Q2 2024 Desenio Group AB (publ) Earnings Call Transcript
Key Points
- EBITDA increased by 31.5% to SEK6.3 million, indicating improved profitability despite lower sales.
- Marketing costs in relation to net sales were reduced to 30.4% from 32.1% in Q2 2023, showing better cost management.
- Efficiency improvements led to lower fulfillment and admin costs, with fulfillment costs decreasing from 29.6% to 27.8%.
- The average order value increased by 10%, partially offsetting the decrease in active customers and number of orders.
- Desenio Group AB maintained its share of voice in key markets like Germany and the UK, and saw a steady increase in the US market.
- Net sales decreased by 10% to SEK166 million compared to the same period last year, reflecting weak market conditions.
- Operating cash flow was negative SEK48 million, driven by reduced current liabilities and net interest payments on outstanding bonds.
- Gross margin slightly decreased from 84% to 83.6%, mainly due to a different product mix.
- Active customers and number of orders decreased compared to last year, indicating potential challenges in customer retention.
- The company is still not achieving the full effect of its marketing efforts, leading to lower returns on marketing investments.
Welcome everybody to the Desenio Group's Q2 results presentation and conference call. With me today. As usual, I have our CFO Anna Stahle. So we'll start by presenting the outcome of the quarter and the Q&A session will follow a the end.
The market development for affordable rollout continued to be weak during the second quarter. Net sales for Desenio Group decreased by 10% to SEK166 million compared to the corresponding period last year. And as you can see, net sales decreased in all 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 but short term.
However, during the quarter we reduced 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 of thereby increased profitability continues.
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