Q3 2024 Boozt AB Earnings Call Transcript
Key Points
- Boozt AB (BOZTY) reported a revenue growth of 6% in Q3 2024, with an underlying growth of 9% when excluding currency effects.
- The company saw a significant increase in active customers, with a 12% rise over the last 12 months, driven by strong performance in Germany, the Netherlands, and the Baltics.
- Customer satisfaction remains high, with a Net Promoter Score (NPS) of 73 and a Trustpilot score of 4.4, both above industry averages.
- Boozt AB (BOZTY) successfully won a legal case in Norway, which will save the company approximately SEK50 million annually in import duties.
- The company's loyalty program, Club Boozt, has reached 1.7 million members, with club members showing higher shopping frequency and average order value compared to non-members.
- The adjusted EBIT margin decreased to 3.3% from 4.3% in the same quarter last year, impacted by currency fluctuations and increased fulfillment costs.
- Boozt AB (BOZTY) faced challenges with consumer demand, particularly in August due to warm weather, affecting sales of autumn and winter collections.
- The company had to implement additional markdowns on Booztlet to clear older inventory, which negatively impacted margins.
- Currency fluctuations had a negative impact on the gross margin, decreasing it by 1.2 percentage points compared to last year.
- Despite revenue growth, the company reported a negative free cash flow of SEK17 million for the quarter, although this was an improvement from the previous year.
Thank you and good morning, all and welcome to our Q3 2024 financial presentation.
Let's go to the to the first slide or highlights the market trends observed in the first half of the year have as expected continued into the second half where consumers across conscience as well as holding back.
That said revenue growth in the third quarter was 6% and excluding currency FX growth was 3% higher at 9% and in line with what we delivered in the first six months of 2024.
The quarter was quite bumpy with regards to consumer demand, especially August, which was impacted by the very warm weather. September compensated somewhat for a poor August with a return to double duty growth even though we don't like to talk too much about whether we saw an immediate effect in September when it got colder in the region and customers started to buy into the autumn winter collection.
Overall growth was driven by a solid increase in active customers across the region while average order value was slightly down due to
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