Boozt AB’s full year report, January 1 – December 31 2018
Net revenue growth of 39% (constant currency 35%) in the fourth quarter with 37% growth in Boozt.com and 76% growth in Booztlet.com. Adjusted EBIT margin decreased 1.7 percentage points to 6.4%. For the full year net revenue growth was 38% (constant currency 33%), which was in line with the outlook of more than 36%. Adjusted EBIT margin decreased 0.1 percentage point to 2.3%, exceeding the previous guidance of 1.5%-2.0%.
| SEK million unless otherwise indicated | Jan 1 – Dec 31, 2018 | Jan 1 – Dec 31, 2017 | Change | Jan 1 – Dec 31, 2018 | Jan 1 – Dec 31, 2017 | Change | ||
| GROUP | ||||||||
| Net revenue | 892.5 | 644.2 | 38.5% | 2,784.0 | 2,016.4 | 38.1% | ||
| Gross profit | 367.8 | 278.3 | 32.2% | 1,113.1 | 816.0 | 29.3% | ||
| EBIT | 69.1 | 51.1 | 35.4% | 68.1 | -69.8 | n.m. | ||
| Adjusted EBIT | 57.4 | 52.3 | 9.6% | 63.2 | 48.2 | 31.1% | ||
| Result for the period | 52.3 | 86.0 | -39.1% | 42.6 | -12.6 | n.m. | ||
| Earnings per share (SEK) | 0.92 | 1.53 | -39.9% | 0.75 | -0.24 | n.m. | ||
| Earnings per share after dilution (SEK) | 0.91 | 1.49 | -38.9% | 0.74 | -0.24 | n.m. | ||
| Cash flow for the period | 3.5 | 64.8 | -94.5% | -61.2 | 207.8 | n.m. | ||
| Organic growth, % | 38.5% | 37.8% | 0.7 pp | 38.1% | 44.4% | -6.3 pp | ||
| Gross margin, % | 41.2% | 43.1% | -1.8 pp | 40.0% | 42.7% | -2.7% | ||
| EBIT margin, % | 7.7% | 7.9% | -0.2 pp | 2.4% | -3.5% | 5.9 pp | ||
| Adjusted EBIT-margin, % | 6.4% | 8.1% | -1.7 pp | 2.3% | 2.4% | -0.1 pp |
CEO Hermann Haraldsson says: “After a difficult first part of the fourth quarter the year ended stronger than expected with December showing 51% growth and 90.000 new customers. The strong growth was supported by a normalization of weather leading to increased demand for in-season items, a strong pre-Christmas period due to our leading delivery proposition and a solid post-Christmas sale fueled by a high number of relevant campaign goods.”
“Despite the elevated level of promotional activities in the market lasting throughout the quarter, the gross margin improved in December compared to previous months due to normalization of weather and a high sales of campaign goods sold at higher margin. But the most important factor, in the better than expected profitability, is scale effects from higher revenue, demonstrating why it is so important to have local scale in order to improve profitability.”
“In 2018 the online business of Boozt.com and Booztlet.com progressed according to plan with strong growth and improving EBIT margin. The Group’s results were however hampered by a significant loss in the Other segment as the opening of the new physical beauty store was costlier than expected. 2019 will be another exciting year in the short lifetime of Boozt. The retail industry is undergoing significant structural changes. Such volatile business environment requires an antifragile business model that can absorb this and grow stronger from it. We believe we are in that position and enter 2019 in better shape than ever. Our relentless focus on improving the customer experience basics is what leads to the high customer satisfaction and makes the customer come back. In 2019 growth is expected to be above 27% with an adjusted EBIT margin improved from last year as scale effects are expected to improve profitability, while at the same time allowing for continued investment in new customers.”
| Outlook for 2019* | Realised 2018 | As of 21 February 2019 |
| Net revenue growth | 38.1% | Above 27% |
| Adjusted EBIT margin | 2.3% | Improved from 2018 |
*The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.
Telephone conference / audiocast
Boozt’s Group CEO, Hermann Haraldsson, and Group CFO, Allan Junge-Jensen, will present the interim year report at a telephone conference / audiocast at 09.30 CET on Thursday, February 21, 2019. The presentation will be held in English and will be followed by a Q&A session. Questions can be asked via the telephone conference or in written form via the audiocast.
For presentation material or information about how to participate, please visit Boozt’s website.
For additional information, please contact:
Hermann Haraldsson / Group CEO / Phone: +45 20 94 03 95 / Email: heha@boozt.com
Allan Junge-Jensen / Group CFO / Phone: +45 41 19 70 60 / Email: ajj@boozt.com
Anders Enevoldsen / Head of IR & Corp. Comm. / Phone: +45 53 50 14 53 / Email: anen@boozt.com
This information is such information as Boozt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on 21 February 2019.
Boozt is a leading, fast-growing and profitable Nordic technology company selling fashion online. The Group generated net sales amounting to SEK 2.8 billion in 2018. Boozt offers its customers a curated and contemporary selection of fashion brands, relevant to a variety of lifestyles, mainly through its multi-brand webstore Boozt.com. The company is focused on using cutting-edge, in-house developed technology to curate the best possible customer experience. Besides Boozt.com, the company also runs the webstore Booztlet.com and retail stores Booztlet and Beauty by Boozt in Denmark. For more information, please visit booztfashion.com.
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