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RVRC Holding — Interim / Quarterly Report 2021
Nov 9, 2021
3106_10-q_2021-11-09_f2b1844b-e258-482d-b0bf-6f51970ef621.pdf
Interim / Quarterly Report
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RVRC HOLDING AB (publ)
First quarter (Jul-Sep 2021)
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Highlights during the quarter
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| Jul-Sep | Jul-Sep | Jul-Jun | UKt-Sep | ||
|---|---|---|---|---|---|
| SEKm | 21/22 | 20/21 | Δ | 20/21 | 20/21 |
| Net sales | 254.2 | 130.5 | 95% | 897.1 | 1,020.8 |
| Average net order value (AOV), (SEK)* | 793 | 766 | 3.6% | 763 | 770 |
| Gross profit* | 183.9 | 92.0 | 100% | 648.3 | 740.2 |
| Operating profit (EBIT) | 72.7 | 32.4 | 124% | 230.4 | 270.7 |
| Adjusted operating profit (EBIT)* | 72.7 | 32.4 | 124% | 252.2 | 292.5 |
| Result for the period | 56.5 | 24.0 | 135% | 171.6 | 204.0 |
| Earnings per share before dilution, SEK | 0.50 | 0.22 | 128% | 1.59 | |
| Earnings per share after dilution, SEK | 0.50 | 0.22 | 128% | 1.59 | |
| Gross margin* | 72.4% | 70.5% | 1.9 pp | 72.3% | 72.5% |
| EBIT margin | 28.0% | 24.3% | 3.7 pp | 25.2% | 26.1% |
| Adjusted EBIT margin* | 28.0% | 24.3% | 3.7 pp | 27.6% | 28.2% |
Comment from the CEO
RevolutionRace grew by 95 percent in the first quarter, with increasing margins and passing SEK 1 billion in net sales rolling 12 months!
I am very glad and proud to be able to present another strong quarter for RevolutionRace. Net sales for the quarter increased by 95 percent to SEK 254.2 million and operating profit more than doubled to SEK 72.7 million (+124 percent). The EBIT margin of 28.0 (24.3) percent for the quarter was the result of favourable operational efficiency in marketing and sales, and of numerous improvements throughout RevolutionRace. This strong trend led to us passing SEK 1 billion in net sales during the quarter (rolling 12 months). We are particularly proud to have achieved this important milestone for the company.
"Our continued success is attributable to our very strong focus on customers. With 95% growth, we broke the SEK1 billion mark on a rolling 12-month basis, while improving our EBIT for the quarter by 124 percent." says Pernilla Nyrensten, CEO and co-founder of RevolutionRace.
The strong trend and strong profit should be viewed in the light of current external turbulence, with major disruptions to global supply chains. The organisation's agility has largely allowed us to avoid these problems and consequently they have not impacted the company's financial development or our deliveries to customers to any substantial extent. We are satisfied with our goods supply and with having succeeded in increasing inventory to be able to counter disturbances in the supply chain and meet future growth targets.
All regions are growing strongly, with DACH as the engine. With a successful launch in Switzerland at the end of September/beginning of October, the region now corresponds fully to its name. Having made significant progress with our logistics partner in Germany, we will derive much satisfaction from now being able to further cut lead times for customers in the region.
Our business model entails sales being made directly to consumers through our own online shop and through other prioritized platforms, such our own brand shop on Amazon as an example. A key success factor being that we sell only our own brand and maintain full control our own sales channels. Having unique products at competitive prices and a data-driven model with which we control the entire value chain without intermediaries, makes us unique and our customer offering highly competitive.
Net sales for the first quarter amounted to SEK 254.2 (130.5) million, entailing 95 percent growth (98 percent in local currency). The product mix was favourable in the quarter and developed positively.
particularly in jackets, leading to an increase in AOV of 3.6 percent to SEK 793 (760).
The Nordic region, comprising Sweden, Finland, Norway and Denmark, accounted for 45 percent of net sales in the first quarter, with good growth of 53 percent. Although the region is our most mature. the trend reflects more than just healthy growth.
The DACH region, comprising Germany, Austria and, now also Switzerland, accounted for 41 percent of net sales, with growth of 151 percent. Clearly, this is a level of growth with which we are very pleased. As the launch in Switzerland did not take place until the end of the quarter, it had no significant impact on the growth in the first quarter $-$ we have great confidence in this market, however, and are already seeing a favourable trend in Switzerland, which now becomes our 17th unique market.
The Rest of the World region's share of total net sales is growing, accounting for 14 percent in the first quarter, with very good growth of 155 percent. Since the end of the fourth quarter of 2020/21, the region has also included the United States, which is developing very well and according to plan. The region includes markets that are relatively new for Revolution Race but many markets within this region are showing favourable development and starting to contribute meaningfully to total net sales.
