Desenio Group Ab · OMXSTO:DSNO
Desenio Group Ab — Q2 2024 Earnings Presentation
24 slides from Desenio Group Ab's earnings presentation, Jul 16, 2024
Slide 1: Q2 Result Presentation
Q2 RESULT PRESENTATION 16 July 2024
Slide 2: Agenda
AGENDA Q2 highlights Business update Financial update Q2 Summary Q&A 2
Slide 3: Q2 Highlights: Continued challenging market
Q2 HIGHLIGHTS Continued challenging market • Net sales decreased by 10% to SEK 166.0 • Nordics -4% • Core markets in Europe -10% • Rest of Europe -10% • Rest of the world -24% (North America -19%) 3
Slide 4: Q2 Highlights: Marketing and efficiency improvements
Q2 HIGHLIGHTS Weak performance in marketing - continued efficiency improvements • Marketing cost in relation to net sales amounted to 30.4% (31.2% Q1 2024 and 32.1% Q2 2023) • Focus on increasing impact in all markets • Continued efficiency improvements • Costs of fulfilment decreased to 27.8% in (2
Slide 5: Q2 Highlights: Higher profit and improved profitability
Q2 HIGHLIGHTS Higher profit and improved profitability EBITA increased 31.5% to SEK 6.3 (4.8) million • EBITA margin 3.8% (2.6%) • No items affecting comparability 5
Slide 6: Q2 Highlights: Negative cash flow
Q2 HIGHLIGHTS Negative cash flow explained by lower sales compared to the previous period and interest payments • Cash flow from operating activities amounted to SEK -48 (-37.7) million • SEK 26.3 million of the decrease is explained by decrease in working capital • Net interest payments on the outs
Slide 7: Q2 Highlights: Exploring refinancing alternatives
Q2 HIGHLIGHTS Continued exploring different alternatives for refinancing • Desenio Group’s senior secured bond matures in December 2024 • Discussions with bondholders continued • Evaluating other strategic initiatives As part of the discussions, Desenio Group's expected future financial development
Slide 8: Q2 Highlights: Updated financial targets
Q2 HIGHLIGHTS Updated financial targets for the group • An organic annual net sales growth of >5% in the medium-term • Improve the adjusted EBITA margin to >15% in the medium-term • The dividend policy remains unchanged 8
Slide 9: In Summary Q2 2024
IN SUMMARY Q2 2024 -10% 83.6% 3.8% -48.0 MSEK 116 MSEK (84.0%) (2.6%) (37.7) NET SALES GROSS MARGIN EBITA OPERATIONAL CASH FLOW 9
Slide 10: EBITA margin bridge
Percentage points 2,6 EBITA margin Q2 2023 -0,4 Product margin EBITA margin bridge 0,2 17 18 Fulfilment Marketing cost Admin & other DESENIO GROUP = 21 Other operating 3,8 EBITA margin Q2 2024 10
Slide 11: Agenda
AGENDA Q2 highlights Business update Financial update Q2 Summary Q&A 11
Slide 12: Sales stronger than overall market search trends
SALES STRONGER THAN OVERALL MARKET SEARCH TRENDS DE GROUP* PERFORMANCE UK GROUP* PERFORMANCE *Desenio + Poster Store Data source: Google Trends & FLOW 12
Slide 13: Search share of voice positive in Germany and stable in the UK
100% 10% 40% 60% 70% 90% 20% 30% 50% 80% 0% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 2020-07 2020-09 2020-11 Desenio Group 2021-01 2021-03 2021-05 Juniqe 2021-07 2021-09 2021-11 2022-01 Postery 2022-03 2022-05 2022-07 2022-09 DE BRAND SEARCH SHARE OF VOICE 2022-11 Post
Slide 14: Search share of voice increasing in the US
100% 10% 40% 60% 70% 90% 20% 30% 50% 80% 0% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 Desenio 2020-07 2020-09 2020-11 Postery 2021-01 2021-03 2021-05 2021-07 2021-09 2021-11 Fineartamerica 2022-01 2022-03 2022-05 Allposters 2022-07 2022-09 US BRAND SEARCH SHARE OF VOICE
Slide 15: 2024 Gross order intake
2024 GROSS ORDER INTAKE 250 DESENIO GROUP GROSS ORDER INTAKE* Q2 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023 2024 *Desenio + Poster Store Data source: FLOW 15
Slide 16: Q2 YoY growth per segment
Q2 YOY GROWTH PER SEGMENT NET SALES PER SEGMENT (SEKm) -10% -4% -10% -24% 16
Slide 17: Customer highlights
CUSTOMER HIGHLIGHTS ACTIVE CUSTOMERS* (thousands) ORDERS (thousands) * Number of cu stomers who ha ve completed at lea st one order du ring th e p revious 24 -month period . 17
Slide 18: Agenda
AGENDA Q2 highlights Business update Financial update Q2 Summary Q&A 18
Slide 19: Financial highlights
FINANCIAL HIGHLIGHTS NET SALES (SEK million) GROSS MARGIN EBITA (SEK million) 19
Slide 20: Cash flow highlights
CASH FLOW HIGHLIGHTS CAPEX (SEK million) NET WORKING CAPITAL (SEK million) OPERATIONAL CASH FLOW (SEK million) CAPEX is fixed assets and intangible assets. Lease assets excluded. 20
Slide 21: Operating cash flow break down
OPERATING CASH FLOW BREAK DOWN 21
Slide 22: Agenda
AGENDA Q2 highlights Business update Financial update Q2 Summary Q&A 22
Slide 23: Q2 2024 Summary
Q2 2024 SUMMARY • Continued weak market during the first quarter • Weak performance in marketing but increasing operational efficiency and lower cost base • Relatively good profitability despite the negative sales trend and despite the weak market • Negative cash flow – explained by decreasing accou
Slide 24: Desenio Group
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