A challenging start, with clear improvements in March
The first quarter of 2025 began with considerable challenges, marked by weaker-than-expected performance in January and February. However, decisive operational adjustments (in particular, improved ways of working with key merchants) enabled us to regain momentum, concluding the quarter on an encouraging note. Notably, March delivered a performance in line with last year's figures.
Financial overview
Overall, Gross Merchandise Volume (GMV) declined by 12% year-over-year, while Gross Profit After Marketing (GPAM) saw a 13% decrease compared to Q1 2024 (equivalent to a 5.7 mSEK decrease in GPAM). Despite this significant GPAM decline, disciplined cost management significantly mitigated the blow to EBITDA. Like for like EBITDA was -4.4 mSEK in the quarter compared to -2.2m SEK last year. Reported EBITDA reached a positive 0.2 mSEK due to resolution of bad debt.
From a geographical perspective, Sweden continued to struggle while the rest of the Nordic countries performed well for both CDON and Fyndiq. We are addressing the situation in Sweden through targeted initiatives.
Enhanced operational efficiency
Reducing operational expenses remains a core focus, and we have made substantial progress in this area. Current OPEX is significantly lower—approximately 40 mSEK below the run-rate at the time of our merger. We remain firmly on track to realize our previously communicated merger synergies.
Simplified merchant integration
To streamline merchant onboarding, we introduced a unified merchant API towards the end of the quarter, consolidating multiple previous interfaces into one efficient solution. Although this transition momentarily slowed new merchant onboarding, we expect it to boost merchant acquisition substantially in the upcoming quarters. This will further enhance our marketplace offerings, ensuring customers have access to popular products at attractive prices.
Navigating Global Trade Uncertainties
We continue to monitor global trade developments closely. CDON Group has minimal direct exposure to the US market. However, we remain attentive to developments concerning China, given Fyndiq's substantial number of Chinese merchants. Currently, trade dynamics between Europe and China appear stable, but we will continue to evaluate any long-term impacts carefully.
Looking Forward
We remain focused on building the strategic foundations necessary to capitalize on our significant growth potential and lead the transformation towards marketplace-driven shopping in the Nordics. Each month we get more building blocks in place and I remain confident about the potential of our business model and company.
Fredrik Norberg
CEO