Gross profit for the quarter amounted to SEK 183.9 (92.0) million with a gross margin of 72.4 (70.5) percent. Our gross margin has been affected positively by increased sales in countries with a higher price scenario compared with the preceding year, offsetting higher shipping costs.
Operating profit for the quarter amounted to SEK 72.7 (32.4) million, corresponding to growth of 124 percent and with an EBIT margin of 28.0 (24.3) percent.
Externally the global supply and logistics situation remains complicated, with both long lead times and more expensive transports. We believe this situation will persist and RevolutionRace has also been affected. We have, however, responded
guickly to the challenges in the market, finding solutions enabling us to still meet customers' demands and expectations.
Some of the autumn's news products have been delayed and product launches are therefore expected to be more frequent in the second quarter as deliveries of new products are received. The long-awaited launches of two new product groups, shoes and backpacks, are expected to occur at the end of the second quarter and at the beginning of the new calendar year respectively.
Despite the market disruption in the first quarter, we delivered net sales growth of 95 percent, as well as both an increasing gross margin and EBIT margin, reflecting a fast-paced organisation that has successfully optimised its marketing and sales activities and kept its customers extremely satisfied. We are observing how we are growing more competitive by retaining all of the necessary skills and expertise within the company, rather than relying on external consultants. By building our own expertise on how to achieve our objectives, we establish a competitive advantage, both here and now, as well as for the future.
The planned increase in inventory to replenish sold products and to enable two complete logistics partners continued in the first quarter, despite the strained supply and logistics situation globally. A large proportion of inventory comprises "goods in transit", that is, products yet unsellable as they are in transport. We expect extensive deliveries to occur prior to the key sales peaks in November and December. With this in mind, we have placed significant product orders and will continue to build up our inventory during the current and upcoming quarters to facilitate continued high and profitable growth.
The capacity increase with our German logistics partner is progressing as planned and, at the end of the first quarter, about 30 percent of all shipments were dispatched by our warehousing partner in Germany. This benefits customers through reduced lead times, and also reduces the relative need for longer transports. With two complete warehousing partners, we enable continued favourable growth and mitigate the risk of bottlenecks in the logistics sector. We are also continuing our efforts to optimise our goods supply and logistics in our markets outside the EU. During the first quarter, we also continued to strengthen our internal logistics
team by recruiting an experienced logistics manager, who will join us at the start of 2022.
RevolutionRace's sustainability work has continued with the formulation of a clear sustainability strategy - "A Responsible Race". In October, we published our first formal Sustainability Report, which can be accessed through our website. A key element here is our focus on durable, high-quality products that last a long time and can be used in numerous contexts. Our business model also ensures that we only produce what is demanded, resulting in uniquely low overproduction in the industry - benefiting both the environment and our own profitability.
As we enter an exciting new season, we are noting continued strong growth in net sales at the beginning of the second quarter. On the whole, we find ourselves in a healthy situation, with RevolutionRace being well-positioned to continue gaining market shares.
All employees are finally working at the office, on either a full-time or part-time basis, which is great for morale. Being able to work with all of our amazing colleagues in-person is hugely energising and I am extremely proud of what we have achieved, and I am no less excited about the future.
Pernilla Nyrensten, CEO and co-founder
Financial development
First quarter (Jul-Sep 2021)
Operating income
Net sales for the fourth quarter amounted to SEK 254.2 (130.5) million, an increase of 95 (98 in local currency) percent. Total revenues for the period amounted to SEK 259.5 (130.5) million, the difference between net sales and operating income is attributable to exchange gains. The increase in net sales is attributable to good demand for the company's multifunctional clothing as a result of successful optimization of marketing campaigns in different channels and to different target groups as well as a broadening of the product range, which has driven strong growth in all regions.
Graph: Regions share of net sales in the first quarter
Net sales in the Nordic region increased by 53 percent to SEK 115.1 (75.3) million, in the DACH region (Germany, Austria and Switzerland) by 151 percent to SEK 104.9 (41.7) million and in the rest of the world by 155 percent to SEK 34.2 (13.5) million. The strong growth in the DACH region is driven by a very good development in the company's largest market, Germany.
Gross profit
Gross profit increased by 100 percent to SEK183.9 (92.0) million, giving an increase in gross margin of 1.9 percentage points to 72.4 (70.5) percent. The gross margin is positively affected by a favourable market mix, compared to previous year. Increased expenditures on shipments from Asia due to disruptions in logistics negatively affects the gross profit, with some delay. During the remaining part of 2021/22, the company is expected to be affected by high sea freight prices and disruptions in the flow, and the use of alternative modes of transport is expected to continue.
Operating profit (EBIT)
Operating profit (EBIT) increased to SEK 72.7 (32.4) million, corresponding to an EBIT margin of 28.0 (24.3) percent. The improvement in operating profit is mainly explained by continued high sales growth combined with lower expenses as a share of sales. Goods for resale increased to SEK-70.3 (-38.5) million driven by increased net sales. Personnel costs amounted to SEK-15.0 (-8.7) million during the quarter.
