Ellos Group (ELLOS) Q3 2024 TU presentation earnings summary

Significant events and ownership changes

• Bankruptcy filing of the top holding company in September led to no formal consolidated report for Q3 2024.

• Bondholders acquired all shares in the main operating company, becoming new owners.

• 780 MSEK of bond debt was equitized, significantly reducing total debt.

• New liquidity financing of 158.8 MSEK was secured and settled.

Sales and market performance

• Q3 sales declined by 4.2% year-over-year, with year-to-date sales down 5.0%.

• Consumer purchasing power remained weak, and interest rate cuts have not yet boosted demand.

• Fashion segment outperformed Home, despite unfavorable weather.

• Market share is stable or increasing compared to main competitors.

Profitability and cost management

• Q3 EBITA margin decreased to 7.3% from 8.7% last year due to lower sales volumes.

• Year-to-date EBITA improved by 5 MSEK despite lower sales, driven by cost efficiencies.

• Cost improvements included better distribution, higher supplier discounts, and improved logistics.