Fourth Quarter and Full Year Report 2011

2012-02-01 13:00 - Regulatory press release

Fourth Quarter 2011

• Net sales up 71% year on year to SEK 1,316.4 (768.9) million with an organic growth of 49% (25%)*
• Gross profit of SEK 229.5 (139.0) million with a gross margin of 17.4%
• Operating profit of SEK 71.3 (38.1) million and operating margin of 5.4%
• Net income of SEK 48.4 (26.0) million
• Basic earnings per share of SEK 0.73 (0.41)[1]

Full Year 2011

• Net sales up 54% to SEK 3,403.7 (2,210.0) million with an organic growth of 37% (27%)*
• Gross profit of SEK 602.3 (420.2) million with a gross margin of 17.7% when excluding non-recurring items
• Operating profit of SEK 149.0 (134.6) million and operating margin of 4.4% when excluding non-recurring costs
• Investments in start-ups and geographical expansion totalled SEK 34 million in 2011**
• Net income of SEK 83.0 (90.2) million
• Basic earnings per share of SEK 1.26 (5.00)[2]
• Acquisition of white goods and household appliances e-retailer Tretti AB for SEK 346 million in June

* Excluding Tretti and Rum21

** Relates to geographic expansion of Nelly in Europe, Rum21 in the Nordics, Gymgrossisten in Germany and Denmark, and the Nordic launch of Members.com. Investments in Heppo’s and Lekmer’s expansion during the year are not included.

Paul Fischbein, CEO and President of CDON Group, commented: “I am pleased to announce strong growth and significantly improved earnings for CDON Group, for both the fourth quarter and the full year. On what has been an overall weak retail market, we again increased our sales to record levels; in the fourth quarter up 71% when compared to the same period last year and by 54% for the full year. All segments reported profitable growth and contributed to the Group’s overall profit. We have invested heavily in growth, throughout the year, and our improved earnings in the fourth quarter clearly illustrates that this strategy is paying off and gives proof of the Group’s scalability.”

“Continued strong sales growth is key for CDON Group and we can see that we have strong momentum in our business. CDON Group operates in a market with strong underlying growth, despite the fact that the retail sector in general suffers from uncertain macroeconomic conditions. E-commerce constitutes a lower proportion of total retail sales in the Nordic region, compared to more developed e-commerce markets such as the United Kingdom and the United States where the penetration is nearly twice as high. CDON Group is the Nordic market leader in all its segments: Entertainment, Fashion, Sports & Health and Home & Garden. We are therefore well positioned to benefit from, and capitalise on, the continued strong growth in e-commerce. Further, there are several other factors which will potentially benefit us; as technology, infrastructure and

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[1] Based on the average number of outstanding shares of 66,342,124 for Oct-Dec 2011 and 66,264,645 for Oct-Dec 2010.
[2] Based on the average number of outstanding shares of 66,342,124 for Jan-Dec 2011 and 18,153,748 for Jan-Dec 2010.