the warrant program totalling SEK 29.0 million. At the reporting date, the income tax and the social charges, which totals SEK 71.2 million, of which SEK 42.4 million is a cost for the Group. The total amount has not yet on the reporting date been paid to the tax authorities.
The equity and liquidity of the Group was strengthened with SEK 384.4 million by the new share issue and with SEK 46.9 million from selling of shares in own portfolio, which was performed at the time of the listing.
| SEK million | Jun 30, 2017 | Mar 31, 2017 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 212.8 | 79.2 |
| Inventory | 473.4 | 388.8 |
| Current assets (other) | 99.7 | 109.5 |
| Cash and cash equivalents | 551.6 | 221.8 |
| TOTAL ASSETS | 1,337.5 | 799.3 |
| EQUITY AND LIABILITIES | ||
| Equity | 716.1 | 367.3 |
| Non-current liabilities | 76.9 | 24.9 |
| Current liabilities | 544.5 | 407.1 |
| TOTAL EQUITY AND LIABILITIES | 1,337.5 | 799.3 |
| Net working capital | 85.9 | 94.6 |
| Net debt / -net cash | -433.0 | -209.8 |
| Equity / asset ratio | 53.5% | 46.0% |
Rounding differences may effect the summations.
After the reporting date, the Group's business continued to develop in accordance with expectations.
On July 1, 2017, Mads Bruun Famme assumed the position as Chief Purchasing Officer (CPO) of the Group and became a member of Boozt's Group Management.
As described in the listing prospectus, Charlotte Svensson has assumed her board position in Boozt AB (publ) on August 1, 2017. Charlotte Svensson is elected for the period until the end of the Annual General Meeting in 2018.
Charlotte Svensson replaces Bjørn Folmer Kroghsbo, who was elected for the period up until July 31, 2017.
Number of employees was 213 (161) at the end of the period. The average number of employees was 185 (142) for the quarter. The average number of employees for the first six months 2017 was 181 (140).
Seasonal variances affect the Group. However, each quarter is comparable between years. Traditionally the fourth quarter has the highest net revenue whereas the first quarter has the lowest. To mitigate seasonal variances the Group reports rolling twelve months' figures, where applicable.
Boozt AB (publ) Corp. Id. No. 556793-5183, is the parent company of the Group. Boozt AB (publ) is incorporated and registered in Sweden.
Since May 31, 2017, Boozt AB (publ) is listed on Nasdaq Stockholm's main list.
The address to the head office is Hyllie Boulevard 10 B, 215 32 Malmö, Sweden.
Net sales of the parent company amounted to SEK 63.9 million (0.0) during the quarter. The parent company has invoiced fees for management services in accordance with the Group's intra company agreements to other Group companies during the quarter. The loss for the quarter totalled SEK -22.7 million (0.0).
Costs for the period are mainly attributable to costs related to the listing of the Company's shares amounting to SEK 25.3 million, costs for lock-up bonuses to Group Management amounting to SEK 15.3 million, transactional bonuses to Group Management amounting to SEK 2.3 million and costs for social charges related to the Group's warrant programs amounting to SEK 35.7 million.
The accumulated net revenue for the period January 1, 2017 – June 30, 2017 amounted to SEK 69.8 million (0.0) and consisted of invoiced fees for management services. The Company's accumulated costs amounted to SEK 93.8 million (0.0) and mainly consist of costs related to the listing of the company's shares amounting to SEK 25.3 million, costs for lock-up bonuses to Group Management amounting to SEK 15.3 million, transactional bonuses to Group Management amounting to SEK 2.3 million and costs for social charges related to the Group's warrant program amounting to SEK 35.7 million. The net result for the period January 1, 2017 – June 30, 2017 amounted to SEK -24.1 million (0.0).
The financial position of the parent company is affected by the debt to the tax authorities for income tax and social charges relating to the warrant program 2012/2022. This debt totals SEK 58.4 million whereof SEK 22.7 million has been paid in by the employees, leaving the Company with a net liability of SEK 35.7 million. Accounts payables of the company are mainly related to costs related to the listing of the company.
Boozt has developed a risk management framework with the purpose to strengthen the structure of how risk management is carried out throughout the Group. Identified risks are reviewed by the Board of Directors on a yearly basis. Identified risks as well as the risk management process are described in the Group's Annual Report for 2016.
The Group has transactions with companies owned by
individuals with considerable influence on Boozt AB (publ).
Transactions with related parties during the quarter refers to payments in accordance with the consignment agreement with the ECCO Group that was ended on March 31, 2017, and purchase of services performed by a current board member through EMMADS Invest A/S.
All related party transactions are priced at market conditions. Below is a summary of the transactions that have taken place with related parties. When purchases and sales are made between Group companies, the same pricing principles as transactions with outside parties are used.
Total debt to related parties amounted to SEK 9.7 million (31.7) at the reporting date whereof SEK 9.5 million is related to KRM AG and SEK 0.2 million is related to EMMADS Invest A/S. Total debt per June, 2016, is in total related to KRM AG.
| SEK million | 2017 Q2 | 2016 Q2 |
|---|---|---|
| PURCHASE OF SERVICES | ||
| Rapp Management & EMMADS Invest A/S | 0.4 | 0.2 |
| TOTAL | 0.4 | 0.2 |
| PURCHASE OF GOODS | ||
| Ecco EMEA BV | 11.5 | - |
| TOTAL | 11.5 | - |
| CONSIGNMENT SALES | ||
| KRM AG | -0.8 | 17.9 |
| TOTAL | -0.8 | 17.9 |
Rounding differences may effect the summations.
On May 7, 2017, the shareholders of Boozt AB (publ) published the intention to list the company's shares on Nasdaq Stockholm's main list. Prior to listing, a public offering of Boozt AB (publ) shares was published.
The offering comprised of 51.7% of the shares in Boozt AB
(publ). First day of trading was May 31, 2017. The final price was set at SEK 62.00 per share. The offering comprised a total of 29,104,729 shares. Out of the total offering, 20,881,013 existing shares were offered by Sunstone Technology Ventures Fund II K/S. Verdane Capital VII K/S, ECCO Holding A/S, Sampension KP Livsforsikring A/S and the board member Kent Stevens Larsen. Additionally, 6,451,000 new shares were issued, which raised a gross premium of SEK 400.0 million and net premium of SEK 384.4 million.
No price stabilisation activities have been carried out since the listing, thus Carnegie as stabilising manager on behalf of the selling shareholders decided to end the stabilisation period as per June 9, 2017.
The Boozt share is traded under the ticker BOOZT and with the ISIN-code SE0009888738.
Since the first day of trading on May 31, 2017, the movement in market price for the share has been positive. The lowest quoted market price during the period was SEK 62.00 per share (May 31) and the highest quoted market price during the period was SEK 86.75 (June 14). The closing price as per June 30, 2017, was SEK 83.00. The average turnover of the Boozt share was 694,202 shares per day during the period. As per June 30, 2017 the company had approximately 3,600 shareholders, whereof the largest shareholders were Sampension KP Livsforsikring A/S (9.87%), Sunstone Technology Ventures Fund II K/S (9.87%) and Verdane Capital VII K/S (8.23%).
The total number of shares amounted to 56,338,433, the quota value amounted to SEK 0.0833 and the number of outstanding warrants amounted to 3,210,000 at the end of the reporting period.
There is one class of shares in Boozt AB (publ). There are no shares with special rights or preferences. Beyond shares, the Company has issued warrants (right to acquire shares under specific terms and conditions).
All shares in the Company are listed. The market value for the Company as per June 30, 2017 amounts to SEK 4,676 million.
In accordance with decision on an extraordinary general meeting on May 10, 2017, a split of the company's shares was conducted whereby one share was split into twelve. The total number of shares after the split amounted to 46,695,540 and the quota value amounted to SEK 0.0833.
