AI assistant
Nelly Group — Interim / Quarterly Report 2015
Oct 21, 2015
3179_10-q_2015-10-21_2e051b4d-db2c-44be-8cb5-38fdc4dc803a.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Interim report for 1 January – 30 September 2015
Third quarter
- Net sales were in line with last year, amounting to SEK 1,116.8 (1,121.2) million
- Operating profit excluding divested operations during 2014 and non-recurring items amounted to SEK -28.2 (1.5) million
- Including divested operations during 2014 and non-recurring items operating profit totalled SEK -41.1 (1.6) million
- Currency effects have negatively affected operating profit by over SEK 20 million.
- Net income amounted to SEK -32.0 (-4.7) million
- Basic earnings per share amounted to SEK -0.21 (-0.04)
- Cash flow from operations, excluding changes in Qliro Financial Services' lending to the public, amounted to SEK -72.1 (-87.4) million
First nine months
- Net sales increased by 5%, amounting to SEK 3,488.7 (3,317.2) million. Including divested operations, net sales increased by 4%
- Operating profit excluding divested operations during 2014 and non-recurring items amounted to SEK -59.8 (0.6) million
- Including divested operations during 2014 and non-recurring items the operating profit totalled SEK -90.8 (36.6) million
- Currency effects have negatively affected operating profit by over SEK 45 million.
- Net income amounted to SEK -72.2 (12.3) million
- Basic earnings per share amounted to SEK -0.48 (0.09)
- Cash flow from operations, excluding changes in Qliro Financial Services' lending to the public, amounted to SEK -216.2 (-181.7) million
Comments by the CEO
Paul Fischbein, President and CEO comments: "The third quarter was characterised by significant operational changes and market related challenges such as negative currency effects and lower consumer demand in Finland and Norway. Sales in Sweden remain strong. We have finalised several key operational initiatives and investments which create the right conditions to reach our long term profitability targets. Our strong balance sheet, including healthy inventory levels and a net cash position, provides an overall stable financial position. In combination with the completed projects, this gives us a stronger platform that can facilitate increased volumes and future profitability.
To accelerate the development of CDON Marketplace, we have strengthened the management team including a new CEO, CFO, Head of Marketplace and a Head of Operations. Additionally, the warehouse consolidation has been completed, in line with cost estimates. All warehouse operations are now carried out in a new and modern central warehouse, enabling coordinated deliveries and an improved customer experience.
Lekmer has, during the quarter, focused on deploying its new highly automated warehouse. The deployment of the warehouse took longer than planned and operational disturbances had a larger impact on sales than expected. As a result, sales and earnings in the third quarter were below our expectations. Warehouse operations have now returned to normal levels and so far in October sales are growing again.
Nelly continues to show strong growth on the Swedish market, amounting to 22 percent in the third quarter. The Nordic focus has led to declining sales outside the Nordics. This was expected but nevertheless had a negative effect on growth in the quarter. An important part of Nelly's strategy is to increase the share of
private label sales. It was therefore important that the share of private label sales continued to grow and amounted to 32% of Nelly's turnover during the quarter. Nelly's underlying earnings improvements were overshadowed by substantial negative currency effects, in comparison to the third quarter last year, mainly attributable to more costly purchases in USD and GBP.
To secure continued strong sales and profitability within Gymgrossisten, we have completed a reorganisation which will result in a sequential cost saving which on an annual basis amounts to approximately SEK 8 million. Tretti continued to show impressive and steady growth, which amounted to 18% in the third quarter.
We are also pleased to see that Qliro Financial Services continues to develop at a high pace, both in Sweden and in Finland. During October, the payment solution was also launched in Denmark and when we receive approval to become a credit market company we expect to launch the payment solution in Norway as well. In addition to the payment solution, Qliro Financial Services is working on launching additional financial services and we are, for example, planning to introduce deposits from the public after approval to become a credit market company has been received. Since the launch, in December 2014, the company has handled over 2.4 million transactions from over 1 million unique customers and business volumes exceeding SEK 1.9 billion. These are impressive volumes generated in a short period of time, showing the future potential of Qliro Financial Services. Clearly, this is very exciting.
To summarise, we now have a stronger platform in place and we look forward to the important fourth quarter."
Forward-looking statement
Qliro Group's long-term goal for sales growth is growth that is consistent with or above that of the market for each segment. Market-related investments are expected to be concentrated to the Nordic region in 2015.
Provided the subsidiaries deliver sales volumes in line with their business plans, the objective is that Qliro Financial Services will gradually improve its earnings in 2015. Furthermore, the objective is for Qliro Financial Services, as previously announced, to generate positive earnings for the full year 2016 and contribute approximately SEK 100 million to consolidated earnings before tax (EBT) for the full year 2018.
Qliro Group's long-term profitability goals:
| Segment | Sales growth | EBITDA-margin |
|---|---|---|
| Nelly | $5 - 7%$ | |
| Lekmer | Growth in line with or | $3 - 5%$ |
| CDON.com | above market for each | $2 - 3%$ |
| Gymgrossisten | respective segment | 7-9% |
| Tretti | $2 - 4%$ |
No forecast is otherwise being submitted for 2015.
Significant events during and after the third quarter 2015
Magnus Fredin new CEO of CDON Marketplace
Qliro Group announced on 11 August that Magnus Fredin was appointed new CEO of CDON Marketplace.
Paul Fischbein to step down as President and CEO of Qliro Group
On 30 September, Qliro Group announced that Paul Fischbein informed the Board of his intention to step down as President and CEO of Qliro Group. The process of finding a new president and CEO has been initiated. Paul Fischbein has a twelve month notice period and will remain president and CEO until a successor has been appointed.
Strengthened management team and completed reorganisation within Gymgrossisten
On 9 October, Qliro Group announced that Gymgrossisten strengthened its management team and completed a reorganisation to further strengthen the company's Nordic position. The reorganisation resulted in a nonrecurring cost of approximately SEK 5 million which was attributed to Gymgrossisten's result for the third quarter 2015.
The Group's financial summary, excluding divestment of operations and non-recurring items*
| 2015 | 2014 | Change | 2015 | 2014 | Change | |
|---|---|---|---|---|---|---|
| (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | ||
| Net sales | 1,116.8 | 1,121.2 | 0% | 3,488.7 | 3,317.2 | 5% |
| Gross profit | 149.8 | 151.5 | -1% | 502.7 | 502.6 | 0% |
| Gross margin (%) | 13.4% | 13.5% | 0% | 14.4% | 15.2% | 0% |
| EBITDA | -17.6 | 8.3 | -25.9 | -30.6 | 19.4 | -50.0 |
| EBITDA margin (%) | -1.6% | 0.7% | 0% | -0.9% | 0.6% | 0% |
| EBIT | -28.2 | 1.5 | -29.7 | -59.8 | 0.6 | -60.4 |
| EBIT margin (%) | -2.5% | 0.1% | 0% | -1.7% | 0.0% | 0% |
| Cash flow from operations, excl. Qliro Financial Services' loan book |
-72.1 | -87.4 | 0% | -216.2 | -181.7 | |
| Cash flow from operations, incl. Qliro Financial Services' loan book |
-133.3 | -97.7 | 0% | -372.7 | -193.1 | 0% |
| Opening inventory balance | 585.6 | 568.3 | 3% | 657.9 | 506.4 | 30% |
| Closing inventory balance | 691.0 | 689.3 | 0% | 691.0 | 689.3 | 0% |
* Presented on page 5
Earnings summary
The Group's net sales were unchanged in the third quarter year-on-year. Over the first nine months of the year, net sales increased by 5%, excluding the divested operations of the previous year.
