Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — CDON Group — Q2 2013 Earnings Presentation
14 slides from Nelly Group Ab's earnings presentation, 2013
Slide 1: CDON Group Second Quarter and First Six Months 2013
CDON GROUP SECOND QUARTER AND FIRST SIX MONTH 2013 Paul Fischbein, President & CEO Nicolas Adlercreutz, CFO
Slide 2: Highlights
Highlights • Con&nued sales growth of 4.2% year-‐on-‐year in the quarter to SEK 964.3 million • Strong growth and strengthened market posi&ons for the Fashion and Sports & Health segment • Sport & Health segment con&nues to deliver solid profitability • Results burdened by non-‐recurring items in
Slide 3: Financial Performance & Position
Financial Performance & Posi4on 3
Slide 4: Financial Summary
Financial Summary* Entertainment Fashion Sports & Health Home & Garden Q4 Q2 13 Q2 12 Q2 13 Q2 12 Q2 13 Q2 12 Q2 13 Q2 12 Q2 13 Q2 12 Net sales (mn) 410.5 464.1 239.2 199.1 156.3 116.4 158.8 146.1 964.3 925.3 Growth yoy -‐11.5% 26.9% 20.1% 18.3% 34.3% 29.2% 8.7% 14.0% 4.2% 23.0% Sales share 43% 50%
Slide 5: Income Statement
Income Statement 2013 2012 2013 2012 (SEK million) Apr-‐Jun Apr-‐Jun Jan-‐Jun Jan-‐Jun • Net interest & other financial items of Net Sales * 964,3 925,3 1 996,6 1 864,2 SEK -‐9.4 (-‐5.0) mn in Q2 mainly due to Gross profit * 151,3 137,1 296,8 284,3 Gross margin (%) Gross profit * 15,7% 14,8% 14
Slide 6: Cash Flow
Cash Flow 2013 2012 2013 2012 (SEK million) Apr-‐Jun Apr-‐Jun Jan-‐Jun Jan-‐Jun • Lower &ed up capital in inventories and Cash flow from operating -‐6,3 -‐50,0 -‐68,4 -‐82,8 receivables activities Changes i n working capital 42,3 4,1 -‐222,8 -‐197,7 Cash flow from operations 36,0 -‐46,0 -
Slide 7: Financial Position
Financial Posi4on 2013 2012 2012 (SEK million) 30-‐Jun 30-‐Jun 31-‐Dec • Inventories at SEK 550.1 (532.6) mn, increase mainly due to changed product mix Total non-‐current assets 687,5 616,6 678,5 in CDON and sales growth in Lekmer and Inventories 550,1 532,6 609,7 Sports & Health segment Total
Slide 8: Entertainment
Entertainment CDON.com burdened by non-‐recurring costs Opera4ng development • Segment sales down 11.5% y/y in Q2 and 2.7% y/y H1 948 1000 923 10,0% 8,0% • Nega&ve market trend for media related products 800 intensified during the quarter 464 6,0% SEK (million) 600 Margin 411 3,8% 4,0% 400 • Address
Slide 9: Fashion
Fashion Con&nued sales growth and profitability in the quarter Opera4ng development • Sales increased by 20.1% y/y in Q2 and by 16.9% y/y H1, excluding divested en&&es 600 12,0% 380 444 • Higher share of private label product sales (29%) and 400 4,0% SEK (million) 239 0,4% Margin 199 51% product marg
Slide 10: Sports & Health
Sports & Health 34% Sales growth with solid profitability Opera4ng development • Sales up 34.3% y/y in Q2 and 36.5% y/y H1 400 14,0% 333 • Posi&ve sales trend in all markets & strong Swedish 12,0% home market 244 10,0% 9,4% 10,0% SEK (million) Margin 9,4% 8,7% 8,0% 200 156 • Warehouse move performed
Slide 11: Home & Garden
Home & Garden Con&nued growth despite highly compe&&ve market Opera4ng development • The segment’s sales amounted to SEK 158.8 (146.1) mn in Q2 and to SEK 302.0 (292.4) mn H1 350 302 7,0% 292 300 • Sales growth of 9% in the quarter 5,0% SEK (million) 250 Margin 200 159 3,0% 146 • Treh.com now fully
Slide 12: CDON Group Logistics
CDON Group Logis4cs Improved efficiency and opera&ng result • Logis&cs opera&on mainly operates warehousing for Nelly.com and Lekmer.com • Opera&ng losses of SEK 4.3 mn in Q2 • Improved opera&ng result reflects enhanced efficiency and cost control 12
Slide 13: Forward looking statement
Forward looking statement • Use strong market posi&ons to capitalize on high online market growth • Focus on con&nued balanced sales growth and increased market shares, mainly from Nelly.com & Gymgrossisten.com • CDON.com expected to affect Group sales growth and profitability nega&vely as inventory s
Slide 14: Thank you!
THANK YOU! Next report: 21 October 2013 For further information, please visit cdongroup.com Follow us on Twitter at or contact ir@cdongroup.com, +46 40 703 20 00 twitter.com/cdongroup 14