Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Q3 2024 Earnings Presentation
17 slides from Nelly Group Ab's earnings presentation, Oct 25, 2024
Slide 1: Nelly Group Investor Presentation Q3 2024
Nelly Group INVESTOR PRESENTATION Q3 2024 25 October 2024
Slide 2: Nelly Group Q3 2024 Presentation
Nelly Group Q3 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 the quarter • Financial summary • Q&A
Slide 4: CEO's comments Q3 2024
CEO’s comments Q3 2024 • A healthier business • Focus on profitable growth
Slide 5: A healthier business: own brand share
A healthier business Own brand share (%) 46% 44% 45% Growth in own brand share 44% 42% 41% 40% 39% 39% 40% • 45.2% (39.4%) 38% 36% 36% 36% 34% 34% • Strong position in jeans, knits, pants & tops 34% 33% 32% 30% • Central to our Stockholm flagship store Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022
Slide 6: A healthier business: return rate
A healthier business Return Rate (%) 45% Further improved return rate 41% 40% 36% 38% 38% • 27.1% (34.3%) 35% 34% 35% 33% 33% 31% • Cross-functional strategy 32% 30% 27% 25% • Positive impact on sell-through, costs, the Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022 2022 2023 2023 2023 2023 2024 20
Slide 7: A healthier business: gross margin
A healthier business Gross margin (%) 60% Strengthened gross margin 55% 55% 55% 50% 49% 51% 50% 49% • 54.5% (50.7%) 48% 44% 45% 42% 41% 41% • Higher full-price share 40% 35% • Lower discount levels 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 • Growth i
Slide 8: Focus on profitable growth: marketing investment
Focus on profitable growth Investment in profitable marketing • 9.9% (8.9%) of net revenue • Driving towards full-price assortment • Improved profitability per order • Overall slight growth in traffic with lower conversion rate
Slide 9: Focus on profitable growth: unique products and experiences
Focus on profitable growth Unique products & experiences • Collaborations with strong brands • New brand launches • NELLY Flagship store in Stockholm
Slide 10: CEO's comments Q3 2024
CEO’s comments Q3 2024 • A healthier business • Focus on profitable growth
Slide 11: Agenda
Agenda • This is NELLY • CEO’s comments on the quarter • Financial summary • Q&A
Slide 12: Growth in the third quarter
Growth in the third quarter Net revenue (SEK million) 450 400 387 350 +8.8% 339 300 314 302 288 289 +1.4% 284 250 -5.1% 234 236 240 200 222 150 100 50 0 Q1 Q2 Q3 Q4 2022 2023 2024
Slide 13: Increased operating margin and good scalability
Increased operating margin and good scalability Operating profit/loss (SEK million) and Operating margin (%) 40 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 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024
Slide 14: Q3 2024 – Income statement
Q3 2024 – Income statement (SEK million) Q3 24 Q3 23 Net revenue 239.6 236.4 Gross profit 130.7 119.8 +10.9 Gross margin 54.5% 50.7% Warehousing and distribution costs -28.0 -33.7 +5.7 Marketing costs -23.8 -21.1 -2.7 Admin and other operating expenses -53.8 -52.1 -1.7 Operating profit or loss 25.1
Slide 15: Q3 2024 – Additional financial KPIs
Q3 2024 – Additional financial KPIs Cash flow from operations (SEK million) Solid cash position to end Q3 150 106 92 100 77 50 43 • Inventory build up ahead of Q4 50 0 -5 -14 -19 • Investments in IT infrastructure -50 -54 -63 -100 • Improved equity ratio -150 -137 Q1 Q2 Q3 Q4 2022 2023 2024
Slide 16: Q&A
Q&A
Slide 17: Thanks!
Thanks!