In accordance with the decision on the extraordinary general meeting on May 10, 2017, when the board was authorised to decide on a new share issue, and the board decision made on May 30, 2017, a new share issue was performed on May 30, 2017. The new share issue was fully subscribed and raised a gross premium of SEK 400.0 million before issuing costs that amounted to SEK 15.6 million. The number of shares after the new share issue amounted to 56,338,433 and the share capital to SEK 4,694,869. The dilution effect amounted to 12.9 percent, corresponding to 6,451,000 shares and votes.
In conjunction with the listing of Boozt AB's (publ) shares, 2,405,361 issued and distributed warrants were converted to ordinary shares. The conversion was performed by the Company re-purchasing the warrants from the warrant holders to a price based on the final price in the listing, meaning that a debt to the former warrant holders emerged. The debt was converted to ordinary shares in a setoff issue that was performed at the price corresponding to the final price in the listing of the Boozt AB (publ) shares. A consequence of the re-purchase of warrants is that a liability for the company to pay social charges arose. The cost for social charges related to warrant program 2012/2022 has been secured by Boozt AB (publ) issuing 786,532 warrants to a fully owned subsidiary which could be utilised for subscribing to ordinary shares in Boozt AB (publ). The subsidiary has converted the warrants to ordinary shares and subsequently sold them at the time of the listing of the Boozt AB (publ) share. The settlement has been used to pay social charges.
As per closing day, there are no outstanding warrants related to the warrant program 2012/2022.
The Group issued a warrant program for employees identified as key personnel in the Group. The Group CEO is included in this group. A total of 3,210,000 warrants have been issued within the program. Out of these warrants, 767,449 warrants have been issued to a fully owned subsidiary with purpose to counteract cash flow implications related to the social charges that the company will be liable to pay at the redemption date.
The vesting of warrants was triggered in conjunction with the listing of the Company's shares, whereby 33% of the warrants are vested from the issuing date up until 12 months occurring after the first day of trading of the Company's shares on Nasdaq Stockholm, meaning May 31, 2018. 33% of the warrants are vested on the date occurring 24 months after the first day of trading of company's shares. meaning May 31, 2019, and the remaining 34% of the warrants are vested on the date occurring 36 months after the first day of trading of the company's shares, meaning May 31, 2020.
| Date | Event | Change in no of shares and votes |
No of shares and votes after trans action |
Share capital changes |
Share capital after trans action |
|---|---|---|---|---|---|
| May 12, 2017 | Share split 1:12 | 42,804,245 46,695,540 | 0,00 3,891,295 | ||
| May 31, 2017 | Conversion of warrants into shares |
2,405,361 | 49,100,901 | 200,447 | 4,091,742 |
| June 2, 2017 | Sell of shares in own portfolio of shares |
786,532 | 49,887,433 | 65,544 | 4,157,286 |
| June 2, 2017 | New share issue | 6,451,000 56,338,433 | 537,583 4,694,869 |
An Extraordinary General Meeting was held in Malmö on May 10, 2017, and included the following matters:
The Annual General Meeting was held in Malmö on May 15, 2017, and included the following matters:
The Group maintains the following financial targets as adopted by the board of directors at the listing of the Group.
| NET REVENUE | • The Group targets annual net revenue growth in |
|---|---|
| GROWTH | the range of 25-30% in the medium term |
| ADJUSTED EBIT MARGIN |
• The Group targets an adjusted EBIT margin exceeding 6% in the medium term • The Group expects to increase the adjusted EBIT margin annualy as the cost base is further levera- ged by net revenue growth |
For 2017 net revenue growth is expected to exceed the mid 30'ties and adjusted EBIT margin is expected to be at the same level as 2016.
| SEK million unless | |||||||
|---|---|---|---|---|---|---|---|
| otherwise indicated | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Change | Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, | Rolling 12 | |
| 2016 | Change | months | |||||
| Boozt.com | |||||||
| Net revenue | 481.9 | 332.0 | 45.1% | 879.2 | 567.5 | 54.9% | 1,614.8 |
| Transactional net revenue | 490.7 | 353.5 | 38.8% | 892.5 | 611.0 | 46.1% | 1,651.8 |
| EBIT | -79.4 | 4.3 | n.m. | -108.4 | -17.4 | 524.7% | -81.0 |
| EBIT margin (%) | -16.5% | 1.3% | -178 pp | -12.3% | -3.1% | -9. pp | -5.0% |
| Adjusted EBIT | 12.0 | 5.8 | 106.3% | 6.1 | -14.3 | n.m. | 36.9 |
| Adjusted EBIT margin (%) | 2.5% | 1.8% | 0.7 pp | 0.7% | -2.5% | 3.2 pp | 2.3% |
| Site visits (000) | 21,056 | 14,980 | 40.6% | 40,793 | 29,322 | 39.1% | 74,526 |
| No. of orders (000) | 641 | 449 | 42.8% | 1.151 | 803 | 43.3% | 2.112 |
| Conversion rate (%) | 3.05% | 3.00% | 0.05 pp | 2.82% | 2.74% | 0.08 pp | 2.83% |
| Average order value (SEK) | 765 | 787 | -2.8% | 775 | 761 | 1.9% | 782 |
| Booztlet.com | |||||||
| Net revenue | 11.9 | 9.1 | 31.4% | 22.8 | 14.5 | 58.0% | 39.1 |
| Transactional net revenue | 12.1 | 9.2 | 31.4% | 23.1 | 14.6 | 58.1% | 39.6 |
| EBIT | -1.9 | 1.4 | n.m. | -1.2 | 2.0 | n.m. | 0.8 |
| EBIT margin (%) | -15.9% | 15.8% | -31. pp | -5.4% | 14.1% | -19. pp | 2.1% |
| Adjusted EBIT | 0.4 | 1.4 | -69.4% | 1.7 | 2.1 | -17.4% | 3.8 |
| Adjusted EBIT margin (%) | 3.7% | 15.9% | 12 pp | 17.5% | 14.3% | 6.8 pp | 9.8 pp |
| Other | |||||||
| Net revenue | 2.3 | 15.9 | -85.6% | 15.2 | 34.8 | -56.4% | 43.0 |
| Transactional net revenue | 0.8 | 59.1 | -98.7% | 40.4 | 128.4 | -68.6% | 139.0 |
| EBIT | -1.6 | 2.8 | n.m. | 0.6 | 6.8 | -91.7% | 0.6 |
| EBIT margin (%) | -70.7% | 17.8% | -88.5 pp | 3.7% | 19.6% | -15.8 pp | 1.4% |
| Adjusted EBIT | -1.6 | 3.3 | n.m. | 0.6 | 7.8 | -92.7% | 1.6 |
| Adjusted EBIT margin (%) | -70.7% | 20.8% | -91.5 pp | 3.7% | 22.3% | -18.6 pp | 3.8% |
Rounding differences may effect the summations.
For the segment Boozt.com, net revenue increased to SEK 481.9 million (332.0) during the second quarter. Increase of new customer intake and higher buying frequency for existing customers contributes to a higher net revenue. The average order value decreased slightly during the quarter.
For the segment Booztlet.com net revenue increased to SEK 11.9 million (9.1) during the second quarter and is attributable to an increase in new customer intake and a higher buying frequency for existing customers.
For the segment Other, net revenue decreased to SEK 2.3 million (15.9) during the second quarter. The decrease is attributable to the terminated commission sales agreement with ECCO.
For the segment Boozt.com, the transactional net revenue increased to SEK 490.7 million (353.5) during the second quarter. Increase of new customer intake and higher buying frequency for existing customers contributes to a higher transactional net revenue.
For the segment Booztlet.com, transactional net revenue increased to SEK 12.1 million (9.2) during the second quarter.
Increase of new customer intake and higher buying frequency for existing customers contribute to a higher transactional net revenue.
For the segment Other, transactional net revenue decreased to SEK 0.8 million (59.1) during the second quarter. The decrease is attributable to the terminated commission sales agreement with ECCO.
For the segment Boozt.com, EBIT decreased to SEK -79.4 million (4.3) during the second quarter. The decrease in EBIT is mainly attributable to costs for listing of the Company's shares and share base payments to employees that affects the segment.
