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LMK Group reports adjusted EBITDA profitability and improved contribution margins in Q4

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LMK Group, a leading supplier of meal kits in the Nordic region and a leader in Scandinavian foodtech, today announced its financial results for the fourth quarter and full year 2022. Despite challenging market conditions, contribution margin levels were improved, reaching 29.7%, exceeding expectations. At the same time, Net sales continued to contract on a year-over-year basis and were down 22% for the quarter. Despite price increases to offset inflation, order frequency was stable and Average order value increased by 14.3%.

During the quarter, the operations teams increased production efficiency, a partnership with WW ViktVäktarna (Weight Watchers) made its debut in Sweden, and important technology upgrades to websites and customer interfaces were completed.

CEO Walker Kinman commented: “I am very proud of my colleagues’ efforts this past year in navigating a very tricky e-commerce environment. We have continued developing our product and services, keeping focus on the customer experience and operational excellence. Our target is profitable growth and our short-term priority to stabilize revenue development, however we foresee a continued market contraction during 1st half of 2023. Given our disciplined approach to profitability and clear immediate targets we are expecting EBITDA profitability in Q1.”

Fourth quarter 2022 (Q4 2021)

  • Net sales decreased by 21.9% to 255.5 MSEK (327.0 MSEK same period last year). Adjusted for exchange rate differences that equals a decline of 24.6%
  • Contribution margin after fulfillment cost was 29.7% (26.7%)
  • EBITDA amounted to -95.7 MSEK (28.0). EBITDA-margin at -37.5% (8.6%), including an impairment reserve of 120 MSEK.
  • Adjusted EBITDA amounted to 24.3 MSEK (28.0). Adjusted EBITDA-margin at 9.5% (8.6%)
  • Operating profit (EBIT) at -107.6 MSEK (15.7), a margin of -42.1% (4.8%)
  • Adjusted EBIT at 12.4 MSEK (16.9), a margin of 4.9% (-5.2%)
  • Net loss for the period after taxes at -112.5 MSEK (14.5)
  • Earnings per share SEK, before and after dilution at -8.87 SEK (1.14)

 
Full year 2022 (Full year 2021)

  • Net sales decreased by 22.0% to 1081.4 MSEK (1387.3 MSEK). Adjusted for exchange rate differences that equals a decline of 24.6%
  • Contribution margin after fulfillment cost was 25.1% (28.1%)
  • EBITDA amounted to -99.5 MSEK (92.8). EBITDA-margin at -9.2% (6.7%), including an impairment reserve of 120 MSEK.
  • Adjusted EBITDA amounted to 25.4 MSEK (105.7), Adjusted EBITDA-margin of 2.3% (7.6%)
  • Operating profit (EBIT) at -149.3 MSEK (46.9), a margin of -13.8% (3.4%).
  • Adjusted EBIT at -24.5 MSEK (61.0) gives a margin of -2.3% (4.4%)
  • Net loss for the period after taxes at -154.6 MSEK (17.4)
  • Earnings per share SEK, before and after dilution at -12.19 SEK (1.60)

Please see LMK Group Q4 and full year 2022 report attached and on https://lmkgroup.se/investors/financial-reports/

In connection with publishing its year-end report for 2022 on 28 February 2023, LMK Group invites investors, analysts and media to a teleconference and webcast on the same day at 09:00 CET. Details can be found here: https://lmkgroup.se/press-releases/press/?slug=invitation-to-presentation-of-lmk-groups-q4-and-year-end-report-2022

For further information, please contact:

Peter Bodor, Head of Corporate Communications, LMK Group
Mob: +46 706 48 70 65
E-post: peter.bodor@linasmatkasse.se

Walker Kinman, VD, LMK Group
Mob: +46 707 22 65 13
E-post: walker.kinman@linasmatkasse.se
 
Erik Bergman, CFO, LMK Group
Mob: +46 707 74 49 73
E-post: erik.bergman@linasmatkasse.se
  

For further information, please contact:

Peter Bodor, Head of Corporate Communications, LMK Group
Telephone (SWE): +46 706 48 70 65
E-mail: peter.bodor@linasmatkasse.se

Walker Kinman, CEO, LMK Group
Telephone (SWE): +46 707 22 65 13
E-mail: walker.kinman@linasmatkasse.se
 
Erik Bergman, CFO, LMK Group
Telephone (SWE): +46 707 74 49 73
E-mail: erik.bergman@linasmatkasse.se

About LMK Group

LMK Group was founded in 2008 with the vision of simplifying everyday life by offering a large variety of inspiring meals delivered directly to the customer's front door. Today, the group is the largest supplier of meal kits in the Nordic region and a leader in Scandinavian foodtech. The group operates in Sweden, Norway and Denmark under the brands Linas Matkasse, Godtlevert, Adams Matkasse and RetNemt. In 2022, the Group generated SEK 1.1 billion in revenue and delivered approximately 17 million meals to its customers. LMK Group is listed on Nasdaq First North Premier Growth Market. Certified Adviser: FNCA Sweden AB, info@fnca.se

This information is information that LMK Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-02-28 07:45 CET.

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