FIRST HALF OF THE YEAR
|Operating profit before depreciation||7.5||31.5||-25.1||25.3|
|Operating margin before depreciation||1.1%||4.3%||-2.0%||1.8%|
In this report, operations are recognized including the effects of IFRS 16. Some revenue has been reclassified from interest income to commission income in Qliro AB, and commission income is now included in consolidated net sales. The comparative figures have been adjusted by SEK 8.9 million for the quarter and by SEK 22.0 million for the half-year.
GOOD OPERATIONAL DEVELOPMENT IN THE QUARTER
Qliro Group is working to split the group into three separately listed companies as soon as possible. The goal is to make this happen before the end of the year. We have increased the amount of information on the subsidiaries in this report to make it easier to analyze their operations.
Good operational development in the quarter
During the quarter, Qliro AB grew its business volume, loan book, number of merchants and its income adjusted for non-recurring items. This strengthened the company’s market position and business progressed as planned. The company increased the provisions for future credit losses in accordance with IFRS 9 because of COVID-19 but did not experience any impaired ability to pay from its consumers.
Qliro AB is well prepared for a stock exchange listing, which will lay the foundation for the company’s future growth.
CDON doubled sales from external merchants for the second quarter in a row. This was driven by a fast digitalization of retail and the successful positioning of the marketplace as a significant sales channel for other e-merchants. CDON Marketplace now comprises the core operations and its gross profit grew by 87 percent and represented three-fourths of total gross profit.
CDON has a scalable business model with a strong cash flow. The company has exceeded expectations and is ready to continue its successful development outside Qliro Group.
Nelly succeeded in maintaining its sales level in the Nordics despite a strong downturn in the total fashion market. Despite the drop in total income, Nelly successfully generated an operating profit by boosting efficiency, focusing on the Nordics, reducing marketing costs, and lowering return rates. The company was also able to greatly reduce its inventory, resulting in a strong cash flow.
Nelly has increased its market share and strengthened its position in a very weak market. The company is prepared to be an independent future Nelly Group.
Qliro Group’s future operations
As previously communicated, the group is being unbundled and the previous financial targets for the subsidiaries have been removed. The main plan is, as before, to list Qliro AB separately, distribute CDON to Qliro Group’s shareholders and to retain Nelly as the only continuing operation in Qliro Group, which then is expected to change its name to Nelly Group.
President and CEO
Stockholm, July 15, 2020
Analysts, investors, and the media are invited to a conference call today at 10 a.m. To participate in the conference call, please dial:
Sweden: 08 5033 6546
UK: +44 (0)330 336 9401
US: +1 929 477 0338
The pin code to access this call is 419929.
The presentation material and webcast will be published at www.qlirogroup.com.
For further information, please contact:
Niclas Lilja, Head of Investor Relations
About Qliro Group
Qliro Group operates CDON.COM, the leading Nordic online marketplace, the fashion brand Nelly and fintech company Qliro AB, offering financial services to merchants and consumers. In 2019 the Group had sales of SEK 2.9 billion. Qliro Group’s shares are listed on the Nasdaq Stockholm Mid Cap segment under the ticker symbol QLRO.
This information is information that Qliro Group AB is required to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication through the agency of the above-mentioned contacts at 8:00 a.m. CET on July 15, 2020.