For the segment Booztlet.com EBIT decreased to SEK -1.9 million (1.4) during the second quarter. The decrease in EBIT is mainly attributable to costs for listing of the Company's shares and share base payments to employees that affects the segment.
For the segment Other, EBIT decreased to SEK -1.6 million (2.8) during the second quarter, mainly explained by the terminated commission sales agreement with ECCO. The segment Other has not been allocated any costs related to the listing of the company's shares.
For the segment Boozt.com, the adjusted EBIT increased with 106.3% to SEK 12.0 million (5.8) during the second quarter. The adjusted EBIT margin improved with 0.7 percentage points to 2.5%.
For the segment Booztlet.com, the adjusted EBIT was affected by higher markdown compared to same period last year.
For the segment Other, EBIT was not affected by share based payments or IPO costs for the period. The period last year, was however affected by share based compensations to employees.
| SEK million unless otherwise indicated Note |
Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| OPERATING INCOME | |||||
| Net revenue 2 |
496.1 | 357.1 | 917.3 | 616.8 | 1.696.9 |
| Other operating income | - | 0.9 | - | 0.9 | 4.0 |
| 496.1 | 357.9 | 917.3 | 617.6 | 1.700.9 | |
| OPERATING COSTS | |||||
| Goods for resale | -276.0 | -199.4 | -510.1 | -345.8 | -930.8 |
| External fulfilment and distribution costs | -76.9 | -55.3 | -163.3 | -101.7 | -285.8 |
| External marketing costs | -65.9 | -51.3 | -129.4 | -95.3 | -239.9 |
| Other external costs | -49.8 | -16.0 | -76.1 | -28.9 | -120.8 |
| Cost of personnel | -99.5 | -24.6 | -130.8 | -48.9 | -179.2 |
| Depreciation and impairment losses | -8.7 | -2.8 | -11.7 | -4.9 | -19.2 |
| Other operating costs | -2.3 | - | -4.9 | -0.6 | -4.9 |
| Total operating costs | -579.1 | -349.3 | -1,026.3 | -6,26.1 | -1,780.5 |
| OPERATING PROFIT/LOSS (EBIT) 2 |
-82.9 | 8.6 | -109.1 | -8.5 | -79.5 |
| FINANCIAL INCOME AND EXPENSES | |||||
| Financial income | 2.7 | - | 5.9 | - | 5.9 |
| Financial expenses | -0.7 | -0.1 | -1.1 | -0.2 | -1.4 |
| Net financial items | 2.0 | -0.1 | 4.9 | -0.2 | 4.5 |
| PROFIT/LOSS BEFORE TAX 2 |
-80.9 | 8.5 | -104.2 | -8.7 | -75.0 |
| Income tax | 12.6 | - | 18.0 | - | 10.3 |
| PROFIT/LOSS FOR THE PERIOD | -68.3 | 8.5 | -86.2 | -8.7 | -64.6 |
| ATTRIBUTABLE TO: | |||||
| Parent company's shareholders | -68.3 | 8.5 | -86.2 | -8.7 | -64.6 |
| Average number of shares | 49,821 | 42,927 | 48,267 | 42,267 | 47,195 |
| Average number of shares after dilution | 52,949 | 42,927 | 51,776 | 42,267 | 48,935 |
| Earnings per share (SEK) | -1.37 | 0.20 | -1.79 | -0.21 | -1.37 |
| Earnings per share after dilution (SEK) | -1.37 | 0.20 | -1.79 | -0.21 | -1.37 |
Rounding differences may effect the summations.
| SEK million | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| PROFIT/LOSS FOR THE PERIOD | -68.3 | 8.5 | -86.2 | -8.7 | -64.6 |
| Items that may be reclassified to the income statement | |||||
| Translation differences | 0.1 | 0.0 | 0.1 | 0.0 | 0.1 |
| Other comprehensive income | -68.2 | 8.5 | -86.1 | -8.7 | -64.5 |
| TOTAL COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD |
-68.2 | 8.5 | -86.1 | -8.7 | -64.5 |
| ATTRIBUTABLE TO | |||||
| Parent company's shareholders | -68.2 | 8.5 | -86.1 | -8.7 | -64.5 |
| SEK million | |||
|---|---|---|---|
| Note ASSETS |
Jun 30, 2017 | Jun 30, 2016 | Dec 31, 2016 |
| Non-current assets | |||
| Intangible assets | |||
| Web platform 4 |
17.3 | 8.9 | 15.0 |
| 17.3 | 8.9 | 15.0 | |
| Tangible assets | |||
| Machinery and equipment 4 |
125.2 | 20.4 | 17.6 |
| 125.2 | 20.4 | 17.6 | |
| Deposits | 15.5 | 9.0 | 9.8 |
| Deferred tax asset | 54.8 | 44.5 | 36.8 |
| 70.3 | 53.5 | 46.6 | |
| Total non-current assets | 212.8 | 82.7 | 79.2 |
| Current assets | |||
| Inventories | 473.4 | 279.1 | 388.8 |
| Accounts receivables | 9.0 | 5.2 | 19.6 |
| Other receivables | 35.3 | 27.6 | 49.7 |
| Current tax assets | 5.3 | 0.4 | 0.4 |
| Prepaid expenses and accrued income | 44.1 | 21.8 | 39.7 |
| Derivatives | 5.9 | - | - |
| Cash and cash equivalents | 551.6 | 205.7 | 221.8 |
| Total current assets | 1,124.7 | 539.9 | 720.1 |
| TOTAL ASSETS | 1,337.5 | 622.6 | 799.3 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 4.7 | 3.8 | 3.9 |
| Other capital contributions | 1,123.3 | 652.9 | 689.2 |
| Reserves | 0.1 | 0.0 | 0.0 |
| Retained earnings including profit for the period | -412.0 | -347.3 | -325.8 |
| Equity attributable to parent company shareholders | 716.1 | 309.3 | 367.3 |
| Non-current liabilities | |||
| Interest bearing liabilities | 55.3 | 1.0 | 8.6 |
| Other provisions | 21.6 | 12.3 | 16.3 |
| Total non-current liabilities | 76.9 | 13.3 | 24.9 |
| Current liabilities | |||
| Interest bearing liabilities | 63.3 | - | 3.4 |
| Accounts payables | 247.4 | 169.3 | 268.8 |
| Current tax liabilities | - | 0.0 | - |
| Other liabilities | 76.6 | 32.5 | 34.6 |
| Accrued expenses and prepaid income | 157.2 | 98.2 | 100.2 |
| Total current liabilities | 544.5 | 300.0 | 407.1 |
| Total liabilities | 621.4 | 313.3 | 432.0 |
| TOTAL EQUITY AND LIABILITIES | 1,337.5 | 622.6 | 799.3 |
| SEK million | Share capital |
Other capital contributions |
Reserves | Profit brought forward incl. profit/loss for the year |
Total equity attributable to parent company shareholders |
|---|---|---|---|---|---|
| Equity brought forward Jan 1, 2016 | 3.5 | 549.2 | - | -338.6 | 214.1 |
| Profit for the period | - | - | - | -8.7 | -8.7 |
| Other comprehensive income | - | - | 0.0 | - | - |
| COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD | - | - | 0.0 | -8.7 | -8.7 |
| New share issue | 0.3 | 103.6 | - | - | 104.0 |
| Cost of new share issue | - | - | - | - | - |
| Sell of shares in own portfolio | - | - | - | - | - |
| Share based compensation | - | - | - | - | - |
| Total transactions with owners | 0.3 | 103.6 | - | - | 104.0 |
| Equity carried forward June 30, 2016 | 3.8 | 652.9 | 0.0 | -347.3 | 309.3 |
Rounding differences may effect the summations.
