Kjell Group Ab · OMXSTO:KJELL
Kjell Group Ab — Q4 2024 Earnings Presentation
19 slides from Kjell Group Ab's earnings presentation, Feb 13, 2025
Slide 1: Kjell Group Q4 Report 2024
Kjell Group • Q4 Report 2024 • Andreas Rylander (CEO), Thomas Pehrsson (CFO) • 2025-02-13
Slide 2: Disclaimer
Disclaimer The presentation contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition,
Slide 3: Agenda
Agenda Business update Financial development Concluding CEO reflections Q&A 64742 Levitating Lamp
Slide 4: Fourth quarter 2024
Fourth quarter 2024 Net sales increased 1.5% to MSEK 773.4 (761.9) Gross profit increased 0.3% to MSEK 304.5 (303.5) Gross margin at 39.4% (39.8) Adjusted EBITA totalled MSEK 33.3 (28.4) Net profit for the quarter amounted to MSEK 16.0 (12.5) January 1st – December 31st 2024 Net sales increased 0.9%
Slide 5: Improved traffic and strong EBITA growth
Improved traffic and strong EBITA growth After a challenging campaign driven third quarter, we note an improvement in the consumer market in the fourth quarter. During the quarter, we have seen a positive trend in visitor numbers at our retail locations in Sweden and Norway. The Norwegian market had
Slide 6: Organizational changes in Kjell Group
Organizational changes in Kjell Group During the quarter we went live with a new e-commerce platform on the AV-Cables site. This allowed us to consolidate central functions from our Danish office into our Swedish, which will allow for cost savings and efficiencies within purchasing and logistics. 23
Slide 7: New state-of-the-art automated warehouse
New state-of-the-art automated warehouse On the 10th of December we announced our investment in a new automated central warehouse. Along with the investment we announced our intent to strengthen our 22395 Tech Backpack financial position through a fully guaranteed rights issue. The investment in aut
Slide 8: Well equipped for the future
Well equipped for the future We enter 2025 with an implemented efficiency program providing good cost control primarily within store operations and central functions, and a streamlined 64410 Nothing Ear organization that will allow us to adapt and secure our position in the market. The adjustments a
Slide 9: Clear path to increased profitability
Clear path to increased profitability Adjusted EBITA margin Market recovery 6-8% Operational efficiency improvements New automated warehouse Optimised assortment 1.9% 2024 Future
Slide 10: Updated financial targets going into 2025
Updated financial targets going into 2025 We have revised our financial targets to better align Sales our organization with the current market and our • Sales growth exceeding 5 percent ambitions going forward post proposed rights issue. Profitability Sales have been adjusted from 4 billion SEK 2025
Slide 11: Financial development
Financial development 61409 USB 3.0 Hub
Slide 12: Sales development
Net Sales by segment, Q4 Sales development Denmark 10% Norway 17% Net Sales, MSEK Net Sales rolling 12m, MSEK Net sales LfL Growth % 900 Sweden 73% 2 598 2 584 2 559 2 573 2 572 800 762 773 700 624 594 600 591 Omnichannel sales Q4 500 2% 4% 1% 0% -4% 0% 400 29% 300 200 61% 10% 100 - Q4 23 Q1 24 Q2 2
Slide 13: Adjusted EBITA
Adjusted EBITA Adjusted EBITA, MSEK ▪ Adjusted EBITA at MSEK 33.3 (28.4) for the 40 40% quarter and MSEK 49.1 (80.1) for the period 35 33,3 ▪ Adjusted EBITA margin increased by 0.6 30% percentage points to 4.3 percent year on year 30 28,4 ▪ Items affecting comparability at MSEK 8.7 (1.5) for 25 20%
Slide 14: Segment development
Segment development Sweden Norway Denmark ▪ Positive sales growth driven by increased ▪ Strong sales growth in Norway driven by ▪ Sales decline in Denmark driven by fewer transactions, primarily through service increased number of transactions and an transactions increase in average transaction valu
Slide 15: Financial liquidity
Financial liquidity Core working capital, MSEK Cash flow from operating activities, MSEK Financial net debt, MSEK ▪ Core working capital increased by MSEK ▪ Cash flow from operating activities ▪ Financial net debt increased by MSEK 9 20 compared to same quarter last year amounted to MSEK 142 (157) c
Slide 16: Fully guaranteed rights issue of at least MSEK 200
Fully guaranteed rights issue of at least MSEK 200 Highly preliminary and illustrative impact on Net debt / Adj. EBITDA LTM (excl. IFRS 16) Fully guaranteed rights issue of at least MSEK 200 expected to be carried out in the beginning of 2025 4.1x to finance the new automated warehouse and strengthe
Slide 17: Concluding CEO reflections
Concluding CEO reflections 65290 Laptop Stand We close the year with stronger sales and EBITA, driven by increased store visits and improving consumer sentiment. Amidst the eventful quarter we streamlined operations and unlocked cost savings that will continue in the coming quarters. The proposed ri
Slide 18: Q&A
Q&A 61409 USB 3.0 Hub
Slide 19: Kjell & Company
Kjell & Company