Clas Ohlson Ab Class B · OMXSTO:CLAS_B
Clas Ohlson Ab Class B — Q1 2024 Earnings Presentation
23 slides from Clas Ohlson Ab Class B's earnings presentation, Sep 6, 2023
Slide 1: Q1 report
Q1 report 06 September 2023 Kristofer Tonström President & CEO Pernilla Walfridsson CFO 1
Slide 2: Agenda
• Business update • Financial development Agenda • Events after the reporting period • Summary • Q&A 2
Slide 3: Starting the new financial year with 8% organic growth in Q1
✓ Starting the new financial year with 8% organic growth in Q1 and +9% LFL ✓ Improved gross margin ✓ Operating cash flow 328 MSEK (-35) ✓ Entering autumn with a healthy and balanced inventory ✓ Proactively addressing overhead costs - a new base established ✓ Cost efficiency and flexibility important
Slide 4: Business update
Business update 4
Slide 5: Strategy execution – growth plan 24/25
Strategy execution – growth plan 24/25 Organic growth 5% with Industry leading in 1 7-9% EBIT margin 2 sustainability – deliver on our people agenda and 2045 commitments Planet People Society 20/21 21/22 22/23 R12 Q1 23/24 5
Slide 6: Strategy execution – overview Q1 23/24
Strategy execution – overview Q1 23/24 Make assortment A profitable and Expand the store relevant 12 months/year growing online business network ✓ All prioritized categories ✓ Full focus on delivering ✓ New store opened in driving growth customer value in our own Norway ✓ Strong sales for base onlin
Slide 7: Relevance for all home fixing through consumer missions
Relevance for all home fixing through consumer missions Create a Connect Tidy up your Light up your conscious and enjoy Fix your home home home your home home environment ✓ All five consumer missions driving growth ✓ Numerous new product launches in all missions Sustainability / spare parts / seas
Slide 8: Consumers cautious and price sensitive – Clas Ohlson on par with low price competitors
Consumers cautious and price sensitive – Clas Ohlson on par with low price competitors Consumer Confidence development* 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 -25.0 -30.0 -35.0 Q2 21/22 Q3 21/22 Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23 Q4 22/23 Q1 23/24 Sweden Norway Finland *Source: Opinion AS *Source: Cla
Slide 9: Financial development
Financial development 9
Slide 10: Sales development
Sales development Online sales, MSEK Total sales, MSEK Q1 • Total sales up 7% to 2,193 MSEK, organic sales up 8%, LFL up 9% • Online sales up 9% • The store network has decreased by 4 stores compared to last year Online share of total sales (R12), % 10
Slide 11: Sales per market
Sales per market Sweden Norway Finland Organic growth: Q1: +9% Q1: +11% Q1: -3% 11
Slide 12: Macro trends with business impact
Macro trends with business impact Spot prices for 40t containers from Asia to Gothenburg $18 000 Factors impacting Clas Ohlson: $16 000 $14 000 • Container shipping costs and raw material and commodity prices $12 000 $10 000 • Translation/transaction effects - sales instant effects and purchasing $8
Slide 13: Improved gross margin – favourable price and product mix compensated for weak SEK
Improved gross margin – favourable price and product mix compensated for weak SEK Product and price mix, sourcing (lower transportation costs) Currency effects Currency hedging (USD) 38.2% (NOK) 35.1% Q1 2022/23 Q1 2023/24 13
Slide 14: Cost efficiency by simplifying ways of working runs according to plan
Cost efficiency by simplifying ways of working runs according to plan 1 2 Cost savings and 2022/23 2023/24 reduced depreciation of: ✓ Reduced office functions ✓ Reduced office functions 1 approx. 110 MSEK with by approx. 85 FTEs by approx. 75 FTEs full effect from 2023/24 ✓ Re-assessment of IT- ✓ Re
Slide 15: Financial overview
Financial overview Share of selling expenses, Q1 29.7 Q1 Q1 MSEK 23/24 22/23 % Operating profit excl. (31.7%) 154 19 Administrative expenses, Q1 one-off items 46 One-off items -170* -35 *Distribution of one-off costs: Disposals of IT-systems -152 MSEK Operating profit -16 -16 White collar reductions
Slide 16: Effective inventory management
Effective inventory management • Inventory level: 2,221 MSEK (2,476) at the end of the period • Average inventory level LTM: 2,346 MSEK (2,133) • Inventory turnover rate DC: 4.8 (5.0) 16
Slide 17: Cash flow and financial position
Cash flow and financial position Q1 Q1 Approved credit facilities 800 MSEK 23/24 22/23 MSEK Cash flow from operating activities, before 250 121 Ofwhich utilized 23 MSEK change in working capital Change in working capital 79 -156 Net debt/EBITDA excl IFRS 16 Cash flow from operating activities 328 -3
Slide 18: Events after the reporting period
Events after the reporting period 18
Slide 19: August sales development
August sales development • Total sales up 14% to 860 MSEK, MSEK MSEK LFL up 14% and organic sales up 14% Total Online ‒ Sweden +15% organic +14 860 +11 ‒ Norway +14% organic ‒ Finland +8% organic • Online sales up 11% • Decrease of 3 stores compared to end of August last year • All missions driving
Slide 20: Summary
Summary 20
Slide 21: Executing on our strategic plan
Executing on our strategic plan • Challenging market and continued uncertainty around consumer spending • Relevant assortment, value for money and increased flexibility is key • Expanding store network and focusing on own online channel • Executed on cost saving measures - continued cost focus going
Slide 22: Q&A
Q&A 22
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