TRADING UPDATE: MERCHANT ISSUE DURING BLACK WEEK IMPACTS EBITDA NEGATIVELY
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".