| SEK million | Share capital |
Other capital contributions |
Reserves | Profit brought forward incl. profit/loss for the year |
Total equity attributable to parent company shareholders |
|---|---|---|---|---|---|
| Equity brought forward Jan 1, 2017 | 3.9 | 689.2 | - | -325.8 | 367.3 |
| Profit for the period | - | - | - | -86.2 | -86.2 |
| Other comprehensive income | - | - | 0.1 | - | 0.1 |
| COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD | - | - | 0.1 | -86.2 | -86.1 |
| New share issue | 0.7 | 399.2 | - | - | 400.0 |
| Cost of new share issue | - | -15.6 | - | - | -15.6 |
| Sell of shares in own portfolio | 0.1 | 46.8 | - | - | 46.9 |
| Share based compensation | - | 3.7 | - | - | 3.7 |
| Total transactions with owners | 0.8 | 434.1 | - | - | 434.9 |
| Equity carried forward June 30, 2017 | 4.7 | 1,123.3 | 0.1 | -412.0 | 716.1 |
| SEK million Note |
Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1- Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL |
|||||
| Operating profit | -82.9 | 8.6 | -109.1 | -8.5 | -79.5 |
| Adjustments for non-cash items: | |||||
| Non-cash renumeration from share based payments (social charges) |
3.2 | 2.0 | 5.3 | 4.0 | 13.3 |
| Non-cash renumeration from share based payments | 3.7 | - | 3.7 | - | 3.7 |
| Depreciation and impairment losses | 8.7 | 2.8 | 11.7 | 4.9 | 19.2 |
| Other items not included in cash flow | -0.0 | -0.1 | -0.1 | 0.0 | 0.1 |
| Interest received | - | - | - | - | - |
| Interest paid | -0.7 | -0.1 | -1.1 | -0.2 | -1.4 |
| Paid income tax | 4.0 | -0.0 | -4.9 | 0.1 | -4.9 |
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL |
-64.1 | 13.2 | -94.4 | 0.3 | -49.5 |
| CASH FLOW FROM CHANGES IN WORKING CAPITAL | |||||
| Changes in inventory | 23.7 | 19.9 | -84.6 | -39.2 | -194.3 |
| Changes in current assets | -22.6 | 11.2 | 20.6 | -15.2 | 9.5 |
| Changes in current liabilities | 80.3 | 38.6 | 77.5 | 78.1 | 181.2 |
| Cashflow from changes in working capital | 81.5 | 69.7 | 13.6 | 23.8 | -3.6 |
| CASH FLOW FROM OPERATING ACTIVITIES | 17.4 | 82.9 | -80.9 | 24.1 | -53.0 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||||
| Acquisition of subsidiaries | 4 - |
- | - | - | - |
| Investments in fixed assets | 4 -113.6 |
-2.6 | -116.5 | -20.9 | -119.2 |
| Investments in financial assets | 4 -5.5 |
-0.1 | -5.8 | -0.1 | -6.5 |
| Investments in intangible assets | 4 -2.5 |
-1.3 | -4.8 | -2.2 | -13.1 |
| CASH FLOW FROM INVESTING ACTIVITIES | -121.7 | -3.9 | -127.1 | -23.2 | -138.8 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| New share issue | 431.2 | 104.0 | 431.2 | 104.0 | 431.2 |
| New loans | 124.2 | - | 124.2 | 1.0 | 124.2 |
| Repayment of loans | -17.6 | - | -17.6 | - | -17.6 |
| Change in overdraft facility | - | - | - | - | - |
| CASH FLOW FROM FINANCING ACTIVITIES | 537.8 | 104.0 | 537.8 | 105.0 | 537.8 |
| Cash flow for the period | 433.6 | 182.9 | 329.9 | 105.8 | 345.9 |
| Currency exchange gains/losses in cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents beginning of period | 118.1 | 22.8 | 221.8 | 99.9 | 205.7 |
| CASH AND CASH EQUIVALENTS END OF PERIOD | 551.6 | 205.7 | 551.6 | 205.7 | 551.6 |
The report is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting and measurement policies, as well as the assessment bases, applied in the 2016 Annual Report have also been applied in this quarterly report.
During 2017 the Group for the first-time applied hedge accounting with purpose to manage translational exposure for transactions relating to sales in foreign currencies.
The Group has entered into agreements whereby the Group has a right to purchase EUR and/or SEK at a pre-defined price at a given time with purpose to manage translational exposure of NOK. Realised profits/losses related to the agreement is recognised in the Group's income statement. An assessment of un-realised future cash flows is calculated at each reporting date to discounted value on the spot market (rate at balance sheet day) and are recognised as derivative assets respectively liabilities.
No new or revised IFRS-standards that came into force in the first half of 2017 have had any significant impact on the Group.
IFRS 15 replaces all previously issued standards and interpretations which manage revenue with a comprehensive model for revenue recognition.
99% of the Group's current revenue streams consist of sales of goods with a right of return. For sales with a right of return, revenues are not recognised for products that are expected to be returned. Any received payments for expected returns shall be reported as debt for re-payment. The expected rate of return is to be calculated reliably. The Group's current principle for sale of goods with a right of return is made in accordance with the principle described above. Expected rate of returns are calculated with a consistent model used over time and based on historical data. To identify whether the Group's existing accounting principles are affected by the introduction of IFRS 15, a pre-study has been completed in the second quarter of 2017. In the pre-study, an analysis of all revenue streams in accordance with the five-step model described in IFRS 15 has been performed. Based on the pre-study, the Group's income statement is not expected to be significantly affected by the introduction of IFRS 15. However, a consequence of the introduction of IFRS 15 is that the Group will report an amount corresponding to the cost of sold goods for which a reserve is made as inventory. Previously, this amount was deducted from the recognised provision for expected returns. Thus, the Group will report a higher value of assets and a higher value for provision for expected returns after implementing IFRS 15. No effects affecting how revenue is recognised in the income statement will occur when implementing IFRS 15.
IFRS 9 Financial Instruments will replace IAS 39 Financial Instruments: Accounting and valuation. The new standard entails new starting points for classification a valuation of financial instruments, a forward-looking write-down model and simplified conditions for hedge accounting. To identify whether the Group's existing accounting principles are affected by the introduction of IFRS 9, a pre-study has been completed in the second quarter of 2017. Based on the pre-study, the Group's accounting is not deemed to be materially affected by the implementation of IFRS 9.
In the Group's quarterly report for the first quarter of 2017 the important estimates and assessments relating to the warrant programs issued by the Group were described.
In connection with the listing of Boozt AB's (publ) shares which was performed on May 31, 2017, the warrant program 2012/2022 was redeemed as described on page 13 in this report.
For warrant program 2015/2025, a probability assessment of the proportion of warrant holders expected to fulfil the terms and conditions that gives them a right to exercise the issued warrants is performed at each reporting date. The assessment is thereby a factor in the calculation of the liability (social charges) for share based payments to employees for the period.
Estimates and assumptions are in all other aspects the same as stated in the Group's financial statement for 2016.
For the Parent Company. Boozt AB (publ), the financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The reporting currency is SEK and all figures in the interim report are rounded to the nearest million.
| SEK million | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Change | Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Change | Rolling 12 months |
|---|---|---|---|---|---|---|---|
| NET REVENUE | |||||||
| Boozt.com | 481.9 | 332.0 | 149.8 | 879.2 | 567.5 | 311.7 | 1.614.8 |
| Booztlet.com | 11.9 | 9.1 | 2.9 | 22.8 | 14.5 | 8.4 | 39.1 |
| Other | 2.3 | 15.9 | -13.6 | 15.2 | 34.8 | -19.6 | 43.0 |
| TOTAL NET REVENUE | 496.1 | 357.1 | 139.1 | 917.3 | 616.8 | 300.5 | 1,696.9 |
| EBIT | |||||||
| Boozt.com | -79.4 | 4.3 | -83.7 | -108.4 | -17.4 | -91.0 | -81.0 |
| Booztlet.com | -1.9 | 1.4 | -3.3 | -1.2 | 2.0 | -3.3 | 0.8 |
| Other | -1.6 | 2.8 | -4.5 | 0.6 | 6.8 | -6.3 | 0.6 |
| TOTAL OPERATING PROFIT/LOSS |
-82.9 | 8.6 | -91.5 | -109.1 | -8.5 | -100.6 | -79.5 |
| PROFIT/LOSS BEFORE TAX |
|||||||
| Boozt.com | -77.4 | 4.2 | -81.7 | -103.7 | -17.6 | -86.1 | -76.6 |
| Booztlet.com | -1.9 | 1.4 | -3.3 | -1.1 | 2.0 | -3.1 | 0.9 |
| Other | -1.6 | 2.8 | -4.5 | 0.6 | 6.8 | -6.3 | 0.6 |
| PROFIT/LOSS BEFORE TAX |
-80.9 | 8.5 | -89.4 | -104.2 | -8.7 | -95.5 | -75.0 |
Rounding differences may effect the summations.
