Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — CDON Group — Q3 2013 Earnings Presentation
15 slides from Nelly Group Ab's earnings presentation, Oct 21, 2013
Slide 1: CDON Group Third Quarter and First Nine Months 2013
CDON GROUP THIRD QUARTER AND FIRST NINE MONTHS 2013 PAUL FISCHBEIN, PRESIDENT AND CEO NICOLAS ADLERCREUTZ, CFO
Slide 2: Highlights
Highlights • Growth and margin improvements within three of four business segments • Strong growth and strengthened market posi7ons for the Sports & Health and Fashion segments • Sports & Health segment con7nues to deliver solid profitability • Con7nued inventory reduc7on within the Entertainment seg
Slide 3: Financials
FINANCIALS 3
Slide 4: Summary
Summary Entertainment Fashion Sport & Health Home & Garden Q3 13 Q3 12 Q3 13 Q3 12 Q3 13 Q3 12 Q3 13 Q3 12 Q3 13 Q3 12 Net sales (mn) 447.1 525.0 187.9 164.2 169.0 123.5 145.5 141.6 949.6 953.3 Growth yoy -‐14.8% 22.1% 14.4% 23.0% 36.9% 32.2% 2.7% -‐3.0% -‐0.4% 18.9% Sales share 47.1% 55.1% 19.8%
Slide 5: Income Statement
Income Statement 2013 2012 2013 2012 • Q3 net sales growth slightly posi7ve (SEK million) Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep excluding currency effects Net Sales * 949.6 953.3 2 946.2 2 817.6 117.0 129.5 413.8 413.7 Gross profit * • Lower gross margin mainly coming from 12.3% 13.6% 14.0% 14.7% Gr
Slide 6: Cash Flow
Cash Flow 2013 2012 2013 2012 • Less 7ed up capital in inventories and (SEK million) Jul-‐Sep Jul-‐Sep Jan-‐Sep Jan-‐Sep receivables Cash flow from opera7ng -‐15.2 1.2 -‐83.6 -‐81.7 ac7vi7es Changes in working capital 29.8 -‐93.6 -‐193.0 -‐291.2 • Cash flow from opera7ons increased to SEK Ca
Slide 7: Financial Position
Financial PosiFon 2013 2012 2012 • Inventories at SEK 569.5 (682.9) mn, decrease (SEK million) 30-‐sep 30-‐sep 31-‐Dec mainly due to lower inventory levels within the Total non-‐current assets 723.2 617.2 678.5 entertainment and fashion segments as well as Inventories 569.5 682.9 609.7 the dispo
Slide 8: Business Segments
BUSINESS SEGMENTS 8
Slide 9: Entertainment
Entertainment • Segment sales down 14.8% y/y in Q3 and 7.0% y/y YTD OperaFng development 1600 1473 10.0% • Development of new product categories con7nued in Q3 1370 1400 and sales for each new area were in line with company 8.0% 1200 expecta7ons 6.0% 1000 SEK (million) Margin 800 3.7% 3.8% 4.0% • Th
Slide 10: Fashion
Fashion • Sales increased by 14.4% y/y in Q3 and by 16.2% y/y YTD, OperaFng development excluding divested en77es 800 632 12.0% • Excluding currency effects and divested business , sales 600 544 increased by 15.9% y/y in Q3 and by 17.9% y/y YTD 4.0% SEK (million) Margin 400 -‐3.1% -‐3.8% -‐4.0% •
Slide 11: Sports & Health
Sports & Health • Sales up 36.9% y/y in Q3 and 36.6% y/y YTD OperaFng development 600 14.0% • Con7nued strong profitability 502 12.0% 368 10.0% • The segment strengthened its market share in all markets 400 9.2% SEK (million) 9.5% Margin 8.8% in the period 8.6% 8.0% 6.0% 169 • New private label brand
Slide 12: Home & Garden
Home & Garden • Sales up 2.7% y/y in Q3 and 3.1% y/y YTD OperaFng development • Sales of household and outdoor product categories increased in the quarter 500 434 448 7.0% 400 5.0% SEK (million) • Con7nued good development for Room21, partly as a Margin 300 3.0% result of successful sales of private
Slide 13: CDON Group Logistics
CDON Group LogisFcs • Logis7cs opera7on mainly operates warehousing for Nelly.com and Lekmer.com • Con7nued efficiency improvements in the third quarter • Re-‐organisa7on of opera7onal responsibility 13
Slide 14: Forward looking statement
Forward looking statement • Use strong market posi7ons to capitalize on high online market growth • Focus on con7nued balanced sales growth and increased market shares, mainly from Nelly.com & Gymgrossisten.com • CDON.com expected to weaken Groups total growth • CDON Group Logis7cs expected to show
Slide 15: Thank You!
THANK YOU! Next report: 4 February 2014 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