Humble Group AB (publ)

Good morning, everyone. Thank you for listening into this presentation and sorry for the delay. We are the management of Humble Group, and today we will present the results for the first quarter of 2024. My name is Simon Petrine. I'm the CEO of the group. With me today, I have Johan Lennartsen, our CFO. Hello, everyone. So at first we will do some overview of Humble Group at a glance. We will then dig into the financial highlights for the quarter. We will continue with the cash flow and then do some deep dive into each of the segments and to round things up with some focus for 2024. And as always, if you have any questions, feel free to send them in to us and we will take them with the Q&A by the end of the presentation. So to summarize the start of the year and the period, I think Q1 has been a strong start for the group. We have maintained the momentum that we have seen throughout the last years with dedicated sales growth in all of our markets. We reached a net sales of 1.8 billion, so it's a steady improvement from last year. Few will buy both some acquisitive growth but also organic growth. And mainly we could actually start seeing the results from our efficiency work that we have done to improve the profitability. But let's start a bit with humble group at a glance for those that don't know us as well. We are a modern FMCG group focusing on developing products within this industry that are focused on health and sustainability. We help our companies drive transformation and to become a bigger and better version of themselves prior to the acquisition. Our mission here is to really be a challenge within this industry and to help drive change globally. It is one of the world's biggest industries and it's on steady transformation and improvement towards these trends. This is something that we have really seen throughout the year. When we started this journey, it was clear to me that this is something that is going to happen and needs to happen. And I can happily say that we have higher demand and requests from customers and retailers and new countries than we've ever had before. Our way of doing this is to continuously improve our offering. We are developing new products and we are bringing new products and brands to new customers and markets globally. So the trend for health and well-being as well as sustainability it is here to stay. And it's also driven by how consumers are aware of themselves and with the digitalization and awareness through social media, the consumers are more and more demanding of products that meet their persona and their benefits. So let's look at the platform that we have established throughout the years. I've been talking a lot about this before, but now I can probably say that across the group we have a central platform where we are supporting our companies with financing solution, HR support, which is something that can be very tedious for any entrepreneur to run. We have a state-of-the-art business intelligence system and we also help driving business system changes and IT solutions. We also run several strategic initiatives that might be quite demanding for an entrepreneur to run themselves. We currently have 18 different work streams centrally that is bigger initiatives that we are driving to support further growth and improve profitability. And then on top of this, we have a track record of doing M&A. We have been taking it cool for a while, and I think we're going to continue to do so until we feel that we organically are able to continue to grow with acquisitions that would fit the group. So this is the central sort of functions and support that we mainly provide to our entrepreneurs and our CEOs and management out in our subsidiaries to make it easier and more fun and rewarding to be an entrepreneur. On top of this, we have three growth drivers that we are able to scale with synergies across the group. First one is product development. I dare say that we are one of the better FMCD groups out there in developing products. We have developed many new novelties through ourselves, but also good at looking at what is a trending product. If we see another company doing a success product, we're quite quick to copy that and launch it into new markets with one of our own brands or new brand. We are also really strong in sourcing. We have more than 300 contract manufacturers that we work with, and we have more than 10 own manufacturing companies within the group that are very well positioned to continue to scale with innovation and being a dynamic partner to our own brands, but also external brands. On top of this, we have distribution in more than 100 markets. In Sweden, we have one of the strongest platforms to try new products, to bring it out into all channels and to really refine the success recipe. Sweden is a great market to be in when it comes to innovation because we are in the forefront for health and sustainability products in FMCG. So if we're able to succeed here, we know that it's a great product that we can bring out internationally. So those two value drivers is something that we really focus on to help our companies and our entrepreneurs to grow their businesses. And this is a way for us to create value within the group. So enough talk about that. Let's dig into some of the financial highlights for the first quarter of this year.

As Simon already mentioned, we have noticed a strong demand for our goods and our products overall. The net sales for the quarter amounted to just around 1.8 billion SEK, comprising a total growth of 15%. The organic growth amounted to 11%, which was a little bit negatively impacted by the calendar impact. And the last 12 months, the total net sales now reached just around 7.3 billion SEK.

Yes, and I mean, I think we have sustained strong growth. We had a really good Q1 last year. I think it was the highest organic growth for all of the quarters last year. But we were still able to grow quite nicely. As Johan mentioned, we had a negative effect of the early Easter with the goods deliverable business days. But in return, we have seen that April has started fantastic, not only because of the calendar effect, but because we also have a strong momentum. Some of the strategic initiatives that we will talk about later in detail within the segment overview is starting to having an effect. But also in general, I think the consumers really like our products. We have been focusing on a lot of innovation and some of that innovation is now rolling out and we're also expanding into new market. We will also talk more about that later. So I think in general, the momentum is really good within the group. I'm confident throughout the rest of the year that we will continue to grow at a nice pace. But of course, I mean, we are a growth company and I'm happy to see that we're sustaining that growth with growth every month. So we are on a good track here. But, you know, the growth could have been higher. But I'm hoping that we will recoup it throughout the coming quarters of the year.