Boozt AB’s Half year report, January 1 – June 30 2019
Net revenue growth of 26% (local currency 25%) in the second quarter with 21% growth in Boozt.com and 156% growth in Booztlet.com. The adjusted EBIT margin increased to 5.2% (4.9%). For the first six months net revenue growth was 27% (local currency 26%) with an adjusted EBIT margin of 2.2% (2.4%).
| SEK million unless otherwise indicated | Apr 1 – Jun 30, 2019 | Apr 1 – Jun 30, 2018 | Change | Jan 1 – Jun 30, 2019 | Jan 1 – Jun 30, 2018 | Change | ||
| GROUP | ||||||||
| Net revenue | 898.7 | 714.7 | 25.7% | 1,611.0 | 1,266.6 | 27.2% | ||
| Gross profit | 365.5 | 302.1 | 21.0% | 635.3 | 520.1 | 22.2% | ||
| EBIT | 48.9 | 34.1 | 43.5% | 27.9 | 27.7 | 0.8% | ||
| Adjusted EBIT | 47.1 | 35.0 | 34.8% | 35.8 | 30.8 | 16.1% | ||
| Result for the period | 33.1 | 24.2 | 37.1% | 12.9 | 12.9 | 0.2% | ||
| Earnings per share (SEK) | 0.58 | 0.43 | 35.3% | 0.23 | 0.23 | -1.1% | ||
| Earnings per share after dilution (SEK) | 0.58 | 0.42 | 37.3% | 0.22 | 0.22 | 0.1% | ||
| Cash flow for the period | 62.6 | 121.8 | 48.8% | -33.1 | 91.6 | n.m. | ||
| Organic growth, % | 25.7% | 44.0% | -18.3 pp | 27.2% | 38.1% | -10.9 pp | ||
| Gross margin, % | 40.7% | 42.0% | -1.4 pp | 39.4% | 40.8% | -1.3 pp | ||
| EBIT margin, % | 5.4% | 4.8% | 0.7 pp | 1.7% | 2.2% | -0.5 pp | ||
| Adjusted EBIT margin,% | 5.2% | 4.9% | 0.4 pp | 2.2% | 2.4% | -0.2 pp |
CEO Hermann Haraldsson says: “I am very happy with our strong execution in a challenging second quarter of the year. Boozt.com has continued its strong momentum with 21% net revenue growth and Booztlet.com has accelerated with a 156% net revenue growth in the quarter. Customer satisfaction remains very high and the unit economics are trending in line with expectations. Importantly, the average order value on Boozt.com was unchanged compared to last year, as the return rate reverted to the expected level after the elevated level experienced in the first quarter. Growth was driven by increased purchase frequency from existing customers as well as a higher new-customer-intake compared to last year.”
“Pricing levels in the industry remained under pressure as the transitioning retail market is challenging many market participants leading to elevated promotional activity to clear high inventory levels. As it was also the case in the first quarter, the promotionally driven market allowed us to leverage the online marketing cost to offset the gross margin pressure without losing momentum on new customer growth. Despite this pressure on gross margin, the adjusted EBIT margin improved to a solid 5.2% for the quarter demonstrating our flexible business model.”
“I am excited about our acquisition of the Danish app developer Touchlogic, which was announced yesterday. It will strengthen our current in-house app and mobile web development capabilities to ensure we are in front when it comes to usability and functionality. It also marks the inauguration of Boozt Innovation Lab, which will be based out of the Touchlogic office in Copenhagen. During the last year we have been contemplating on how we can foster even more innovation and we believe we now have found the perfect setting for this.”
“We maintain our full year guidance of above 27% net revenue growth and an improved adjusted EBIT margin compared to 2018. We are in good shape and look forward to deliver a strong last 6 months of the year”
| Outlook for 2019* | Realised 2018 | Unchanged from guidance on 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 on February 21, 2019 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, August 15, 2019. The presentation will be held in English and will be followed by a Q&A session.
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 15 August 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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