Boozt (BOOZT) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue grew 6% year-over-year (9% in local currency) to SEK 1,651 million, driven by increased active customers despite challenging market conditions and weather-related demand fluctuations.

• Adjusted EBIT margin declined to 3.3% from 4.3% last year, mainly due to currency headwinds, higher fulfillment costs, and temporary markdowns to clear inventory.

• Customer satisfaction remains high, with an NPS of 73, Trustpilot score of 4.4, and Club Boozt membership surpassing 1.7 million, representing over 50% of active customers.

• The company won a significant legal case in Norway, eliminating future import duties and expected to save SEK 50 million annually from 2025.

• Profit for the period dropped to SEK 15 million, down from SEK 29 million in Q3 2023.

Financial highlights

• Q3 2024 net revenue: SEK 1,651 million (+6% year-over-year); Sweden up 8%, Denmark up 1% (4% in local currency), rest of Europe up 46%.

• Gross margin was 38.6%, down 1.2 percentage points, mainly due to lower campaign stock, aggressive Booztlet pricing, and currency effects.

• Adjusted EBIT margin was 3.3%, down from 4.3% last year; EBIT was SEK 28 million (1.7% margin).

• Free cash flow improved to negative SEK 17 million from negative SEK 94 million last year; net cash position at quarter-end was SEK 237 million.

• Earnings per share after dilution was SEK 0.21 (Q3 2023: 0.42).

Outlook and guidance

• Full-year 2024 guidance maintained: revenue growth of 7–11% and adjusted EBIT margin of 5.2–5.7%.

• Q4 revenue growth expected between 6–16%, with a midpoint estimate of 9%.

• Margin target for Q4 requires around 8.5% adjusted EBIT margin, the highest quarterly margin to date.

• CapEx guidance for 2024 updated to SEK 225 million.

• Long-term ambition: adjusted EBIT margin above 10% by 2028.