Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

2006 12-21 Q1 2006/2007 Results

271 views

Published on

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

2006 12-21 Q1 2006/2007 Results

  1. 1. The First Quarter2006/20071 September to30 November 200621 December 2006Christian W. JanssonCEOHåkan WestinCFO 1
  2. 2. Disclaimer• These materials may not be copied, published, distributed or transmitted to third parties• These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties.• These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States. 2
  3. 3. AgendaI Business HighlightsII Results Q1, 2006/2007III Key Conclusions 3
  4. 4. Business Highlights I Business Highlights• The best first quarter so far. – Improved gross margin. – Successful purchasing and good inventory control. – Good LFL sales• Continued good general retail demand.• Store expansion program on track. – 11 new stores during Q1. – Current network of 271 stores and 17 contracts for new store openings. – Rest of the financial year, 2-4 closures and 5-8 openings. 4
  5. 5. Results Q1 II Financial Highlights Q1• Sales increased by 3.2 percent to MSEK 1 189 (1 152).• Gross margin improved to 62.2 (58,7) percent.• Operating profit increased to MSEK 186 (150).• Operating margin improved to 15.6 (13.0) percent.• Profit after taxes was MSEK 123 (96), corresponding to SEK 1.64 (1.28) per share. 5
  6. 6. Results Q1 II Financial Highlights Q1 2006/2007 vs. 2005/2006 -2,8% +4,5% +1,5% ∑ 3,2% 1 300 1 189 • FX impact was negative. 1 200 1 152 • Net new stores largest growth contributor with 4.5 percent. 1 100 • LFL -2.0 percent impacted byMSEK discontinued cosmetics sales MSEK 0 (20). 1 000 • LFL excluding cosmetics was +3.5 percent. 900 800 Q1 FX Net LFL Q1 05/06 effect new growth 06/07 stores 6
  7. 7. Results Q1 II Profitability Drivers Q1 2006/2007 vs. 2005/2006 Q1 (Sept-Nov)MSEK 05/06 04/05Gross profit 740 676Gross margin 62,2% 58,7% • Strong gross margin.Selling expenses -513 -487 • Selling expenses effected% of sales 43,1% 42,3% by marketing activities.Admin expenses -41 -39% of sales 3,4% 3,4%EBITDA 234 192EBITDA margin 19,7% 16,7%Operating profit 186 150Operating margin 15,6% 13,0% 7
  8. 8. Results Q1 II Income Statement Q1 2006/2007 vs. 2005/2006Income statement Q1 (Sept-Nov)MSEK 06/07 05/06Net sales 1 189 1 152Cost of goods sold -449 -476 • Improved net financeGross profit 740 676 • Net profit +28%Selling expenses -513 -487Administrative expenses -41 -39Operating profit 186 150Financial income 2 1Financial expense -16 -19Profit before tax 172 132Tax expense -49 -36Net profit 123 96 8
  9. 9. Results Q1 IISales Breakdown Q1 2006/2007 vs. 2005/2006 Q1 Q1 Growth MSEK 06/07 05/06 SEK Loc. cur. Sweden 683 653 4,6% 4,6% Norway 333 341 -2.3% 6,3% Finland 130 121 7.4% 9,7% Poland 43 37 16.2% 19,3% Total 1 189 1 152 3.2% Poland 4% (3%) Finland 11% (10%) Sweden Norway 57% (57%) 31% 28% (30%) 9
  10. 10. Results Q1 II Cash Flow Q1Cash flow statement Q1 Q1MSEK 06/07 05/06Cash flow from operations before working capital changes 185 150Changes in working capital 24 11Cash flow from operating activities 209 161Cash flow investing activities -50 -60Cash flow after investments 159 101Cash flow from financing activities -99 -89Change in revolving credit -5 -8Net cash flow for the period 55 4Cash and bank balances at beginning of period 72 83Cash and bank balances at end of period 127 87 10
  11. 11. Key Conclusions IIIKey Conclusions and Outlook • Best quarter so far • First class gross margin • Excellent inventory control • Good sales development • Higher operating margin target Focus going forward • Continued emphasis on overall sales • Maintain gross margin • Continue new store expansion program • Two companies acquired – tax loss carryforwards. 11
  12. 12. We don’t believe in selling a lifestyle. You have one already.We don’t believe in expensive collections for an exclusive few. We believe in fashion that suits you. We don’t believe in eternal youth, however we believe that people mature, grow wiser and even more beautiful. Take it as a compliment. 12

×