The Group reports operating segments in accordance with IFRS 8. The Group's operations are divided into three segments which constitute 100% of the revenue generated. The Group reports net revenue, EBIT and Operating profit before tax for each of the operating segments. No information on segment assets or liabilities is provided.
| Jun 30 2017 | Accounts receivable and loans receivable |
Other financial liabilitites |
Financial assets measured at fair value via income statement |
Total carrying amount |
Fair value |
|---|---|---|---|---|---|
| Financial assets | |||||
| Deposits | 15.5 | - | - | 15.5 | 15.5 |
| Accounts receivables | 9.0 | - | - | 9.0 | 9.0 |
| Other receivables | 35.3 | - | - | 35.3 | 35.3 |
| Derivatives | - | - | 5.9 | 5.9 | 5.9 |
| Cash and cash equivalents | 551.6 | - | - | 551.6 | 551.6 |
| Total financial assets | 611.5 | - | 5.9 | 617.4 | 617.4 |
| Financial liabilities | |||||
| Liabilities to credit institutions | - | 118.6 | - | 118.6 | 118.6 |
| Accounts payables | - | 247.4 | - | 247.4 | 247.4 |
| Other liabilities | - | 76.6 | - | 76.6 | 76.6 |
| Total financial liabilities | - | 442.6 | - | 442.6 | 442.6 |
| Jun 30 2016 | Accounts receivable and loans receivable |
Other financial liabilitites |
Financial assets measured at fair value via income statement |
Total carrying amount |
Fair value |
|---|---|---|---|---|---|
| Financial assets | |||||
| Deposits | 9.0 | - | - | 9.0 | 9.0 |
| Accounts receivables | 5.2 | - | - | 5.2 | 5.2 |
| Other receivables | 27.6 | - | - | 27.6 | 27.6 |
| Derivatives | - | - | - | - | - |
| Cash and cash equivalents | 205.7 | - | - | 205.7 | 205.7 |
| Total financial assets | 247.5 | - | - | 247.5 | 247.5 |
| Financial liabilities | |||||
| Liabilities to credit institutions | |||||
| Accounts payables | - | 1.0 | - | 1.0 | 1.0 |
| Other liabilities | - | 169.3 | - | 169.3 | 169.3 |
| Total financial liabilities | - | 32.5 | - | 32.5 | 32.5 |
Rounding differences may effect the summations.
For the current financial year, the fair value of financial assets and liabilities is considered to be close to the carrying amount, after which the carrying amount is estimated to be the same as the fair value.
The fair value is calculated as defined for level 2 in IFRS 7.
During the second quarter of 2017, the Group signed an agreement on a revolving credit facility with Danske Bank. The facility amounts to SEK 140.0 million, whereof SEK 60.0 million is accessible to the Group at all times (overdraft facility). To access the remaining SEK 80.0 million the Group must notify the bank. The revolving credit facility is contracted for 2 years as from the date of the listing of Boozt AB (publ), meaning until May 31, 2019. The revolving credit facility has not been used during the period.
During the second quarter, the Group also signed a hire-purchase agreement with Danske Bank for the automated storage and retrieval system AutoStore and a conveyer belt for the fulfilment centre. 30% of the assets value is paid at the transfer of the assets, and the remaining 70% is re-paid during a 5-year period. At the reporting date, the financial liabilities relating to the assets acquired amounted to a total of SEK 118.6 million, which exceeds the total value of the acquired assets. This is due to the down-payment of the initial 30% being settled in July 2017. The liabilities at the reporting date also includes VAT for the acquired assets that was paid by the financier. The VAT will be settled with the financier during the third quarter of 2017 and since the VAT is deductible for the company a receivable with the corresponding amount will be settled with the tax authorities.
| SEK million | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| Acquisition of machinery and equipment (other capex) | -4.9 | -2.6 | -5.7 | -5.1 | -8.4 |
| Acquisition of machinery and equipment (warehouse automation capex) |
-104.9 | - | -106.0 | - | -106.0 |
| Acquisition of machinery and equipment (warehouse capex) | -3.9 | - | -4.8 | -15.9 | -4.8 |
| -113.6 | -2.6 | -116.5 | -20.9 | -119.2 | |
| Acquisition of financial assets | -5.5 | -0.1 | -5.8 | -0.1 | -6.5 |
| -5.5 | -0.1 | -5.8 | -0.1 | -6.5 | |
| Acquisition of intangible assets (capitalised development costs) | -1.7 | -1.3 | -3.3 | -2.6 | -6.1 |
| Acquisition of intangible assets (other) | -0.8 | 0.1 | -1.5 | 0.4 | -7.0 |
| -2.5 | -1.3 | -4.8 | -2.2 | -13.1 | |
| CASH FLOW FROM INVESTMENTS | -121.7 | -3.9 | -127.1 | -23.2 | -138.8 |
| SEK million | Apr 1 - Jun 30. 2017 |
Apr 1 - Jun 30. 2016 |
Jan 1 - Jun 30. 2017 |
Jan 1 - Jun 30. 2016 |
|---|---|---|---|---|
| OPERATING INCOME | ||||
| Net revenue | 63.9 | - | 69.8 | - |
| Total operating income | 63.9 | - | 69.8 | - |
| OPERATING COSTS | ||||
| Other operating expenses | -25.3 | - | -27.6 | - |
| Cost of personnel | -61.2 | - | -66.2 | - |
| Total operating costs | -86.6 | - | -93.8 | - |
| OPERATING PROFIT | -22.7 | - | -24.1 | - |
| PROFIT/LOSS FOR THE PERIOD | -22.7 | - | -24.1 | - |
Rounding differences may effect the summations.
| SEK million | Apr 1 - Jun 30. | Apr 1 - Jun 30. | Jan 1 - Jun 30. | Jan 1 - Jun 30. |
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| PROFIT/LOSS FOR THE PERIOD | -22.7 | - | -24.1 | - |
| Other comprehensive income | - | - | - | - |
| COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD | -22.7 | - | -24.1 | - |
| -22.7 | - | -24.1 | - |
| SEK million | 30 jun, 2017 | 30 jun, 2016 | 31 dec, 2016 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Financial assets | |||
| Shares in Group companies | 362.9 | 326.5 | 362.9 |
| Total fixed assets | 362.9 | 326.5 | 362.9 |
| Current assets | |||
| Short term receivables | |||
| Accounts receivables | 71.7 | - | - |
| Receivables from Group companies | 375.2 | - | - |
| Current tax assets | 1.2 | - | - |
| Cash and cash equivalents | 34.1 | 0.0 | 0.0 |
| Total current assets | 482.1 | 0.0 | 0.0 |
| TOTAL ASSETS | 845.0 | 326.5 | 362.9 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 4.7 | 3.8 | 3.9 |
| 4.7 | 3.8 | 3.9 | |
| Unrestricted equity | |||
| Share premium reserve | 1,081.8 | 652.9 | 689.2 |
| Retained earnings | -330.7 | -330.5 | -330.5 |
| Net income for the period | -24.1 | - | -0.2 |
| 727.1 | 322.3 | 358.5 | |
| Total equity | 731.8 | 326.1 | 362.4 |
| LIABILITIES | |||
| Current liabilities | |||
| Accounts payables | 16.7 | - | 0.1 |
| Liabilities to Group companies | - | 0.4 | 0.5 |
| Other liabilities | 38.6 | - | -0.0 |
| Accrued expenses and prepaid income | 58.0 | - | - |
| Total current liabilities | 113.3 | 0.4 | 0.5 |
| TOTAL EQUITY AND LIABILITIES | 845.0 | 326.5 | 362.9 |
| SEK million | Share capital |
Share premium reserve |
Profit/loss brought forward |
Total equity |
|---|---|---|---|---|
| Equity as per Jan 1, 2016 | 3.5 | 549.2 | -330.5 | 222.2 |
| Net income | - | - | - | - |
| Other comprehensive income | - | - | - | - |
| TOTAL COMPREHENSIVE INCOME | - | - | - | - |
| New share issue | 0.3 | 103.6 | - | 104.0 |
| Cost of share issue | - | - | - | - |
| Sell of shares in own portfolio | - | - | - | - |
| Total transactions with owners | 0.3 | 103.6 | - | 104.0 |
| Equity as per June 30, 2016 | 3.8 | 652.9 | -330.5 | 326.1 |
Rounding differences may effect the summations.