Earnings and earnings per share for the period
Profit before tax amounted to SEK 71.7 (30.6) million. Profit for the period was SEK 56.5 (24.0) million. Basic earnings per share amounted to SEK 0.50 (0.22) and after dilution SEK 0.50 (0.22) SEK. Growth in earnings per share was 128 percent before dilution and 128 percent after dilution.
Cash flow
Cash flow from operating activities amounted to SEK-12.9 (59.4) million. The decrease is mainly attributable to an increase in inventories, which is according to plan. Cash flow from investment activities amounted to SEK-0.6 (-0.9) million. Cash flow from financing activities was SEK-1.2 (-0.2) million. Cash flow for the period amounted to SEK-14.7 (58.3) million.
Financial position
Net debt amounted to SEK-47.4 (61.0) million. mainly driven by cash-flow from operating activities.
Cash and cash equivalents amounted to SEK 281.7 $(175.4)$ million.
The interest-bearing debt of SEK 234.3 (236.4) consist of liabilities to credit institutions in the form of a bank loan of SEK 228.5 (230.0) million and lease liabilities of SEK 5.8 (6.4). During the latter part of the fourth quarter the terms of the bank loan were renegotiated.
Net working capital
Net working capital amounted to SEK-1.3 (-57.5) million. The change is mainly related to build-up of inventory, advance payments for goods not yet delivered, repayment liabilities and change in seasonality from monthly to quarterly payments of EU VAT.
Investments
Investments affecting cash flow amounted to SEK -0.6 (-0.9) million during the period. Investments in intangible fixed assets amounted to SEK-0.6 (-0.9) million and are mainly attributable to activation of expenditures related to software development. Investments in property, plant and equipment amounted to SEK 0 (0) million.
Personnel
C. Allian
The number of employees at the end of the period was 101 (53). The average number of employees during the period was 97 (49). The increase in the number of employees is explained by the company's strong growth during the period and the past year. Several new hires have been made primarily to deal with an incipient understaffing due to the strong growth and due to the company's IPO.
Other information
Financial goals
During the previous financial year, the Board of Directors of RVRC Holding AB established a number of long-term financial goals as well as a dividend policy for the company.
. Net sales during the financial year 2023/2024 shall amount to at least SEK 2 billion.
• The company shall maintain an annual EBIT margin of at least 25 percent.
• Revolution Race intends to distribute surplus capital to shareholders after taking into account long-term financial stability, growth opportunities and strategic initiatives. With these considerations in mind, RevolutionRace intends to distribute 40-60 percent of profits for the year.
Significant events after the end of the period
No significant events after the end of the period.
Future prospects
RevolutionRace's strategy is to continue to capitalize on the transformation from physical in-store trading to ecommerce and strong expected market growth. The company focuses on driving continued high growth in existing and new markets combined with good profitability. The company does not provide a forecast.
Items affecting comparability
No items affecting comparability, neither in the period nor in the comparative period.
Parent company
RVRC Holding AB (publ), org. No. 559129-4623 is a Swedish public company with domicile in Borås, Sweden. Net sales for the first quarter of SEK 1.2 (0.0) million are attributable to intra-group services related to group management. The Parent Company's profit for the first quarter amounted to SEK-3.1 (0.0) million.
Risks and uncertainties
A full description of the risks and uncertainties associated with RevolutionRace can be found in the annual report published on 13 October 2021.
RevolutionRace is an international company and its operations as such can be affected by several risk factors in the form of both operational and financial risks. The risks related to the industry and the company include, but are not limited to, trends linked to people's interest in nature as well as increased competition. An economic downturn or change in consumer preferences could have a negative impact on the Group's net sales and profitability.
RevolutionRace is further exposed to external factors that the company cannot influence. For example, it is difficult to assess future effects of the spread of COVID-19, even though demand for the company's products has been strong so far during the pandemic.
Since Revolution Race operates globally, the company is exposed to changes in exchange rates, which may have a negative impact on the company's revenues as they are reported in SEK but since a large proportion of net sales originate from other currencies. In addition, the company's products are produced in Asia, which
entails a currency risk also on the cost side. The company works actively to reduce currency risks by futuresproofing the Swedish krona against mainly EUR and USD.
About Revolution Race
RevolutionRace offers high quality functional clothing for people with an active lifestyle. The company was founded in 2013 by Pernilla Nyrensten, CEO and Niclas Nyrensten, Creative Director. Since its inception, the founders have had the goal of creating multifunctional clothing with great fit, in the highest quality and at reasonable prices under the tag line "Nature is our playground". By selling clothes online, directly to consumers without unnecessary intermediaries, RevolutionRace can offer products that have an unbeatable value in terms of price, quality and design. Together with its customers, the company has grown rapidly and is selling its products to more than 35 countries with net sales exceeding SEK1 billion (October 2020 - September 2021). Since June 16, 2021, RevolutionRace is listed on Nasdaq Stockholm Midcap. For more information, please visit corporate.revolutionrace.com.
