Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Q4 2024 Earnings Presentation
19 slides from Nelly Group Ab's earnings presentation, Feb 6, 2025
Slide 1: Nelly Group Investor Presentation Q4 2024
Nelly Group INVESTOR PRESENTATION Q4 2024 6 February 2025
Slide 2: Nelly Group Q4 2024 Presentation
Nelly Group Q4 2024 Presentation Helena Karlinder-Östlundh Niklas Lingblom CEO CFO ir@nelly.com www.nellygroup.com
Slide 3: Agenda
Agenda • This is NELLY • CEO’s comments on Q4 & 2024 • Financial summary • Q&A
Slide 4: CEO's comments Q4 & 2024
CEO’s comments Q4 & 2024 • A stable healthy core • Entering a new phase of development
Slide 5: A stable healthy core
A stable healthy core • Net revenue growth in Q4 and 2024 as a whole • Further improved operating profit • 7 profitable quarters & 3 with net revenue growth
Slide 6: A stable healthy core: strengthened gross margin
A stable healthy core Gross margin (%) Strengthened gross margin 60% 55% 55% 55% 53% 49% 51% 50% 49% • 53.3% (50.0%) 50% 48% 44% 45% 42% 41% 41% • Growth in own brand share 40% 35% 30% • Higher full-price share Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 202
Slide 7: A stable healthy core: growth in own brand share
A stable healthy core 50% Own brand share (%) Growth in own brand share 48% 47% 46% 45% 44% 44% • 47.2% (36.3%) 42% 41% 40% 39% 40% 39% 38% 36% • Strong position in jeans, tops & knits 36% 36% 34% 34% 34% 33% 32% • Central to our flagship store 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022
Slide 8: A stable healthy core: continued return rate benefits
A stable healthy core Continued return rate benefits Return Rate (%) 45% • 27.9% (33.0%) 41% 40% 38% 38% 36% 35% 35% 34% • Cross-functional strategy 33% 33% 32% 31% 30% 27% 28% • Positive impact on sell-through, costs, the 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 environment and customer experience 2
Slide 9: Efficient warehousing & distribution
A stable healthy core Efficient warehousing & distribution Warehousing and distribution costs as a proportion of net revenue(%) 20% 19% 18% • 12.7% (15.1%) 18% 17% 17% 16% 16% 16% 15% 15% 15% 14% 15% • Continuous improvement initiatives 14% 13% 13% 13% 12% 12% 11% • Lower return volumes 10% Q2 Q3 Q4
Slide 10: Entering a new phase of development: profitable marketing
Entering a new phase of development Investment in profitable marketing • 9.7% (8.6%) of net revenue • Improved profitability per order • Growth in traffic & orders • Focus conversion & average order value
Slide 11: Entering a new phase of development: customer experience
Entering a new phase of development Elevating the customer experience • Continue growing own brands • Unique collaborations • New brand launches • NELLY Flagship store & events
Slide 12: CEO's comments Q4 & 2024
CEO’s comments Q4 & 2024 • A stable healthy core • Entering a new phase of development
Slide 13: Agenda
Agenda • This is NELLY • CEO’s comments on Q4 & 2024 • Financial summary • Q&A
Slide 14: Growth in the fourth quarter
Growth in the fourth quarter Net revenue (SEK million) 450 400 387 350 +5.5% +8.8% 339 300 314 318 302 288 289 284 +1.4% 250 -5.1% 234 236 240 200 222 150 100 50 0 Q1 Q2 Q3 Q4 2022 2023 2024
Slide 15: Solid profitability and strong operating profit
Solid profitability and strong operating profit Operating profit/loss (SEK million) and Operating margin (%) 40 36 20% 30 30 25 15% 24 20 10% 13 10 8 5% 1 0 0% -2 -10 -5% -12 -20 -10% -19 -24 -30 -15% -34 -40 -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024
Slide 16: Q4 2024 – Income statement
Q4 2024 – Income statement (SEK million) Q4 24 Q4 23 Net revenue 318.4 301.6 Gross profit 169.7 150.9 +18.8 Gross margin 53.3% 50.0% Warehousing and distribution costs -40.5 -45.6 +5.1 Marketing costs -31.0 -26.0 -5.0 Admin and other operating expenses -61.9 -55.3 -6.6 Operating profit or loss 36.2
Slide 17: Q4 2024 – Additional financial KPIs
Q4 2024 – Additional financial KPIs Cash flow from operations (SEK million) Strong cash flow in Q4 150 106 92 100 77 72 50 43 • Improved cash flow from operations 50 0 -5 -14 -19 • Dividend decided on EGM -50 -54 -63 -100 • Investments in IT infrastructure -150 -137 Q1 Q2 Q3 Q4 2022 2023 2024 • Equi
Slide 18: Q&A
Q&A
Slide 19: Thanks!
Thanks!