Rugvista Group Ab · OMXSTO:RUG
Rugvista Group Ab — Q4 2021 Earnings Presentation
23 slides from Rugvista Group Ab's earnings presentation, Feb 17, 2022
Slide 1: Q4 2021 Earnings Call
Q4 2021 Earnings Call February 17, 2022, 10:00 CET
Slide 2: Solid finish to an exceptional year
Solid finish to an exceptional year Outstanding full-year financial performance All-time highs reached across multiple financial metrics. MSEK 705 in net revenues and adjusted EBIT of MSEK 138 (19.5% adjusted EBIT margin). Solid Q4 despite tough comparables 7% organic net revenue growth & MSEK 40 EB
Slide 3: Business Update
Business Update
Slide 4: Center of Gravity vision KPIs continues to develop strongly
Center of Gravity vision KPIs continues to develop strongly Maintain outstanding customer Increase market penetration Attract new customers satisfaction levels Net Promotor Score (NPS) rating # of orders (thousand) # of new customers (thousand) (TrustPilot rating) 67 67 273 197 -0.4% 32.5% 32.1% 206
Slide 5: Average Order Value (AoV) marginally down
Average Order Value (AoV) marginally down +1% -3% 3,727 3,755 3,636 2019 2020 2021 5
Slide 6: Design rugs continue to gain in popularity
Design rugs continue to gain in popularity Sales by category development Percent of shipped value Accessories Traditional Design 2019 2020 2021 6
Slide 7: Increasing Average item Values (AiV) partly offsetting downward pressure on AoV
Increasing Average item Values (AiV) partly offsetting downward pressure on AoV from category mix changes Design (machine made) Design (hand made) Traditional (hand knotted) SEK SEK SEK +18% +2% +19% +1% +7% +2% 2019 2020 2021 2019 2020 2021 2019 2020 2021 7
Slide 8: RugVista Essentials developed for those decorating their first home
RugVista Essentials developed for those decorating their first home current # of SKUs Trend-right 67 Contemporary graphics Structures designs & colors Attractively priced current # of articles 416 Outstanding price-quality Vibrant orientals Nomadics ratio 8
Slide 9: Financial Update
Financial Update RUG
Slide 10: Organic growth of 7% in Q4 despite tough comparables
Organic growth of 7% in Q4 despite tough comparables – DACH continued to be fastest growing region Net revenue – Group (full year) Net revenue – Group (Q4) Net revenue – B2C by Region (Q4) SEK million SEK million SEK million DACH 36.4% 7.0% 25.5% Growth Growth Percent +4.0% Percent 705.0 12.1% 40.3
Slide 11: Continued improvement in underlying contribution margin
Continued improvement in underlying contribution margin mainly driven by B2C segment due to category mix effect and lower discount Gross margin – Group Gross Margin – Segments (Q4) % of net revenue % of net revenue Marketplaces & Other (MPO) +2.9pp +2.6pp 63.9% 66.5% 61.7% 64.6% B2B +1.1pp 2020YTD 2
Slide 12: Solid operating profitability in Q4 well above mid to long term target
Solid operating profitability in Q4 well above mid to long term target despite continued headwind in marketing input prices Full year Q4 Cost ratios & margins Percent of net revenue 2020 2021 2020 2021 Category mix effects, reduced discount Goods for resale -38.6% -35.6% 3.1pp -39.0% -35.3% 3.8p
Slide 13: Continued investment in inventory during Q4
Continued investment in inventory during Q4 to prepare for final stage of peak-season (Q1) – LTM ratio well within target range Inventory value Inventory as share of LTM1 net revenue SEK million Percent 146.6 130.9 20.8 Target range 18.8 (20% +/- 2.5%) +16m 16.2 +2.0pp 91.0 12/31/20 9/30/21 12/31/21
Slide 14: Strong cash generation during Q4 and 2021
Strong cash generation during Q4 and 2021 despite significant investments in goods on stock Cash flow from operating activities Net cash position SEK million SEK million 189.6 Q4 88.8 70.0 +80.0 -18.7 120.4 109.6 185.4 104.8 YTD -80.6 12/31/20 9/30/21 12/31/21 2020 2021 Operating cash flow of SEK +1
Slide 15: Dividend proposal
Dividend proposal ▪ The Board of Directors proposes a dividend payout of SEK 2.50 per share ▪ Total proposed dividend payout equals MSEK 51.9 ▪ Proposed dividend a testament to the Group’s strong cash generation ▪ Fulfillment of mid- to long-term financial target of investing resources into growth a
Slide 16: Outstanding 2021 financial performance
Outstanding 2021 financial performance ▪ All-time highs reached across multiple financial metrics ▪ MSEK 705 in Net Revenues (reaching 700+ million threshold) ▪ Adjusted EBIT of MSEK 138 (19.5% adjusted EBIT margin) Solid Q4 despite tough comparables & market conditions ▪ 7% organic net revenue grow
Slide 17: Q&A
Q&A
Slide 18: Additional information
Additional information
Slide 19: 2019 – 2021 net revenue & adjusted EBIT CAGR
2019 – 2021 net revenue & adjusted EBIT CAGR Ongoing net revenue1 Adjusted EBIT MSEK MSEK (adjusted EBIT %) 705 138 +31.6% +64.6% 542 109 407 (19.5) 51 (19.4) (12.0) 2019 2020 2021 2019 2020 2021 1 Excludes divested operations, i.e., Artglass i Malmö 19
Slide 20: Historical quarterly information
Historical quarterly information Quarterly net revenue by segment MPO SEK million B2B B2C 219 6 206 205 5 6 21 17 16 67% +57% +92% 141 141 131 4 3 2 14 13 13 119 2 110 103 107 10 2 3 1 93 10 10 12 192 2 183 182 80 10 1 9 123 124 116 106 91 93 97 81 70 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3
Slide 21: Financial calendar and contact information
Financial calendar Event Date Report release Earnings call o Annual report 2021 April 8, 2022 07:30 CEST - o Interim report January – March 2022 (Q1 2022) May 12, 2022 07:30 CEST 09:00-10:00 CEST o Annual General Meeting 2022 (Malmö, Sweden) May 20, 2022 - - o Capital Markets Day June 2, 2022 - - o
Slide 22: Introduction to what we are aiming to achieve
Introduction to what we are aiming to achieve Strategic initiatives Penetrate core markets further, e.g., enhanced localization and invest into building a known and preferred brand over time. Showcase our assortment, Vision e.g., emphasize our exclusive products, more inspirational & To become the i
Slide 23: About RugVista Group (publ)
About RugVista Group (publ) Introduction Strengths and competitive advantages RugVista Group is one of the leading European direct-to-consumer online RugVista Group considers itself having several strengths and competitive platforms within carpet and rug sales through its online stores, available in