Borås 9 November 2021
Pernilla Nyrensten, CEO and co-founder
Contact details Pernilla Nyrensten, CEO and co-founder E-mail: [email protected]
Jesper Alm, CFO Tel: +46 70-101 09 80 E-mail: [email protected]
Auditor's audit
This interim report has not been subject to a review by the company's auditors.
This information is such information that RVRC Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person above, on 9 November 2021 at 07:30 CEST.
Group income statement, condensed
| SEKm | Note | Jul-Sep 21/22 |
Jul-Sep 20/21 |
jul-jun 20/21 |
|---|---|---|---|---|
| Operating income | ||||
| Net sales | 3 | 254.2 | 130.5 | 897.1 |
| Other operating income | 5.3 | 3.0 | 15.6 | |
| 259.5 | 133.5 | 912.7 | ||
| Operating expenses | ||||
| Goods for resale | $-70.3$ | $-38.5$ | $-248.8$ | |
| Other external expenses | $-97.0$ | $-49.6$ | $-363.7$ | |
| Personnel expenses | $-15.0$ | $-8.7$ | $-48.6$ | |
| Depreciation and amortisation of tangible and intangible assets | $-1.1$ | $-0.9$ | $-3.9$ | |
| Other operating expenses | $-3.4$ | $-3.4$ | $-17.4$ | |
| $-186.7$ | $-101.1$ | $-682.3$ | ||
| Operating profit (EBIT) | 72.7 | 32.4 | 230.4 | |
| Financial income | 0.0 | 0.0 | 0.0 | |
| Financial expenses | $-1.0$ | $-1.8$ | $-12.0$ | |
| $-1.0$ | $-1.8$ | $-12.0$ | ||
| Profit before tax | 71.7 | 30.6 | 218.4 | |
| Income tax | $-15.2$ | $-6.6$ | $-46.8$ | |
| Profit for the period | 56.5 | 24.0 | 171.6 | |
| Attributable to parent company's shareholders | 56.5 | 24.0 | 171.6 | |
| Earnings per share | ||||
| Earnings per share before dilution, SEK | 0.50 | 0.22 | 1.59 | |
| Earnings per share after dilution, SEK | 0.50 | 0.22 | 1.59 |
| SEKm | Jul-Sep 21/22 |
Jul-Sep 20/21 |
jul-jun 20/21 |
|---|---|---|---|
| Profit for the period | 56.5 | 24.0 | 171.6 |
| Other comprehensive income | |||
| Items reclassified or which may be reclassified to profit for the period | |||
| Exchange rate differences upon translation of foreign subsidiaries | 0.0 | $-0.0$ | 0.2 1 |
| Other comprehensive income for the period, after tax | 0.0 | $-0.0$ | 0.2 0 |
| Comprehensive income for the period | 56.5 | 24.0 | 171.7 |
| Attributable to parent company's shareholders | 56.5 | 24.0 | 171.7 |
Group statement on other comprehensive income, condensed
| SEKm Note |
2021-09-30 2020-09-30 2021-06-30 | ||
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Capitalised expenditures for development work | 8.9 | 8.1 | 8.8 |
| Trademarks | 171.2 | 171.2 | 171.2 |
| Goodwill | 616.8 | 616.8 | 616.8 |
| 796.9 | 796.2 | 796.8 | |
| Tangible assets | |||
| Expenditures on third-party property | 0.3 | 0.4 | 0.4 |
| Plant and machinery | 0.0 | 0.1 | 0.0 |
| Equipment, tools and installations | 1.0 | 1.3 | 1.1 |
| Right of use assets | 5.2 | 5.6 | 5.6 |
| 6.5 | 7.4 | 7.0 | |
| Deferred tax asset | 1.4 | 1.5 | 1.5 |
| 1.4 | 1.5 | 1.5 | |
| Total non-current assets | 804.9 | 805.0 | 805.4 |
| Current assets | |||
| Goods in warehouse | 109.0 | 21.1 | 82.6 |
| Goods in transit | 112.1 | 0.3 | 53.2 |
| Right of return assets | 9.8 | 4.2 | 7.1 |
| Sum inventory | 230.9 | 25.6 | 142.8 |
| Accounts receivable | 0.1 | 0.0 | 0.0 |
| Current tax assets | 2.9 | 1.7 | 2.7 |
| Other current receivables | 56.6 | 6.4 | 16.9 |
| Derivative instrument | $\overline{2}$ 2.6 |
0.1 | 2.1 |
| Prepaid expenses and accrued income | 2.8 | 7.2 | 1.9 |
| Cash and cash equivalents | 281.7 | 175.4 | 296.3 |
| Total current assets | 577.6 | 216.3 | 462.7 |
| Total assets | 1,382.5 | 1,021.3 | 1,268.1 |
Group statement of financial position, condensed
| SEKM Note |
2021-09-30 2020-09-30 2021-06-30 | ||
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equtiy | |||
| Share capital | 1.1 | 0.1 | 1.1 |
