Desenio Group Ab · OMXSTO:DSNO
Desenio Group Ab — Q1 2024 Earnings Presentation
23 slides from Desenio Group Ab's earnings presentation, Apr 25, 2024
Slide 1: Q1 Result Presentation
Q1 RESULT PRESENTATION 25 April 2024
Slide 2: Agenda
AGENDA Q1 highlights Business update Financial update Q1 Summary Q&A 2
Slide 3: Q1 Highlights: Challenging market
Q1 HIGHLIGHTS Challenging market • Net sales decreased by 12% to SEK 229 million • Nordics -8.0% • Core markets in Europe -12% • Rest of Europe -18%. • Rest of the world -11% (North America -5%) 3
Slide 4: Q1 Highlights: Marketing performance and lower cost base
Q1 HIGHLIGHTS Weak performance in marketing but increasing operational efficiency and lower cost base • Marketing cost in relation to net sales amounted to 31.2%, compared to 28.5% in Q1, 2023 • Focus on increasing impact in all markets • Continued efficiency improvements • Costs of fulfilment decre
Slide 5: Q1 Highlights: Lower profitability due to lower net sales
Q1 HIGHLIGHTS Lower profitability due to lower net sales • Adjusted EBITA, excluding impairment of intangible assets and items affecting comparability • SEK 22.2 (42.1) million • Adjusted EBITA margin 9.7% (16.2%) • Items affecting comparability amounted to SEK 3.2 million 5
Slide 6: Q1 Highlights: Negative cash flow, stable cash position
Q1 HIGHLIGHTS Negative cash flow - stable cash position • Cash flow from operating activities amounted to SEK -19.1 (42.6) million • Compared to last year EBITA was SEK 23 million lower • Reduced inventory by almost SEK 7 million, however Q1 2023 inventory was reduced by SEK 19 million • Account pay
Slide 7: Q1 Highlights: Evaluation of sustainable capital structure
Q1 HIGHLIGHTS Evaluation of alternatives to find a sustainable capital structure • Desenio Group´s senior secured bond matures in December 2024 • Discussions with bondholders to evaluate alternatives • Also exploring other alternatives 7
Slide 8: In Summary Q1 2024
IN SUMMARY Q1 2024 -12,1% 83,8% 9,7% -19,1MSEK 229 MSEK (84,3%) (16,2%) (42,6) NET SALES GROSS MARGIN Adjusted EBITA OPERATIONAL CASH FLOW 8
Slide 9: Adjusted EBITA margin bridge
Adjusted EBITA margin bridge * 9
Slide 10: Agenda
AGENDA Q1 highlights Business update Financial update Q1 Summary Q&A 10
Slide 11: 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 11
Slide 12: Search share of voice stable in both Germany and 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 Postery 2022-01 2022-03 2022-05 2022-07 DE BRAND SEARCH SHARE OF VOICE Posterlounge 2022-09
Slide 13: Search share of voice increasing in the US
100% 20% 50% 80% 10% 30% 40% 60% 70% 90% 0% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 Desenio 2020-05 2020-07 2020-09 Postery 2020-11 2021-01 2021-03 2021-05 2021-07 2021-09 Fineartamerica 2021-11 2022-01 2022-03 2022-05 Allposters 2022-07 US BRAND SEARCH SHARE OF VOICE 2022-09
Slide 14: 2023 Gross order intake
2023 GROSS ORDER INTAKE 250 DESENIO GROUP GROSS ORDER INTAKE* Q1 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 14
Slide 15: Q1 YoY growth per segment
Q1 YOY GROWTH PER SEGMENT NET SALES PER SEGMENT (SEKm) -12% 129,8 114,3 -8% -18% 58,6 54,1 51,2 -11% 42,1 20,7 18,3 Nordics Core Europe Rest of Europe Rest of World 2023 2024 15
Slide 16: Customer highlights
CUSTOMER HIGHLIGHTS ACTIVE CUSTOMERS* (thousands) ORDERS (thousands) * Number of customers who hav e completed at least one order during the prev ious 24-month period. 16
Slide 17: Agenda
AGENDA Q1 highlights Business update Financial update Q1 Summary Q&A 17
Slide 18: Financial highlights
FINANCIAL HIGHLIGHTS NET SALES (SEK million) GROSS MARGIN Adjusted EBITA (SEK million) 18
Slide 19: 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. 19
Slide 20: Operating cash flow break down
OPERATING CASH FLOW BREAK DOWN 20
Slide 21: Agenda
AGENDA Q1 highlights Business update Financial update Q1 Summary Q&A 21
Slide 22: Q1 2024 Summary
Q1 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 – stable cash position • Evalua
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