Desenio Group AB (publ) (DSNO) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you and welcome everybody to Desenio Group's Q1 results presentation conference call. So with me today, I have our CFO, Johan Roslund. We will today present the outcome of the quarter, the completed restructuring of Desenio's bonds and capital structure, and finish with a Q&A session as usual. The development in the quarter continued weak across most of the markets, which had a negative impact also on our sales. In total, net sales decreased by 10% to 206 million SEC compared to 229 million the corresponding quarter last year. During the quarter, we continued to work to successfully increase our efficiency. Adjusted EBITDA amounted to 21.5 million SEC, which means that the adjusted EBITDA margin increased to 10.4% compared to 9.7% at the corresponding quarter last year. The high profitability is mainly explained by the fact that our adjusted gross margin improved to 84.8% and that our adjusted admin expenses were 6.9 million lower compared to last year. Our adjusted fulfillment cost ratio was in line with last year, while the marketing cost ratio was slightly higher. Adjusted operating cash flow improved to minus 17.7 million SEK in Q1 this year compared to minus 19.1 million in Q1 last year. 15.1 million is adjusted due to the refinancing of the Desenio Group issued bonds. During the quarter, the restructuring of Desenio's bonds and capital structure was completed. The restructuring included a 75% write-down on the bonds and a debt for equity swap through a set-off issue of shares which led to a dilution effect of 95% for existing shareholders. 29.4% of the newly issued shares consist of new listed shares, while 70.6% consist of unlisted shares. So this means that around 33% of our shares are now listed. The unlisted shares can be converted into new listed sha...