Clas Ohlson (CLAS) investor relations material

Executive summary

• Achieved best first quarter to date with 16% net sales growth year-over-year, driven by 11% organic growth, 3% from acquisitions, and 2% currency effects.

• Operating profit reached 393 MSEK, a 40%+ increase year-over-year, with an operating margin of 12.0%.

• EPS increased to 4.75 SEK from 3.27 SEK year-over-year.

• Online sales surged 35%, now representing 22% of total sales.

• Store network expanded by nine stores to 250 locations, with plans for continued growth.

Financial highlights

• Net sales: 3,278 MSEK (2,814 MSEK prior year), up 16% year-over-year, with 11% organic, 3% from acquisitions, and 2% currency effects.

• Operating profit: 393 MSEK (278 MSEK), operating margin 12.0% (9.9%).

• Gross margin improved to 48% from 45.7% year-over-year.

• Cash flow from operating activities was 663 MSEK, up from 468 MSEK last year.

• Free cash flow for the period was 363 MSEK.

Outlook and guidance

• New three-year targets: 5% annual organic sales growth, 12% operating margin, 30% ROCE, and dividend payout of at least 50% of EPS after tax.

• August sales (start of Q2) showed 8% organic growth and total sales up 13% year-over-year.

• Plans to open about 10 net new stores per year and continue selective acquisitions.

• Management expects continued growth and value creation, leveraging a large addressable market and ongoing assortment renewal.