New Bubbleroom Sweden (BBROOM) Q4 2023 earnings summary

Executive summary

• Q4 pro forma sales grew 1.2% YoY to SEK 121.5M and gross margin rose to 63.9%; FY sales declined 1.1% to SEK 437.9M.

• FY remained loss-making; operating cash flow after investments improved to SEK 6.4M from negative SEK 121.0M, mainly due to lower inventory.

Financial highlights

• Q4 gross profit was SEK 77.7M versus SEK 73.4M; adjusted EBITDA improved to negative SEK 3.1M from negative SEK 5.5M, while adjusted EBIT was negative SEK 5.3M versus negative SEK 7.4M.

• Q4 EBITDA was negative SEK 6.7M versus negative SEK 5.8M; pro forma EBIT was negative SEK 8.8M versus negative SEK 7.8M, and net loss was SEK 9.3M versus SEK 8.8M.

• FY adjusted EBITDA was negative SEK 13.9M versus negative SEK 12.2M; adjusted EBIT was negative SEK 22.4M versus negative SEK 16.0M.

• FY pro forma EBITDA was negative SEK 19.2M versus negative SEK 21.0M; pro forma EBIT was negative SEK 27.7M versus negative SEK 24.8M, and net loss was SEK 29.3M versus SEK 27.1M.

• Non-recurring costs were SEK 3.5M in Q4 and SEK 5.3M for FY, mainly related to business-system implementation and overlapping CEO/CFO payroll.

Outlook and guidance

• The 2024 priority is to return to profitability as soon as possible amid challenging macroeconomic conditions.

• Initiatives include a loyalty club, digital returns, internal returns handling, improved customer service and faster speed to market.

• Operational reviews cover assortment, customer journey, efficiency and cost structure; new logistics, e-commerce and business-system platforms are intended to support scalability and profitable growth.