Interim Report Boho Group January – June 2024

Boho Group AB (publ) today publishes its interim report for the third quarter of 2024.

EBITDA improved by 31%

JULY - SEPTEMBER 2024

• Revenues from the company's operator business Boho Club amounted to SEK 41,037 thousand (37,331), corresponding to growth of 9.9%. Total revenue from operator business in the third quarter of 2023 of SEK 41,164 thousand also included revenue from the apartment hotel of SEK 4,120 thousand, which was discontinued in autumn 2023.
• Income from the sale of properties during the period totalled SEK 13,220 thousand (22,940) and relates to the sale of three apartments in the Hacienda Collection.
• Operating profit before depreciation and amortisation (EBITDA) amounted to SEK 11,973 thousand (9,129), corresponding to an improvement of SEK 2,844 thousand compared with the previous year.
• The company's cash flow from operating activities including the disposal of operating properties amounted to SEK -5,781 thousand (9,236).
• Gross profit improved by SEK 4,201 thousand and totalled SEK 13,787 (9,586) thousand.
• Profit after tax totalled SEK 2,121 (302) thousand.
• Earnings per share for the period 1 July - 30 September 2024 amounted to SEK 0.04 (0.01).

januarY - SEPTEMBER 2024

• Revenue from the company's operator business Boho Club totalled SEK 83,047 thousand (75,346), corresponding to growth of 10.2%. The total revenue from operator activities in the third quarter of 2023 of SEK 83,559 thousand also included revenue from the apartment hotel of SEK 8,213 thousand, which was discontinued in autumn 2023.
• Income from the disposal of properties during the period totalled SEK 54,481 thousand (98,636) and relates to the sale of 12 apartments in the Hacienda Collection.
• Operating profit before depreciation and amortisation (EBITDA) amounted to SEK 5,752 thousand (3,319), corresponding to an improvement of SEK 2,433 thousand compared with the previous year.
• The company's cash flow from operating activities, including the disposal of operating properties, totalled SEK 62,620 thousand (60,369). Cash flow was positively affected by the purchase price received from the previously recognised sale of a property.
• Gross profit improved by SEK 1,088 thousand and totalled SEK 9,020 (7,932) thousand.
• Profit after tax totalled SEK -27,796 thousand (-22,150).
• Earnings per share for the period 1 January - 30 September 2024 amounted to SEK -0.48 (-0.38).
• Reported equity as of 30 September 2024 amounted to SEK 198,390 thousand (223,135).

Significant events during the THIRD quarter

• In August, an extraordinary general meeting was held that decided on the previously announced name change of the company from Quartiers Properties to Boho Group. The name change was made to reflect the company's strategy to grow in the hotel sector, both as an operating company and a property company, and where the Boho Club concept and brand is a cornerstone.
• At the Extraordinary General Meeting on 8 August, Fredrik Björklund was also elected as a new Board member.
• In September, a new wellness centre was opened at the company's existing hotel facility. The new wellness centre will help to reduce natural seasonal variations and contribute positively to revenue and profit. 

Significant events AFTER the THIRD quarter

• No significant events have occurred after the end of the period.

The CEO has the word

The third quarter is always a busy period for us at Boho Group, and this year it has certainly proved to be our most important quarter. During the summer months, we saw a large influx of guests, and our ability to manage these volumes has been crucial to achieving our ambitious sales targets. I am proud to see that our organisation has held its own at all levels and coped with the pressures of a fully booked Boho Club. Thanks to our focus on efficiency, we have managed to improve our EBITDA by a full 31% compared to last year, and we are now seeing a rolling EBITDA margin of 20%, up from 14% last quarter.

We have also seen great success with the launch of Bohi's bar and the opening of the Ashiana Wellness Centre. The reception has been very positive, showing that these new investments, which had a negative impact on cash flow in the quarter, will strengthen our sales going forward and further improve the customer experience. These investments are examples of how we continuously work to create a complete experience for our guests and strengthen the Boho Club brand.

The plots at our luxury hotel Boho Club in Marbella have great potential for greatly increased building rights. We have worked intensively and in close collaboration with the municipality of Marbella and the Junta de Andalucía to plan our plots in detail in order to enable the construction of approximately 28,400 m² of hotel space. During the third quarter, the process has taken major steps forward. In a technically complex process, administrative deadlines and urban objectives have been met.

This expansion is an important part of our long-term value growth, where we estimate that the value of the new building rights corresponds to approximately SEK 15 per ordinary share when detailed planning is obtained. There will also be additional value through, among other things, the design and development of the project. We hope to be able to return with more updates in the near future.

As we enter the off-season, we continue with the same commitment and passion to develop Boho Group. The focus will be on preparing for next year's summer season by expanding our restaurant offering and strengthening our position locally as well as exploring opportunities in other markets. Marbella is a strong and attractive destination, and Boho Club is ready to grow further and consolidate its place as a world-class destination.

Yours sincerely

Andreas Bonnier
CEO Quartiers Properties

If you have any questions, please contact:

Boho Group AB (publ)

Andreas Bonnier, CEO
E-post: andreas@bohogroup.com
Phone: +46 733 36 65 77
Website: www.bohogroup.com

About the company
Boho Group is a hotel development and operating company at the top end of design and quality, operating on the Spanish Costa del Sol. The company was founded in 2014.

Boho Group owns and operates Boho Club, a boutique resort on the Golden Mile in Marbella that is award-winning for its design and architecture. Since its launch in 2019, both the hotel and restaurant have established themselves as a leading player in Marbella. Visit the Boho Club website, www.bohoclub.com, to book a hotel room or a table in the restaurant. The restaurant is open every day and serves breakfast, lunch and dinner.

Mangold is the Company's Certified Adviser. Mangold can be reached on telephone number 08-503 015 50 or e-mail ca@mangold.se.