Pierce Group Ab · OMXSTO:PIERCE
Pierce Group Ab — Q1 2024 Earnings Presentation
28 slides from Pierce Group Ab's earnings presentation, May 14, 2024
Slide 1: Interim Report Q1 2024
Interim Report Q1 2024 May 14th 2024
Slide 2: Today's Presenters
Today's Presenters Göran Dahlin CEO Fredrik Ideström CFO
Slide 3: Agenda
Agenda 1. Q1 Summary 2. Financial update 3. Looking forward 4. Q&A
Slide 4: Q1 Summary
Q1 SUMMARY Strong improvement overall • Q1 normally the seasonally weakest quarter during the year Back to growth • Growth vs last year following long period of decline Variance • Demand increased throughout the quarter SEKm Q1 2023 Q1 2024 Local Reported currencies Continued underlying margin impro
Slide 5: KPI Highlights
KPI HIGHLIGHTS High Trustpilot scores Resilient private brand revenue Aggregated Trustpilot scores Net revenues, Private brand (SEKm) CAGR +1% 4.3 4.3 4.3 622 623 638 Q1 2022 LTM Q1 2023 LTM Q1 2024 LTM Q1 2022 LTM Q1 2023 LTM Q1 2024 LTM 5
Slide 6: KPI Highlights (Continued)
KPI HIGHLIGHTS (CONTINUED) Customer base continued to decline But is offset by an increasing AOV Active customers LTM (000), end of period Average order value (SEK) Number of orders (000) 1,165 CAGR +7% 1,106 1,070 1,016 972 930 1,769 1,641 1,447 Q1 2022 LTM Q1 2023 LTM Q1 2024 LTM Q1 2022 LTM Q1 20
Slide 7: Agenda
Agenda 1. Q1 Summary 2. Financial update 3. Looking forward 4. Q&A
Slide 8: Group Financials
GROUP FINANCIALS Revenue growth resumed Net revenue (SEKm) Adjusted EBIT (SEKm) • Net revenue growth during Q1 by segment: Profit after variable costs (SEKm) Adjusted EBIT margin (%) ̵ Offroad 5% and 3% in local currencies Profit after variable costs (%) ̵ Onroad 4% and 3% in local currencies ̵ Onro
Slide 9: Gross margin
Gross margin Trend shift in gross margin since Q1 2023 Shipping costs in relation to revenues lower than Q4 2023 Gross margin (%), reported In-freight (SEKm) 30 12 Cost in relation to Net revenue (%) 30 27 -1.6 ppt +5.9ppt 10 24 25 44.7% 21 21 41.0% 39.5% 42.1% 19 19 6.6% 19 39.7% 8 18 18 6.4% 20 39
Slide 10: Net Working Capital Development
NET WORKING CAPITAL DEVELOPMENT NWC decreased in Q1 2024 despite low season Net working capital, NWC (SEKm) ▪ Net working capital (NWC) decreased Q1 Net working capital, % of Net Revenue, LTM (%) 2024 vs. Q1 2023 with SEKm 185: – Total inventory decreased with SEKm 132 ▪ The effect of the changed as
Slide 11: Financial Position
FINANCIAL POSITION Debt-free, net cash positive and a solid equity position 31 Dec 31 Mar SEKm (unless stated otherwise) 2023 2024 Interest-bearing liabilities¹ - - ▪ Cash positive since new share issue. Cash and cash equivalents 222 278 ▪ Solid equity position of SEKm 654. Net debt excl. IFRS 16 -2
Slide 12: Agenda
Agenda 1. Q1 Summary 2. Financial update 3. Looking forward 4. Q&A
Slide 13: Pierce 2.0
PIERCE 2.0 Our vision is to become the unquestionable leading e-tailer of the European market of gear, accessories, and parts for motorcycle riding. SUPPORTED BY 7 STRATEGIC PILLARS • To achieve absolute leadership in the Offroad segment and profitable growth in the Onroad segment • To have the high
Slide 14: Pierce Group updates mid to long term financial targets
Pierce Group updates mid to long term financial targets Revision is to reflect the prevailing conditions in the market where Pierce operates Updated financial targets Previous financial targets • Net revenue growth: In the medium to long term (3-5 years), • Net revenue growth: In the medium to long
Slide 15: Agenda
Agenda 1. Q1 Summary 2. Financial update 3. Looking forward 4. Q&A
Slide 16: Appendix
Appendix 16
Slide 17: This is Pierce
