Desenio Group AB (publ) (DSNO) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everybody to Designing Group's Q2 results presentation conference call. With me today, as usual, I have our CFO, Anna Ståle. So we will start by presenting the outcome of the quarter and the Q&A session will follow at the end. The market development for affordable wall art continued to be weak during the second quarter. Net sales for Designing Group decreased by 10%. to 166 million compared to the corresponding period last year. And as you can see, net sales decreased in all our markets. In addition to the weak market development, the lower sales is explained by the fact that we're still not getting full effect of our marketing efforts, which I will elaborate more on in the next slide. So we don't get high enough return on our marketing investments. at least not short term. However, during the quarter, we reduced the marketing cost in relation to net sales to 30.4% compared to 31.2% in Q1 2024 and 32.1% in Q2 2023. And the work to achieve better impact on our marketing efforts and thereby increased profitability continues. In addition, we managed to increase our efficiency in the organization. Both the cost ratio for fulfillment and admin costs were lower in the second quarter of 2024 compared to the corresponding quarter last year. So the cost ratio for fulfillment decreased from 29.6% to 27.8%. And our admin expenses decreased from 38.2 million to 34.1 million. EBITDA increased by 31.5% to 6.3 million, corresponding to an adjusted EBITDA margin of 3.8%. There were no items affecting comparability in the quarter. The fact that profitability increased despite the lower sales level is explained by the measures we've taken to compensate for the tough markets we operate in. Cash flow from operating activities during the quarter amounted to negative 48 million an...