Boozt Ab · OMXSTO:BOOZT
Boozt Ab — Q4 2024 Earnings Presentation
32 slides from Boozt Ab's earnings presentation, Feb 7, 2025
Slide 1: Q4 2024 Investor presentation
Q4 2024 Investor presentation
Slide 2: Q4 2024 Highlights
Q4 2024 Highlights ▪ FY 2024 revenue increases by 6.3% despite tough market conditions ▪ Full year adj. EBIT margin increase to 5.7% (FY 2023: 5.2%), mainly driven by exemption from customs in Norway ▪ Q4 2024 revenue increased by 4%, impacted by continued challenging market conditions ▪ Booztlet.co
Slide 3: Department store metrics continue to improve
Department store metrics continue to improve - Customers buying from multiple categories on average spend more, return less and are more loyal More than 40% of revenue on Boozt.com is now More than 50% of customers on Boozt.com buy generated from products outside of Fashion (FY 2024) from more than
Slide 4: Continued increase in customers buying from more than one category
Continued increase in customers buying from more than one category - 52% of customers buy from more than one category Active customers shopping from 1 to 6 different product categories* 1,500,000 FY 2023 FY 2024 -1% 1,200,000 900,000 +5% 600,000 +1% 300,000 +1% +3% +7% 0 1 2 3 4 5 6 * Numbers are ba
Slide 5: Booztlet delivering on its purpose
Booztlet delivering on its purpose ▪ A main purpose of Booztlet.com has always been to hedge inventory risk ▪ The outlet enables taking inventory-risk while still seeking maximum growth ▪ It facilitates clearing of overstock without compromising the Boozt.com brand… ▪ …. still making a (small) profi
Slide 6: Technology-driven efficiencies support 10% margin goal
Technology-driven efficiencies support 10% margin goal ▪ Boozt uses AI across the value chain to increase productivity and reduce costs ▪ Tech-driven realignment of organization executed in February with a reduction of around 120 white-collar employees (or 20% of white-collar) ▪ Mainly driven by mac
Slide 7: Financial Highlights
Financial Highlights Q4 2024 7
Slide 8: Q4 2024 - Financial Highlights
Q4 2024 - Financial Highlights SEK million Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change Net revenue 3,107 2,993 +4% 8,244 7,755 +6% Gross profit 1,164 1,122 +4% 3,213 3,038 +6% Gross margin 37.5% 37.5% 0.0pp 39.0% 39.2% -0.2pp Adj. EBIT 307 230 +33% 473 400 +18% Adj. EBIT margin 9.9% 7.7% +2.2pp 5.
Slide 9: Q4 2024 – Segments
Q4 2024 – Segments Boozt.com SEK million Q4 2024 Q4 2023 Change ▪ The overall market for Fashion and Lifestyle in the Nordics remains challenging Net revenue 2,461 2,517 -2% ▪ More than 350,000 new customers shopped on Boozt.com in the quarter Adj. EBIT 277 186 +49% (active customers increased 2%) ▪
Slide 10: Q4 2024 – Cost ratios
Q4 2024 – Cost ratios Share of net revenue, % Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change Gross margin 37.5% 37.5% +0.0pp 39.0% 39.2% -0.2pp Fulfilment cost ratio -9.5% -9.5% +0.1pp -10.6% -10.6% 0.0pp Marketing cost ratio -9.8% -10.0% +0.2pp -10.2% -10.3% +0.2pp Admin. and other -4.8% -9.7% +5.0p
Slide 11: Q4 2024 – Cash development
Q4 2024 – Cash development SEK million Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change Net working capital 752 316 138% 752 316 138% NWC share of net 9.1% 4.1% +5.1pp 9.1% 4.1% +5.1pp revenue (LTM) Free cash flow 625 834 -25% 12 6 +96% CAPEX -60 -28 +114% -237 -124 +91% Net cash 795 1,040 24% 795 1,04
Slide 12: Building the Nordic department store
Building the Nordic department store ▪ Savings from organizational realignment to be partially reinvested in marketing push in 2025 to support newer categories (Kids, Sports, Beauty and Home) ▪ High value-for-money in offline media buying expected in 2025 ▪ Still relatively low category awareness ou
Slide 13: Outlook 2025
Outlook 2025 ▪ Revenue growth to be driven by market share gains and continued online penetration Outlook 2025 FY 2024 ▪ Assumes limited changes to the current market environment Revenue growth 4-9% 6% ▪ Uncertainty on availability of campaign remains ▪ Adjusted EBIT margin expected to increase Adju
Slide 14: Appendix
Appendix GROUP
Slide 15: A Nordic technology company selling fashion, sport, beauty and home online
A Nordic technology company selling fashion, sport, beauty and home online The Boozt snapshot • Boozt.com launched 2011 Our vision is to become the leading Nordic • Booztlet.com launched in 2015 department store, offering the preferred • Boozt AB is listed on Nasdaq Stockholm (since 2017) & Nasdaq C
Slide 16: Strategy - The Nordic Department Store
Strategy - The Nordic Department Store - Unique positioning offers strong growth and margin support • More targeted Regional assortment focus • Best-in-class customer experience The Nordic • Higher AOV Department Multiple • Higher customer categories loyalty store • Lower return rates • Better posit
Slide 17: Taking ownership of the full value chain
Taking ownership of the full value chain Marketing Service Payment Solutions Fashion Kids Sport Beauty Home New markets Fulfilment Brands/Sourcing 17
