Rugvista Group Ab · OMXSTO:RUG
Rugvista Group Ab — Q1 2024 Earnings Presentation
22 slides from Rugvista Group Ab's earnings presentation, May 8, 2024
Slide 1: Earnings call January – March 2024
Earnings call January – March 2024 Rugvis ta G roup AB (publ)
Slide 2: Q1 highlights: Progress on strategic initiatives in a challenging market
Q1 highlights Progress on strategic initiatives in a challenging market Progress on strategic ▪ Consumer sentiment improving but remains challenging across most markets. Low average order initiatives in a value continued due to price sensitive consumers. challenging market ▪ Double digit order count
Slide 3: Business Update
Business Update RUGVISTA // Mi TY MALONT NR
Slide 4: Overall strong development across strategic KPIs
Business Update Overall strong development across strategic KPIs Strategic priorities KPIs Maintain outstanding customer Increase market penetration Attract new customers satisfaction levels Net Promotor Score (NPS) rating (TrustPilot rating) # of orders (thousand) # of new customers (thousand) 68 +
Slide 5: Improved consumer confidence but still at low levels
Business Update Improved consumer confidence but still at low levels Consumer confidence index across selected key markets 100 93 92 82 83 83 88 82 78 80 75 73 74 74 72 71 72 74 75 67 66 64 67 68 69 59 61 Sweden 56 58 60 40 2nd lowest value ever 20 0 0 -10 -7 -7 -9 Germany -20 -16 All-time low -30 -
Slide 6: AoV decline driven by price sensitive consumers and small changes in assortment composition
Business Update AoV decline driven by price sensitive consumers and small changes in assortment composition Marginal year-over-year difference in price attractiveness of our assortment offering… …consumer’s willingness to buy higher compared to last year, but strong focus on price Design rugs offeri
Slide 7: Outdoor rugs presentation to our web-shop visitors leveraging multiple new platform capabilities
Business Update Outdoor rugs presentation to our web-shop visitors leveraging multiple new platform capabilities Home page Category page Content page 7
Slide 8: Financial Update
Financial Update RUGVISTA
Slide 9: Net revenue decline driven by lower Average Order but good order growth
Financial Update Net revenue decline driven by lower Average Order but good order growth Group net revenue – Quarter1 Net revenue B2C by region – Quarter SEK million SEK million x Segment growth, % DACH MPO B2B x Organic growth, % B2C -11.0% -4.6% -3.5% 37.3 33.2 31.7 -2.1% -2.4% 184.2 180.3 5.1 3.8
Slide 10: Gross margin recovering despite price sensitive consumers
Financial Update Gross margin recovering despite price sensitive consumers Gross margin – Group Gross Margin – Segments % of net revenue % of net revenue Marketplaces & Other (MPO) -3.6pp +2.1pp 62.5% 58.9% 61.0% +0.3pp -1.0pp B2B -2.2pp -0.4pp esp 65.2% 63.0% 62.6% 62.3% 62.6% 60.3% 61.6% B2C Impac
Slide 11: EBIT margin decline driven by investments into organizational and business development
Financial Update EBIT margin decline driven by investments into organizational and business development Q1 Cost ratios & EBIT-margin Percent of net revenue 1) 2022 2023 2024 ’24 vs ’23 Goods for resale -37.9% -37.6% -38.6% -1.0pp Driven by higher sales discount rate. Consultant costs for new WH de
Slide 12: Inventory at the lower end of target range
Financial Update Inventory at the lower end of target range Inventory value Inventory as share of LTM1 net revenue SEK million Percent +7 +1.2pp 165 26.0 -32 -6.9pp 133 126 19.1 17.9 3/31/23 12/31/23 3/31/24 3/31/23 12/31/23 3/31/24 Minor buildup after the peak season. Inventory still at the lower s
Slide 13: Good cash flow and high post peak-season net cash position
Financial Update Good cash flow and high post peak-season net cash position Cash flow from operating activities Net cash position SEK million SEK million 2023Q1 2024Q1 +93 EBITDA 28.7 23.5 209 +23 Unrealized exch. diff. 1.0 1.5 186 Interest & Tax 34.6 11.7 Changes in NWC 11.6 12.0 116 Cash flow from
Slide 14: Continued focus on realizing strategic initiatives and navigating market conditions
Summary & Outlook Continued focus on realizing strategic initiatives and navigating market conditions Progress on strategic ▪ Consumer sentiment improving but remains challenging across most markets. Low average order initiatives in a value continued due to price sensitive consumers. challenging mar
Slide 15: Q&A
Q&A
Slide 16: Additional information
Additional information RUGVISTA
Slide 17: Financial calendar, contact information, Certified Advisor
Additional information Financial calendar Contact information Activity Date Conference call Michael Lindskog AGM 2024 May 23, 2024 CEO Michael.Lindskog@rugvista.com Interim report January – June 2024 August 15, 2024 09:00-10:00 CEST Interim report January - September 2024 November 7, 2024 09:00-10:0
Slide 18: Historical quarterly information – net revenue
Additional information Historical quarterly information – net revenue Quarterly net revenue by segment SEK million 233 5 MPO 219 6 23 B2B 206 205 204 B2C 5 6 21 4 17 16 186 22 5 180 176 4 17 4 21 160 19 3 141 141 19 131 4 3 129 13 128 2 14 121 3 13 119 3 2 110 3 15 19 103 107 10 15 2 3 1 93 10 205 1
Slide 19: Historical quarterly information – selected cost items
Additional information Historical quarterly information – selected cost items Quarterly development for selected cost items Percent of net revenue 40,0 35,0 -1.1 Marketing 30,0 costs 25,0 Product expenses +1.1 20,0 15,0 Shipping and other selling expenses -0.2 10,0 5,0 0,0 2019Q1 2020Q1 2019Q2 2019Q
Slide 20: Introduction to what we are aiming to achieve
Additional information Introduction to what we are aiming to achieve Strategic initiatives Win the key European markets e.g., enhance localization and invest into building a known and preferred brand over time. Showcase our assortment Vision e.g., emphasize our exclusive products, more inspirational
Slide 21: About Rugvista Group AB (publ)
Additional information About Rugvista Group AB (publ) Introduction Strengths and competitive advantages Rugvista Group is one of the leading European direct-to-consumer online Rugvista Group considers itself having several strengths and competitive platforms within carpet and rug sales through its o
Slide 22: Ringugnsgatan 11, SE-216 16 Limhamn, Sweden
Ringugnsgatan 11, SE-216 16 Limhamn, Sweden www.rugvistagroup.com RugVista Group AB (publ) • Earnings call Q1 2024