First six months*
*During the second quarter Qliro Group entered into an agreement to sell its subsidiary Tretti AB. Continuing operations thus excludes Tretti, which is recognized as a Discontinued operation in the Group’s reports regarding income statement, financial position and cash flow. Historical comparison numbers in income statements and cash flow statements have been adjusted accordingly.
Paul Fischbein, CEO comments: ”The second quarter was eventful and characterised by positive news. We see that the actions taken to increase profitability are showing results, not least within Nelly and Gymgrossisten. Nelly’s focus on efficiency and profitability has resulted in a significant earnings improvement and EBITDA improved by more than SEK 10 million compared to the second quarter last year. Gymgrossisten also reported improved margins and the EBITDA-margin in the second quarter increased to around 7%. Both Nelly and Gymgrossisten now have stable foundations in place which we can continue to develop.
Another pleasing fact is that Lekmer, excluding currency effects, reported growth in the second quarter. The quality of the warehouse operations in Arlandastad is good and the customers have confidence in Lekmer. We have after the end of the quarter also reached a new agreement with the third-party supplier of warehousing services which is expected to lead to gradually decreased fulfilment costs for Lekmer.
Within CDON Marketplace, sales generated for external merchants grew by around 35% in the second quarter. As a step in the transformation of the company, the partnership with Adlibris was also launched in the end of the quarter. CDON Marketplace thus continues to develop well.
The single biggest news in the quarter was that we sold Tretti for a total cash consideration of SEK 250 million. The transaction, which is expected to be completed during the third quarter, is important from several perspectives. We free up capital for continued investments and increased focus on the development of the other companies within Qliro Group and at the same time WhiteAway – including Tretti – becomes a client and partner to both Qliro Financial Services and CDON Marketplace.
Qliro Financial Services continues to develop in line with our expectations. Total operating income increased by 111% in the quarter and the company improved its result. Thus, we see continued positive development and progress within Qliro Financial Services, and look forward to the launch in Norway and the introduction of additional financial services when the company receives approval from Finansinspektionen (the Swedish Financial Supervisory Authority) to become a credit market company. Our estimate is that the license will be received in the second half of 2016. Additionally, we have entered into partnership agreements with new external merchants and recently introduced a new exciting product in the market – Qliro One, a complete checkout solution for digital commerce.
This is my last interim report as CEO of Qliro Group, and I can conclude that the actions we have taken are paying off. The companies’ earnings improvements, and the addition of the funds from the sale of Tretti, entail that we have a strong financial foundation and position in place for the future. I would like to thank all customers, shareholders, colleagues and partners for the trust you have shown and on 1 August I hand over the role as CEO to Marcus Lindqvist”.
For additional information, please visit www.qlirogroup.com or contact:
Paul Fischbein, President and Chief Executive Officer
Tel: +46 (0) 10 703 20 00
Nicolas Adlercreutz, CFO
Tel: +46 (0) 70 587 44 88
About Qliro Group
Qliro Group is a leading e-commerce group in the Nordic region. Established in 1999, the Group has expanded its product portfolio and is now a leading e-commerce player within consumer goods and lifestyle products through CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com), Gymgrossisten (Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com) and Tretti. The payment service solution Qliro is also part of the Group. In 2015, the Group generated revenue of SEK 5.2 billion. Qliro Group’s shares are listed on the Nasdaq Stockholm MidCap list under the ticker symbol “QLRO”.
This information is information that Qliro Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 14 July 2016.