SPLIT-UP BEING FINALIZED
FIRST NINE MONTHS
|Operating profit before depreciation||14.0||-0.8||-15.6||-5.9|
|Operating margin before depreciation||3.0%||-0.2%||-1.0%||-0.3%|
Qliro AB is recognized as a discontinued operation in this report. Operations are recognized including the effects of IFRS 16. Comparisons refer to the same period last year if nothing else is stated.
UNBUNDLING BEING FINALIZED
During the quarter, we took several steps toward the goal of unbundling the Group into three independent listed companies. Qliro AB is now listed on Nasdaq Stockholm and we intend to distribute CDON and list the company on First North in November. When that is done, the unbundling of Qliro Group will be completed. Qliro Group’s sole business will be Nelly and on November 6, Qliro Group is changing its name to Nelly Group.
Our shareholders previously owned shares in a conglomerate with limited synergies but will instead hold shares in three focused listed companies.
Strong development for CDON in the quarter
CDON increased sales from external merchants by 100 percent for the third quarter and 102 percent for the first nine months. This was driven by quick digitalization of commerce and the successful positioning of the marketplace as a significant sales channel for e-merchants. CDON Marketplace is the company’s core operation and this segment’s net sales grew 82 percent. CDON Marketplace rapid growth meant that 80 percent of CDON's total gross profit was generated by service-related income from the 1,385 merchants who pay fees to be part of the marketplace.
CDON has a scalable business model with a strong cash flow. The company has exceeded expectations and is ready to continue growing outside Qliro Group. Provided that the extra general meeting on October 26 resolves to distribute CDON to Qliro Group’s shareholders, the company is expected to be listed on First North in early November.
Focus on Nelly and name change to Nelly Group
Nelly’s sales in the Nordics fell by 3 percent but was stable in local currency in the Nordics. Nelly increased its gross margin through higher efficiency, focus on the Nordics and lower return rates. The inventory turnover rate increased, which limited the need for working capital. The company continues to streamline its organization and is gathering its operations and logistics in Borås.
Qliro AB has been distributed and soon CDON will also be an independent listed company. I thank you for the privilege to lead the group during the split-up, and I look forward to continuing the work as a board member of Nelly Group with Kristina Lukes as its CEO.
President and CEO
Stockholm, October 21, 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: +44 330 336 9401
US: +929 477 0630
The pin code to access this call is 709667
The presentation material and webcast will be published at www.qlirogroup.com.
For further information, please contact:
Niclas Lilja, Investor Relations
Om Qliro Group
Qliro Group operations include fashion brand Nelly.com and the leading Nordic marketplace CDON. In late September, Qliro AB was distributed to Qliro Group’s shareholders. The plan is to distribute CDON AB shares to Qliro Group’s shareholders. Qliro Group will subsequently change its name to Nelly Group to reflect the new business. 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. The information was released for publication through the agency of the above-mentioned contacts at 8:00 a.m. on October 21, 2020.