Pierce Group Ab · OMXSTO:PIERCE
Pierce Group Ab — Q1 2025 Earnings Presentation
27 slides from Pierce Group Ab's earnings presentation, May 15, 2025
Slide 1: Interim Report Q1 2025
Interim Report Q1 2025 May 15th 2025
Slide 2: Today's Presenters
Today's Presenters Göran Dahlin CEO
Slide 3: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 4: This is Pierce
THIS IS PIERCE Online leader in a fragmented market Pan-European company Motorcycle specialist Net revenue split, Q1 2025 LTM Net revenue split, Q1 2025 LTM • Pierce is a leading e-tailer in the European market for Gear, Other Parts and Accessories for motorcycle riding 4% • The total European marke
Slide 5: A fragmented market that is still mainly offline
A FRAGMENTED MARKET THAT IS STILL MAINLY OFFLINE The different market categories 100bn SEK market where the majority is still offline 1 ~30% • Protective clothing, such as helmets, boots, suits. Total market 2021 GEAR • High wear and tear for frequent riders (especially offroad). SEK ~100bn1) • E.g.
Slide 6: Fragmented landscape
FRAGMENTED LANDSCAPE Competitive landscape Direct Competitors Leading online retailers in Go-to- Europe Player Home market1 Ownership Comment Nordic Champion. Pierce Nordics Online Listed Pan European leader in offroad General / diversified online FC-Moto DE Online Private DE champion online, onroad
Slide 7: Q1 Summary
Q1 SUMMARY SEKm Q1 2025 Q1 2024 Strong growth in-spite of market headwinds • Q1 showed 13% growth YoY in-spite of a weak consumer demand, especially at the beginning Net Revenue 401 356 of the quarter thank to sales driving actions implemented as a response. Growth, Year over Year % 13% 3% • Consume
Slide 8: KPI Highlights LTM
KPI HIGHLIGHTS LTM Small decline in private brand revenue due to customer mix effects Slight increase in Trustpilot score: 4.4/5.0 Net revenues, Private brand LTM (SEKm) Aggregated Trustpilot scores Net Revenue, Private brand (% of net revenue) 650 641 640 638 635 639 638 4,3 4,3 4,3 4,3 4,3 4,3 4,4
Slide 9: KPI Highlights LTM (continued)
KPI HIGHLIGHTS LTM (CONTINUED) Active customer base increasing AOV increasing, primarily due to mix effects Active customers LTM (000), end of period Average order value LTM (SEK) Number of orders LTM (000) +12% 1,165 1,070 1,090 1,088 1,084 1,093 1,106 1,055 1,083 1,070 1,052 999 1,021 1,021 1,016
Slide 10: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 11: Gross Margin
GROSS MARGIN Gross margin development since Q1 2023 Shipping costs in relation to revenues Gross margin (%), reported In-freight (SEKm) Gross margin (%), exlcluding the effect from obsolescence & scrapping Cost in relation to Net revenue (%) 45.6% 30 44.7% 45.5% 12 30 42.8% 44.1% 27 43.2% 42.6% 24 4
Slide 12: Overhead Costs Development
OVERHEAD COSTS DEVELOPMENT Overhead costs ▪ Cost increase of 13 SEKm Overhead costs % of net revenue ▪ 2025 Q1 has been impacted by transformation costs of 9 SEKm mainly related to our tech stack upgrade 25 76 80 – Costs for external consultants and costs 72 72 associated to systems not yet in use 6
Slide 13: Net Working Capital Development
NET WORKING CAPITAL DEVELOPMENT NWC increased due to higher inventory levels Net working capital, NWC (SEKm) ▪ Net working capital (NWC) has during the fall Net working capital, % of Net Revenue, LTM (%) 2024 and beginning of 2025 increased from an extra ordinary low point in Q2, as a result of work
Slide 14: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 15: Fuelling our growth and profits
Fuelling our growth and profits Strengthening Our Core We are expanding and refining our assortment, improving product availability, and shortening delivery times. With our new tec h stack launching in the second half of 2025, we will gain significantly better control over product and customer data.
