Interim report Q3 2024

THIRD QUARTER FOR THE GROUP                                           

• Total gross merchandise value (GMV) decreased by -8% to SEK 445.1 (486.0) million.
• GMV decreased by 12% to 317.5 (359.8) million for the CDON segment, while it increased by 1% to 127.6 (126.3) million for the Fyndiq segment.
• Net sales decreased by 8% to SEK 103.0 (112.2) million.
• Gross margin increased by 5.4 percentage points to 78.9% (73.6%).
• Gross profit after marketing (GPAM) decreased by -10% to SEK 46.6 (52.0) million.
• GPAM decreased by 12% for the CDON segment and decreased by 9% for the Fyndiq segment.
• EBITDA amounted to SEK 5.5 (3.2) million.
• EBIT amounted to SEK -19.1 (-21.1) million.
• Earnings per share amounted to SEK -1.79 (-2.00).
• Adjusted Earnings per share amounted to SEK -0.24.

YEAR TO DATE FOR THE GROUP                                           

• Total gross merchandise value (GMV) decreased by 9% to SEK 1 268.4 (1 392.0) million.
• Organic GMV decreased by 20% to 936.3 (1 169.4) million for the CDON segment and decreased by 1% to 332.1 (334.6) million for the Fyndiq segment.
• Net sales decreased by 4% to SEK 296.0 (307.9) million.
• Gross margin increased by 7.8 percentage points to 76.5% (68.8%).
• Gross profit after marketing (GPAM) increased by 4% to SEK 135.4 (130.5) million.
• Organic GPAM decreased by 17% for the CDON segment while it increased 5% for the Fyndiq segment.
• EBITDA amounted to SEK -6.1 (5.7) million.
• EBIT amounted to SEK -79.5 (-50.7) million.
• Earnings per share amounted to SEK -7.49 (-6.74).
• Adjusted Earnings per share amounted to SEK -2.84.

Letter from the CEO

Successfully Navigating a Major Milestone and Delivering Positive Results

I am very pleased to close this quarter by celebrating the successful migration of CDON's platform across all four markets, while still delivering a positive EBITDA result. 

A Major Milestone Achieved: Seamless Platform Migration

When CDON acquired Fyndiq in April 2023, we initiated a project to migrate the CDON platform to Fyndiq's platform by the end of 2024.

I am incredibly proud that we successfully migrated CDON's customer-facing platform on-time from the plan we created almost 1.5 years ago. Furthermore, we implemented this new platform across all four markets - without a single minute of downtime or any major disruptions. This accomplishment is akin to performing a heart transplant on a marathon runner mid-race.

The migration provides us with a robust technical foundation to build upon. We can now focus on adding new features and driving innovation, while also realizing the anticipated cost savings from maintaining and developing a single platform. This will translate to higher feature development velocity and enable the 40 mSEK lower annualized OPEX when compared to the time of the merger, as communicated earlier.

Overall Performance

In the third quarter, GMV declined -8% year-over-year, an improvement on the -14% result from the previous quarter. Fyndiq returned to growth, following a weaker start to the year, while CDON continues to have a weaker performance.

Our Gross Profit After Marketing (GPAM) mirrored the GMV trend, down -10% from last year, primarily due to higher marketing costs as we compensated for reduced organic traffic.

Despite the full focus on the CDON migration, we are happy to report a return to positive EBITDA, delivering +5.5 mSEK for the quarter.

Key Initiatives and Progress

- Massively Improve Supply: Our primary focus remains on significantly improving our supply base, both in the short and long term.

To complement this, we have strengthened our management team with the appointment of Vesa Järveläinen as our new Chief Supply Officer. Vesa brings 17 years of experience from Verkkokauppa, Finland's leading home electronics retailer, where he held various C-level positions focused on supply chain management. We are convinced that his expertise will be instrumental in taking our supply to the next level.

- Operational Consolidation: Our organizational structure has strengthened significantly over the past months, with key roles now filled and new hires transitioning from onboarding to making meaningful contributions. I am confident that we are building a skilled and capable team that will drive long term growth. 

Looking Forward

I am proud of what we have achieved this quarter, particularly completing the platform migration and delivering a positive EBITDA result. Rebuilding the organization and migrating the platform has been costly and challenging, but we are now standing on a much stronger foundation for growth.

As we look ahead to 2025 and beyond, I am confident that we are well-positioned to capitalize on our progress and start delivering profitable growth.

And do not forget-make sure to do your Christmas shopping on CDON and Fyndiq for a joyful holiday season!

All the best!

Fredrik Nordberg
CEO, CDON

Webcast and teleconference

Analysts, investors and the media are invited to a webcast and teleconference today at 14:00 CEST. To take part in the presentation and participate via the webcast, go to the link below. Via the webcast, there is an opportunity to ask written questions.

Link to webcast: https://ir.financialhearings.com/cdon-q3-report-2024/register

If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. 

Link to teleconference:
https://conference.financialhearings.com/teleconference/?id=50048683

The presentation material and the webcast will be published on https://investors.cdon.com/en/investor-relations/presentations/

For further information, please contact:

Fredrik Norberg
CEO
E-mail: [email protected]

Carl Andersson
CFO
E-mail: [email protected]

Certified Adviser
FNCA Sweden AB is the company's Certified Adviser.

This information is information that CDON AB is required to disclose under the EU Market Abuse Regulation. The information was released for publication through the agency of the above contacts at 13:00 CEST on 24^th of October 2024.

About CDON and Fyndiq
CDON AB (publ) ("CDON") was founded in 1999 and is now the biggest marketplace in the Nordic region. Customers can choose to buy and compare prices for millions of products at CDON, by far the widest range of all Nordic e-retailers. Over 1,500 merchants use CDON's platform and technology to increase their sales. This gives CDON a wide range of products within, movie, music, computers, games, office supplies, books, toys, consumer electronics, household appliances, sport, outdoor, beauty care, fashion, shoes, computers, and computer products. CDON's shares are listed on Nasdaq First North Growth Market with the abbreviation CDON.

Fyndiq AB ("Fyndiq") is since April 2023 a wholly owned subsidiary of CDON. Fyndiq was launched in 2010 and is operating a marketplace which offers a wide range of bargain products from Swedish and international merchants. Fyndiq has built an effective technical platform that allows merchants to easily get access to a large customer group while Fyndiq takes care of marketing, customer support and payments. Fyndiq's main market is Sweden and it also operates sites in Finland, Norway and Denmark. Fyndiq is headquartered in Stockholm.

This information is information that CDON AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person(s) set out above, at 2024-10-24 13:00 CEST.