Orthex Oyj · OMXHEX:ORTHEX
Orthex Oyj — Q3 2024 Earnings Presentation
25 slides from Orthex Oyj's earnings presentation, Nov 15, 2024
Slide 1: Interim Report January–September 2024
INTERIM REPORT January – September 2024 15 November 2024 Alexander Rosenlew, CEO Saara Mäkelä, CFO Hanna Kukkonen, CMSO
Slide 2: Content
Content 1. Introduction to Orthex 2. January-September 2024 in brief 3. Strategy 4. Financials 5. Q&A INTERIM REPORT | JANUARY–SEPTEMBER 2024 | 15 NOVEMBER 2024
Slide 3: A leading Nordic houseware company with strong brands and sustainable products
A leading Nordic houseware company with strong brands and sustainable products 8 sales organisations >40 customer countries 3 factories (incl. warehouses) >90% own brands ~300 employees (FTE) Sustainability focus
Slide 4: Mission to make everyday life easier
Mission to make everyday life easier STORAGE KITCHEN HOME & GARDEN (66% of sales1)) (22% of sales1)) (12% of sales1)) Functional and award-winning design Long-lasting high-quality products Forerunner in sustainability ~ 10% of sales from new launches 1) Invoiced sales split by product category Q1-Q3
Slide 5: January-September 2024 in brief
JANUARY-SEPTEMBER 2024 IN BRIEF Interim report January–September 2024
Slide 6: January–September 2024
January–September 2024 Net sales ▪ Orthex’s net sales increased by 5.3%. In constant currency, net sales grew by 5.1%. ▪ Strong growth in Europe outside the Nordics Profitability ▪ Adjusted EBITA was EUR 7.2 million (8.0) ▪ Adjusted EBITA margin decreased to 10.9% from 12.8% impacted by previous yea
Slide 7: Q3 2024: Strong sales growth outside the Nordics, higher costs affected profitability
Q3 2024: Strong sales growth outside the Nordics, higher costs affected profitability Net sales and Invoiced sales ▪ Net sales increased by 4.2% to EUR 22.8 million (21.9) ▪ Constant currency net sales growth was 2.8%. ▪ Record invoiced sales of EUR 5.5 million (4.4) outside the Nordics delivering 2
Slide 8: Q1-Q3/2024: Stable sales development, cost increases affected profitability
Q1-Q3/2024: Stable sales development, cost increases affected profitability Net sales ▪ Net sales increased by 5.3% to EUR 65.9 million (62.5) ▪ Invoiced sales increased by 6.0% and totalled EUR 67.9 million (64.0) Adjusted EBITA ▪ Adjusted EBITA was EUR 7.2 million (8.0) ▪ Adjusted EBITA margin was
Slide 9: Invoiced sales by geography
Invoiced sales by geography Invoiced sales by geography, EUR million Invoiced sales by geography quarterly, EUR million 60 20 52.6 17.8 17.9 50.3 18 50 16 14 40 12 30 10 8 20 14.6 5.1 13.0 6 4.2 4 10 0.7 0.7 2 0.2 0.4 0 0 Nordics Rest of Europe Rest of the world Nordics Rest of Europe Rest of the wo
Slide 10: Invoiced sales by product category
Invoiced sales by product category Invoiced sales by product category quarterly, EUR million 18 Invoiced sales by product category, EUR million 16.0 16 15.4 50 45.0 45 42.3 14 40 12 35 10 30 8 25 5.4 20 14.9 6 4.8 13.7 15 4 8.0 8.0 2.0 2.0 10 2 5 0 0 Storage Kitchen Home & Garden Storage Kitchen Hom
Slide 11: Strategy
STRATEGY Interim report January-September 2024
Slide 12: Clear growth strategy to deliver objectives
Clear growth strategy to deliver objectives 4 Market consolidation #1 storage 3 brand in 2 Europe 1 Accelerating Accelerating growth in the growth through international the online retail markets through channel Solid actions to strong customer ~€84m ~€86m keep winning collaboration A leading in the
Slide 13: Accelerating growth in the international markets through strong customer collaboration
✓ Clear category strategy focusing on storage Accelerating growth in the international markets through strong customer collaboration INTERIM REPORT | JANUARY–SEPTEMBER 2024 | 15 NOVEMBER 2024
Slide 14: Sustainability news in Q3 2024
✓ Showing the way in sustainability Sustainability news in Q3 2024 Novelties made from recycled plastic ▪ Orthex invests in novelties on a continuous basis and a prerequisite for all new product investments is that the material should be either recycled or renewable. ▪ Our modern range of SmartStore
Slide 15: Strategy in Action - Maintain a high innovation rate
✓ Maintain a high innovation rate Strategy in Action - Maintain a high innovation rate INTERIM REPORT | JANUARY–SEPTEMBER 2024 | 15 NOVEMBER 2024
Slide 16: Financials
FINANCIALS Interim report January–September 2024
Slide 17: Net sales and profitability
Net sales and profitability Adjusted EBITA quarterly, EUR million Net sales quarterly, EUR million 04 26 3.5 04 24 23.4 22.8 2.9 22.0 21.9 03 2.9 2.8 22 21.0 20.5 20.1 2.4 03 20 2.1 02 2023 18 2023 1.6 2024 2024 02 16 14 01 12 01 10 00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ▪ In Q3 2024, the Group’s Net sales incr
Slide 18: Development of raw material price indexes
Development of raw material price indexes 2 500 € Propylene (C3) Contract EUR/t ICIS 3rd LOW (PPC) EUR/t Raw material index prices ▪ Normal fluctuation in index 2 000 € prices during Q3 ▪ The cost inflation in Europe 1 500 € increases the price pressure on raw material manufacturers. 1 000 € ▪ Impor
Slide 19: Investments & net debt
Investments & net debt Investments in tangible and intangible assets, EUR million Net debt, EUR million & Leverage 01 1.1 45 03 1.0 40 01 0.9 2.4 03 35 0.8 0.8 2.0 01 30 02 25 1.6 0.6 1.4 1.5 01 0.5 1.3 1.3 02 20 00 15 01 10 00 01 5 - - - Q1 Q2 Q3 Q4 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q
Slide 20: Long-term financial targets
Long-term financial targets Target Description Latest reported SALES Total growth of >5% “An over time annual organic net sales growth 5.3% total to exceed 5 per cent on a Group level, and 10 per GROWTH Outside Nordics >10% cent outside the Nordic region” 11.4% outside Nordics* “Improving EBITA marg
Slide 21: Reporting dates 2025
Reporting dates 2025 Orthex will publish its financial statements release for 2024 and financial reports in 2025 as follows: ▪ 12 March 2025: Financial statements release for 2024 ▪ 15 May 2025: Interim report January–March 2025 ▪ 21 August 2025: Half-year financial report January–June 2025 ▪ 13 Nov
Slide 22: Summary
SUMMARY STRONG SALES GROWTH OUTSIDE THE HIGHER COST LEVEL NORDICS
Slide 23: Q&A
Q&A www.investors.orthexgroup.com
Slide 24: Key Figures
Key Figures INTERIM REPORT | JANUARY–SEPTEMBER 2024 | 15 NOVEMBER 2024
Slide 25: Practical is Beautiful
Practical is Beautiful