Interim report, 1 January - 30 June 2011
51% YEAR ON YEAR SECOND QUARTER SALES GROWTH
41% YEAR ON YEAR SECOND QUARTER SALES GROWTH EXCLUDING TRETTI AB
CDON Group AB (publ.) ("CDON Group” or “the Group") (NASDAQ OMX
Stockholm's Mid Cap market: CDON) today announced its financial results
for the second quarter and six months ended 30 June 2011.
Second Quarter Highlights
· Net sales up 51% year on year to SEK 689.1 (457.6) million when
including Tretti AB from 3 June 2011, and up 41% to SEK 645.2 (457.6)
million when excluding Tretti AB
· Gross profit of SEK 126.4 (94.6) million with a gross margin of
18.3%
· Operating profit of SEK 23.8 (27.9) million and operating margin of
3.5% when excluding non-recurring costs of SEK 4.7 million related to
the acquisition of Tretti AB, and of SEK 19.1 (27.9) million with an
operating margin of 2.8% when including the non-recurring costs related
to the acquisition of Tretti AB
· Net income of SEK 10.4 (20.0) million
· Basic earnings per share of SEK 0.16 (39.00)*
· Acquisition of Nordic white goods and household appliances
e-retailer Tretti AB (publ.) for SEK 346 million on 3 June 2011
· Creation of new ´Home & Garden´ business segment
* Based on the weighted average number of shares of 66,342,124 for the
period Apr-Jun 2011 and 500,000 for the period Apr-Jun 2010.
Half Year Highlights
· Net sales up 36% to SEK 1,260.9 (927.4) million when including
Tretti AB from 3 June 2011, and up 31% to SEK 1,217.0 (927.4) million
when excluding Tretti AB
· Gross profit of SEK 236.3 (188.2) million with a gross margin of
18.7%
· Operating profit of SEK 44.0 (65.8) million and operating margin of
3.5% when excluding non-recurring costs of SEK 4.7 million related to
the acquisition of Tretti AB, and of SEK 39.2 (65.8) million with an
operating margin of 3.1% when including the non-recurring costs related
to the acquisition of Tretti AB
· Net income of SEK 23.1 (45.0) million
· Basic earnings per share of SEK 0.35 (88.46)*
· Acquisition of brand furniture and interior design e-retailer
RUM21.se for SEK 14 million on 1 February 2011
· Acquisition of Nordic white goods and household appliances
e-retailer Tretti AB (publ.) for SEK 346 million on 3 June 2011
* Based on the weighted average number of shares of 66,342,124 for the
period Jan-Jun 2011 and 500,000 for the period Jan-Jun 2010.
Mikael Olander, CEO & President of CDON Group, commented: “CDON Group's
revenues increased by a remarkable 51% year on year in the quarter, up
from a solid 22% growth in the first quarter of the year, and both our
quarterly and half year sales were at record levels."
“All our business segments have performed well, achieving strong growth
whilst remaining profitable, and we have now added a fourth segment,
Home & Garden, which comprises the recently acquired Tretti.com and
Rum21.se businesses. The combined performance of our assets demonstrates
our ability to develop our existing operations, launch or acquire new
stores, and expand into new markets. Consumer electronics is rapidly
replacing the sale of traditional CDs and DVDs as our key Entertainment
category, and this trend has significantly boosted sales in the second
quarter.”
“The e-retailing industry is still in its early stages of development
but is growing quickly. E-commerce sales represented 4.6% of total
Swedish retail sales in 2010, up from 4.2% in 2009, and grew by 13% year
on year, compared to 3% growth for the total retail market. We are well
placed to capitalise on the accelerating migration of retail from the
high street to the internet. Our long term goal is to grow at least in
line with the e-commerce industry in our markets and deliver healthy
profitability levels. We are continuing to execute on our development
strategy both by enhancing our existing market positions and seeking out
new opportunities.”
“The acquisition of Tretti.com in June demonstrates our strategic focus
on the consolidation of our position as a leading Nordic e-retailer. The
acquisition has enabled us to take a leading position in the fast
growing Swedish white goods market, and also provides us with exposure
to the Norwegian, Danish and Finnish markets. Household products is one
of the major new growth areas for e-commerce, and we took our first step
into this sector with the acquisition of brand furniture and interior
decoration retailer Rum21.se in February. The new segment is expected to
grow at a slightly higher rate than the general Nordic e-commerce
market, and to have long term underlying operating margins in line with
the Group average. However, in the short to mid-term, new initiatives
such as Rum21.se will bring some pressure on the segment's
profitability."
“We still expect to deliver a slight year on year increase in the
underlying Group operating margin for the full year 2011, when adjusted
for acquisitions, launches, expansions and the costs of being an
independent listed company. However, a continued faster than expected
growth of consumer electronic product sales within the Entertainment
segment could render a revision.”
***
The company will host a conference call today at 15.00 Stockholm local
time, 14.00 London local time and 09.00 New York local time.
To participate in the conference call, please dial:
Sweden: +46 (0)8 5051 3641
International: +44 (0)20 7136 2050
US: +1 212 444 0481
The access pin code for the conference call is 4505870
To listen to the conference call online, please go to
www.cdongroup.com (http://www.cdongroup.com).
***
For additional information, please visit www.cdongroup.com or contact:
Mikael Olander, President & Chief Executive Officer
Phone: +46 (0) 10 703 20 00
Investor and analysts enquiries:
Martin Edblad, Chief Financial Officer
Phone: +46 (0) 700 80 75 03
E-mail: ir@cdongroup.com
Media enquiries:
Fredrik Bengtsson, Head of Communications
Phone: +46 (0) 700 80 75 04
E-mail: press@cdongroup.com
About CDON Group
CDON Group is one of the leading e-commerce groups in the Nordic region.
Established in 1999, the Group has continuously expanded its product
portfolio and is now a leading e-commerce player in the Entertainment
(CDON.COM, BookPlus.fi, Lekmer.com), Fashion (Nelly.com, Heppo.com),
Sports & Health (Gymgrossisten.com, Bodystore.com) and Home & Garden
(Tretti.com, Rum21.se) segments. CDON Group's nine online stores
attracted approximately 115 million site visits and two million unique
customers in 2010.
The information in this announcement is that which CDON Group AB is
required to disclose under the Securities Markets Act. This information
was released for publication at 13:00 CET 18 July 2011.
Interim report, 1 January - 30 June 2011
| Source: Qliro Group AB
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