Boozt upgrades full year outlook on the back of strong top line growth and improved profitability in the third quarter
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 ofNovember 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.