RugVista

Challenging market and comparables

Third quarter

• Net revenue was SEK 144.8 (159.6) million, corresponding to a decrease of -9.3% (24.7%).
• Organic net revenue growth was -7.1% (14.1%).
• The gross margin amounted to 62.4% (62.7%).
• The operating profit amounted to SEK 9.0 (18.6) million, and the operating margin was 6.2% (11.7%).
• The profit for the period was SEK 7.9 (15.2) million.
• Earnings per share before and after dilution amounted to SEK 0.38 (0.73).
• The average NPS (Net Promoter Score) was 62 (68), and the average Trustpilot rating was 4.7 (4.8).

Comments from Ebba Ljungerud, CEO

During the third quarter, household purchasing power in Europe remained weak, although we saw early signs of improved consumer confidence towards the end of the quarter, particularly in the Nordics, and mainly in Sweden. This has not yet translated into increased sales, and the period was still characterized by cautious, price-sensitive consumers.

Net revenue for the quarter amounted to SEK 144.8 million, a decrease of -9.3% (24.7%) compared to the same period last year. One of the main reasons for the decline was the lower Average Order Value (AOV), primarily driven by price-sensitive customers. We see the need to balance order volume with AOV. Although an increase in orders is positive, stabilizing and growing AOV is also a priority. We are continuously working to optimize this balance, and it will remain a focus area during Q4 and beyond.

Operating profit amounted to SEK 9.0 (18.6) million, corresponding to an operating margin of 6.2% (11.7%). The lower operating margin was mainly due to the lower net revenue and increased personnel costs, partly related to the costs for the departing CEO.

We are focused and prepared for the upcoming high season in Q4, with good inventory levels to ensure we can meet customer demand. Additionally, we continue to strengthen our customer journey initiatives, aiming to provide an exceptional shopping experience that fosters loyalty and repeat purchases across our various rug categories.

As CEO since October 1, I look forward to leading Rugvista forward toward delivering on our vision and goals alongside our strong and ambitious teams. We have a solid financial position with net cash of SEK 137 million at the end of the period, enabling us to execute our strategic investments. I would like to extend my warmest thanks to all employees for their dedication and hard work, and to our shareholders for your continued trust and support.

Conference call in connection with the publication of the interim report

In connection with the publication of this Interim Report, Ebba Ljungerud (CEO) and Joakim Tuvner (CFO) will host a conference call and a webcast on November 7th, 2024, at 09:00 CET. The presentation will be held in English.

To participate in the conference call (with the opportunity to ask verbal questions)
Please register via: https://conference.financialhearings.com/teleconference/?id=50049715

After registration you will receive a phone number and a conference-ID to log in to the call. It is also possible to participate in the telephone conference via the Group's website. https://www.rugvistagroup.com/en/report/Q3-2024/

To participate via the audiocast (with the opportunity to ask written questions)
Please join via: https://ir.financialhearings.com/rugvista-group-q3-report-2024

The interim report and the presentation are available on Rugvista Group's website:
https://www.rugvistagroup.com/en/investors/reports-and-presentations/

Contact information

Ebba Ljungerud, CEO
Ebba.Ljungerud@rugvista.com

Joakim Tuvner, CFO
Joakim.Tuvner@rugvista.com
InvestorRelations@rugvistagroup.com

This report includes information that Rugvista Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.  The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 a.m. CET on November 7, 2024.

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About Rugvista

Rugvista is one of Europe’s leading “direct-to-consumer” e-commerce players and markets carpets and rugs through its own web-shops available in 20 different languages using the brands Rugvista and CarpetVista. The company was founded 2005 and offers a wide and relevant selection of high-quality design- and traditional carpets and rugs at attractive prices. Rugvista offers its EU based customers free deliveries and returns free of charge.

The business is divided into three segments: Private consumers (B2C), Business consumers (B2B), and Marketplaces & Other (MPO). The B2C segment represents the consumer market and is Rugvista’s core segment.

Number of coworkers within Rugvista Group is approximately 100 FTEs and the company is headquartered in Malmö, Sweden. The Rugvista Group AB (publ) share is traded on Nasdaq First North Premier Growth Market under the ticker symbol “RUG”.