Slide 18: Penetration in the Nordics – the potential end game
Penetration in the Nordics – the potential end game Online penetration (Fashion and lifestyle) Offline penetration (Fashion and lifestyle) 20% CAGR: CAGR: CAGR: Forces driving online penetration: +6% 27.5% +7% +3% + Selection ~50% ~60% 80% + Convenience + 72.5% Pricing ~50% ~40% + Cost structure 201
Slide 19: Product Segment Focus
Distinct postion based on a curated Nordic selection of fashion and lifestyle products Illustrative Nordic market landscape Premium Product Segment Focus Attractive position in a market where scale Commercial is key to become long term winner Entry-price Catch-all Curated 19 Brand Strategy
Slide 20: Attractive position in a market where scale is key to become long term winner
Attractive position in a market where scale is key to become long term winner 82.3 High AOV supports relatively high profitability Average order value (2023)* 47.8 43.8 46.0 42.7 European European European European Peer #1 Peer #2 Peer #3 Peer #4 Boozt.com Zalando About you ASOS Boohoo The peer grou
Slide 21: Average order value is key to market-leading growth and industry leading profitability
Average order value is key to market-leading growth and industry leading profitability Cost split per order * Boozt.com AOV 2024 (SEK) 964 • The relatively high AOV and local scale yields a high profit per order … • … Allowing for a high marketing spend to Goods for resale 588 61.0% drive market-lea
Slide 22: The Nordic Department store gaining momentum with clear upside from upselling our loyal customer base
The Nordic Department store gaining momentum with clear upside from upselling our loyal customer base Customer "survival" rate* (Possibility that customer will buy again within 12 months) Active customers shopping from 1 to 6 different product categories* 91% 96% 1,500,000 82% FY 2023 FY 2024 69% 50
Slide 23: Loyal cohorts and new customers drive growth on Boozt.com
Loyal cohorts and new customers drive growth on Boozt.com Net revenue Cohorts & Net revenue on Boozt.com Boozt.com* (SEKm) <2015 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 *Excluding ”other revenue”
Slide 24: Boozt.com: A preferred destination for Fashion, Kids, Sport, Beauty and Home
Boozt.com: A preferred destination for Fashion, Kids, Sport, Beauty and Home Share of revenue from Fashion (Women / Men) Share of revenue from Kids, Sport, Beauty and Home 10% 42% + Lower return rates + ~65% Increased share of wallet 90% 58% + Average order value ~35% + Improved profitability 2017 2
Slide 25: The Boozt universe – long-term opportunity
The Boozt universe – long-term opportunity Boozt Data Boozt Media Booztlet Nordic Brand Hub BooztPay Intelligence Partnership Providing insights into Preferred e-commerce Seamless and easy The Nordic designing, producing Value proposition Nordic Designer Outlet data partner in the Retail media check
Slide 26: 10% margin in four years
10% margin in four years Gross margin Gross margin 39.5% (+0.5pp) 39.0% Margin drivers Fulfilment 10.0% (-0.6pp) Fulfilment • Gross margin (0.5pp) 10.6% • Higher share of Other revenue Marketing • Fulfilment costs (-0.6pp) 8.0% (-2.1pp) • Cost optimisation Marketing 10.1% • Lower returns (driven by
Slide 27: Capital allocation priorities
Capital allocation priorities Reinvest to drive long-term Excess cash to shareholders Additional information: value creation through profitable organic growth Capacity Boozt aim to return proceeds • SEK 500 million planned to from the dual listing on be invested in 2025-27 to Nasdaq Copenhagen expan
Slide 28: Corporate Responsibility
Corporate Responsibility 28
Slide 29: The Care-For Strategy: Environment, Employees, Community and Governance
The Care-For Strategy: Environment, Employees, Community and Governance Reducing unsustainability refers to preventing and mitigating negative impacts. Creating sustainability links implementing practices to realise potential positive impacts for its stakeholders. 29
Slide 30: Boozt achieves Science-Based targets approval
Boozt achieves Science-Based targets approval Committed to reducing emissions in line with the latest climate science, helping to limit global warming to 1.5°C →Setting the path forward for Boozt’s climate action plan Boozt Group further Boozt Group commits Boozt Group also commits that 88% of its t
Slide 31: Commitment to disclosure and transparency
Commitment to disclosure and transparency ESG Ranking or Scoring Scale 2024 2023 Rating CDP Climate Change F-A (A is the highest score) N/A B S&P Global CSA 0-100 (the higher the score the better) N/A 33 Sustainalytics 50 - 0 (the lower the score the better) 17.6 22.2 CCC-AAA (AAA is the highest and
Slide 32: Disclaimer
Disclaimer The Company’s financial targets set forth above constitute forward-looking information that is subject to considerable uncertainty. The financial targets are based upon a number of assumptions relating to, among others, the development of the Company’s industry, business, results of opera