This is not an interim report in accordance with IAS 34. The company complies with the semi-annual reports required by the Securities Markets Act and normally publishes business reports for the first three and first nine months of the year, which present key information describing the company's financial development. Unaudited financials presented below:
Focusing on profitability improvement in challenging market conditions
- Net sales increased 4.9% to
EUR 27.0 million (EUR 25.8 million ). Net sales with comparable currencies increased 7.4%. Organic net sales decreased 7.5%. -
Adjusted EBITDA increased 342.7% to
EUR 0.5 million (EUR -0.2 million ) with an adjusted EBITDA margin of 2.0% (-0.9%). -
Adjusted EBITA increased 164.4% to
EUR 0.3 million (EUR -0.4 million ) with an adjusted EBITA margin of 1.0% (-1.7%). -
Adjusted operating profit was
EUR -0.4 million (EUR -0.9 million ) with a margin of -1.5 % (-3.6%). -
Earnings per share was
EUR -0.06 (-0.06) at end ofNovember 2023 .
Outlook for financial year 2024 (unchanged)
Market uncertainty and weakness will persist in financial year 2024. Overall challenging market situation has lowered consumer confidence and demand. These factors will weaken the predictability and therefore
As planned, the company has strengthened its capital structure through a rights issue at the end of 2023.
CEO Jarkko Ämmälä:
The first quarter of 2024 was in line with our expectations. Net sales increased by 4.9% and the gross margin rose from 22.3% to 23.9% as planned. Adjusted EBITA was
Winter season demand started early in the Nordic countries, but the market situation overall continued to be challenging having a negative impact on consumer demand.
We started planning a fully guaranteed rights offering during the first quarter to strengthen the balance sheet and support the execution of the strategy. At the Extraordinary General Meeting at the end of November, the Board of Directors was authorised to implement the offering of
During the 2024 financial year, we will continue our profitability improvement programme and managing working capital in a continued challenging market environment.
Key figures and ratios | Q1 2024 (9/2023-11/2023) | Q1 2023 (9/2022-11/2022) | FY 2023 |
Net sales | 27,014 | 25,751 | 118,832 |
Net sales growth, % | 4.9 | -5.2 | -4.2 |
Net sales with comparable currencies, % | 7.4 | -3.4 | -1.0 |
Organic net sales growth, % | -7.5 | -19.0 | -15.6 |
Gross margin | 6,456 | 5,736 | 28,344 |
Gross margin, % | 23.9 | 22.3 | 23.9 |
EBITDA | -193 | -357 | 4,307 |
EBITDA margin, % | -0.7 | -1.4 | 3.6 |
Items affecting comparability, Gross margin* | 0 | 0 | 131 |
Items affecting comparability, EBITDA* | 731 | 135 | 1,193 |
Adjusted EBITDA | 538 | -222 | 5,499 |
Adjusted EBITDA margin, % | 2.0 | -0.9 | 4.6 |
EBITA | -457 | -561 | 3,401 |
EBITA margin, % | -1.7 | -2.2 | 2.9 |
Adjusted EBITA | 274 | -426 | 4,594 |
Adjusted EBITA margin, % | 1.0 | -1.7 | 3.9 |
Operating profit | -1,148 | -1,060 | 1,041 |
Operating profit margin, % | -4.3 | -4.1 | 0.9 |
Adjusted operating profit | -417 | -924 | 2,234 |
Adjusted operating profit margin, % | -1.5 | -3.6 | 1.9 |
Earnings per share, basic, EUR | -0.06 | -0.06 | -0.10 |
Earnings per share, diluted, EUR | -0.06 | -0.06 | -0.10 |
Number of outstanding shares at the end of the period, basic | 30,545,474 | 25,454,574 | 30,545,474 |
Number of outstanding shares at the end of the period, diluted | 30,545,474 | 25,454,574 | 30,545,474 |
Weighted average number of shares, basic | 30,545,474 | 25,454,574 | 27,937,259 |
Weighted average number of shares, diluted | 30,545,474 | 25,454,574 | 27,937,259 |
Investments in tangible and intangible assets excluding acquisitions |
267 | 413 | 2,481 |
Net debt | 45,177 | 50,398 | 38,248 |
Net working capital | 55,456 | 62,108 | 49,873 |
Operating free cash flows | -6,160 | -4,972 | 16,392 |
*) Items affecting comparability:
Cost saving program costs of
Operational key figures | Q1 2024 (9/2023-11/2023) | Q1 2023 (9/2022-11/2022) | FY 2023 |
Number of brands | 559 | 484 | 562 |
Share of own brand sales, % of total | 21.7 | 19.1 | 21.8 |
Share of online sales, % of total | 24.3 | 19.4 | 24.7 |
Equity ratio, % | 34.8 | 28,8 | 38.6 |
Full-time equivalent employees* | 211 | 214 | 218 |
*) Including seasonal employees
Net sales, EUR thousand | Q1 2024 (9/2023-11/2023) | Q1 2023 (9/2022-11/2022) | FY 2023 |
Nordics | 15,089 | 16,005 | 69,926 |
Rest of | 11,925 | 9,746 | 48,906 |
Total | 27,014 | 25,751 | 118,832 |
Financial position and cashflow
Duell’s net cash flow from operating activities in the full was negative
Significant events during the reporting period
As part of the cost savings programme
Significant events after review period
The Annual General Meeting and Board’s organisational meeting was held on 5th of December.
The rights offering took place between
The renegotiated financing agreement between
Medium-term financial targets (3-5 years) (unchanged)
Growth: Net sales in the range of
Profitability: adjusted EBITA margin of at least 13% in the medium-term.
Leverage: net debt to adjusted EBITDA ratio in the range of 2-3. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).
Duell’s Financial Reporting and Annual General Meeting in 2024
- Half-year financial report September 2023–February 2024 (Q2 2024) on
Thursday, April 4, 2024 . -
Business report September 2023–May 2024 (Q3 2024) on
Wednesday, July 3, 2024 . -
Financial Statements Bulletin for the fiscal year 9/2023–8/2024 (Q4 2024) on
Wednesday, October 9, 2024 .
Annual Report the week starting on
Duell’s Annual General Meeting of shareholders is scheduled for
The financial reviews and the annual report will be available after publication on the company's investor website at (https://investors.duell.eu/en/reports_and_presentations).
Further information
Jarkko Ämmälä, CEO
+358 50 056 5149
jarkko.ammala@duell.eu
Pellervo Hämäläinen, Communications and IR Manager
+358 40 674 5257
pellervo.hamalainen@duell.eu
Certified Advisor
Attachments
Duell Corporation September 2023-November 2023 Financial Report.pdf
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