Desenio Group AB (publ) (DSNO) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much. Welcome everybody to the Zenit Group's Q3 results presentation conference call. With me today I have our CFO Anna Storne. As you may have noticed we have postponed this report two times. The reason is our ongoing constructive discussions with the Zenit Group's bondholders to find a solution for the refinancing of our issued bonds. We believe the solution will include reduced net debt and the debt maturity is expected to be extended. but we have to wait for the outcome of our discussions. This outcome will be announced in a separate press release. Now to the Q3 report. So as usual, we'll start with presenting the outcome of the quarter and the Q&A session will follow at the end. The development in the quarter continued to be weak in all markets, although sales in the Nordics only decreased marginally. In total, this led to net sales for the senior group decreasing by 15.6% to 192.6 million SEK. However, the trend was positive during the quarter with weak sales in July, somewhat stronger in August and on par with previous year in September. The current market situation has forced us to gradually adjust the cost levels. We have also put a lot of focus on efficiency. This work has been successful and led to that adjusted EBITDA only decreased marginally to 23.4 million and that the adjusted EBITDA margin actually increased to 12.1% in quarter. In addition, the beta was positively affected by a higher gross margin than the previous year, which is explained by a favorable product mix. We also see that the ongoing improvements in our fulfillment operations continue to show results, which, even though volumes decreased by almost 20%, led to the cost ratio for fulfillment being at the same level as last year, hence 26.4%. However, we have not yet succeede...