Strong improvement
January –
- Net revenue increased by 3%, totalling
SEK 356 (345) million. - Operating profit (EBIT) was
SEK 7 (-21) million. Adjusted operating profit (EBIT) wasSEK 7 (-21) million and the adjusted operating margin was 2.0% (-6.2%). - Cash flow for the period was
SEK 57 (-33) million and the cash position at the end of the period wasSEK 278 (105) million. - Earnings per share before and after dilution was
SEK 0.32 (-0.14).
Jan-Mar | Jan-Dec | ||||
SEKm (unless stated otherwise) | 2024 | 2023 | 2023 | ||
Net revenue | 356 | 345 | 1,548 | 1,537 | |
Growth (%) | 3% | -18% | -3% | -8% | |
Growth in local currencies (%) | 2% | -22% | -7% | -13% | |
Gross profit | 162 | 137 | 632 | 607 | |
Profit after variable costs | 82 | 54 | 285 | 256 | |
Overhead costs | -59 | -61 | -265 | -267 | |
EBITDA | 23 | -7 | -6 | -36 | |
Operating profit (EBIT) | 7 | -21 | -82 | -111 | |
Adjusted EBITDA | 23 | -7 | 20 | -11 | |
Adjusted operating profit (EBIT) | 7 | -21 | -40 | -69 | |
Items affecting comparability | 0 | 0 | -42 | -42 | |
Profit/loss for the period | 25 | -11 | -60 | -96 | |
Gross margin (%) | 45.6% | 39.7% | 40.9% | 39.5% | |
Profit after variable costs (%) | 23.1% | 15.6% | 18.4% | 16.7% | |
Adjusted EBITDA (%) | 6.5% | -2.2% | 1.3% | -0.7% | |
Adjusted operating margin (EBIT) (%) | 2.0% | -6.2% | -2.6% | -4.5% | |
Cash flow for the period | 57 | -33 | 181 | 91 | |
Net debt (+) / Net cash (-) | -278 | -105 | -278 | -222 | |
Earnings per share before dilution (SEK) | 0.32 | -0.14 | -0.75 | -1.21 | |
Earnings per share after dilution (SEK) | 0.32 | -0.14 | -0.75 | -1.21 |
Significant events during the reporting period
Series C share issue
In
Significant events after the end of the reporting period
On
CEO comments
We showed a strong improvement in the first quarter, despite it being the seasonally toughest quarter during the year for us. Our adjusted EBIT was
Our liquidity remains robust with a solid cash position of
We have successfully implemented our new, simplified operating model and fostered an action-oriented and empowered culture. Decisions are now made faster and more aligned with business requirements. The Pierce team is capable, committed and enabled and this has been instrumental in our achievements thus far.
Our transformation journey is however far from over. Our vision is to become the unquestionable leading e-tailer of the European market of gear, accessories, and parts for motorcycle riding. To realise this vision, which we call Pierce 2.0, we have identified seven strategic pillars that guide our efforts.
- To achieve absolute leadership in the Offroad segment and profitable growth in the Onroad segment
- To have the highest customer loyalty in the industry
- To create a simple and powerful go-to-market approach
- To be the best in the industry in pricing and purchasing
- To have market-leading value-for-money own brands
- A modern and scalable tech stack
- A lean, fast and agile organisation
True transformation takes time, which is why 2024 will be the crucial year of catapulting the start of the transformation for us.
In addition to organisational enhancements, we are undertaking a comprehensive overhaul of our technology infrastructure. We are building a composable, cloud-based tech stack comprising best-in-class systems to enhance our operational capabilities.
Through process re-engineering and automation initiatives, we aim to streamline workflows and eliminate non-value adding process steps. Furthermore, we are exploring the integration of AI solutions to further optimise our operations.
Additionally, we are committed to consolidating and building real value-for-money own brands, and we are on track to launch our first loyalty program in the near future.
To reflect the prevailing conditions in the market where Pierce operates, the Board of Directors has reviewed and decided to revise the medium to long term financial targets regarding the net revenue growth and the adjusted operating margin (EBIT).
In conclusion, we remain firmly committed to our vision and strategic objectives.
On a personal note, I am proud and impressed by the energy, knowledge, commitment and drive that I witnessed when we recently gathered the entire company for a joint kick-off of Pierce 2.0.
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