| SEK million | Share capital |
Share premium reserve |
Profit/loss brought forward |
Total equity |
|---|---|---|---|---|
| Equity as per Jan 1, 2017 | 3.9 | 689.2 | -330.7 | 362.4 |
| Net income | - | - | -24.1 | -24.1 |
| Other comprehensive income | - | - | - | - |
| TOTAL COMPREHENSIVE INCOME | - | - | -24.1 | -24.1 |
| New share issue | 0.7 | 361.4 | - | 362.2 |
| Cost of share issue | - | -15.6 | - | -15.6 |
| Sell of shares in own portfolio | 0.1 | 46.8 | - | 46.9 |
| Total transactions with owners | 0.8 | 392.6 | - | 393.4 |
| Equity as per June 30, 2017 | 4.7 | 1,081.8 | -354.7 | 731.8 |
This report has not been audited by the Company's auditors.
The undersigned certify that this interim report gives an overview of the Parent Company's and the Group's operations, financial position, performance and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.
Malmö, August 24, 2017
HENRIK THEILBJØRN Chairman of the Board HERMANN HARALDSSON Group CEO
JIMMY FUSSING NIELSEN STAFFAN MÖRNDAL
GERD RAHBEK-CLEMMENSEN KENT STEVENS LARSEN
JÓN BJÖRNSSON LOTTA LUNDÉN
CHARLOTTE SVENSSON
| INCOME STATEMENT |
STATEMENT OF FINANCIAL POSITION STATEMENT OF CASH FLOW |
Operating Investing activities activities -41.8 - - - - - -41.8 - -22.5 - -15.3 - -2.3 - -40.0 - - - |
||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Profit/loss for the period Apr 1 - Jun 30 |
Balance sheet total |
Equity | Liabilities | Total | Financing activities |
||
| Share based compensations to employees | ||||||||
| Warrant program 2012/2022¹⁾ ²⁾ | - | - | 41.8 | -41.8 | - | 41.8 | ||
| Warrant program 2012/2022²⁾ | -23.4 | - | -23.4 | 23.4 | - | - | ||
| Warrant program 2015/2025²⁾ | -14.8 | - | -10.6 | 10.6 | - | - | ||
| -38.2 | - | 7.8 | -7.8 | - | 41.8 | |||
| IPO preparation costs | ||||||||
| IPO preparation costs (affecting the Group) | -22.5 | -22.5 | -22.5 | - | -22.5 | - | ||
| Lock up-bonuses | -15.3 | -15.3 | -15.3 | - | -15.3 | - | ||
| Transactional bonuses | -2.3 | -2.3 | -2.3 | - | -2.3 | - | ||
| -40.0 | -40.0 | -40.0 | - | -40.0 | - | |||
| Other items affecting comparability | ||||||||
| Costs related to moving the BFC | - | - | - | - | - | - | ||
| - | - | - | - | - | - | - | - | |
| Investments related to BFC | ||||||||
| Inventory equipment (AutoStore and other inventory investments)³⁾ |
- | 70.0 | - | 70.0 | -30.0 | - | -100.0 | 70.0 |
| - | 70.0 | - | 70.0 | -30.0 | - | -100.0 | 70.0 | |
| TOTAL | -78.2 | 30.0 | -32.2 | 62.2 | -70.0 | -81.8 | -100.0 | 111.8 |
1) Held in own portfolio of warrants.
2) With the purpose to counteract cash flow implications of costs for social charges, the Group held 928,116 warrants related to warrant program 2012/2022 in its own portfolio of warrants.
3) 70 percent of the investment is financed by a hire-purchase agreement with Danske Bank, with a pay-back period of five years.
| INCOME STATEMENT |
STATEMENT OF FINANCIAL POSITION | STATEMENT OF CASH FLOW | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Profit/loss for the period Apr 1 - Jun 30 |
Balance sheet total |
Equity | Liabilities | Total | Operating activities |
Investing activities |
Financing activities |
| Share based compensations to employees | ||||||||
| Warrant program 2012/2022¹⁾ ²⁾ | - | - | 46.9 | -42.4 | 4.4 | -42.4 | - | 46.9 |
| Warrant program 2012/2022²⁾ | -24.1 | - | -24.1 | 24.1 | - | - | - | - |
| Warrant program 2015/2025³⁾ | -25.3 | - | -21.6 | 21.6 | - | - | - | - |
| -49.4 | - | 1.2 | 3.2 | 4.4 | -42.4 | - | 46.9 | |
| IPO preparation costs | ||||||||
| IPO preparation costs (affecting the Group) | -25.3 | -25.3 | -25.3 | - | -25.3 | -25.3 | - | - |
| Lock up-bonuses | -15.3 | -15.3 | -15.3 | - | -15.3 | -15.3 | - | - |
| Transactional bonuses | -2.3 | -2.3 | -2.3 | - | -2.3 | -2.3 | - | - |
| -42.8 | -42.8 | -42.8 | - | -42.8 | -42.8 | - | - | |
| Other items affecting comparability | ||||||||
| Costs related to moving the BFC⁴⁾ | -1.6 | -1.6 | -1.6 | - | -1.6 | -1.6 | - | - |
| -1.6 | -1.6 | -1.6 | - | -1.6 | -1.6 | - | - | |
| Investments related to BFC | ||||||||
| Inventory equipment (AutoStore and other inventory investments) |
- | 69.6 | - | 69.6 | -29.8 | - | -99.4 | 69.6 |
| - | 69.6 | - | 69.6 | -29.8 | - | -99.4 | 69.6 | |
| TOTAL | -93.8 | 25.1 | -43.3 | 69.8 | -69.8 | -86.9 | -99.4 | 116.4 |
1) Held in own portfolio of warrants.
2) At the exercise of the warrant program 2012/2022 a positive effect in equity amounting to SEK 4.4 million occured. The effect occured since the company for pre-cautionary reasons held warrants with a value exceeding the cost for social charges relating to the warrant program.
3) For warrant program 2015/2025, the realised costs are significantly higher than the estimated costs published in the prospectus. The deviation is primarily explained by a higher actual share price at the end of the reporting period than the share price used in the calculation in the prospectus.
4) Additional costs for moving the BFC is related to closing of the Group's old warehouse.
