LMKG presents Q3 results: Despite tough e-commerce market and seasonally weak quarter; steady customer reactivation and improved average order frequency

LMK Group, a leading supplier of meal kits in the Scandinavian region and a leader in Scandinavian foodtech, today announced its financial results for the third quarter 2022. The Group operates in Sweden, Norway and Denmark under the brands Linas Matkasse, Godtlevert, Adams Matkasse and RetNemt, with the vision to simplify everyday life by offering a large variety of inspiring meals delivered directly to the customer’s front door

CEO Walker Kinman commented: “Our macro-economic climate remains challenged by external factors that impact demand and drive higher costs, but we continue to make progress on efficiency, quality, flexibility, and the exploitation of our technology capabilities. In an environment where many e-commerce actors struggle with decreasing size of shopping baskets, our order frequency increased by 2.5% during the quarter, explained by a higher concentration of loyal customers and improvements in the new customer mix.”

Third quarter 2022 (Q3 2021)

• Net sales decreased by 20.9% to 205.5 MSEK (259.9 MSEK same period last year). Adjusted for exchange rate differences that equals a decline of 24.1%
• Contribution margin after fulfillment cost was 21.5% (25.6%)
• EBITDA amounted to -14.6 MSEK (-9.1). EBITDA-margin at -7.1% (-3.5%)
• Adjusted EBITDA amounted to -14.6 MSEK (-9.1). Adjusted EBITDA-margin at -7.1% (-3.5%)
• Operating profit (EBIT) at -25.9 MSEK (-20.6), a margin of -12.6% (-7.9%)
• Adjusted EBIT at -25.9 MSEK (-20.6), a margin of -12.6% (-7.9%)
• Net loss for the period after taxes at -22.5 MSEK (-18.7)
• Earnings per share SEK, before and after dilution at -1.78 SEK (-1.47)

January - September 2022 (Jan-Sep 2021)

• Net sales decreased by 22.1% to 826.0 MSEK (1060.3 MSEK). Adjusted for exchange rate differences that equals a decline of 24.8% 
• Contribution margin after fulfillment cost was 23.7% (28.5%) 
• EBITDA amounted to -3.8 MSEK (64.8). EBITDA-margin at  
  -0.5% (6.1%). 
• Adjusted EBITDA amounted to 1.1 MSEK (77.7), Adjusted EBITDA-margin of 0.1% (7.3%) 
• Operating profit (EBIT) at -41.8 MSEK (31.2), a margin of -5.1% (2.9%). 

• Adjusted EBIT at -36.9 MSEK (44.1) gives a margin of -4.5% (4.2%) 
• Net loss for the period after taxes at -42.1 MSEK (2.9) 
• Earnings per share SEK, before and after dilution at -3.62 SEK (0.28) 

Please see LMK Group Q3 report attached and here: https://lmkgroup.se/investors/financial-reports/

Presentation of the report
In connection with publishing its third quarter report for 2022, LMK Group invites investors, analysts and media to a conference call and webcast.

Date and time
1 November 2022 at 09:00 CET

Webcast
https://ir.financialhearings.com/lmk-group-q3-2022

Phone number
To participate via telephone please dial in on one of the numbers below.

SE: +46850558359
UK: +443333009268
US: +16467224902

After the presentation a recording of the webcast will be available on the webcast link.
  

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 2021, the Group generated SEK 1.39 billion in revenue and delivered approximately 23.2 million meals to its customers. LMK Group is listed on Nasdaq First North Premier Growth Market.