odd molly q2 2019...2016 2017 2018 2019-25-20-15-10-5 0 5 10 15 20 25 q1 q2 q3 q4 ebit per quarter...
TRANSCRIPT
ODD MOLLYQ2 2019
Jennie Högstedt Björk, CEO
Johanna Palm, CFO & Deputy CEO
AGENDA
I. This is Odd Molly
II. Q2 and H1 2019
III. Going forward
THIS IS ODD MOLLYOdd Molly is a fashion brand with a unique style concept
• Founded in 2002
• Sold in about 40 countries
• Sold through own sales channels and external retailers around the world
• Total operating revenue in 2018: SEK 347 million
• Listed on Nasdaq Stockholm (small cap)
SECOND QUARTER2019
OPERATIONAL HIGHLIGHTS
• Earnings improvements within own retail – weak in wholesale
• Own web is growing with a more efficient operational set-up
• Comprehensive action program aimed to reduce complexity, capital tied up and operating costs – progress according to plan
• Licensee agreements were signed with a partner in
• Canada and the US
• Germany och Austria
• 3 own stores were closed
• New share issue of SEK 22.5 million after issue costs
• Johanna Palm, CFO, assigned Deputy CEO
• Mathias Ericsson, Head of Business Development, assigned Chief Operating Officer
RETAIL SALES
Q2 2019
WHOLESALE SALES
MSEK
46.5
MSEK
15.2
NUMBERS IN BRIEF
• Total operating revenue SEK 62.7 million (76.3)
• Gross profit margin 50.6 percent (57.6), impacted by discounted sales from previous collections in inventory
• Operating cost reduction of SEK 7 million
• Operating profit SEK -17.9 million (-11.9)
• Operating margin -28.5 percent (-15.6)
• Net profit SEK -19.2 million (-10.3)
• EPS SEK -2.12 (-1.78)
SALES DEVELOPMENT
-18%
50.6%
Q2 2019
GROSS MARGIN
NUMBERS IN BRIEF
• Total operating revenue SEK 148.9 million (181.8)
• Gross profit margin 49.8 percent (55.6), impacted by discounted sales from previous collections in inventory
• Operating cost reduction of SEK 12 million
• Operating profit SEK -35.5 million including restructuring costs (-18.6), negatively impacted by lower sales and gross margin
• Operating margin -23.8 percent (-10.2)
• Net profit SEK -38.4 million (-17.0)
• EPS SEK -4.39 (-2.95)
SALES DEVELOPMENT
-18%
49.8%
H1 2019
GROSS MARGIN
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
50
100
150
200
250
300
350
400
450
500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM
Sales and profit
Sales Profit
YEARLY DEVELOPMENT
Q2 2019
QUARTERLY DEVELOPMENT
Q2 2019
200
250
300
350
400
450
Q2-14 Q2-15 Q2-16 Q2-17 Q2-18 Q2-19
Sales, LTM
-90
-70
-50
-30
-10
10
30
Q2-14 Q2-15 Q2-16 Q2-17 Q2-18 Q2-19
EBIT, LTM
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4
Sales per quarter
2016 2017 2018 2019
-25
-20
-15
-10
-5
0
5
10
15
20
25
Q1 Q2 Q3 Q4
EBIT per quarter
2016 2017 2018 2019
-40,0
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
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Cash Flow Components Jan-Jun 2019
CASH FLOW
H1 2019
MSEK
GOING FORWARD
STRATEGY GOING FORWARD
1 2
3 4
STRENGTHEN THE BRAND POSITION WITH A MORE STREAMLINED
PRODUCT RANGE
FOCUS ON INTERNATIONAL GROWTH THROUGH A CAPITAL EFFICIENT
MODEL OUTSIDE MAIN STRATEGIC MARKETS
INCREASED FOCUS ON OWN E-COMMERCE AND REDUCING THE
NUMBER OF STORES
STRENGTHEN THE STRATEGY WITHIN SUSTAINABILITY
COMPREHENSIVE ACTION PLAN
• Aimed at reducing complexity, capital tied up and operating costs
• Reduction of physical stores – only a few stores in strategic locations will be kept. Focus instead of strong resellers.
• Optimize and reduce the product range – focus on categories and products that make the most sales and profitability.
• Licensing model will be gradually implemented in most international markets.
• Additional measures to reduce complexity, release costs and reduce capital tied-up.
• All in all, these initiatives and measures will reduce yearly operating cost of about SEK 75 million, with gradual impact in 2019 and full effect in 2020.
THANK YOU!