CDON Ab (CDON) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to CDON Group's earnings call for the first quarter of this year. Next to me, as usual, we have our CFO, Carl, who will join us later on for some more digging into the numbers. Thank you. To summarize this quarter, it was a challenging start of the year. We had a weak start with a weak January and February. We did a lot of operational work to turn this around during February and identified a lot of adjustments that we implemented. And happily enough, we saw that it yielded a good return. So we had a good ending at least of the quarter. And we just released that we also are now reviewing strategic alternatives in order to realize our business full potential. Starting with the sales, as I mentioned, very weak start of the year, both January and February were way below our expectations. In February, we identified the problems we had, both with some key merchants, but also with some key categories that were underperforming. We implemented and worked really swiftly with this and managed to implement a lot of changes during the end of February. And looking on March, we can see that it was a good comeback, so to say, for the quarter. And looking into the gross profit after marketing, our main KPI, we can see that it is, though, lower than last year. This is affected partly because of the weak start of the year on the top line sales, but also affected of higher marketing costs. We still have a dependency of the paid marketing channels and that mix becomes and continues to be costly for us. We also see that we have a negative development in our two home markets for both segments, Sweden. However, looking at the Nordic countries, they are very positive for both segments. We also introduced a new API at the end of the quarter. We now have one API where merchan...