Boozt AB’s Interim Report for January – September 2017
Strong growth and increased growth outlook for 2017
- Net revenue grew with 45.7% to SEK 454.9 million (312.3) in the quarter
- Net revenue grew with 52.8% to SEK 440.6 million (288.3) for Boozt.com in the quarter
- Adjusted EBIT amounted to SEK -12.5 million in the quarter (-14.2)
- Strong development of cost ratios in the quarter
The first nine months
- Net revenue grew with 47.7% to SEK 1,372.2 million (929.1) in the period
- Net revenue grew with 54.2% to SEK 1,319.8 million (855.8) for Boozt.com in the period
- Adjusted EBIT amounted to SEK -4.1 million in the period (-18.7)
- Increased growth outlook: For 2017 net revenue growth is expected to exceed 40%
- Strong growth in the quarter. Group net revenue was SEK 454.9 million, corresponding to a growth of 45.7% compared to the third quarter last year. We are outgrowing the market significantly.
- Positive development of cost ratios in the quarter. Investments made in the fulfilment centre earlier this year have started to pay off. The Group is growing into scale advantages, and has been able to significantly reduce lead times and cost ratios within the fulfilment process as well as reduce other key cost ratios.
- Introducing a step change in the delivery proposition by the end of 2017 – serving 90% of the Nordic region with 100% of the assortment within the same or next day. Launching same day delivery to 3.5 million people during December 2017.
Comments by Boozt’s Group CEO Hermann Haraldsson:
We are very pleased that we managed to accelerate the business again during the quarter delivering a growth of 45.7% compared to the third quarter last year. Based on these strong numbers we are raising our outlook for 2017, expecting net revenue growth to exceed 40%.
We are especially pleased that the investments in our new fulfilment centre have started to pay off. We crossed “the magic line” in the fulfilment centre during the second half of the quarter, as the fulfilment cost per order (including depreciations and rent), went below last year. This, combined with economies of scale in distribution, resulted in a fulfilment cost ratio (that includes distribution costs) that was lower than the third quarter last year. Due to the increased revenue and the scale advantages associated therewith, our admin & other cost ratio were also lower than last year.
All-in-all, the quarter demonstrated that we are seeing the benefits of scale as well as the benefits of the investments we have made in our infrastructure.
Status for the first 9 months of this year is that the business looks promising. The Group's net revenue grew with 47.7% to SEK 1,372.2 million during the period, and Boozt.com continued its strong momentum with a growth of 54.2% to SEK 1,319.8 million in the period.
We are well positioned in the market. Our curated focus on mainly Nordic brands, offering affordable luxury to the Nordic consumer, is starting to pay off.
Telephone conference / audiocast
Boozt’s Group CEO, Hermann Haraldsson, and Group CFO, Allan Junge-Jensen, will present the Interim Report at a telephone conference / audiocast at 09.30 CET on Wednesday, November 22, 2017. 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.
The presentation material will be available at Boozt’s website.
For additional information, please contact:
Boozt AB (publ)
Hermann Haraldsson / Group CEO / Phone: +45 20 94 03 95 / Email: firstname.lastname@example.org
Allan Junge-Jensen / Group CFO / Phone: +45 41 19 70 60 / Email: email@example.com
Karsten Anker Petersen / Head of IR & Corporate Communication (Interim) / Phone: +45 53 82 17 54 / Email: firstname.lastname@example.org
Boozt is a leading, fast-growing and profitable Nordic technology company selling fashion online. The Group generated net sales amounting to SEK 1.4 billion in 2016. 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. With an active customer base of over 915,000 and counting, Boozt.com attracts more than six million visits per month. 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.