The Group's online retailers attracted 60.6 (59.6) million visitors in the third quarter, generating 1.78 (1.85) million orders.
The Group's gross margin, excluding non-recurring items and divested operations, amounted to 13.4% (13.5%) in the third quarter. Compared with the same period in 2014, currency fluctuations had a negative impact on the gross margin in the amount of over SEK 20 million. Similarly to the past quarters, mainly Gymgrossisten and Nelly were impacted by the stronger USD in comparison with the third quarter of 2014. The weakening of the NOK has also had a negative impact on net sales. See each segment for more information about currency effects.
The Group's operating profit (EBIT), excluding non-recurring items and divested operations, totalled SEK
-28.2 (1.5) million for the third quarter. In addition to currency effects, mainly operational disruptions in Lekmer's new warehouse adversely impacted the group's operating profit. The operating profit for the third quarter, excluding Qliro Financial Services, amounted to SEK -21.0 (1.8) million See page 5 for information about non-recurring items and divested operations.
Consolidated net financial items amounted to SEK -0.3 (-8.1) million for the third quarter, and are attributed mainly to costs for credit facilities and interest expenses, which were offset by interest income and positive currency effects.
Group profit before tax totalled SEK -41.4 (-6.6) million for the quarter. The Group reported tax revenue of SEK 9.4 (1.9) million for the quarter, as a result of capitalised loss carryforwards.
Net income totalled SEK -32.0 (-4.7) million and earnings per share before and after dilution totalled SEK -0.21 (-0.04) for the quarter.
Cash flow and financial position
Consolidated cash flow effects from changes in working capital, excluding Qliro Financial Services' increased loans to the public in the amount of SEK -61.2 (-10.2) million, improved, totalling SEK -38.0 (-91.8) million. In the third quarter, the seasonal increase in inventory levels in advance of the important fourth quarter in terms of sales was initiated. Consolidated cash flow from operations totalled SEK -72.1 (-87.4) million for the quarter. Including Qliro financial Services' increased loans to the public, cash flow from operations amounted to SEK -133.2 (-97.7) million.
Consolidated cash flow from investing activities totalled SEK -28.4 (-24.2) million for the quarter and is primarily attributable to product development investments for Qliro Financial Services and investments in web platforms and warehouse systems of the other companies.
Cash flow from financing activities amounted to SEK 140.2 (-6,5) million during the quarter, which was fully related to Qliro Financial Services' use of credit facilities to finance its expanding loans to the public. Qliro Financial Services' loans to the public totalled SEK 337.6 (11.4) million at the end of the quarter and its use of credit facilities amounted to SEK 174.7 (-6.5) million.
Group cash and cash equivalents totalled SEK 249.1 (102.4) million at the end of the quarter. The Group's net cash position amounts to SEK 74.4 (net debt 136.2) million and comprises cash and cash equivalents and utilised credit facilities within Qliro Financial Services of SEK -174.7 (convertible bond of SEK -238.5) million.
Total consolidated assets on the reporting date grew by 31% year-on-year to SEK 2,290.9 (1,748.9) million. Capital employed amounted to SEK 1, 166.1 (835.0) million at the end of the quarter.
Consolidated equity at the end of the quarter totalled SEK 1, 240.5 (698.9) million in comparison to SEK 1,272.5 million at the end of the second quarter of 2015. The decrease in the third quarter is chiefly attributable to the earnings for the period.
| SUMMARY OF DIVESTED ENTITIES | 2015 | 2015 | 2014 | 2014 | 2014 |
|---|---|---|---|---|---|
| AND NON-RECURRING ITEMS (SEK million) | Jul-Sept | Jan-Sept | Jul-Sept | Jan-Sept | Jan-Dec |
| Revenue | 0.0 | 0.0 | 0.0 | 48.0 | 48.0 |
| Divested entity (Heppo & Rum 21) | 0.0 | 0.0 | 0.0 | 48.0 | 48.0 |
| Operating Profit | -13.0 | -30.9 | 0.0 | 36.0 | 24.4 |
| CDON | -8.4 | -9.8 | 0.0 | 0.0 | -11.6 |
| Lekmer | 0.0 | -16.5 | 0.0 | 0.0 | 0.0 |
| Gymgrossisten | -4.6 | -4.6 | 0.0 | 0.0 | 0.0 |
| Divested entity (Heppo & Rum 21) inc. other | 0.0 | 0.0 | 0.0 | 36.0 | 36.0 |
Summary of divestment of operations and non-recurring items*
Development per segment
CDON Marketplace*
| (SEK million) | 2015 | 2014 | Change | 2015 | 2014 | Change |
|---|---|---|---|---|---|---|
| Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | |||
| Gross Merchandise Value, external merchants |
48.1 | 28.5 | 69% | 135.0 | 77.1 | 75% |
| Total Gross Merchandise value** | 430.5 | 445.7 | -3% | 1,271.4 | 1,288.7 | -1% |
| Net sales | 386.6 | 418.7 | -8% | 1,146.7 | 1,215.2 | -6% |
| EBITDA | 1.2 | 1.3 | 0.0 | 0.4 | -3.9 | 4.3 |
| EBITDA margin (%) | 0.3% | 0.3% | 0% | 0.0% | -0.3% | 0% |
| EBIT | -1.3 | -0.8 | -0.5 | -6.3 | -9.7 | 3.4 |
| EBIT margin (%) | -0.3% | -0.2% | 0% | -0.6% | -0.8% | 0% |
| Cash flow from operations | 35.1 | 16.3 | 0% | -87.2 | -121.1 | 0% |
| Investments (CAPEX) | -6.4 | -4.7 | 0% | -20.5 | -11.6 | 0% |
| Cash flow after investments | 28.7 | 11.6 | 0% | -107.7 | -132.7 | 0% |
| Opening inventory balance | 164.2 | 187.6 | -12% | 237.9 | 188.7 | 26% |
| Closing inventory balance | 192.2 | 214.2 | -10% | 192.2 | 214.2 | -10% |
| Active customers (thousand)*** | 1,723 | 1,719 | 0% | 1,723 | 1,719 | 0% |
| Visits (thousand) | 18,830 | 17,485 | 8% | 55,410 | 54,629 | 1% |
| Orders (thousand) | 726 | 773 | -6% | 2,222 | 2,333 | -5% |
| Average shopping basket (SEK) | 527 | 539 | -2% | 512 | 516 | -1% |
* Excluding non-recurring items, which are detailed on page 5
** Commission income is replaced with gross merchandise value from external merchants
*** Past twelve months
CDON Marketplace is a leading marketplace in the Nordics with a product range that covers everything from home electronics to sports & leisure, clothing & shoes and toys. Sales generated for external merchants rose during the quarter by 69% to SEK 48 (28) million and by 75% to SEK 135 (77) million during the first nine months. Gross merchandise value, i.e. net sales including sales generated for external merchants, dropped by 3% in the third quarter. Net sales and earnings were negatively impacted by currency effects which were mainly attributable to the weakened Norwegian krone.
At the close of the third quarter, almost 700 external merchants were affiliated with CDON Marketplace. Sales of media-related products continued to decrease and amounted to 39% (42%) of total net sales during the quarter, and 38% (41%) for the first nine months of the year.
In the third quarter, CDON Marketplace completed the last phase of the warehouse consolidation project that had been underway for a year. The new central warehouse in Ljungby will improve the customer experience, for instance as a result of coordinated customer deliveries. The total cost attributable to the warehouse consolidation over the past twelve months amounted to close to SEK 20 million, of which SEK 6.8 million in the third quarter. All costs are recognised as non-recurring costs.
