STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
CDON Group AB (STO:CDON):
21% sales growth in Q3
· Net sales, excluding divested operations, were up 21%, amounting to SEK 1,121.2 (928.8) million. Including divested operations, net sales rose by 18%, amounting to SEK 1,121.2 (949.6) million.
· Operating profit, excluding divested operations and non-recurring items, totalled SEK 1.5 (-17.2) million. Including divested operations and non-recurring items, operating profit totalled SEK 1.6 (-17.9) million
· Net income totalled SEK -4.7 (-21.1) million
· Earnings per share amounted to SEK -0.05 (-0.21)
· Cash flow from operations amounted to SEK -97.7 (14.6) million
· After end of the quarter, the board resolved on a preferential rights issue of approximately SEK 650 million
First nine months
· Net sales, excluding divested operations, increased by 15%, amounting to SEK 3,317.2 (2,888.1) million. Including divested operations, net sales rose by 13%, amounting to SEK 3,365.2 (2,969.9) million.
· Operating profit, excluding divested operations and non-recurring items, totalled SEK 0.6 (-25.3) million. Including divested operations and non-recurring items, operating profit totalled SEK 36.6 (-74.6) million
· Net income amounted to SEK 13.3 (-83.1) million
· Earnings per share amounted to SEK 0.11 (-1.03)
· Cash flow from operations was SEK -193.1 (-276.6) million
CEO statement Paul Fischbein, President and CEO of CDON Group comments: “CDON Group’s sales continued to display momentum in the third quarter. The Group saw total growth of 21%, with healthy sales figures in all segments, particularly within Nelly, which grew by 30%.
Group result also continued to show improvement, partly owing to the initiatives launched over the past two years. For example, the Swedish operations of Nelly reported a 5 percent operating margin for Q3 and 4 percent for the nine-month period, compared with a loss in the previous year.
Lekmer and Tretti continues to show healthy growth, with 58% and 29% respectively. The transformation of CDON.com continued as planned, with rising revenues and growth within Marketplace.
Following successful pilot tests, our in-house developed payment service, Qliro Payment Solution is now in the process of being rolled out to the Group’s Swedish stores at the end of this year and in 2015. It is an important next step in the launch of Qliro Payment Solution and something we are very much looking forward to.
As part of our efforts to provide additional relevant information around the development of the individual segments, we are expanding the segment reporting from the third quarter. We are also splitting the Entertainment segment into CDON.com and Lekmer. As a result of this all our larger operating companies or sub-Groups will be reported separately. See page 6 for further details.
In order to launch Qliro Payment Solution in full scale, facilitate the expansion of subsidiaries, especially within Nelly, and to strengthen the balance sheet by early redemption of the convertible bond, the Board has resolved to execute a preferential rights issue of approximately 650 MSEK.”
About CDON Group
CDON Group is the leading e-commerce group in the Nordic region. Since the start in 1999, the Group has expanded and broadened its product portfolio and is now a leading e‐commerce player in consumer goods and lifestyle products through CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com), Gymgrossisten (Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com) and Tretti. The group also comprises the payment solution Qliro. In 2013, the group generated SEK 4.5 billion in revenue. CDON Group’s shares are listed on Stockholm’s Nasdaq Mid-cap list under short name “CDON”.
The information in this interim 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 22 October 2014.
This information was brought to you by Cision http://news.cision.com