Slide 1: Q2 report
Q2 report 04 December 2024 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: Highlights Q2
✓ Q2 total sales* 2,801 MSEK, organic +8% ✓ Q2 operating profit at 307 MSEK ✓ operating margin +11% ✓ Online sales now 19% of total sales in Q2 Highlights Q2 ✓ H1 operating cash flow 530 MSEK (520) ✓ Solid financial position: net debt/EBITDA -0.2** ✓ EPS: 3.63 SEK (2.74) ✓ +13% organic growth in Nov
Slide 4: Business update
Business update 4
Slide 5: Strategic position
Strategic position Competitive advantages Leveraging competitive advantages • • • • • • Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. 5
Slide 6: Strategy execution – key targets
Strategy execution – key targets 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 23/24 R12 6
Slide 7: Strategy execution – overview Q2 24/25
Strategy execution – overview Q2 24/25 Make assortment relevant A profitable and growing Build a robust 12 months/year. online business. store network. ✓ All prioritised niches driving growth ✓ Online sales 19% of total sales in Q2 ✓ Net addition of 4 stores in Q2 ✓ Continued high pace in launching
Slide 8: Customer relevance and satisfaction
Customer relevance and satisfaction Product reviews Affordability Q: How affordable do you think the following brands are? Net promoter score 5 200000 59 4 58 150000 57 3 56 100000 4% 64% 32% Clas Ohlson 2 55 1 50000 54 0 0 53 Low price 5% 57% 38% competitors average No of reviews Score 1-5 Not affo
Slide 9: Prioritised niches create reason to visit
Prioritised niches create reason to visit Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. Sustainability Spare parts Seasons Consumables assortment 9
Slide 10: Innovative, practical solutions build uniqueness
Innovative, practical solutions build uniqueness 10
Slide 11: Innovative, practical solutions build uniqueness
Innovative, practical solutions build uniqueness 11
Slide 12: Financial development
Financial development 12
Slide 13: Sales development above targets
Sales development above targets Q2 Total sales, MSEK Online sales, MSEK • Total sales up 14% to 2,801 MSEK, of which 8% organic, currency effects -3% and the acquired Spares group 9% • Online sales, excluding Spares, up 6% • Online sales, including Spares, 527 MSEK Q1-Q2 Online share of total sales
Slide 14: Positive development in all markets
Positive development in all markets Sweden Norway Finland Organic Q2: +11% Q2: +7% Q2: +3% growth: Q1-Q2: +12% Q1-Q2: +8% Q1-Q2: +3% 14
Slide 15: 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 16: Gross margin decreased vs last year
Gross margin decreased vs last year Sourcing and Currency transportation effects incl. 41.3% hedging Spares 39.8% Q2 2023/24 Q2 2024/25 16
Slide 17: Financial overview
Financial overview Share of selling expenses, Q2 27.0 Q2 Q2 Q1-Q2 Q1-Q2 MSEK 24/25 23/24 24/25 23/24 % (28.1%) Operating profit excl. one- 307 277 510 431 Administrative expenses, Q2 off items 49 One-off items 0 -31 0 -202 MSEK Operating profit 307 245 510 230 (50 MSEK) EBIT-margin, Q2 Profit after
Slide 18: Well balanced inventory
Well balanced inventory • Inventory level: 2,869 MSEK (2,614) at the end of the period 18
Slide 19: Solid cash flow and financial position
Solid cash flow and financial position Q1-Q2 Q1-Q2 Approved credit facilities 1,110 MSEK 24/25 23/24 MSEK Cash flow from operating activities, before 795 625 Of which utilised 0 MSEK change in working capital Change in working capital -265 -105 Net debt/EBITDA excl. IFRS 16 Cash flow from operating
Slide 20: Events after the reporting period
Events after the reporting period 20
Slide 21: November sales development
November sales development MSEK • Total sales up 14% to 1,361 MSEK, of which 13% 1361 organic and currency effects 0% Total 1196 ‒ Sweden +16% organic 1085 ‒ Norway +15% organic ‒ Finland +4% organic ‒ Spares +4% organic • Store network increased by 14 stores compared to end of November last year No
Slide 22: Summary
Summary 22
Slide 23: Continued execution of our long-term growth plan
Continued execution of our long-term growth plan • Customer relevance and value for money key in generally weak retail market • Store network expansion according to plan ‒ Also developing existing store network with store moves and rebuilds • We continue building a profitable and growing online busi
Slide 24: Q&A
Q&A 24
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