CDON is creating the foundation for future growth
FIRST QUARTER FOR THE GROUP
- Gross merchandise value (GMV) for CDON Marketplace (3P) increased by 4% to SEK 395.2 (379.6) million
- Net sales for CDON Marketplace increased by 10% to SEK 44.7 (40.8) million. CDON Retail net sales decreased by 33% to SEK 60.5 (90.7) million due to the process of reducing sales of own inventory
- Gross margin increased by 11.2 percentage points to 47.7% (36.5%)
- Profit/loss before depreciation and amortization amounted to SEK -27.0 (-9.1) million
- Profit/loss for the period amounted to SEK -33.8 (-13.9) million
- Earnings per share amounted to SEK -5.18 (-2.31)
Comments from CEO, Peter Kjellberg
"During the first quarter CDON marketplace GMV grew by 4%. While our growth was lower than expected, we are performing much better than the Swedish e-commerce market as a whole, which decreased by 13% in Q1. Electronics was the category with the largest decrease (-25% in Q1) in the overall e-commerce market. Despite the challenging circumstances, CDON Marketplace grew in our core categories Electronics and Home & Garden during the whole quarter.
In the quarter we laid the foundation for our growth journey and took significant costs to keep up speed. Costs were related to recruitments aiming to strengthen the management team, the interim management leaving early Q1, our projects related to our brand re-positioning, the incentive programs for key employees, and acquisition costs related to Commerce8 and Xales. We estimate that SEK 10 million of the costs are of one-off nature. To keep a high transformation pace, we have engaged a number of consultants who will gradually be replaced by regular employees during Q2 and Q3. We expect the higher cost level to partly continue in Q2, and to be phased out from there.
While we have a challenging market environment, we also have significant room for improvement in our own market acquisition processes, within SEM, SEO and CRM. The digital marketing function has been strengthened and we have an intense focus on this area. This is fundamental to be able to generate a positive operating cash flow in the foreseeable future."
Significant events during the quarter
On January 20th, the Board of Directors at CDON decided to summon shareholders for an Extraordinary General Meeting on February 22nd, 2022. The Board of Directors of CDON AB proposed a long-term incentive program for CDON's management team and management of subsidiaries. The purpose of the proposed program is to create strong incentives for management to drive the long-term performance of CDON, attract and retain key competence, and align the interests of the participants with the shareholders' interests.
On January 31st, it was announced that Magnus Nanne was appointed Chief People Officer ("CPO"). Magnus has an extensive background within Human Resources which spans more than 20 years. Among previous assignments, Magnus was Head of HR for Honda Motor Co, Ltd's European operation.
On February 1st, it was announced that Thomas Pehrsson was appointed Chief Financial Officer ("CFO"). Thomas started as CFO on March 7th, 2022. Thomas has an extensive background within finance and more than 20 years' experience within finance management and management consultancy. He was most recently CFO for the Nordic subsidiary of Tunstall Health Group, a global technology company within digital healthcare.
On February 7th, CDON announced that Martin Lundhgren was appointed Head of Technology, and started on the 21st of February. Martin most recently comes from Visma Draftit as Development Manager.
On February 8th, CDON announced that Madeilene Södarv has been appointed Chief Customer Officer ("CCO"), starting April 02, 2022. Madeleine joins the Management Team and is responsible for the further development of the customer experience and marketing. Madeleine previously worked at Ikano Bank, a leading consumer finance bank, where she was Head of Customer Experience. She has extensive expertise within digital strategy, customer insight and marketing from roles at the companies E.ON, Duni and Ottoboni Group.
Analysts, investors, and the media are invited to a conference call today at 14:00 CEST. To participate in the conference call, please dial:
Sweden: +46 850 558 369
United Kingdom: +443 333 009 269
United States: +16 467 224 902
Link to webcast: https://tv.streamfabriken.com/cdon-q1-2022
The presentation material and the webcast are published on: https://investors.cdon.com/en/investor-relations/presentations/
This information is information that CDON AB is required to disclose under the EU Market Abuse Regulation. The information was released for publication through the agency of the above contacts at 13:00 CEST on April 21, 2022.
For more information:
FNCA Sweden AB is the company's Certified Adviser.
Phone: +46 (0) 8 528 00 399
CDON was founded in 1999 and is now the biggest marketplace in the Nordic region. Customers can choose to buy and compare prices for millions of products at CDON, by far the widest range of all Nordic e-retailers. Over 1,500 merchants use CDON's platform and technology to increase their sales. This gives CDON a wide range of products within, movie, music, computers, games, office supplies, books, toys, consumer electronics, household appliances, sport, outdoor, beauty care, fashion, shoes, computers, and computer products. CDON is listed on Nasdaq First North Growth Market with the abbreviation CDON.
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