Rugvista Group Ab · OMXSTO:RUG
Rugvista Group Ab — Q3 2024 Earnings Presentation
25 slides from Rugvista Group Ab's earnings presentation, Nov 7, 2024
Slide 1: Earnings Call January – September 2024
Earnings Call January – September 2024 Rugvis ta G roup AB (publ)
Slide 2: Business Update
Business Update RUGVISTA
Slide 3: Market climate
Market climate ▪ Consumer sentiment slightly improved ▪ Price conscious consumers still trading down
Slide 4: Improvement in consumer confidence but still at low levels
Business Update Improvement in consumer confidence but still at low levels Consumer confidence index across selected key markets 96 97 100 100 93 92 89 91 93 83 83 88 82 82 78 80 75 71 72 75 72 71 72 74 75 67 66 64 66 67 59 61 62 Sweden 56 58 60 40 2nd lowest value ever 20 0 0 -10 -7 -7 -9 Germany -
Slide 5: Market climate
Market climate ▪ Consumer sentiment slightly improved ▪ Price conscious consumers still trading down
Slide 6: Net revenue affected by AOV
Net revenue affected by AOV ▪ Net revenue was SEK 144.8 (159.6) million ▪ Average order value was SEK 2,957 (3,172) ▪ Order count decreased -5.3% vs 2023 ▪ up 36% vs Q3-2022
Slide 7: Net revenue affected by AOV
Net revenue affected by AOV ▪ Net revenue was SEK 144.8 (159.6) million ▪ Average order value was SEK 2,957 (3,172) ▪ Order count decreased -5.3% vs 2023 ▪ up 36% vs Q3-2022
Slide 8: Net revenue affected by AOV
Net revenue affected by AOV ▪ Net revenue was SEK 144.8 (159.6) million ▪ Average order value was SEK 2,957 (3,172) ▪ Order count decreased -5.3% vs 2023 ▪ up 36% vs Q3-2022
Slide 9: AoV decline driven by price sensitive consumer behavior
AoV decline driven by price sensitive consumer behavior <2000 SEK rug assortment offering has increased …and high number of orders increase in Q3 last year and consumers’ strong price focus somewhat in Q3 driving down average order value. Rugs offering by price range1 Number of Orders development Ao
Slide 10: Profitability decreased, EBIT affected by one-off costs
Profitability decreased, EBIT affected by one-off costs ▪ Stable gross margin 62.4% (62.7%) ▪ Improved marketing efficiency 30.1% (32.1%) ▪ EBIT was SEK 9.0 (18.6) million representing an EBIT margin of 6.2% (11.7%)
Slide 11: Profitability decreased, EBIT affected by one-off costs
Profitability decreased, EBIT affected by one-off costs ▪ Stable gross margin 62.4% (62.7%) ▪ Improved marketing efficiency 30.1% (32.1%) ▪ EBIT was SEK 9.0 (18.6) million representing an EBIT margin of 6.2% (11.7%)
Slide 12: Profitability decreased, EBIT affected by one-off costs
Profitability decreased, EBIT affected by one-off costs ▪ Stable gross margin 62.4% (62.7%) ▪ Improved marketing efficiency 30.1% (32.1%) ▪ EBIT was SEK 9.0 (18.6) million representing an EBIT margin of 6.2% (11.7%)
Slide 13: Strong balance sheet to drive strategic agenda
Strong balance sheet to drive strategic agenda ▪ net cash position of 137 (112) million SEK ▪ office and warehouse move progressing according to plan ▪ Continuous focus on our customers
Slide 14: Strong balance sheet to drive strategic agenda
Strong balance sheet to drive strategic agenda ▪ net cash position of 137 (112) million SEK ▪ office and warehouse move progressing according to plan ▪ Continuous focus on our customers
Slide 15: Strong balance sheet to drive strategic agenda
Strong balance sheet to drive strategic agenda ▪ net cash position of 137 (112) million SEK ▪ office and warehouse move progressing according to plan ▪ Continuous focus on our customers
Slide 16: Continued strength in our customer KPIs
Continued strength in our customer KPIs 16
Slide 17: Financial Update
Financial Update RUGVISTA
Slide 18: Challenging market climate and comparables
Financial Update Challenging market climate and comparables Group net revenue – Quarter1 Net revenue B2C by region – Quarter SEK million SEK million x Segment growth, % DACH MPO B2B x Organic growth, % B2C +30% -18.3% -7.2% 27.7 21.3 22.6 -9.3% 159.6 2.7 -14.4 144.8 Nordics 18.7 3.8 38.4 127.9 26.6
Slide 19: Stable though minor drop in gross margin
Financial Update Stable though minor drop in gross margin Gross margin – Group Gross Margin – Segments % of net revenue % of net revenue Marketplaces & Other (MPO) -0.9pp -6.5pp 63.1% 62.2% 55.7% -0.3pp B2B -1.8pp -0.7pp esp 65.8% 64.0% 63.2% 63.5% 62.7% 62.4% B2C -0.6pp +0.1pp 62.8% 62.2% 62.3% 202
Slide 20: Good development on variable components
Financial Update Good development on variable components YTD Q3 Cost ratios & EBIT-margin 1) Percent of net revenue 2022 2023 2024 ’24 vs ’23 2022 2023 2024 ’24 vs ’23 Lower AoV and higher Goods for resale -38.3% -37.3% -38.0% -0.7pp -36.9% -37.6% -37.8% -0.2pp distribution costs. Other external
Slide 21: Inventory buildup according to plan
Financial Update Inventory buildup according to plan Inventory value Inventory as share of LTM1 net revenue SEK million Percent +30 +4.9pp 161 23.9 -5 156 -1.1pp 22.8 126 17.9 9/30/23 12/31/23 9/30/24 9/30/23 12/31/23 9/30/24 Inventory levels built up for peak season. Target range 17.5-22.5% of LTM
Slide 22: Improved net cash position
Financial Update Improved net cash position Cash flow from operating activities Net cash position SEK million SEK million 2023Q3 2024Q3 +25 186 EBITDA 21.6 13.8 Interest -49 -0.1 -3.7 & tax 137 Working 18.3 -6.1 capital 112 Sub-total 39.9 4.0 Cash flow from investing activities YTD inventory SEK mil
Slide 23: Continued progress on strategic initiatives
Continued progress on strategic initiatives One-off costs impacting profitability but financial position strong Uncertain outlook, but continued focus on near and long-term
Slide 24: Q&A
Q&A 2
Slide 25: Other information
Rugvista Group AB (publ) Other information Financial calendar Contact information Activity Date Conference call Ebba Ljungerud Year-end report 2024 6 February 2025 09:00-10:00 CET CEO Annual report 2024 14 April 2025 Ebba.Ljungerud@rugvista.com Interim report January – March 2025 8 May 2025 09:00-10