| Other contributed capital | 715.7 | 645.8 | 716.4 |
| Reserves, translation differences | $-0.1$ | $-0.4$ | $-0.2$ |
| Retained earnings | 42.1 | $-18.5$ | $-129.4$ |
| Profit for the period | 56.5 | 24.0 | 171.6 |
| Total equity | 815.3 | 651.1 | 759.5 |
| Long-term liabilities | |||
| Liabilities to credit institutions | 228.5 | 230.0 | 228.5 |
| Lease liabilities | 4.3 | 5.1 | 4.6 |
| Deferred tax liabilities | 35.7 | 35.4 | 35.7 |
| Total long-term liabilities | 268.5 | 270.5 | 268.8 |
| Current liabilities | |||
| Lease liabilities | 1.5 | 1.3 | 1.5 |
| Accounts payable | 163.1 | 26.9 | 99.0 |
| Other current liabilitites | 47.5 | 21.1 | 35.1 |
| Derivative instrument $\overline{2}$ |
0.6 | 0.0 | 0.6 |
| Tax liabilities | 11.6 | 18.2 | 36.2 |
| Repayment liabilities | 41.5 | 15.8 | 25.7 |
| Prepaid income and accrued expenses | 33.0 | 16.3 | 41.7 |
| Total current liabilities | 298.8 | 99.7 | 239.8 |
| TOTAL EQUITY AND LIABILITIES | 1,382.5 | 1,021.3 | 1,268.1 |
Group statement of financial position, condensed
Group statement on cash flow, condensed
| SEKm | Jul-Sep 21/22 |
Jul-Sep 20/21 |
|---|---|---|
| Operating activities | ||
| Operating profit (EBIT) | 72.7 | 32.4 |
| Adjustment for non-cash items | ||
| Depreciation and amortisation | 1.1 | 0.9 |
| Interest paid | $-1.0$ | $-1.8$ |
| Paid income tax | $-39.9$ | $-2.9$ |
| Cash flow from operating activities before changes in working capital | 32.9 | 28.6 |
| Increase (-)/Decrease(+) in inventory | $-88.0$ | 3.4 |
| Increase (-)/Decrease(+) in operating receivables | $-41.3$ | $-9.5$ |
| Increase (+)/Decrease(-) in operating liabilities | 83.5 | 37.0 |
| Cash flow from operating activities | $-12.9$ | 59.4 |
| Investing activities | ||
| Acquisition of tangible assets | 0.0 | 0.0 |
| Acquisition of intangible assets | $-0.6$ | $-0.9$ |
| Cash flow from investing activities | $-0.6$ | $-0.9$ |
| Financing activities | ||
| Amortisation of lease liabilities | $-0.4$ | $-0.2$ |
| Warrants, program 2021/24 | $-0.8$ | 0.0 |
| Cash flow from financing activities | $-1.2$ | $-0.2$ |
| Cash flow for the period | $-14.7$ | 58.3 |
| Cash and cash equivalents at start of period | 296.3 | 116.7 |
| Exchange rate differences in cash and cash equivalents | 0.1 | 0.4 |
| Cash and cash equivalents at end of period | 281.7 | 175.4 |
Group statement on changes in equity, condensed
| Share | Other contributed |
Reserves. translation |
Retained | Profit for | ||
|---|---|---|---|---|---|---|
| SEKm | capital | capital | differences | earnings | the period | Total equity |
| Opening balance, 1 July 2020 | 0.1 | 645.8 | $-0.3$ | $-78.2$ | 59.7 | 627.1 |
| Transfer of profits for the previous period | 59.7 | $-59.7$ | ||||
| Profit for the period | 24.0 | 24.0 | ||||
| Other comprehensive income | $\qquad \qquad -$ | $-0.0$ | $\overline{\phantom{a}}$ | $\overline{a}$ | $-0.0$ | |
| Comprehensive profit/loss for the year | 0.0 | 0.0 | $-0.0$ | 59.7 | $-35.7$ | 24.0 |
| Closing balance, 30 September 2020 | 0.1 | 645.8 | $-0.4$ | $-18.5$ | 24.0 | 651.1 |
| Opening balance, 1 July 2021 | 1.1 | 716.4 | $-0.2$ | $-129.4$ | 171.6 | 759.5 |
| Transfer of profits for the previous period | 171.6 | $-171.6$ | ||||
| Profit for the period | 56.5 | 56.5 | ||||
| Other comprehensive income | ÷ | 0.0 | $\overline{\phantom{a}}$ | 0.0 | ||
| Comprehensive profit/loss for the year | 0.0 | 0.0 | 0.0 | 171.6 | $-115.1$ | 56.5 |
| Transactions with owners | ||||||
| Warrants, program 2021/24* | $-0.8$ | $\overline{\phantom{a}}$ | $-0.8$ | |||
| Total | 0.0 | $-0.8$ | 0.0 | 0.0 | 0.0 | $-0.8$ |
| Closing balance, 30 September 2021 | 1.1 | 715.7 | $-0.1$ | 42.1 | 56.5 | 815.3 |
*Relates to a buy-back of warrants.