On 17 August, CDON Marketplace changed CEOs when Magnus Fredin replaced Patrik Settlin. Further the management team has been strengthened with a new CFO, Head of Marketplace and Head of Operations. Costs related to CDON's reorganisation are recognised as a non-recurring costs of approximately SEK 1.6 million attributed to CDON's result for the third quarter.
| 2015 | 2014 | Change | 2015 | 2014 | Change | |
|---|---|---|---|---|---|---|
| (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | ||
| Net sales | 246.5 | 244.2 | 1% | 838.6 | 758.3 | 11% |
| EBITDA | -7.4 | -4.0 | -3.4 | -9.9 | -9.2 | -0.7 |
| EBITDA margin (%) | -3.0% | -1.6% | 0% | -1.2% | -1.2% | 0% |
| EBIT | -9.4 | -5.3 | -4.1 | -15.4 | -12.4 | -3.0 |
| EBIT margin (%) | -3.8% | -2.2% | 0% | -1.8% | -1.6% | 0% |
| Cash flow from operations | -50.4 | -84.4 | 0% | -62.5 | -45.3 | 0% |
| Investments (CAPEX) | -4.4 | -5.4 | 0% | -15.4 | -15.1 | 0% |
| Cash flow after investments | -54.8 | -89.7 | 0% | -77.9 | -60.4 | 0% |
| Opening inventory balance | 205.0 | 179.0 | 15% | 196.2 | 124.6 | 58% |
| Closing inventory balance | 258.3 | 243.4 | 6% | 258.3 | 243.4 | 6% |
| Active customers (thousand)* | 1,261 | 1,101 | 15% | 1,261 | 1,101 | 15% |
| Visits (thousand) | 27,186 | 29,327 | -7% | 99,316 | 94,676 | 5% |
| Orders (thousand)** | 545 | 588 | -7% | 1,963 | 1,858 | 6% |
| Average shopping basket (SEK) | 646 | 598 | 8% | 616 | 590 | 4% |
* Past twelve months ** Reported before returns
Nelly comprises the online stores Nelly.com, NLYman.com and Members.com. Nelly's sales were up by 1% in the third quarter and by 11% for the first nine months of the year. Sales excluding currency effects grew by 2% in the third quarter and by 10% for the first nine months. The weakened NOK represents the negative currency effect on sales in the third quarter.
The share of Nelly's sales generated in Sweden over the first nine months totalled 49% (42%) as growth in the Swedish market remained strong, amounting to 22% in the quarter. However, Nelly's total growth was negatively affected by lower sales in other countries, particularly in markets outside of the Nordics but also in Norway and Finland.
To improve Nelly's operational efficiency, a new warehouse management system was deployed during the quarter. In comparison to the corresponding quarter of the previous year, operating profit in the third quarter was impacted negatively by exchange rate effects in the amount of over SEK 10 million. Similarly to the previous quarter this year, the impact is mainly attributable to the strengthening of the USD and GBP, in the form of higher purchasing costs.
| Other data | 2015 | 2014 | Change | 2015 | 2014 | Change |
|---|---|---|---|---|---|---|
| Jul-Sept | Jul-Sept | %-units | Jan-Sept | Jan-Sept | %-units | |
| Share, private label sales | 32% | 30% | 2% | 35% | 31% | 4% |
| Return ratio* | 33% | 34% | -1% | 33% | 34% | -1% |
| Product margin | 46% | 47% | -1% | 47% | 48% | -1% |
| Fulfillment and distribution costs | 21% | 22% | -1% | 21% | 22% | -1% |
| Nordics, share of net sales | 91% | 88% | 3% | 89% | 88% | 1% |
| Nordics, EBIT margin | -2% | 2% | -4% | 0% | 2% | -2% |
| * Past twelve months |
Nelly
| (SEK million) | 2015 | 2014 | Change | 2015 | 2014 | Change |
|---|---|---|---|---|---|---|
| Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | |||
| Net sales | 197.1 | 203.6 | -3% | 648.5 | 630.9 | 3% |
| EBITDA | 13.3 | 17.0 | -3.7 | 44.4 | 54.1 | -9.7 |
| EBITDA margin (%) | 6.8% | 8.3% | 0% | 6.9% | 8.6% | 0% |
| EBIT | 12.6 | 16.2 | -3.6 | 42.1 | 51.8 | -9.7 |
| EBIT margin (%) | 6.4% | 8.0% | 0% | 6.5% | 8.2% | 0% |
| Cash flow from operations | 8.2 | 13.3 | 0% | 58.2 | 65.7 | 0% |
| Investments (CAPEX) | -0.7 | -1.1 | 0% | -4.1 | -5.1 | 0% |
| Cash flow after investments | 7.5 | 12.2 | 0% | 54.1 | 60.6 | 0% |
| Opening inventory balance | 81.4 | 85.9 | -5% | 97.1 | 85.9 | 13% |
| Closing inventory balance | 78.6 | 85.0 | -8% | 78.6 | 85.0 | -8% |
| Active customers (thousand)* | 562 | 505 | 11% | 562 | 505 | 11% |
| Visits (thousand) | 5,343 | 4,450 | 20% | 17,914 | 15,076 | 19% |
| Orders (thousand) | 261 | 268 | -3% | 879 | 816 | 8% |
| Average shopping basket (SEK) | 760 | 766 | -1% | 742 | 777 | -5% |
* Excluding non-recurring items, which are detailed on page 5
** Past twelve months
Gymgrossisten comprises the online stores Gymgrossisten, Bodystore and Milebreaker. The segment's sales decreased by 3% in the third quarter and increased by 3% for the first nine months of the year. Sales excluding currency effects decreased by 3% in the third quarter and increased by 2% for the first nine months of the year.
Sales in Sweden increased during the quarter while the other Nordic countries showed weaker development. Gymgrossisten's Nordic focus with diminishing market activities outside of the Nordics has resulted in negative sales growth in these markets. Even though Gymgrossisten's total sales decreased, the number of visits has increased, primarily driven by mobile traffic.
The operating profit excluding non-recurring items (see also page 5) has continued to be put under pressure in comparison with 2014 by negative currency effects, totalling approximately SEK 5 million in the third quarter. These effects are mainly attributable to purchases in USD.
Gymgrossisten completed a reorganisation in October 2015 aiming to strengthen the company's position in key segments of the Nordic market and secure a platform for continued strong sales and earnings. The reorganisation entails that the company has been divided into three business areas – Gymgrossisten.com, Bodystore.com and Retail – and staff reduction. The staff reduction affected 17 positions and will result in a sequential cost saving which on an annual basis is expected to amount to approximately SEK 8 million. The staff reduction is recognised as a non-recurring cost of SEK 5 million attributed to Gymgrossisten's result for the third quarter.