THIS IS PIERCE Online leader in a fragmented niche Pan-European company Motorcycle specialist Net revenue split, Q1 2024 LTM Net revenue split, Q1 2024 LTM • A pan-European company with local presence in 16 markets Other • Large share of private brands makes offering unique 6% • Headquartered in Sto
Slide 18: Q1 Summary – Profit and Loss
Q1 SUMMARY – PROFIT AND LOSS Q1 2023 Q1 2024 SEKm (unless stated otherwise) Offroad Onroad Other Intra-group Total Offroad Onroad Other Intra-group Total costs¹ costs¹ Net Revenue 207 102 35 - 345 217 106 32 - 356 Growth (y/y) (%) -14% -24% -22% -% -18% 5% 4% -9% -% 3% Gross Profit 86 37 14 0 137 10
Slide 19: Consolidated Financial Information
CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2022 2023 Q1 2024 LTM Net Revenue 1,670 1,537 1,548 Growth (y/y) (%) 5% -8% -3% Growth in local currencies (y/y) (%) 1% -13% -7% Growth in private brand sales (y/y) (%) 7% -1% 2% Gross Profit 657 607 632 Gross margin (%) 39.3% 39.5% 4
Slide 20: Segment Financial Information
SEGMENT FINANCIAL INFORMATION SEKm (unless stated otherwise) 2022 2023 Q1 2024 LTM Offroad Net Revenue 999 952 962 Growth (y/y) (%) 3% -5% 0% Gross Profit 412 393 412 Gross margin (%) 41.2% 41.3% 42.8% Variable sales- and distribution costs -235 -205 -207 Variable sales- and distribution costs (%) -
Slide 21: Quarterly Consolidated Financial Information
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION 2022 2023 2024 SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q1 LTM Net Revenue 420 450 373 427 1,670 345 441 369 382 1,537 356 1,548 Growth (y/y) (%) 14% 0% 3% 3% 5% -18% -2% -1% -10% -8% 3% -3% Growth in local currencies (y/y) (%)
Slide 22: Quarterly Segment Financial Information
QUARTERLY SEGMENT FINANCIAL INFORMATION 2022 2023 2024 SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q1 LTM Offroad Net Revenue 241 243 233 282 999 207 248 238 258 952 217 962 Growth (y/y) (%) 9% -9% 3% 8% 3% -14% 2% 3% -9% -5% 5% 0% Gross Profit 103 103 95 110 412 86 111 76 12
Slide 23: Quarterly Consolidated Net Working Capital
QUARTERLY CONSOLIDATED NET WORKING CAPITAL 2022 2023 2024 SEKm (unless stated otherwise) Q4 Q1 Q2 Q3 Q4 Q1 Physical stock 414 420 401 317 283 274 Goods in transit 74 44 58 60 61 58 Inventory 488 464 459 377 344 332 Working capital assets 20 30 28 20 14 25 Working capital liabilities -262 -223 -260 -
Slide 24: Condensed Consolidated Statement of Profit/Loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Jan-Mar Apr 2023- Jan-Dec SEKm 2024 2023 Mar 2024 2023 Net revenue 356 345 1,548 1,537 Cost of goods sold -194 -208 -916 -930 Gross profit 162 137 632 607 Sales and distribution costs -116 -118 -503 -505 Administration costs -43 -41 -213 -212 Other ope
Slide 25: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 31 Mar 2024 31 Mar 2023 31 Dec 2023 Intangible assets 304 343 310 Property, plant and equipment 14 15 15 Right-of-use assets 53 67 53 Financial assets 3 4 3 Deferred tax assets 7 6 8 Total non-current assets 382 434 389 Inventory 332 464 34
Slide 26: Condensed Consolidated Statement of Cash Flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Jan-Mar Apr 2023- Jan-Dec SEKm NOTE 2024 2023 Mar 2024 2023 Operating profit A 7 -21 -82 -111 Adjustments for non-cash items B 21 18 125 122 Paid interest -2 -2 -5 -5 Received interest 1 0 4 3 Realised currency derivatives 1 3 7 9 Paid/received tax -1 -1
Slide 27: Reconciliation of Adjusted Financials
RECONCILIATION OF ADJUSTED FINANCIALS Jan-Mar Apr 2023- Jan-Dec SEKm 2024 2023 Mar 2024 2023 Net revenue 356 345 1,548 1,537 Cost of goods sold -194 -208 -916 -930 Variable sales- and distribution costs -80 -83 -348 -351 Other costs¹ -75 -75 -367 -367 Operating profit (EBIT) 7 -21 -82 -111 Reconcili
Slide 28: Riders in QW E-commerce
RIDERS IN QW E-COMMERCE PIERCE