Desenio Group AB (publ) (DSNO) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. So welcome everybody to the Zenit Group's Q1 results presentation conference call. So with me today, I have our CFO, Storre. So we will start as usual by presenting the outcome of the quarter and the Q&A session will follow at the end. So in the year end report, we indicated that the markets continue to be weak during the first half of Q1. This development continued unfortunately during the rest of the quarter, and our net sales decreased by 12% to 229 million SEK. And as you can see, net sales decreased on all the markets. The background to the weak development is partly the weak market within our categories, which I will tell you more about on the next slide. One focus for Q1 has been to reduce marketing spend in relation to net sales. Although we reduced our absolute marketing costs in comparison to the corresponding quarter last year, it increased the relation to net sales to 31.2% compared to 28.5% in Q1 2023. So we are now step-by-step adapting our marketing strategy to the new environment, but have clearly not yet found the perfect formula for our efforts. And this development is of course a satisfactory. Our focus is on gaining efficiency in the marketing efforts and thereby increasing profitability. And we work hard to find the right mix and impact. And this is really the key to our success going forward. On the positive side, we managed to increase our efficiency in the organization. Our fulfillment cost ratio decreased from 26.4% to 26.0%. during the quarter and reduced the number of employees in Sweden by 10%, corresponding to 16 full-time positions. The lower net sales levels and higher share of marketing costs led to adjusted EBITDA decreasing to 22.2 million compared to 42.1 million in Q1 2023. This corresponds to an adjusted EBITDA margin o...