| Other data | 2015 | 2014 | Change | 2015 | 2014 | Change |
|---|---|---|---|---|---|---|
| Jul-Sept | Jul-Sept | %-units | Jan-Sept | Jan-Sept | %-units | |
| Share, private label sales | 44% | 42% | 2% | 44% | 44% | 0% |
| Product margin | 34% | 35% | -1% | 34% | 36% | -2% |
| Fulfillment and distribution costs | 13% | 13% | 0% | 13% | 13% | 0% |
| (SEK million) | 2015 | 2014 | Change | 2015 | 2014 | Change |
|---|---|---|---|---|---|---|
| Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | |||
| Net sales | 189.0 | 160.3 | 18% | 553.4 | 475.1 | 16% |
| EBITDA | 0.9 | 1.5 | -0.6 | 3.5 | 4.3 | -0.8 |
| EBITDA margin (%) | 0.5% | 1.0% | 0% | 0.6% | 0.9% | 0% |
| EBIT | 0.1 | 0.8 | -0.7 | 1.1 | 1.9 | -0.8 |
| EBIT margin (%) | 0.0% | 0.5% | 0% | 0.2% | 0.4% | 0% |
| Cash flow from operations | -23.0 | -8.7 | 0% | 1.9 | 2.7 | 0% |
| Investments (CAPEX) | -0.5 | -0.8 | 0% | -4.4 | -1.1 | 0% |
| Cash flow after investments | -23.4 | -9.5 | 0% | -2.5 | 1.5 | 0% |
| Opening inventory balance | 77.1 | 64.6 | 19% | 61.5 | 64.2 | -4% |
| Closing inventory balance | 82.4 | 61.9 | 33% | 82.4 | 61.9 | 33% |
| Active customers (thousand)* | 246 | 237 | 4% | 246 | 237 | 4% |
| Visits (thousand) | 2,873 | 2,819 | 2% | 8,877 | 8,553 | 4% |
| Orders (thousand)** | 81 | 73 | 11% | 245 | 224 | 9% |
| Average shopping basket (SEK)*** | 2,418 | 2,269 | 7% | 2,332 | 2,211 | 5% |
* Past twelve months
** Incl. orders via CDON Marketplace
*** Incl. services sold
Tretti's sales increased by 18% in the third quarter and by 16% for the first nine months of the year. Sales excluding currency effects grew by 19% in the third quarter and by 17% for the first nine months.
In the third quarter, Tretti reported continued growth in all product categories. Earnings for the third quarter are slightly lower than in the corresponding period of 2014, which is due to a lower product margin. Tretti continuously strives to improve the product margin through continuing close supplier relationships and other measures.
Tretti
| 2015 | 2014 | Change | 2015 | 2014 | Change | |
|---|---|---|---|---|---|---|
| (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | ||
| Net sales | 86.6 | 95.6 | -9% | 278.7 | 240.7 | 16% |
| EBITDA | -12.5 | -1.0 | -11.5 | -34.9 | -8.4 | -26.5 |
| EBITDA margin (%) | -14.4% | -1.1% | 0% | -12.5% | -3.5% | 0% |
| EBIT | -12.9 | -1.5 | -11.4 | -36.1 | -9.7 | -26.4 |
| EBIT margin (%) | -14.9% | -1.6% | 0% | -13.0% | -4.0% | 0% |
| Opening inventory balance | 57.8 | 51.3 | 13% | 65.0 | 42.9 | 51% |
| Closing inventory balance | 79.2 | 84.7 | -6% | 79.2 | 84.7 | -6% |
| Active customers (thousand)** | 438 | 357 | 23% | 438 | 357 | 23% |
| Visits (thousand) | 6,331 | 5,564 | 14% | 18,337 | 14,540 | 26% |
| Orders (thousand) | 166 | 153 | 8% | 494 | 393 | 26% |
| Average shopping basket (SEK) | 546 | 640 | -15% | 583 | 623 | -6% |
Lekmer*
* Excluding non-recurring items, which are detailed on page 5
* Past twelve months
Lekmer reported a 9% decrease in sales in the third quarter and a 16% sales increase for the first nine months of the year. Sales excluding currency effects decreased by 9% in the third quarter and increased by 16% for the first nine months of the year.
The deployment of Lekmer's new automated warehouse has resulted in larger operational disturbances than expected in the third quarter. This impacted both incoming and outgoing deliveries at the warehouse and consequently also Lekmer's capacity to conduct sales promotion activities. As a result, the company reported lower sales and lower earnings than expected in the third quarter. Forceful measures have been taken and in the beginning of October, the warehouse operations have been in line with our expectations and Lekmer now provides customers with competitive service levels. The warehouse relocation is expected to result in significant efficiency improvements and lower handling costs for Lekmer.
Operating profit for the third quarter was impacted negatively by the decreased sales volume and operational disruptions at the warehouse and amounted to SEK -12.9 (-1.5) million.
Lekmer's physical store in Barkarby outside of Stockholm continues to perform well. In October 2015, a new outlet store will open in Infracity, Upplands Väsby outside of Stockholm.
| 2015 | 2014 | Change | 2015 | 2014 | Change | |
|---|---|---|---|---|---|---|
| (Mkr) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | ||
| Interest income | 6.1 | 11.3 | ||||
| Other income | 21.3 | 57.2 | ||||
| Total operating income | 27.4 | 68.5 | ||||
| Administrative expenses | -20.5 | -60.3 | ||||
| Other operating expenses | -12.3 | -36.9 | ||||
| EBITDA | -5.4 | -28.8 | ||||
| EBIT | -7.2 | -33.8 | ||||
| Loans to the public | 337.6 | 11.4 | 337.6 | 11.4 | ||
| of which externally financed | 174.7 | 174.7 | ||||
| Business volume | 594.3 | 1,626.8 | ||||
| Orders (thousand) | 728 | 1,998 | ||||
| Average shopping basket (SEK) | 816 | 814 |
Qliro Financial Services
Qliro Financial Services' payment solution developed according to plan in the third quarter with a total transaction volume of SEK 594 million. The payment solution has now been used by over one million unique customers since it was launched in December 2014.
Loans to the public amounted to SEK 337.6 million at the end of the third quarter, corresponding to an increase in the quarter of SEK 61.2 million. The lending was financed in the amount of SEK 174.7 million via a contracted credit facility at the end of the quarter.
Product improvements such as the launch of My Pages has developed and improved the customer offering. At the end of the quarter, Qliro had 80 full-time employees and the organisation is continuing to grow to accommodate future developments, especially in technology, finance and customer support.
Ulrika Valassi was appointed board member of the subsidiary Qliro AB during the quarter. The Board of Directors of Qliro AB thereby consists of Paul Fischbein (chairman), Nicolas Adlercreutz, Peter Sjunnesson, Helena Nelson, Ulrika Valassi and Patrik Illerstig.
Parent company
The parent company, Qliro Group AB, reported sales of SEK 6.2 (6.3) million in the third quarter and SEK 15.2 (23.1) million for the first nine months of the year. Cash and cash equivalents in the parent company amounted to SEK 181.7 (74.4) million at the end of the quarter.
Accounting policies
This report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the parent company has been prepared in accordance with the Annual Accounts Act. The accounting policies in the Group's consolidated financial statements and the parent company's financial statements have been prepared according to the same accounting policies and calculation methods as the 2014 annual accounts.
Risks and uncertainties
Several factors could affect Qliro Group's earnings and operations, most of which can be managed through internal procedures but some of which are largely controlled by external factors. Risks and uncertainties include IT and control systems, suppliers, seasonal variations and currencies, new market entries, changes in market conditions and changes in e-commerce spending behaviour. The parent company is also subject to interest rate risks. The 2014 annual report contains a more comprehensive description of the risks and uncertainty factors affecting the Group in the Management Report and under Note 21.
Transactions with related parties
Related party transactions for the parent company and the Group are in essence as described in the 2014 annual report.
Other information
2016 Annual General Meeting
QLIRO Group's 2016 Annual General Meeting (AGM) will be held on 23 May 2016, in Stockholm, Sweden. Shareholders wishing to have a matter addressed at the AGM should send a written request to [email protected] or to Qliro Group AB (publ), attn: Company Secretary, Box 195 25, 104 32 Stockholm, Sweden. To be certain that a matter can be included in the notice of the AGM, the request must be received no later than seven weeks prior to the AGM. Further details on how and when to give notice to attend will be published in advance of the AGM.