With purpose to counteract cash flow implications of costs for social charges the Group holds 767,449 warrants related to warrant program 2015/2025 in its own portfolio of warrants.
| SEK million | Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net revenue | ||||||||||||
| Boozt.com | 481.9 | 397.4 | 447.2 | 288.3 | 332.0 | 235.5 | 268.7 | 160.8 | 195.1 | 123.8 | 159.4 | 103.5 |
| Booztlet.com | 11.9 | 10.9 | 7.9 | 8.4 | 9.1 | 5.4 | 1.8 | 0.4 | - | - | - | - |
| Other | 2.3 | 12.9 | 12.2 | 15.5 | 15.9 | 18.9 | 14.5 | 18.3 | 17.5 | 16.3 | 14.7 | 17.8 |
| NET REVENUE | 496.1 | 421.1 | 467.3 | 312.3 | 357.1 | 259.7 | 285.0 | 179.5 | 212.6 | 140.2 | 174.1 | 121.3 |
| OPERATING PROFIT/LOSS (EBIT) | ||||||||||||
| Boozt.com | -79.4 | -29.0 | 45.7 | -18.3 | 4.3 | -21.7 | 13.5 | -16.2 | -4.9 | -15.0 | -13.3 | -22.9 |
| Booztlet.com | -1.9 | 0.7 | 0.5 | 1.6 | 1.4 | 0.6 | -0.3 | 0.0 | - | - | - | - |
| Other | -1.6 | 2.2 | -0.5 | 0.5 | 2.8 | 4.0 | 1.9 | 3.8 | 5.0 | 4.4 | 2.3 | 4.4 |
| OPERATING PROFIT/LOSS (EBIT) | -82.9 | -26.1 | 45.8 | -16.2 | 8.6 | -17.1 | 15.2 | -12.5 | 0.1 | -10.5 | -11.0 | -18.4 |
| OPERATING PROFIT/LOSS (EBIT) % | ||||||||||||
| Boozt.com | -16.5% | -7.3% | 10.2% | -6.4% | 1.3% | -9.2% | 5.0% | -10.1% | -2.5% | -12.1% | -8.3% | -22.1% |
| Booztlet.com | -15.9% | 6.1% | 6.5% | 18.6% | 15.8% | 11.3% | -14.7% | -9.3% | n.a. | n.a. | n.a. | n.a. |
| Other | -70.7% | 17.0% | -3.7% | 3.3% | 17.8% | 21.0% | 13.0% | 20.8% | 28.5% | 27.1% | 15.3% | 25.0% |
| OPERATING PROFIT/LOSS (EBIT) % | -16.7% | -6.2% | 9.8% | -5.2% | 2.4% | -6.6% | 5.3% | -6.9% | 0.1% | -7.5% | -6.3% | -15.2% |
| ADJUSTED EBIT | ||||||||||||
| Boozt.com | 12.0 | -6.0 | 47.6 | -16.8 | 5.8 | -20.1 | 14.8 | -15.0 | -3.6 | -13.7 | -13.1 | -22.7 |
| Booztlet.com | 0.4 | 1.3 | 0.6 | 1.6 | 1.4 | 0.6 | -0.3 | -0.0 | - | - | - | - |
| Other | -1.6 | 2.2 | 0.1 | 1.0 | 3.3 | 4.4 | 2.4 | 4.3 | 5.5 | 4.9 | 2.4 | 4.6 |
| ADJUSTED EBIT | 10.9 | -2.5 | 48.3 | -14.2 | 10.6 | -15.1 | 16.9 | -10.7 | 1.9 | -8.8 | -10.7 | -18.1 |
| ADJUSTED EBIT % | ||||||||||||
| Boozt.com | 2.5% | -1.5% | 10.6% | -5.8% | 1.8% | -8.6% | 5.5% | -9.3% | -1.9% | -11.1% | -8.2% | -21.9% |
| Booztlet.com | 3.7% | 11.6% | 7.3% | 18.7% | 15.9% | 11.5% | -14.2% | -9.3% | n.a. | n.a. | n.a. | n.a. |
| Other | -70.7% | 17.0% | 0.6% | 6.4% | 20.8% | 23.5% | 16.4% | 23.5% | 31.2% | 30.1% | 16.1% | 25.6% |
| ADJUSTED EBIT % | 2.2% | -0.6% | 10.3% | -4.6% | 3.0% | -5.8% | 5.9% | -6.0% | 0.9% | -6.3% | -6.1% | -14.9% |
| GROSS MARGIN (%) | 44.4% | 44.4% | 45.2% | 47.3% | 44.2% | 43.6% | 48.0% | 49.5% | 47.5% | 50.9% | 51.5% | 51.5% |
| Fulfilment cost ratio (%) | -15.5% | -20.5% | -14.1% | -18.1% | -15.5% | -17.9% | -14.2% | -20.3% | -16.0% | -20.2% | -17.2% | -19.2% |
| Marketing cost ratio (%) | -13.3% | -15.1% | -11.3% | -18.5% | -14.4% | -17.0% | -12.9% | -16.9% | -15.5% | -16.9% | -21.3% | -27.1% |
| Admin & other cost ratio (%) | -30.5% | -14.3% | -9.0% | -15.0% | -11.1% | -14.5% | -15.2% | -18.5% | -15.2% | -20.3% | -16.0% | -19.2% |
| Depreciation cost ratio (%) | -1.8% | -0.7% | -1.0% | -1.0% | -0.8% | -0.8% | -0.4% | -0.7% | -0.6% | -1.0% | -3.3% | -1.3% |
| EBIT MARGIN (%) | -16.7% | -6.2% | 9.8% | -5.2% | 2.4% | -6.6% | 5.3% | -6.9% | 0.1% | -7.5% | -6.3% | -15.2% |
| Active customers: | Number of customers which made at least one order in the last 12 months |
|---|---|
| Adjusted EBIT: | Profit/loss before interest, tax, share based payments related to employees and items affecting comparability |
| Adjusted EBIT margin: | Adjusted EBIT divided by net revenue |
| Adjusted EBITDA: | Profit/loss before interest, tax, depreciation, amortisation, share based payments related to employees and items affecting comparability |
| Adjusted EBITDA margin: | Adjusted EBITDA divided by net revenue |
| Admin & Other cost ratio: | Total operating costs less fulfilment costs, less marketing costs, less goods for resale plus depreciation and other operating income divided by net revenue |
| Average order value: | Transactional net revenue divided by no. of orders |
| BFC: | Boozt Fulfilment Centre |
| Conversion rate: | Total number of orders divided by site visits |
| Earnings per share: | Profit/loss for the period divided by weighted average number of shares outstanding during the period |
| Earnings per share after dilution: | Profit/loss for the period divided by diluted weighted average number of shares outstanding during the period. The number of ordinary shares shall be the weighted average number of shares, used when measuring basic earnings per share, plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential shares into ordinary shares. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share. In addition, dilutive potential shares are only considered in the calculation of diluted earnings per share if the performance condition (i.e., IPO) are satisfied as of the end of the reporting period |
| Equity / asset ratio: | Total equity divided by total assets |
| Fulfilment cost ratio: | Fulfilment and distribution cost divided by net revenue |
| Items affecting comparability: | Items that are not related with the operations and are the type of item that are not expected to re-occur often or regularly and that it is an items of significant value |
| Marketing cost ratio: | Marketing cost divided by net revenue |
| Net working capital: | Current assets, excluding cash and cash equivalents, less non-interest bearing current liabilities |
| Net debt / net cash: | Interest bearing liabilities less cash and cash equivalents |
| Net revenue: | Transactional net revenue less fees paid to consignment partners plus other revenue |
| No. of orders: | Number of orders placed by customers during the period, irrespective of cancellations or returns |
| No. of orders per active customer: | Number of orders in the last 12 months divided by the number of active customers end of period |
| Site visits: | Number of visits to a site or group of sites, irrespective of device used |
| Share based payments: | Costs of the Group which are settled via issuing of shares |
| Transactional net revenue: | Gross sales (incl. shipping and invoice income) less discounts and returns, excl. VAT |
| True frequency: | Order frequency for customers that have been with Boozt.com during last 12 months, hence not impacted by orders from new customers |
The aim of the figure is to display the operating profit excluding non-cash items and non-recurring items. Hence share based compensation related to employees and items affecting comparability are excluded from this metric.
The aim of this figure is to display profit/loss before depreciation and amortisation excluding non-cash items and non-recurring items, hence the operating profit/ loss from the day to day operation excluding effects from investments, share based compensation related to employees and items affecting comparability.
The aim of this figure is to display the profit/loss before interests, depreciation, and amortisation. Hence the operating profit/loss from the day to day operation excluding effects from investments.
The purpose of displaying net working capital is to display short-term financial health since the measure indicate if the company has enough short-term assets to cover its short-term debt. Net working capital can be put in relation to net revenues to understand efficiency of net working capital tied up in operations.