Parent company
| SEKm | Jul-Sep 21/22 |
Jul-Sep 20/21 |
jul-jun 20/21 |
|---|---|---|---|
| Operating income | |||
| Net sales | 1.2 | $\overline{\phantom{m}}$ | 1.1 |
| 1.2 | 0.0 | 1.1 | |
| Operating expenses | |||
| Other operating expenses | $-2.0$ | 0.0 | $-22.9$ |
| Personnel expenses | $-1.3$ | 0.0 | $-2.1$ |
| $-3.3$ | 0.0 | $-25.0$ | |
| Operating profit (EBIT) | $-2.2$ | 0.0 | $-23.9$ |
| Financial income and expenses | |||
| Interest expenses and equivalents | $-1.0$ | 0.0 | $-0.1$ |
| $-1.0$ | 0.0 | 109.9 | |
| Appropriations | |||
| Group contribution received | 0.0 | 0.0 | 24.5 |
| 0.0 | 0.0 | 24.5 | |
| Profit or loss before tax | $-3.1$ | 0.0 | 110.5 |
| Income tax | 0.0 | $0.0\,$ | $-0.1$ |
| Profit or loss for the period | $-3.1$ | 0.0 | 110.4 |
Parent company statement of financial position, condensed
| SEKm | 2021-09-30 2020-09-30 2021-06-30 | ||
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Financial assets | |||
| Participations in group companies | 644.3 | 644.3 | 644.3 |
| Receivables from group companies | 230.0 | 0.0 | 230.0 |
| Total financial assets | 874.3 | 644.3 | 874.3 |
| Total non-current assets | 874.3 | 644.3 | 874.3 |
| Current assets | |||
| Receivables from group companies | 18.2 | 0.1 | 24.9 |
| Other receivables | 5.0 | 0.0 | 0.0 |
| Prepaid expenses and accrued income | 0.9 | 0.0 | 0.1 |
| Total current receivables | 24.1 | 0.1 | 27.5 |
| Cash and cash equivalents | |||
| Cash and cash equivalents | 65.0 | 1.5 | 68.6 |
| Total cash and cash equivalents | 65.0 | 1.5 | 68.6 |
| Total current assets | 89.1 | 1.6 | 96.1 |
| TOTAL ASSETS | 963.3 | 645.9 | 970.3 |
Parent company statement of financial position, condensed
| SEKm | 2021-09-30 2020-09-30 2021-06-30 | ||
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | |||
| Share capital | 1.1 | 0.1 | 1.1 |
| 1.1 | 0.1 | 1.1 | |
| Unrestricted equity | |||
| Share premium reserve | 433.3 | 361.6 | 433.3 |
| Retained earnings | 283.6 | 284.2 | 173.2 |
| Profit for the period | $-3.1$ | $\overline{a}$ | 110.4 |
| 713.8 | 645.8 | 717.0 | |
| Total equity | 715.0 | 645.9 | 718.1 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 228.5 | 0.0 | 228.5 |
| Total non-current liabilities | 228.5 | 0.0 | 228.5 |
| Current liabilities | |||
| Accounts payable | 0.6 | 0.0 | 1.2 |
| Prepaid income and accrued expenses | 1.4 | 0.0 | 11.6 |
| Liabilities to Group companies | 17.6 | 0.0 | 10.4 |
| Tax liabilities | 0.0 | 0.0 | 0.1 |
| Other liabilities | 0.2 | 0.0 | 0.5 |
| Total current liabilities | 19.9 | 0.0 | 23.8 |
| TOTAL EQUITY AND LIABILITIES | 963.3 | 645.9 | 970.3 |
Items affecting comparability
Items affecting comparability refer to events of a material nature that make it difficult for the company to achieve good transparency and comparability over time in the financial statements.