Nominations Committee for the 2016 AGM
In accordance with the resolution of the 2015 Annual General Meeting of Qliro Group shareholders, the Chairman of the Qliro Group Board of Directors has convened a Nomination Committee to prepare proposals for the 2016 Annual General Meeting. The Nomination Committee shall consist of at least three members appointed by the largest shareholders of the company that have wished to appoint a Nomination Committee member. Further, the Chairman of the Board shall also be a member of the Nomination Committee. The Nomination Committee ahead of the Qliro Group's AGM 2016 comprises Lars-Johan Jarnheimer as the Chairman of the Qliro Group Board of Directors, Lorenzo Grabau appointed by Investment AB Kinnevik, Annika Andersson appointed by Swedbank Robur Funds and Jan Särlvik appointed by Nordea Funds. The members of the Nomination Committee will appoint a Chairman at their first meeting.
Information about the work of the Nomination Committee can be found on Qliro Group's corporate website at www.qlirogroup.com. Shareholders wishing to propose candidates for election to the Qliro Group Board of Directors should submit their proposals in writing to [email protected] or to Qliro Group AB (publ), attn: Company Secretary, P.O. Box 195 25, SE-104 32 Stockholm, Sweden.
CDON Alandia
Finnish customs authorities have been investigating a subsidiary of CDON AB, Åland-based CDON Alandia, on suspicion of tax fraud since 2013. Like other companies in the industry, CDON.com has chosen to serve its Finnish customers from Åland. The company has been in operation since 2007 and has been fully transparent for the relevant authorities, who have routinely reviewed it, including a customs audit in 2010 and a tax audit
in 2012. CDON AB is fully assisting in the investigation and is still of the opinion that the company acts in accordance with relevant laws and regulations.
Earnings for the fourth quarter and full year 2015
Qliro Group's year-end report for 2015 (earnings for fourth quarter and financial year ended on 31 December 2015) will be published on 27 January 2016.
___________________________________________________________________________________________
___________________________________________________________________________________________
21 October 2015
Paul Fischbein President and CEO
Qliro Group AB (publ.) Sveavägen 151 Box 195 25 SE-104 32 Stockholm Corporate ID number: 556035-6940
The company will host a conference call today at 10:00 CET.
To participate in the conference call, please dial:
| Sweden: | +46(0)8 5065 3938 |
|---|---|
| International: | +44(0)20 3427 1907 |
| US: | +1646 254 3360 |
The pin code to access this call is 4345975. To listen to the conference call online, please go to www.qlirogroup.com.
***
For additional information, please visit www.qlirogroup.com or contact:
Paul Fischbein, President and Chief Executive Officer Tel: +46 (0) 10 703 20 00
Nicolas Adlercreutz, CFO Tel: +46 (0) 70 587 44 88
Questions from media, investors and research analysts: Erik Löfgren, Head of Communications Tel: +46 (0) 700 80 75 06 E-mail: [email protected], [email protected]
About Qliro Group
Qliro Group is a leading e-commerce group in the Nordic region. Established in 1999, the Group has expanded its product portfolio and is now a leading e-commerce player within consumer goods and lifestyle products through CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com), Gymgrossisten (Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com) and Tretti. The payment service solution Qliro is also part of the Group. In 2014, the Group generated revenue of SEK 5.0 billion. Qliro Group's shares are listed on the Nasdaq Stockholm MidCap list under the ticker symbol "QLRO".
The information in this interim report is that which Qliro Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 08:00 CET on 21 October 2015.
Review report
Qliro Group AB (publ) Corporate ID number 556035-6940
Introduction
We have performed a review engagement of the summarised interim financial information (interim report) for CDON Group AB (publ) as at 30 September 2015 and the nine-month period ended on that date. The board of directors and CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. It is our responsibility to state an opinion on this interim report on the basis of our review engagement.
Focus and extent of review engagement
We have performed our review engagement 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 engagement involves making enquiries, mainly to people responsible for financial and accounting issues, performing an analytical review and taking other review engagement measures. A review engagement has a different focus and a significantly lesser extent in comparison to the focus and extent of an audit in accordance with the ISA and generally accepted auditing standards. The review measures taken within the scope of a review engagement do not enable us to obtain assurance that we are aware of all material circumstances that may have been identified if an audit had been performed. The opinion stated on the basis of a review engagement consequently is not as certain as the opinion stated on the basis of an audit.
Opinion
On the basis of our review engagement, we have not found any circumstances that give us reason to believe that the interim report has not been prepared in all material respects in accordance with IAS 34 and the Swedish Annual Accounts Act in the case of the Group and in accordance with the Swedish Annual Accounts Act in the case of the parent company.
Stockholm, 21 October 2015 KPMG AB
Cronie Wallquist Authorised Public Accountant
| CONDENSED CONSOLIDATED | 2015 | 2014 | 2015 | 2014 | 2014 |
|---|---|---|---|---|---|
| INCOME STATEMENT (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | Jan-Dec |
| Net sales | 1,116.8 | 1,121.2 | 3,488.7 | 3,365.2 | 5,014.9 |
| Cost of goods and services | -969.8 | -969.7 | -3,006.2 | -2,863.0 | -4,303.9 |
| Gross profit | 147.0 | 151.5 | 482.5 | 502.6 | 710.9 |
| Sales and administration expenses | -187.8 | -151.5 | -577.6 | -505.0 | -717.6 |
| Other operating income and expenses, net | -0.3 | 1.5 | 4.3 | 39.0 | 39.3 |
| Operating profit | -41.1 | 1.6 | -90.8 | 36.6 | 33.0 |
| Net interest & other financial items | -0.3 | -8.1 | -3.5 | -18.1 | -24.6 |
| Profit before tax | -41.4 | -6.6 | -94.3 | 18.5 | 8.3 |
| Tax | 9.4 | 1.9 | 22.1 | -6.2 | -3.0 |
| Net income for the period | -32.0 | -4.7 | -72.2 | 12.3 | 5.4 |
| EBITDA | -30.5 | 8.3 | -61.6 | 55.6 | 59.2 |
| Attributable to: | |||||
| Equity holders of the parent | -32.0 | -4.6 | -71.5 | 10.5 | 2.8 |
| Non-controlling interests | 0.0 | -0.1 | -0.7 | 1.9 | 2.5 |
| Net income for the period | -32.0 | -4.7 | -72.2 | 12.3 | 5.4 |
| Basic earnings per share before and after dilution (SEK) | -0.21 | -0.04 | -0.48 | 0.09 | 0.02 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 2015 | 2014 | 2015 | 2014 | 2014 |
|---|---|---|---|---|---|
| CONDENSED (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | Jan-Dec |
| Profit for the period | -32.0 | -4.7 | -72.2 | 12.3 | 5.4 |
| Other comprehensive income | |||||
| Items that may be reclassified subsequently to profit or loss: |
|||||
| Translation difference for the period | -0.5 | 0.2 | -1.8 | 1.3 | 1.2 |
| Other comprehensive income for the period | -0.5 | 0.2 | -1.8 | 1.3 | 1.2 |
| Total comprehensive income for period | -32.5 | -4.5 | -74.0 | 13.6 | 6.5 |
| Total comprehensive income attributable to: | |||||
| Parent company shareholders | -32.5 | -4.4 | -73.3 | 11.8 | 4.0 |
| Non-controlling interests | 0.0 | -0.1 | -0.7 | 1.9 | 2.5 |
| Total comprehensive income for the period | -32.5 | -4.5 | -73.9 | 13.6 | 6.5 |
| Shares outstanding at period's end | 149,269,779 | 99,513,186 | 149,269,779 | 99,513,186 | 149,269,779 |
|---|---|---|---|---|---|
| Average number of shares, basic and diluted | 149,269,779 | 113,334,462 | 149,269,779 113,334,462 | 114,909,709 |
| CONSOLIDATED STATEMENT OF FINANCIAL | 2015 | 2014 | 2014 |
|---|---|---|---|
| POSITION CONDENSED (SEK million) | 30-Sept | 30-Sept | 31-Dec |
| Non-current assets | |||
| Goodw ill |
455.9 | 454.7 | 455.5 |
| Other intangible assets | 277.1 | 210.1 | 230.4 |
| Total intangible assets | 733.0 | 664.8 | 685.9 |
| Tangible non-current assets | 34.8 | 21.9 | 28.1 |
| Financial non-current assets | 1.6 | 1.6 | 1.6 |
| Deferred tax asset | 94.7 | 79.5 | 64.6 |
| Total non-current assets | 864.1 | 767.8 | 780.2 |
| Current assets | |||
| Inventories | 691.0 | 689.3 | 657.9 |
| Loans to the public | 337.6 | 11.4 | 181.2 |
| Current non-interest bearing receivables | 149.1 | 178.0 | 214.5 |
| Cash and cash equivalents | 249.1 | 102.4 | 534.0 |
| Total current assets | 1,426.8 | 981.1 | 1,587.6 |
| Total assets | 2,290.9 | 1,748.9 | 2,367.9 |
| Equity | |||
| Equity attributable to ow ners of the parent |
1,240.5 | 698.9 | 1,313.8 |
| Non-controlling interest | 0.0 | 0.0 | 0.7 |
| Total equity | 1,240.5 | 698.9 | 1,314.5 |
| Non-current liabilities | |||
| Non interest bearing | |||
| Deferred tax liability | 22.7 | 25.5 | 22.9 |
| Other provisions | 4.0 | 3.5 | 6.8 |
| Interest bearing | |||
| Convertible bond | 0.0 | 238.5 | 0.0 |
| Total non-current liabilities | 26.7 | 267.5 | 29.7 |
| Current liabilities | |||
| Short term interest bearing loans | 174.7 | 0.0 | 0.0 |
| Current non-interest bearing liabilities | 849.0 | 782.5 | 1,023.7 |
| Total current liabilities | 1,023.7 | 782.5 | 1,023.7 |
| Total equity and liabilities | 2,290.9 | 1,748.9 | 2,367.9 |
The carrying amounts are considered to be reasonable approximations of fair value for all financial assets and financial liabilities.
