Bjorn Borg Ab · OMXSTO:BORG
Bjorn Borg Ab — Q3 2024 Earnings Presentation
26 slides from Bjorn Borg Ab's earnings presentation, Nov 15, 2024
Slide 1: Björn Borg - train to live
BJORN BORG @ train to live
Slide 2: Björn Borg AB Investor Presentation Q3 2024
BJÖRN BORG AB Investor Presentation Q3 2024 S T O C K H O L M , N O V E M B E R 1 5 TH, 2 0 2 4
Slide 3: Content
Content A. Executive Summary B. Where we want to go C. How far we got in Q3 2024 1. Brand heat 2. Top line 2. Bottom line 3. Balance sheet D. Key take-aways
Slide 4: A. Executive Summary
A. Executive Summary BJORN BORG @&
Slide 5: Record sales quarter, very strong own e-commerce growth
“Overall, a record sales quarter, with very strong own e-commerce growth in the quarter with a 32 percent increase." Henrik Bunge, CEO BJÖRN BORG AB
Slide 6: Björn Borg Q3 2024 – Executive summary
Björn Borg Q3 2024 – Executive summary • Overall Net sales in Q3 2024 increased by 9% to SEK 285 m. • By channel, our focus on own e-com continued to result in a high growth rate of +32% while the largest channel Wholesale expanded by a solid 5%. Own Retail Stores experienced a decline of –5% which
Slide 7: B. Where we want to go
B. Where we want to go
Slide 8: Our mission, business strategy and long-term financial objectives
Our mission, our business strategy and our long-term financial objectives are clearly set. BJÖRN BORG AB – WHERE WE WANT TO GO OUR MISSION OUR LONG-TERM OUR BUSINESS FINANCIAL STRATEGY OBJECTIVES • Annual sales growth of min We inspire people to be more, 10% • Increase share of on-line and through o
Slide 9: C. How far we got in Q3 2024
C. How far we got in Q3 2024 BJORN BORG @
Slide 10: C1. Brand heat
C1. Brand heat
Slide 11: Brand journey continues with strong brand heat signs
Our brand journey continues in the right direction with strong brand heat signs. BJÖRN BORG AB – SPORTS BRAND KPIS Q3 2024 HIGHLIGHTS PURCHASE INTENTION PREFERENCE UNAIDED AWARENESS HER HIM HER +25% in SE +160% in SE +16% in NL 28.8% 2.6% 4,7% 23.1% in Q3 2023 1% in Q2 2023 4,1% in Q3 2023 • A varie
Slide 12: Increasing market position in men's underwear and apparel
Increasing our strong market position in men’s underwear and at the same time increasing our apparel position. BJÖRN BORG AB – BRAND HEAT KPIS 2018-2024 ALL COUNTRIES UNDERWEAR HIM APPAREL 49% 50% 50% 46% 44% 44% 39% 40% 40% Purchase intent 33% 32% 29% 30% 30% 30% 30% 28% 25% Purchase intent 20% 20%
Slide 13: C2. Top line
C2. Top line
Slide 14: Growth continues in Q3 2024 with a clear sales record
The growth continues in the third quarter of 2024, delivering a clear sales record in the history of Björn Borg. BJÖRN BORG AB – NET SALES DEVELOPMENT BY QUARTER [SEK M] 872 835 768 198 705 198 0% +10% Q4 181 +13% 160 285 +9% +5% 262 249 240 +4% Q3 225 +7% +29% 213 +3% 166 162 Q2 +10% 163 -1% 148 22
Slide 15: Strong momentum in Germany and Finland, distributors back to growth
Strong momentum overall, especially in Germany and Finland. Distributors back to growth. BJÖRN BORG AB - TOTAL SALES DEVELOPMENT Q3 2024 BY COUNTRY Own subsidiaries -3% SWEDEN +5% NETHERLANDS +44% GERMANY +29% FINLAND +23% BELGIUM +32% DENMARK . Distributors +47% NORWAY +24% UK -49% OTHER Source: BB
Slide 16: Own e-commerce grows strongly, wholesale holding up
Own e-commerce continues to grow strongly. Wholesale holding up well and distributors on continued growth. BJÖRN BORG AB – CHANNEL DEVELOPMENT Q3 2024 WHOLESALE OWN E-COM OWN RETAIL DISTRIBUTORS +5% +32% -5% 31% VS Q3 2023 VS Q3 2023 VS Q3 2023 VS Q3 2023 • Wholesale e-tailers with • Own e-commerce
Slide 17: Strong online development across all channels
Strong online development in the quarter, across all channels, predominantly external e-tailers. BJÖRN BORG AB – ONLINE SALES 2020-2024 [SEK M] 140,0 45% 41% Share online 117,5 40% 120,0 35% 36% 3,1 33% 35% 100,0 31% 93,6 84,8 30% 81,8 5,6 3,1 65,3 80,0 70,1 2,9 25% Marketplaces 3,7 60,0 50,8 20% 58
Slide 18: Mixed category performance, strong sports apparel and footwear
Mixed performance among the categories in Q3, with strong growth in sports apparel and footwear. BJÖRN BORG AB – CATEGORY DEVELOPMENT Q3 2024 Underwear Apparel Bags Footwear -1% +25% -14% +29% [due to integration of the footwear licence business]
Slide 19: C3. Bottom line
C3. Bottom line BJORN BORG @&
Slide 20: Operating income improves, gross margin declines due to footwear integration
Operating income show improvement vs last year, while gross margin declines due to footwear integration. BJÖRN BORG AB – BOTTOM LINE KPIS Q3 2024 GROSS MARGIN [% NS] EBIT [m SEK] NET INCOME [m SEK] 104 101 86 70% Currency neutral 2024: 51% 10 Q4 Q4 20 11 76 60% 54% 53% 52% 73 16 48% 50% 8 Q3 52 Q3 4
Slide 21: C4. Balance sheet
C4. Balance sheet BJORN BORG @&
Slide 22: Balance sheet KPIs on good levels, net debt up
All balance sheet KPIs on good levels. Net debt increasing due to Footwear integration. BJÖRN BORG AB – BALANCE SHEET KPIS AS PER Q3 2024 Equity [% of assets] Net debt [SEK m] WC 12 months rolling 160 [% of GS] 60% 139 25% 51% 140 22% 48% 48% 21% 50% 47% 19%19% 19% 43% 120 20% 40% 100 90 94 15% 80 7
Slide 23: D. Key take-aways
D. Key take-aways
Slide 24: A quarter marked by strong momentum across channels and categories
A quarter marked by strong momentum across all channels and categories. B J Ö R N B O R G A B – K E Y TA K E - A W AY S Q 3 2 0 2 4 1 The Björn Borg Brand 2 Overall record sales with 3 Continued strong sports continues to strengthen strong recovery for apparel growth +25% across our main markets. di
Slide 25: Solid basis for continued profitable growth
Björn Borg is on a solid basis to show continued profitable growth. B J Ö R N B O R G A B – R AT I O N A L E S T O I N V E S T 1. Steady profitable growth since 2014. 2. Strategy for continued profitable growth in the years to come. 3. Stable and high dividend payments. 4. Safe equity ratio and net
Slide 26: Thank you!
Thank you!