The aim of the figure is to display the total consumer value of the orders processed less returns and excluding VAT. Transactional net revenue less fee to consignment partners plus other revenue not related to consumer orders equals net revenue. The transactional net revenue can be calculated as average order value (AOV) multiplied with no. of orders.
| SEK million | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| GROUP | |||||
| Transactional net revenue | 503.6 | 421.9 | 955.9 | 754.0 | 1.830.4 |
| Less consignment sales | -11.8 | -64.8 | -47.6 | -137.2 | -144.7 |
| Other revenue | 4.4 | - | 9.0 | - | 11.2 |
| Net revenue | 496.1 | 357.1 | 917.3 | 616.8 | 1,696.9 |
| Other operating income | - | 0.9 | - | 0.9 | 4.0 |
| Total operating income | 496.1 | 357.9 | 917.3 | 617.6 | 1,700.9 |
| BOOZT.COM | |||||
| Transactional net revenue | 490.7 | 353.5 | 892.5 | 611.0 | 1.651.8 |
| Less consignment sales | -13.2 | -21.5 | -22.2 | -43.5 | -48.2 |
| Other revenue | 4.4 | - | 9.0 | - | 11.2 |
| Net revenue | 481.9 | 332.0 | 879.2 | 567.5 | 1,614.8 |
| Other operating income | - | 0.9 | - | 0.9 | 4.0 |
| Total operating income | 481.9 | 332.9 | 879.2 | 568.4 | 1,618.8 |
| BOOZTLET.COM | |||||
| Transactional net revenue | 12.1 | 9.2 | 23.1 | 14.6 | 39.6 |
| Less consignment sales | -0.1 | -0.1 | -0.3 | -0.2 | -0.5 |
| Other revenue | - | - | - | - | - |
| Net revenue | 11.9 | 9.1 | 22.8 | 14.5 | 39.1 |
| Other operating income | - | - | - | - | - |
| Total operating income | 11.9 | 9.1 | 22.8 | 14.5 | 39.1 |
| OTHER | |||||
| Transactional net revenue | 0.8 | 59.1 | 40.4 | 128.4 | 139.0 |
| Less consignment sales | 1.5 | -43.2 | -25.2 | -93.6 | -96.0 |
| Other revenue | - | - | - | - | - |
| Net revenue | 2.3 | 15.9 | 15.2 | 34.8 | 43.0 |
| Other operating income | - | - | - | - | - |
| Total operating income | 2.3 | 15.9 | 15.2 | 34.8 | 43.0 |
| SEK million | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| EBIT | -82.9 | 8.6 | -109.1 | -8.5 | -79.5 |
| Share-based payments related to employees (social charges) |
45.7 | 2.0 | 47.7 | 4.0 | 51.7 |
| Share-based payments related to employees | 3.7 | - | 3.7 | - | 3.7 |
| IPO preparation costs | 42.8 | - | 45.4 | - | 45.9 |
| Other items affecting comparability* | 1.6 | - | 20.6 | - | 20.6 |
| Adjusted EBIT | 10.9 | 10.6 | 8.3 | -4.5 | 42.4 |
Rounding differences may effect the summations.
*Other items affecting comparability are related to the Group's warehouse move.
| SEK million unless otherwise indicated | Apr 1 - Jun 30, 2017 |
Apr 1 - Jun 30, 2016 |
Jan 1 - Jun 30, 2017 |
Jan 1 - Jun 30, 2016 |
Rolling 12 months |
|---|---|---|---|---|---|
| Cash and cash equivalents | -551.6 | -205.7 | -551.6 | -205.7 | -551.6 |
| Convertible loan | - | - | - | - | - |
| Interest bearing liabilities (current and non-current) | 118.6 | 1.0 | 118.6 | 1.0 | 118.6 |
| Revolving credit facilities | - | - | - | - | - |
| Net debt / -net cash | -433.0 | -204.7 | -433.0 | -204.7 | -433.0 |
| Total equity | 716.1 | 309.3 | 716.1 | 309.3 | 716.1 |
| Total assets | 1.337.5 | 622.6 | 1.337.5 | 622.6 | 1.337.5 |
| Equity / asset ratio | 53.5% | 49.7% | 53.5% | 49.7% | 53.5% |
| No. of orders (000) | 641 | 449 | 1 151 | 803 | 2 112 |
| Site visits (000) | 21.056 | 14.980 | 40.793 | 29.322 | 74.526 |
| Conversion rate (Boozt.com) | 3.05% | 3.00% | 2.82% | 2.74% | 2.83% |
| Inventory | 473.4 | 279.1 | 473.4 | 279.1 | 473.4 |
| Accounts receivables | 9.0 | 5.2 | 9.0 | 5.2 | 9.0 |
| Other receivables | 35.3 | 27.6 | 35.3 | 27.6 | 35.3 |
| Current tax assets | 5.3 | 0.4 | 5.3 | 0.4 | 5.3 |
| Pre-paid expenses and accrued income | 44.1 | 21.8 | 44.1 | 21.8 | 44.1 |
| Accounts payables | -247.4 | -169.3 | -247.4 | -169.3 | -247.4 |
| Current tax liabilities | - | -0.0 | - | -0.0 | - |
| Other liabilities | -76.6 | -32.5 | -76.6 | -32.5 | -76.6 |
| Accrued expenses and pre-paid income | -157.2 | -98.2 | -157.2 | -98.2 | -157.2 |
| Net working capital | 85.9 | 34.2 | 85.9 | 34.2 | 85.9 |
| Gross margin (%) | 44.4% | 44.2% | 44.4% | 43.9% | 45.1% |
| Fulfilment cost ratio (%) | -15.5% | -15.5% | -17.8% | -16.5% | -16.8% |
| Marketing cost ratio (%) | -13.3% | -14.4% | -14.1% | -15.5% | -14.1% |
| Admin & other cost ratio (%) | -30.5% | -11.1% | -23.1% | -12.6% | -17.7% |
| Depreciation cost ratio (%) | -1.8% | -0.8% | -1.3% | -0.8% | -1.1% |
| EBIT margin (%) | -16.7% | 2.4% | -11.9% | -1.4% | -4.7% |
| Operating profit/loss (EBIT) | -82.9 | 8.6 | -109.1 | -8.5 | -79.5 |
| Depreciation and amortisation | 8.7 | 2.8 | 11.7 | 4.9 | 19.2 |
| EBITDA | -74.2 | 11.4 | -97.4 | -3.6 | -60.3 |
| Share-based payments related to employees (social charges) | 45.7 | 2.0 | 47.7 | 4.0 | 51.7 |
| Share-based payments | 3.7 | - | 3.7 | - | 3.7 |
| IPO preparation costs | 42.8 | - | 45.4 | - | 45.9 |
| Other items affecting comparability* | 1.6 | - | 20.6 | - | 20.6 |
| Adjusted EBITDA | 19.6 | 13.4 | 20.1 | 0.4 | 61.6 |
Rounding differences may effect the summations. *Other items affecting comparability are related to the Group's warehouse move. Some of the key ratios such as gross margin, earnings per share and EBIT margin may be easily calculated from the financial statements. Such metrics are regarded as reconciled and are not presented above.
Financial calendar November 22, 2017
Interim Report January - September 2017, Q3
February 27, 2018 Interim Report January - December 2017, Q4
Consolidated financial statements are available at www.booztfashion.com Boozt AB (publ) is a public limited company. In case of enquiries or questions to the Group, please contact:
Johan Holmqvist, Head of Investor Relations [email protected] / +46 708 376 677 or Allan Junge-Jensen, CFO
[email protected] / +45 4119 7060
This information is information that Boozt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 CET on August 24, 2017.
This report may contain forward-looking information that is based on the present expectations of Boozt's management. No assurance may be given that these expectations will prove to be correct. Actual outcomes may deviate significantly from what is reflected in the forward-looking information due to changed conditions relating to the economy, market or competition, changes in legal requirements and other political measures, fluctuations in exchange rates and other factors outside of Boozt's control.
Hyllie Boulevard 10B E-mail: [email protected] Malmö 215 32 Malmö, Sweden www.booztfashion.com VAT No. SE556793518301
Address: Phone: +46 40 12 80 05 Corp. Id. No. 556793-5183
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