| 2015 | 2014 | 2015 | 2014 | 2014 |
|---|---|---|---|---|
| Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | Jan-Dec |
| -34.0 | 4.3 | -70.2 | 9.6 | 16.0 |
| -122.5 | ||||
| -133.2 | -97.7 | -372.7 | -193.1 | -106.5 |
| -0.6 | ||||
| -95.6 | ||||
| 77.2 | ||||
| -28.4 | -24.2 | -85.3 | 11.4 | -19.0 |
| -6.5 | ||||
| 626.3 | ||||
| 0.0 | ||||
| -251.6 | ||||
| 140.2 | -6.5 | 174.7 | -6.5 | 368.3 |
| -21.4 | -128.4 | -283.3 | -188.2 | 242.8 |
| -1.0 | 288.9 | |||
| 0.7 | -1.5 | 1.8 | 2.3 | |
| -99.2 0.0 -28.4 0.0 0.0 0.0 140.2 0.0 271.6 |
-102.0 0.0 -24.2 0.0 -6.5 0.0 0.0 0.0 230.1 |
-302.5 -0.5 -84.8 0.0 0.0 0.0 174.7 0.0 534.0 |
-202.7 -0.6 -62.0 74.0 -6.5 0.0 0.0 0.0 288.9 |
| STATEMENT OF CHANGES IN EQUITY CONDENSED (SEK million) |
2015 30-Sept |
2014 30-Sept |
2014 31-Dec |
|---|---|---|---|
| Opening balance | 1,314.5 | 690.9 | 690.9 |
| Comprehensive income for the period | -74.0 | 13.6 | 6.5 |
| Effects of long term incentive program | 0.2 | 0.9 | 1.4 |
| New share issue* |
0.0 | 0.0 | 630.8 |
| Redemption of convertible | 0.0 | 0.0 | -8.9 |
| Acquisition of shares from non-controlling interests w ithout a change in control |
0.0 | -6.5 | -6.5 |
| Closing balance | 1,240.5 | 698.9 | 1,314.3 |
| NET SALES BY SEGMENT (SEK million) |
2015 Jul-Sept |
2015 Apr-Jun |
2015 Jan-Mar |
2015 Jan-Sept |
2014 Oct-Dec |
2014 Jul-Sept |
2014 Apr-Jun |
2014 Jan-Mar |
2014 Jan-Sept |
2014 Full year |
|---|---|---|---|---|---|---|---|---|---|---|
| CDON | 386.6 | 337.6 | 422.5 | 1,146.7 | 672.6 | 418.7 | 360.1 | 436.5 | 1,215.2 | 1,887.8 |
| Lekmer | 86.6 | 97.2 | 95.0 | 278.7 | 243.2 | 95.6 | 79.6 | 65.5 | 240.7 | 484.0 |
| Nelly | 246.5 | 337.7 | 254.4 | 838.6 | 343.7 | 244.2 | 293.4 | 220.7 | 758.3 | 1,102.0 |
| Gymgrossisten | 197.1 | 205.5 | 245.9 | 648.5 | 200.2 | 203.6 | 196.6 | 230.7 | 630.9 | 831.1 |
| Tretti | 189.0 | 189.4 | 175.0 | 553.4 | 193.6 | 160.3 | 162.2 | 152.6 | 475.1 | 668.7 |
| Total operational business areas | 1,105.7 | 1,167.4 | 1,192.8 | 3,465.9 | 1,653.3 | 1,122.4 | 1,092.0 | 1,105.9 | 3,320.3 | 4,973.6 |
| Qliro Financial Services | 25.3 | 21.2 | 16.3 | 62.8 | 3.2 | 0.1 | - | - | 0.1 | 3.2 |
| Group central operations Of which CGL AB |
26.9 26.9 |
34.2 34.2 |
35.8 35.8 |
97.0 97.0 |
47.7 39.7 |
39.7 33.4 |
64.3 36.9 |
71.6 34.2 |
175.6 104.5 |
223.3 144.2 |
| Of which divested operations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 19.9 | 28.1 | 48.0 | 48.0 |
| Eliminations | -41.2 | -47.3 | -48.5 | -137.1 | -54.5 | -41.1 | -45.4 | -44.3 | -130.8 | -185.3 |
| CONSOLIDATED TOTAL | 1,116.8 | 1,175.4 | 1,196.5 | 3,488.7 | 1,649.7 | 1,121.2 | 1,110.8 | 1,133.2 | 3,365.2 | 5,014.9 |
| Intersegment sales from other segments CDON |
||||||||||
| Lekmer | 7.1 | 6.1 | 6.6 | 19.7 | 4.0 | 1.0 | 0.9 | 0.9 | 2.8 | 6.8 |
| Nelly | 0.9 3.4 |
1.0 3.5 |
1.2 2.8 |
3.1 9.7 |
0.4 1.0 |
0.0 0.2 |
0.0 0.0 |
0.0 0.0 |
0.0 0.2 |
0.4 1.2 |
| Gymgrossisten | 1.1 | 0.8 | 0.1 | 2.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Tretti | 0.7 | 0.6 | 0.7 | 2.0 | 0.7 | 0.2 | 0.0 | 0.0 | 0.2 | 0.9 |
| Qliro Financial Services | 1.3 | 1.2 | 1.3 | 3.8 | 0.8 | 0.1 | - | - | 0.1 | 0.9 |
| Group central operations | 26.8 | 34.1 | 35.8 | 96.6 | 47.6 | 39.6 | 44.4 | 43.4 | 127.5 | 175.1 |
| Total | 41.2 | 47.3 | 48.5 | 137.1 | 54.5 | 41.1 | 45.4 | 44.3 | 130.8 | 185.3 |
| OPERATING PROFIT BY SEGMENT (SEK million) |
2015 Jul-Sept |
2015 Apr-Jun |
2015 Jan-Mar |
2015 Jan-Sept |
2014 Oct-Dec |
2014 Jul-Sept |
2014 Apr-Jun |
2014 Jan-Mar |
2014 Jan-Sept |
2014 Full year |
| CDON | -9.7 | -5.8 | -0.6 | -16.1 | -5.9 | -0.8 | -9.0 | 0.1 | -9.7 | -15.6 |
| Lekmer | -12.9 | -2.8 | -20.4 | -36.2 | 10.2 | -1.5 | -3.0 | -5.2 | -9.7 | 0.5 |
| Nelly | -9.4 | 3.2 | -9.2 | -15.4 | -2.3 | -5.3 | 3.7 | -10.8 | -12.4 | -14.7 |
| Gymgrossisten | 8.0 | 10.6 | 19.0 | 37.6 | 14.0 | 16.2 | 14.0 | 21.6 | 51.8 | 65.9 |
| Tretti | 0.1 | 0.1 | 0.9 | 1.1 | 1.5 | 0.8 | 0.9 | 0.3 | 1.9 | 3.4 |
| Total operational business areas | -24.0 | 5.3 | -10.3 | -29.1 | 17.5 | 9.3 | 6.6 | 5.9 | 21.9 | 39.4 |
| Qliro Financial Services | -7.2 | -11.6 | -15.0 | -33.8 | -13.9 | -0.3 | - | - | -0.3 | -14.2 |
| Group central operations Of which divested operations |
-9.9 0.0 |
-8.9 0.0 |
-9.0 0.0 |
-27.9 0.0 |
-7.2 3.0 |
-7.5 0.0 |
28.3 35.5 |
-5.8 0.6 |
15.0 36.0 |
7.8 39.0 |
| CONSOLIDATED TOTAL | -41.1 | -15.3 | -34.3 | -90.7 | -3.6 | 1.6 | 35.0 | 0.1 | 36.6 | 33.0 |
| INVENTORIES BY SEGMENT (SEK million) |
2015 30-Sept |
2015 30-Jun |
2015 31-Mar |
2014 31-Dec |
2014 30-Sept |
2014 30-Jun |
2014 31-Mar |
|||
| CDON | 192.2 | 164.2 | 170.3 | 237.9 | 214.2 | 187.6 | 195.3 | |||
