Year-End Report 2014

Continued growth and successful launch of Qliro payment solution

Fourth Quarter

  • Net sales, excluding divested operations, increased by 15%, amounting to SEK 1,649.6 (1,438.7) million. Including divested operations, net sales increased by 12%, amounting to SEK 1,649.6 (1,470.6) million.
  • Operating profit, excluding divested operations, non-recurring items and Qliro Financial Services amounted to SEK 21.9 million (25.0). Including divested operations, non-recurring items and Qliro Financial Services, the operating profit amounted to SEK -3.6 million (profit 26.6).
  • Net income totalled SEK -7.0 (15.8) million.
  • Earnings per share amounted to SEK -0.06 (0.13).
  • Cash flow from operations, excluding Qliro Financial Services, amounted to SEK 256.4 (138.0) million. Including Qliro Financial Services, cash flow from operations amounted to SEK 86.6 million.
  • During the quarter, the rights issue of approximately SEK 647 million and the early redemption of the convertible bond of SEK 250 million was carried out.

Full year 2014

  • Net sales, excluding divested operations, increased by 15%, amounting to SEK 4,966.8 (4,326.8) million. Including divested operations, net sales increased by 13%, amounting to SEK 5,014.9 (4,440.5) million.
  • Operating profit, excluding divested operations, non-recurring items and Qliro Financial Services, amounted to SEK 22.8 (-0.3) million. Including divested operations, non-recurring items and Qliro Financial Services, operating profit totalled SEK 33.0 (-48.0) million.
  • Net income amounted to SEK 5.4 (-67.3) million.
  • Earnings per share amounted to SEK 0.02 (-0.65).
  • Cash flow from operations, excluding Qliro Financial Services, amounted to SEK 74.7 (-138.6) million. Including Qliro Financial Services, cash flow from operations amounted to SEK -106.5 million.

For a statement of sales of operations and non-recurring items, see page 5. For a statement showing the impact of Qliro Financial Services, see pages 4, 5 and 11.

CEO statement
Paul Fischbein, President & CEO comments: “Qliro Group’s sales are continuing to display strong momentum. All segments showed growth in the fourth quarter and total sales in 2014 reached SEK 5 billion for the first time, while underlying operating income for the full year before depreciation and amortisation (EBITDA) amounted to SEK 49 million. The Group’s cash flow from operations, excluding Qliro Financial Services’s loan book, was positive and amounted to SEK 75 million for the full year.

We have entered into an extremely exciting phase in the company’s history. In the fourth quarter we changed the name of the Group to Qliro Group, and this change marks the fact that we now rapidly form a new future for the business. The launch of our payment solution Qliro is a good example of a key initiative and it was introduced to the market in December, with considerable success. We are therefore looking forward to the continued roll-out of the payment solution, which is progressing at a high pace.

All our companies are showing strong growth and we are continuing to invest in our businesses. In addition to the continued investment in the Qliro payment solution, we will be relocating Lekmer’s warehouse operations to a new facility, generating capacity for persistent high growth and improved efficiency. The consolidation of CDON’s warehouse operations will continue in 2015 and we are also working on improving Nelly’s and Tretti’s logistics operations through continued investments in systems and equipment.

Nelly showed growth of 14% in the fourth quarter in a market that was sluggish as a result of the warm weather, and the rapid strengthening of the US dollar which had a negative impact of around SEK 4 million on the fourth quarter earnings. However, underlying profit, excluding currency effects, on our home market, Sweden, remained stable. Sales for Gymgrossisten rose by 14%, displaying an EBIT margin of 7%.

The number of retailers affiliated to CDON Marketplace rose to 402, which boosts the future growth potential for CDON Marketplace. CDON increased sales by 9% in the quarter, and, despite major investments, succeeded in making a positive underlying profit of almost SEK 6 million. The total business volume for CDON including Marketplace rose by 12% in the fourth quarter.

The fourth quarter saw the completion of Qliro Group’s rights issue, raising SEK 647 million for the company before transaction costs, which both strengthens us financially and creates new opportunities for the company. I would like to take this opportunity to express my thanks to the shareholders for your confidence in Qliro Group and our plans for the future.”

For further information, please visit www.qlirogroup.com, or contact:
Paul Fischbein, President and Chief Executive Officer
Phone: +46 (0) 10 703 20 00

Investor and analyst enquiries:
Nicolas Adlercreutz, CFO                                         
Phone: +46 (0) 70 587 44 88

Press enquiries:
Fredrik Bengtsson, Head of Communications                                   
Phone: +46 (0) 70 080 75 04
E-mail: press@qlirogroup.com, ir@qlirogroup.com

About Qliro Group
Qliro Group is a leading e-commerce group in the Nordic region. Since the start in 1999, the
Group has expanded and broadened its product portfolio and is now a leading e commerce player in consumer goods and lifestyle products through CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com), Gymgrossisten (Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com) and Tretti. The group also comprises the Qliro payment solutio n. In 2014, the group generated 5.0 billion SEK in revenue. Qliro Group’s shares are listed on Nasdaq Stockholm’s Mid-cap list under short name “QLRO”.

The information in this interim report is that which Qliro Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 08.00 CET on 28 January 2015.

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About Us

Qliro Group is a leading Nordic e-commerce group in consumer goods, lifestyle products and complementary financial services. Qliro Group operates CDON.com (the leading Nordic marketplace), Nelly.com and NLY MAN (fashion), Gymgrossisten and Bodystore.com (health and sports) and Qliro Financial Services. In 2016, the group generated SEK 4 billion in revenues. Qliro Group’s shares are listed on Nasdaq Stockholm in the mid cap segment with the ticker symbol “QLRO”.

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