Boozt upgrades full year outlook on the back of strong top line growth and improved profitability in the third quarter
November 06, 2023 at 01:59 pm EST
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Boozt AB's Q3 report, January 1 - September 30 2023 Third quarter financial highlights
Net revenue of SEK 1,550 million and a net revenue growth of 16.7% (local currency 10.7%). Net revenue growth of 13.9% for Boozt.com and 31.3% for Booztlet.com.
Gross margin of 39.8% (40.1)
Adjusted EBIT margin of 4.3% (1.9)
Earnings per share before dilution of SEK 0.42 (0.36)
Free cash flow of SEK -86.9 million (90.1)
Repurchase of own shares of SEK 55.4 million
Cash and cash equivalents of SEK 703.9 million (1,024.3)
Year-to-date highlights
Net revenue of SEK 4,762 million and a net revenue growth of 10.6% (local currency 6.2%). Net revenue growth of 11.3% for Boozt.com and 7.4% for Booztlet.com.
Gross margin of 40.3% (40.3)
Adjusted EBIT margin of 3.6% (2.7)
Earnings per share before dilution of SEK 1.32 (0.93)
Repurchase of own shares of SEK 57.8 million
Free cash flow of SEK -828.6 million (-640.0)
Significant events in the third quarter
Norwegian court rules in favour of Boozt in dispute with the Norwegian Tax Administration (Skatteetaten). In October the Norwegian Tax Agency appealed the verdict. A new hearing is expected to take place in 2024.
Significant events after the period
The Nomination Committee has been formed in accordance with the principles adopted by the Annual General Meeting.
Co-founder & CEO Hermann Haraldsson says: “We demonstrated superior execution in the third quarter with a strong acceleration of net revenue growth and a solid jump in profitability cementing our best-in-industry margins. Considering the strong momentum of our commercial efforts and competitive inventory composition, we upgrade the outlook for 2023 indicating a significant leap in terms of market share for The Nordic Department Store.”
SEK million unless otherwise indicated
Jul 1 - Sep 30, 2023
Jul 1 - Sep 30, 2022
Change
Jan 1 - Sep 30, 2023
Jan 1 - Sep 30, 2022
Change
GROUP
Net revenue
1,550.0
1,328.1
16.7%
4,761.9
4,305.3
10.6%
Gross profit
617.5
532.3
16.0%
1,916.7
1,733.8
10.6%
EBIT
52.9
35.7
48.3%
116.5
95.5
22.0%
Adjusted EBIT
67.2
25.5
163.6%
169.8
115.2
47.4%
Earnings for the period
28.8
24.2
18.8%
89.9
62.7
43.3%
Free cash flow
-86.9
90.1
n.m.
-828.6
-640.0
29.5%
Net revenue growth (%)
16.7%
7.8%
8.9 pp
10.6%
11.9%
-1.3 pp
Gross margin, (%)
39.8%
40.1%
-0.2 pp
40.3%
40.3%
-0.0 pp
EBIT margin, (%)
3.4%
2.7%
0.7 pp
2.4%
2.2%
0.2pp
Adjusted EBIT margin, (%)
4.3%
1.9%
2.4 pp
3.6%
2.7%
0.9 pp
Outlook for 2023
Outlook as of November 6, 2023
Previous Outlook
Reported 2022
Net revenue growth
Between 11-15%
Between 7.5-12.5%
16.0%
Adjusted EBIT
SEKm 350-390
SEKm 300-350
SEKm 285.6
The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year. *The Adjusted EBIT outlook for 2023 is positively impacted by a reassessment of the useful lives of selected parts of the Group’s fixed assets that mainly relates to the AutoStore installations. Compared to 2022, the positive impact on yearly depreciation on a like-for-like basis is in the level SEK 25 million.
Telephone conference / audiocast Boozt’s Group CEO, Hermann Haraldsson, and Group CFO, Sandra Gadd, will present the Q3 report at a telephone conference / audiocast at 09.30 CET Tuesday, November 7, 2023. The presentation will be held in English and will be followed by a Q&A session.
If you wish to participate via webcast please use this link. Via the webcast you are able to ask written questions. If you wish to participate via teleconference please register on this link. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
For presentation material, please visit Boozt’s website.
Boozt AB is a Sweden-based company engaged in the provision of e-commerce solutions for the apparel industry. The Company offers customized e-commerce software and services that create e-commerce platforms, namely Boozt.com and its mono-brand stores, that are fully hosted and managed. Its software includes Propilot, a Web shop management administration system that enables changes to Web shop content; Podium, a front end module which ensures optimized user experience for users on mobile devices; Fastlane, a warehouse management system (WMS) that runs fulfillment processes in warehouses and integrates them with distribution partners; CS Eye, a customer overview service; and Brand Portal, a business intelligence (BI) service suite. Its services include the development of an initial strategy, building an online shop, fulfilling orders, handling returns, running ongoing campaigns and acquiring and retaining customers.