| Lekmer | 79.2 | 57.8 | 59.5 | 65.0 | 84.7 | 51.3 | 48.5 | |||
| Nelly | 258.3 | 205.0 | 252.3 | 196.2 | 243.4 | 179.0 | 165.0 | |||
| Gymgrossisten | 78.6 | 81.4 | 80.4 | 97.1 | 85.0 | 85.9 | 83.2 | |||
| Tretti | 82.4 | 77.1 | 74.5 | 61.5 | 61.9 | 64.6 | 61.5 | |||
| Total operational business areas | 690.7 | 585.4 | 637.0 | 657.7 | 689.2 | 568.3 | 553.5 | |||
| Group central operations Of which divested operations |
0.2 0.0 |
0.2 0.0 |
0.1 0.0 |
0.1 0.0 |
0.1 0.0 |
0.0 0.0 |
18.4 18.4 |
| PARENT COMPANY INCOME STATEMENT | 2015 | 2014 | 2015 | 2014 | 2014 |
|---|---|---|---|---|---|
| CONDENSED (SEK million) | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | Jan-Dec |
| Net Sales | 6.2 | 6.3 | 15.2 | 23.1 | 31.0 |
| Gross profit | 6.2 | 6.3 | 15.2 | 23.1 | 31.0 |
| Administration expenses | -16.1 | -14.2 | -46.0 | -44.5 | -59.7 |
| Operating profit | -9.9 | -7.9 | -30.8 | -21.4 | -28.7 |
| Net interest & other financial items | 2.7 | -5.8 | 10.3 | -13.8 | -17.2 |
| Group contribution received | 0.0 | 0.0 | 0.0 | 0.0 | 17.7 |
| Profit before tax | -7.3 | -13.7 | -20.5 | -35.2 | -28.1 |
| Tax | 1.6 | 3.0 | 4.5 | 7.7 | 6.7 |
| Net income for the period | -5.7 | -10.7 | -16.0 | -27.5 | -21.4 |
| PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME CONDENSED (SEK million) |
|||||
| Profit for period | -5.7 | -10.7 | -16.0 | -27.5 | -21.4 |
| Other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income for period | -5.7 | -10.7 | -16.0 | -27.5 | -21.4 |
| PARENT COMPANY STATEMENT OF FINANCIAL POSITION | 2015 | 2014 | 2014 |
|---|---|---|---|
| CONDENSED (SEK million) | 30-Sept | 30-Sept | 31-Dec |
| Non-current assets | |||
| Other intangible assets | 1.6 | 9.5 | 1.3 |
| Equipment | 2.6 | 2.2 | 2.2 |
| Shares and participating interests in group companies | 848.6 | 839.1 | 848.6 |
| Deferred tax asset | 68.1 | 60.7 | 63.6 |
| Total non-current assets | 921.0 | 911.4 | 915.8 |
| Current assets | |||
| Current interest-bearing receivables | |||
| Current non-interest-bearing receivables | 422.7 | 387.0 | 249.0 |
| Receivables in Group companies | 4.5 | 6.4 | 7.0 |
| 129.4 | 60.0 | 0.0 | |
| Total current receivables | 556.6 | 453.4 | 256.0 |
| Cash and bank | 181.7 | 74.4 | 495.3 |
| Total cash and cash equivalents | 181.7 | 74.4 | 495.3 |
| Total current assets | 738.3 | 527.8 | 751.3 |
| Total assets | 1,659.3 | 1,439.2 | 1,667.1 |
| Equity | |||
| Restricted equity | 301.7 | 202.2 | 301.7 |
| Unrestricted equity | 1,000.7 | 487.4 | 1,016.5 |
| Total equity | 1,302.4 | 689.6 | 1,318.2 |
| Provisions | |||
| Deferred tax liability | 0.0 | 2.5 | 0.0 |
| Other provisions | 1.5 | 1.2 | 1.4 |
| Total provisions | 1.5 | 3.7 | 1.4 |
| Non-current liabilities | |||
| Convertible bonds | 0.0 | 238.5 | 0.0 |
| Total non-current liabilities | 0.0 | 238.5 | 0.0 |
| Current liabilities | |||
| Short term interest bearing loans | 90.0 | 58.0 | 90.0 |
| Other interest-bearing liabilities | 146.6 | 174.9 | 254.8 |
| Liabilities to Group companies | 104.9 | 258.1 | -25.0 |
| Non-interest-bearing liabilities | 14.0 | 16.5 | 27.7 |
| Total current liabilities | 355.5 | 507.4 | 347.5 |
| Total liabilities | 357.0 | 749.6 | 348.9 |
| Total equity and liabilities | 1,659.3 | 1,439.2 | 1,667.1 |
Pledged assets and contingent liabilities - parent company
| Pledged assets | None | None | None |
|---|---|---|---|
| Contingent liabilities | 192.1 | 194.0 | 147.1 |
| KEY RATIOS | 2015 Jul-Sept |
2015 Apr-Jun |
2015 Jan-Mar |
2015 Jan-Sept |
2014 Oct-Dec |
2014 Jul-Sept |
2014 Apr-Jun |
2014 Jan-Mar |
2014 Jan-Sept |
2014 Full year |
|---|---|---|---|---|---|---|---|---|---|---|
| GROUP | ||||||||||
| Sales grow th (%) |
-0.4 | 5.8 | 5.6 | 3.7 | 12.2 | 18.1 | 14.6 | 7.8 | 13.3 | 12.9 |
| Change in operating expenses (%) | 24.0 | 6.9 | 13.9 | 14.4 | 14.4 | 11.6 | 15.2 | 8.7 | 11.9 | 12.6 |
| Operating margin (%) Gross profit margin (%) |
-3.7 13.2 |
-1.3 15.2 |
-2.9 13.1 |
-2.6 13.8 |
-0.2 12.7 |
0.1 13.5 |
3.1 16.4 |
0.0 14.9 |
1.1 14.9 |
0.7 14.2 |
| Return on capital employed (%) | neg | neg | neg | neg | 4.4 | 8.7 | 6.0 | neg | 8.7 | 4.4 |
| Return on equity (%) | neg | neg | neg | neg | 0.3 | 3.9 | 1.3 | neg | 0.0 | 0.3 |
| Equity/assets ratio (%) | 54.1 | 61.0 | 62.0 | 54.1 | 55.7 | 40.0 | 41.3 | 42.6 | 40.0 | 55.7 |
| Net debt (SEK million) | -74.4 | -237.1 | -287.3 | -74.4 | -534.0 | 136.1 | 6.1 | 120.8 | 136.1 | -534.0 |
| Cash flow s from operations (SEK million) |
-133.2 | -19.5 | -219.9 | -372.7 | 86.6 | -97.7 | 72.2 | -167.7 | -193.1 | 86.6 |
| Earnings per share (SEK)* | -0.21 | -0.07 | -0.20 | -0.48 | -0.06 | -0.04 | 0.17 | -0.03 | 0.11 | 0.02 |
