CDON Group AB: Fourth Quarter and Year-End Report 2013

STOCKHOLM--()--CDON Group AB (STO:CDON) today announced its financial results for the fourth quarter and full year 2013.

Fourth Quarter

  • Net sales amounted to SEK 1,470.6 million. Previous year SEK 1,541.5 million excluding divested operations and SEK 1,572.8 million including divested operations
  • Gross margin was 14.5%. Previous year 12.9% excluding non-recurring items and divested operations
  • Operating profit amounted to SEK 26.6 million. Previous year SEK 6.7 million excluding non-recurring items and divested operations and SEK -110.7 million including non-recurring items and divested operations
  • Net income totalled SEK 15.8 (-90.4) million
  • Basic earnings per share amounted to SEK 0.15 (-1.17)

Full year 2013

  • Net sales excluding divested operations increased by 1.3% to SEK 4,416.8 (4,359.1) million
  • Net sales including divested operations amounted to SEK 4,440.5 (4,461.7) million
  • Gross profit margin was 13.4% (10.6%) and 14.2% (14.0%) excluding non-recurring items and divested operations
  • Operating profit excluding non-recurring items and divested operations amounted to SEK -1.8 (16.7) million
  • Operating profit including non-recurring items and divested operations amounted to SEK -48.0 (-173.9) million
  • Net income totalled SEK -67.3 (-151.7) million
  • Basic earnings per share amounted to SEK -0.74 (-1.91)

CEO’s statement

Paul Fischbein, President and CEO comments: “CDON Group reports positive operating results in all four segments for the fourth quarter. Three of our four segments show sales growth, in particular Sports & Health which maintains a high growth rate of 36 per cent in the quarter, combined with stable margins.

The Group reported an operating profit, excluding non-recurring items, near breakeven for the full year. This was despite the weak start to the year, clearance of overstock at CDON.com during the second half of the year amounting to SEK 20 million, as well as extensive investments in organisational reinforcements. Improved cash flow and strongly reduced inventory levels are further recipes to our efforts. The strong financial position and healthy inventory ensures the Group’s settings for an increased focus on growth-oriented initiatives and investments in 2014.

The Group will increase its investments in growth in 2014, mainly in the Fashion and Sport & Health segments. The initiatives, which are in line with the Group's long-term strategy, has already begun through the recently announced geographical expansion of Nelly.com.

The transformation of CDON.com continues according to plan, and in the fourth quarter, CDON.com Marketplace was launched. This was an important strategic step in the transformation of CDON.com to become a leading full-range e-commerce store.”

About CDON Group

CDON Group is the 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 in the Entertainment (CDON.com and Lekmer.com), Fashion (Nelly.com and Members.com), Sports & Health (Gymgrossisten.com, Bodystore.com and Milebreaker.com) and Home & Garden (Tretti.com and Room21.com) segments. CDON Group’s online stores attracted approximately 247 million site visits and two million unique customers in 2013.

The information in this year-end report is that which CDON Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 08:00 CET on 4 February 2014.

This information was brought to you by Cision http://news.cision.com

Contacts

For further information, please visit www.cdongroup.com, or contact:
Paul Fischbein
President and Chief Executive Officer
Phone: +46 (0) 10 703 20 00
or
Press, investor and analyst enquiries:
Fredrik Bengtsson
Head of Communications
Phone: +46 (0) 700 80 75 04
E-mail: press@cdongroup.com,
ir@cdongroup.com

Sharing

Contacts

For further information, please visit www.cdongroup.com, or contact:
Paul Fischbein
President and Chief Executive Officer
Phone: +46 (0) 10 703 20 00
or
Press, investor and analyst enquiries:
Fredrik Bengtsson
Head of Communications
Phone: +46 (0) 700 80 75 04
E-mail: press@cdongroup.com,
ir@cdongroup.com