Slide 16: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 17: Appendix
Appendix 17
Slide 18: Development of minimum wages Poland
Development of minimum wages Poland Year Jan (PLN) Jul (PLN) Yearly increase 2020 2 600 – 15,6% 2021 2 800 – 7,7% 2022 3 010 – 7,5% 2023 3 490 3 600 19,6% 2024 4 242 4 300 19,4% 2025 4 666 – 8,5% 18
Slide 19: Consolidated Financial Information
CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2023 2024 Q1 2025 LTM Net Revenue 1,537 1,628 1,673 Growth (y/y) (%) -8% 6% 8% Growth in local currencies (y/y) (%) -13% 6% 12% Growth in private brand sales (y/y) (%) -1% 0% 0% Gross Profit 607 724 733 Gross margin (%) 39.5% 44.5% 43
Slide 20: Quarterly Consolidated Financial Information
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION 2023 2024 2025 SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q1 LTM Net Revenue 345 441 369 382 1,537 356 456 365 451 1,628 401 1,673 Growth (y/y) (%) -18% -2% -1% -10% -8% 3% 3% -1% 18% 6% 13% 8% Growth in local currencies (y/y) (%)
Slide 21: Quarterly Consolidated Net Working Capital
QUARTERLY CONSOLIDATED NET WORKING CAPITAL 2023 2024 2025 SEKm (unless stated otherwise) Q4 Q1 Q2 Q3 Q4 Q1 Physical stock 283 274 233 280 301 385 Goods in transit 61 58 74 121 118 105 Inventory 344 332 307 400 419 490 Working capital assets 14 25 27 26 24 35 Working capital liabilities -251 -270 -29
Slide 22: Condensed Consolidated Statement of Profit/Loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Jan-Mar Apr 2024- Jan-Dec SEKm 2025 2024 Mar 2025 2024 Net revenue 401 356 1,673 1,628 Cost of goods sold -230 -194 -940 -903 Gross profit 171 162 733 724 Sales and distribution costs -132 -116 -531 -515 Administration costs -53 -43 -206 -196 Other ope
Slide 23: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 31 Mar 2025 31 Mar 2024 31 Dec 2024 Intangible assets 276 304 281 Property, plant and equipment 14 14 15 Right-of-use assets 151 53 54 Financial assets 5 3 6 Deferred tax assets 1 7 2 Total non-current assets 447 382 358 Inventory 490 332 4
Slide 24: Condensed Consolidated Statement of Cash Flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Jan-Mar Apr 2024- Jan-Dec SEKm NOTE 2025 2024 Mar 2025 2024 Operating profit A -15 7 -3 18 Adjustments for non-cash items B 22 21 70 69 Paid interest -2 -2 -5 -4 Received interest 1 1 7 8 Realised currency derivatives 1 1 3 4 Paid/received tax -2 -1 -4 -
Slide 25: Reconciliation of Adjusted Financials
RECONCILIATION OF ADJUSTED FINANCIALS Jan-Mar Apr 2024- Jan-Dec SEKm 2025 2024 Mar 2025 2024 Net revenue 401 356 1,673 1,628 Cost of goods sold -230 -194 -940 -903 Variable sales- and distribution costs -95 -80 -378 -363 Other costs¹ -91 -75 -358 -342 EBIT -15 7 -3 18 Reconciliation of adj. EBIT and
Slide 26: Pierce Group's mid to long term financial targets
Pierce Group's mid to long term financial targets Financial targets • Net revenue growth: In the medium to long term (3-5 years), organically outgrow the European online market for motorcycle gear, accessories and parts. • Adjusted operating margin (EBIT): In the medium to long term (3-5 years), ach
Slide 27: Riders in QW E-commerce
RIDERS IN QW E-COMMERCE PIERCE