CDON announces a trading update for the fourth quarter of 2021. Issues relating to merchant's delivery of products has impacted adversely EBITDA for CDON with a reserved one-time cost of approximately 15-20 million SEK.
During the CDON's sales campaign "Black Week", an issue relating to a merchant's delivery of products was discovered. Customers buying from a specific merchant on CDON Marketplace didn't receive their ordered products as stated. This represents a breach in CDON's terms and conditions which led CDON to remove the merchant from CDON Marketplace. To be able to compensate the customers for their made purchases, a one-time cost of approximately 15-20 million SEK will be reserved by CDON in the fourth quarter of 2021.
Comment from Interim CEO Allan Junge-Jensen
"We take our position as the leading Nordic marketplace very seriously and for this reason we will make sure our customers are fully compensated. We want our present and future customers to experience safe shopping at CDON and this event make us even more determined to safeguard the customers and making sure that merchants on CDON's platform are scrutinized even more closely to adhere to our high-quality standards".
For more information:
FNCA Sweden AB is the company's Certified Adviser.
Phone: +46 (0) 8 528 00 399
The information was prior to this release inside information and is information that CDON AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above on November 26, 2021 at 21:30 p.m. CET.
CDON was founded in 1999 and is now the biggest marketplace in the Nordic region. During 2020 we had over 120 million visits and 2.3 million customers. 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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