Rugvista Group Ab · OMXSTO:RUG
Rugvista Group Ab — Q2 2024 Earnings Presentation
22 slides from Rugvista Group Ab's earnings presentation, Aug 15, 2024
Slide 1: Earnings Call January – June 2024
Earnings Call January – June 2024 Rugvista Group AB ( publ)
Slide 2: Q2 highlights: Continued order growth in a challenging market environment
Q2 highlights Continued order growth in a challenging market environment Strategic initiatives ▪ Consumer sentiment stable or improving across key markets during Q2, but still at historically low delivering in a levels and consumer purchasing power remains weak. challenging market ▪ Double-digit gro
Slide 3: Business Update
Business Update RUGVISTA
Slide 4: Continued stable development on strategic KPIs
Business Update Continued stable development on 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) 65 -5.
Slide 5: Overall improvement in consumer confidence but still at low levels
Business Update Overall improvement in consumer confidence but still at low levels Consumer confidence index across selected key markets 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 -20
Slide 6: AoV decline driven by price sensitive consumer behavior
Business Update AoV decline driven by price sensitive consumer behavior <2000 SEK rug assortment offering has remained as a …and we attract more consumers with our ongoing assortment enhancement efforts, but stable share of total rugs during the past year… strong price focus driving down average ord
Slide 7: Investment into outdoor assortment continues to be successful
Business Update Investment into outdoor assortment continues to be successful Outdoor rugs sales1 development ~70% Q2 2021 Q2 2022 Q2 2023 Q2 2024 1 Gross sales value including VAT and not adjusted for currency effects 7
Slide 8: Financial Update
Financial Update RUGVISTA
Slide 9: Good order growth in a weak market
Financial Update Good order growth in a weak market Group net revenue – Quarter1 Net revenue B2C by region – Quarter SEK million SEK million x Segment growth, % DACH MPO B2B x Organic growth, % B2C +4% -1.4% -1.0% 20.4 21.2 20.9 -0.5% 129.1 128.4 121.2 2.9 3.6 -9.9 Nordics 3.2 18.6 17.9 14.7 24.8 26
Slide 10: Drop in gross margin vs last year but improved vs Quarter 1
Financial Update Drop in gross margin vs last year but improved vs Quarter 1 Gross margin – Group Gross Margin – Segments % of net revenue % of net revenue Marketplaces & Other (MPO) +0.2pp -4.0pp 58.8% 59.0% 55.0% +3.5pp -0.6pp B2B +1.4 +2.6pp -0.6pp esp 62.6% 65.2% 64.6% 63.6% 61.6% 63.0% 60.1% B2
Slide 11: Higher costs impacts seasonally smallest quarter
Financial Update Higher costs impacts seasonally smallest quarter YTD Q2 Cost ratios & EBIT-margin 1) Percent of net revenue 2022 2023 2024 ’24 vs ’23 2022 2023 2024 ’24 vs ’23 Goods for resale -38.8% -37.2% -38.1% -0.9pp -40.3% -36.6% -37.4% -0.8pp Higher discounts. Other external expenses -39.
Slide 12: Inventory buildup and within target range
Financial Update Inventory buildup and within target range Inventory value Inventory as share of LTM1 net revenue SEK million Percent +20 +3.1pp 171 26.7 -25 146 -5.7pp 21.0 126 17.9 6/30/23 12/31/23 6/30/24 6/30/23 12/31/23 6/30/24 Inventory levels normalized and built up for peak Closing quarter i
Slide 13: Improved net cash position
Financial Update Improved net cash position Cash flow from operating activities Net cash position SEK million SEK million 2023Q2 2024Q2 +56 186 EBITDA 14.8 6.3 Interest -48 -2.7 -3.0 & tax 138 Working -16.5 -34.5 capital Sub-total -4.4 -31.2 82 Includes Q2 Cash flow from investing activities SEK mil
Slide 14: Focus on navigating the market and realizing strategic initiatives
Summary & Outlook Focus on navigating the market and realizing strategic initiatives Continued progress on ▪ High customer satisfaction levels maintained and double-digit growth in both number of orders and new strategic initiatives customers proving that our customer offering is attractive even in
Slide 15: Q&A
Q&A 1
Slide 16: Additional information
Additional information RUGVISTA
Slide 17: Financial calendar, contact information, Certified Advisor
Additional information Financial calendar Contact information Michael Lindskog Activity Date Conference call CEO Interim report January – September 2024 November 7, 2024 09:00-10:00 CET Michael.Lindskog@rugvista.com Year-end report 2024 February 6, 2025 09:00-10:00 CET Joakim Tuvner CFO Joakim.Tuvne
Slide 18: Historical quarterly information – net revenue
Additional information Historical quarterly information – net revenue Quarterly net revenue by segment SEK million -0.5% 233 5 MPO 219 6 23 B2B 206 205 204 5 6 21 4 B2C 17 16 186 22 5 180 176 4 17 4 21 160 19 3 141 141 19 131 4 3 129 128 128 2 14 13 121 3 13 119 3 4 2 110 3 15 19 18 103 107 10 15 2
Slide 19: Historical quarterly information – selected cost items
Additional information Historical quarterly information – selected cost items Quarterly development for selected (variable) cost items Percent of net revenue 40.0 35.0 -1.4 30.0 25.0 +0.6 20.0 15.0 +0.5 10.0 5.0 0.0 2022Q4 2024Q1 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2
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 www.rugvistagroup.com
Ringugnsgatan 11, SE-216 16 Limhamn, Sweden www.rugvistagroup.com RugVista Group AB (publ) • Earnings call Q1 2023