Key performance measures
Some key measures that management and analysts use to assess the Group's performance are not defined by IFRS (alternative performance measures - "APM". The following table follows definitions and a description of the purpose of all key measures. The Company applies ESMA's guidelines for alternative performance measures.
| Key measure | Definition | Purpose |
|---|---|---|
| Adjusted EBIT 1 | Operating profit (EBIT) adjusted by items affecting comparability. |
Adjusted EBIT is used to maintain the clarity and comparability of the profit of the day-to-day operations. |
| Adjusted EBIT margin 1 | Adjusted EBIT as a percentage of operating income. Operating income = Net sales + Other operating income. |
Adjusted EBIT margin is used to show the deegre of profitability, excluding items affecting comparability. |
| Average net order value $(AOV)^1$ | Net sales for the period divided by number of orders for the period. |
Average net order value (AOV) is used to analyse the profitability per order. |
| Cash flow from operations | Cash flow attributable to operations, investment and financial activities not included. |
KPI defined by IFRS. |
| Earnings per share before dilution (SEK) |
Net profit for the period attributable to holders of ordinary shares of the parent company, before dilution. |
KPI defined by IFRS. |
| Earnings per share after dilution (SEK) |
Net profit for the period attributable to holders of ordinary shares of the parent company, after dilution. |
KPI defined by IFRS. |
| EBIT margin | Earnings before interest and taxes divided by operating income. Operating income = Net sales + Other operating income. |
EBIT margin is used to analyse the degree of profitability of the operating business. |
| EBT | Earnings before taxes. | KPI defined by IFRS. |
| Key measure | Definition | Purpose |
|---|---|---|
| Gross profit 1 | Net sales less direct costs related to purchase of goods including freight and customs to warehouse. |
Gross profit is used to analyse the profitability of the sale of goods. |
| Gross profit margin 1 | Gross profit divided by net sales. | Gross profit margin is used to show the degree of profitability of the sale of goods. |
| Net sales | Total sales less exchange gains related to operational assets and liabilities. |
Net sales is used to analyse sales less exchange rate gains. |
| Net debt $^1$ | Interest-bearing current and long- term liabilities reduced by interest-bearing assets, cash and cash equivalents. |
Net debt is used to determine if the company will be able to fulfil its financial commitments. |
| Net working capital 1 | Current assets reduced by cash and cash equivalents minus non- interest bearing current liabilities. |
Net working capital is used to analyse the condition of the company to finance the day-to- day operations. |
| Number of orders 1 | Number of orders before cancellations and returns in the period. |
Number of orders is used to measure the level of customer activity and to calculate the average net order value (AOV). |
| Operating profit (EBIT) | Earnings before interest and taxes |
Operating profit (EBIT) is used to analyse the profitability of the operating business. |
| Result for the period | Result for the period. | KPI defined by IFRS. |
1) Alternative performance measures according to the guidelines of ESMA
| Jul-Sep | Jul-Sep | jul-jun | Okt-Sep | |
|---|---|---|---|---|
| Gross profit | 21/22 | 20/21 | 20/21 | 20/21 |
| Net sales | 254.2 | 130.5 | 897.1 | 1,020.8 |
| Goods for resale | $-70.3$ | $-38.5$ | $-248.8$ | $-280.5$ |
| Gross profit | 183.9 | 92.0 | 648.3 | 740.3 |
| EBIT and adjusted EBIT | ||||
| Operating profit (EBIT) as reported | 72.7 | 32.4 | 230.4 | 270.7 |
| Other external expenses, related to the listing preparations (+) | 0.0 | 0.0 | 21.8 | 21.8 |
| Adjusted EBIT | 72.7 | 32.4 | 252.2 | 292.5 |
| Net working capital | ||||
| Current assets | 577.6 | 216.3 | 462.7 | 577.6 |
| Cash and cash equivalents (-) | $-281.7$ | $-175.4$ | $-296.3$ | $-281.7$ |
| Current liabilities (-) | $-298.8$ | $-99.7$ | $-239.8$ | $-298.8$ |
| Current interest-bearing liabilities (+) | 1.5 | 1.3 | 1.5 | 1.5 |
| Net working capital | $-1.3$ | $-57.5$ | $-71.9$ | $-1.3$ |
| Interest-bearing current liabilities are attributable to lease liabilities. | ||||
| Net debt | ||||
| Interest-bearing debt | 234.3 | 236.4 | 234.6 | 234.3 |
| Interest-bearing assets (-) | 0.0 | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents (-) | $-281.7$ | $-175.4$ | $-296.3$ | $-281.7$ |
| Net debt | $-47.4$ | 61.0 | $-61.6$ | $-47.4$ |
| Number of orders and average net order value (AOV) | ||||
| Number of orders | 320,430 | 170,425 | 1,176,227 1,326,232 | |
| Net sales | 254.2 | 130.5 | 897.1 | 1,020.8 |
| Avorano not ordor valuo (AOV)· (SEK) | 703 | 766 | 763 | 77N |
Reconciliation tables, alternative performance measures
Notes
All amounts in the report in SEK million (SEKm), unless otherwise stated. Amounts are rounded to one decimal.
NOTE 1 Accounting principles
RVRC Holding AB applies the International Financial Reporting Standards (IFRS) as adopted by the European Community (EC). The financial statements for the Group and the interim report have been prepared according to applicable sections of the Annual Accounts Act and IAS 34 Interim financial reporting.
The financial statements of the parent company have been prepared according to Annual Accounts Act and RFR 2.