| Equity per share (SEK)** | 8.31 | 8.52 | 8.61 | 8.31 | 8.81 | 7.02 | 7.13 | 6.91 | 7.02 | 8.81 |
| Depreciation/Net sales (%) | 0.9 | 0.8 | 0.8 | 0.8 | 0.4 | 0.6 | 0.6 | 0.5 | 0.6 | 0.5 |
| Capital Expenditure/Net sales (%) | 2.5 | 2.6 | 2.2 | 2.4 | 2.0 | 2.2 | 2.2 | 1.2 | 1.8 | 1.9 |
| No. of active customers (thousand) | 4,230 | 4,262 | 4,261 | 4,230 | 4,179 | 3,919 | 3,821 | 3,777 | 3,919 | 4,179 |
| No. of visits (thousand) | 60,563 | 67,686 | 72,712 | 199,854 | 87,848 | 59,643 | 62,563 | 65,267 | 187,474 | 275,322 |
| No. of orders (thousand) | 1,779 | 1,963 | 2,045 | 5,803 | 2,909 | 1,854 | 1,871 | 1,900 | 5,625 | 8,534 |
| Average shopping basket (SEK) | 686 | 700 | 661 | 665 | 635 | 667 | 662 | 630 | 653 | 656 |
| CDON | ||||||||||
| No. of active customers (thousand) | 1,723 | 1,732 | 1,739 | 1,723 | 1,733 | 1,719 | 1,730 | 1,764 | 1,719 | 1,733 |
| No. of visits (thousand) No. of orders (thousand) |
18,830 726 |
16,613 652 |
20,087 836 |
55,410 2,222 |
28,228 1,314 |
17,485 773 |
16,603 692 |
20,541 869 |
54,629 2,333 |
82,857 3,647 |
| Average shopping basket (SEK) | 527 | 583 | 552 | 512 | 556 | 539 | 515 | 496 | 516 | 551 |
| Lekmer | ||||||||||
| No. of active customers (thousand) | 438 | 435 | 420 | 438 | 408 | 357 | 337 | 319 | 357 | 408 |
| No. of visits (thousand) | 6,331 | 5,869 | 6,136 | 18,337 | 10,808 | 5,564 | 4,484 | 4,492 | 14,540 | 25,348 |
| No. of orders (thousand) | 166 | 170 | 157 | 494 | 389 | 153 | 130 | 110 | 393 | 782 |
| Average shopping basket (SEK) | 546 | 587 | 622 | 583 | 637 | 640 | 620 | 603 | 623 | 630 |
| Nelly | ||||||||||
| No. of active customers (thousand) No. of visits (thousand) |
1,261 27,186 |
1,288 35,999 |
1,271 36,131 |
1,261 99,316 |
1,229 40,406 |
1,101 29,327 |
1,037 34,108 |
991 31,241 |
1,101 94,676 |
1,229 135,082 |
| No. of orders (thousand) | 545 | 779 | 638 | 1,963 | 823 | 588 | 724 | 546 | 1,858 | 2,681 |
| Average shopping basket (SEK) | 646 | 636 | 567 | 616 | 573 | 598 | 602 | 564 | 590 | 585 |
| Gymgrossisten | ||||||||||
| No. of active customers (thousand) | 562 | 517 | 545 | 562 | 527 | 505 | 488 | 476 | 505 | 527 |
| No. of visits (thousand) | 5,343 | 6,062 | 6,509 | 17,914 | 5,014 | 4,450 | 4,446 | 6,180 | 15,076 | 20,090 |
| No. of orders (thousand) | 261 | 280 | 331 | 879 | 271 | 268 | 249 | 300 | 816 | 1,087 |
| Average shopping basket (SEK) | 760 | 738 | 747 | 742 | 741 | 766 | 793 | 775 | 777 | 768 |
| Tretti | ||||||||||
| No. of active customers (thousand) No. of visits (thousand) |
246 2,873 |
291 3,143 |
286 3,848 |
246 8,877 |
282 3,392 |
237 2,819 |
230 2,922 |
227 2,813 |
237 8,553 |
282 11,946 |
| No. of orders (thousand) | 81 | 82 | 83 | 245 | 113 | 73 | 75 | 75 | 224 | 336 |
| Average shopping basket (SEK) | 2,418 | 2,353 | 2,206 | 2,332 | 1,754 | 2,269 | 2,244 | 2,122 | 2,211 | 2,058 |
| * Earnings per share for the periods Jan-Sept 2015 and Jan-Dec 2014 have been calculated on the average number of outstanding shares for the respective periods. The w average number of shares for the period Jan-Sept 2015 is 149,269,779 and for the full year 2014 the w |
eighted average number of shares amounted to 114,909,709. | eighted |
** Calculated on present number of shares, w hich per Sept 2015 amounts to 149,269,779.
Definitions
Gross profit margin Equity/assets ratio Net debt (+) / Net cash (-) Return on equity Return on capital employed Earnings per share Equity per share Capital Expenditure/Net Sales No. of active customers No. of visits Average shopping basket Average shopping basket - Tretti (Internet sales + postage income + sold services) / No. Incoming orders Gross profit as a percentage of net sales. Gross profit includes costs directly attributable to the goods sold, fulfillment costs, and shipping Equity plus non-controlling interests as a percentage of total assets. Interest-bearing liabilities less interest-bearing current and non-current assets and cash and cash equivalents. Net income for the last four quarters as a percentage of average equity for the last four quarters. Earnings for the period attributable to the parent company's shareholders divided by average number of shares for the period. Operating income for the last four quarters as a percentage of average capital employed for the last four quarters. Number of customers that have shopped at least once during the past 12 months. Investments in tangible non-current assets divided by Net sales for the period. Equity attributable to the parent company's shareholders divided by the number of shares at the end of the period. Gross number of visits to the Groups online stores. (Internet sales + postage income) / No. Incoming orders