For complete information regarding accounting and valuation principles applied by the group, please see the prospectus which was published at June 7th 2021.
New and amended standards and interpretations that have not yet been applied by the Group None in the period.
Note 2 Fair value of financial instruments
| 2021-09-30 | 2020-09-30 | 2021-06-30 | ||||
|---|---|---|---|---|---|---|
| Financial assets | Reported value |
Fair value | Reported value |
Fair value | Reported value |
Fair value |
| Financial assets reported at fair value via income statement Derivative intstrument |
||||||
| Foreign exchange forwards | 2.6 | 2.6 | 0.1 | 0.1 | 2.1 | 2.1 |
| 2021-09-30 | 2020-09-30 | 2021-06-30 | ||||
| Financial liabilities | Reported value |
Fair value | Reported value |
Fair value | Reported | value Fair value |
| Financial liabilities reported at fair value via income statement |
||||||
| Derivative intstrument | ||||||
| Foreign exchange forwards | 0.6 | 0.6 | 0.0 | 0.0 | 0.6 | 0.6 |
For other financial assets and liabilities, carrying amount represents a good approximation of fair value.
Note 3 Income from agreements with customers
The company has one operating segment and has for the breakdown of income identified one category, geographical area, for which the smallest entity is market which belongs to a region. The definition of a market is connected with the site on which the sales take place, for example revolutionrace.se for Sweden and revolutionrace.de for Germany.
Below, net sales is presented per geographical market and region, respectively.
| Jul-Sep | Jul-Sep | jul-jun | ||
|---|---|---|---|---|
| Market | 21/22 | 20/21 | Δ | 20/21 |
| Germany | 95.4 | 37.2 | 156% | 116.1 |
| Sweden | 48.9 | 31.5 | 55% | 102.2 |
| Finland | 45.7 | 30.1 | 52% | 84.0 |
| Other | 64.2 | 31.6 | 103% | 84.5 |
| Total net sales | 254.2 | 130.5 | 95% | 386.8 |
| Jul-Sep | Jul-Sep | jul-jun | ||
|---|---|---|---|---|
| Region | 21/22 | 20/21 | Δ | 20/21 |
| Nordics | 115.1 | 75.3 | 53% | 230.3 |
| DACH | 104.9 | 41.7 | 151% | 130.2 |
| Rest of world | 34.2 | 13.5 | 155% | 26.2 |
| 254.2 | 130.5 | 95% | 386.8 |
Note 4 Related Party Transactions
The company has no transactions with related parties in the period.
Note 5 Number of shares and warrants
Number of shares
| Date | Description | Change in number of shares | Total number of shares |
|---|---|---|---|
| 2021-07-01 Opening balance | $\sim$ | 112.918.918 | |
| 2021-09-30 Closing balance | $\overline{\phantom{a}}$ | 112.918.918 |
Number of warrants
| Subscription Number of shares | |||||
|---|---|---|---|---|---|
| Description | Utlilisation period | price | per warrant | Issued | Allocated |
| 2021/24 incentive program | 2024-07-01 - 2024-12-31 | 97.5 | 1889677 | 1.726.139 |
RevolutionRace holds an incentive program with warrants for senior management and key personnel. All warrants have been transferred at market price.
A buy-back of 51,072 warrants has been made in the period.
Note 6 Currency rates
RevolutionRace has a currency exposure mainly towards SEK, EUR, GBP, NOK and DKK for inflow and towards USD, EUR and SEK for outflow. RevolutionRace has accordingly an exposure towards these currencies. For inflow EUR is the primary currency and for outflow the primary currency is USD.
Below currency cross rates for SEK/EUR and SEK/USD for information purposes.
| Jul-Sep 21/22 |
Jul-Sep 20/21 |
|||
|---|---|---|---|---|
| Currency | AR | СR | AR | СR |
| SEK/EUR | 10,19 | 10,17 | 10,36 | 10,57 |
| SEK/USD | 8,65 | 8,78 | 8,87 | 9,03 |
| Source: European Central Bank |
$AR = average rate$ $CR = closing rate$
Financial Calendar
AGM 2021: 10 November 2021 Interim report Jul-Dec 2021/2022: 8 February 2022 Interim report Jul-Mar 2021/2022: 10 May 2022 Year-end report 2021/2022: 9 August 2022 Interim report Jul-Sep 2022/2023: 8 November 2022
Contact
RVRC Holding AB Nils Jakobssonsgatan 5D, 504 30 Borås corporate.revolutionrace.com
In the event of discrpenacies bwteen the English and Swedish reports, the Swedish version shall govern.
This report contains forward-looking statements that reflect the company's current expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot be exchange rate fluctuations, developments in product liability disputes, regulatory environment changes and other government measures.
Forward-looking statements relate only to expectations as of the date they were made, an Company undertakes no responsibility for updating any of them in the event of new information or future events.