Nilörngruppen AB

Good morning, good morning everybody. Welcome to this Q1 report from Elan. Time is flying and it's already passing the first quarter 2024 and it's happening a lot in the world and it's happening a lot in Elan as well. So we will have here give an update of the numbers but also what's going on within the group. With me today is Maria Fogelström, our CFO in Nylangruppen. She will help me with any difficult questions that I cannot work out. And also for your information, we will record this presentation. So we will share this later on on the internet, on our webpage. And as usual, if any questions, you're welcome to add them in the Q&A here. And Maria will then later on read them and present them for us. And we will try to answer them here. Good. So once again, welcome. And I will share my screen here with you. Starting here, as we used to do, starting with the financial performance. And as I said, the Q1 2024, the order income was up 5% in the quarter. And taken into consideration here is that the order income was quite strong in Q4. We had a plus 12% in Q4. And also the comparison number last year, the order intake in Q1 2023 was was a plus 21 percent so we have quite tough comparison numbers so I think this order income is quite strong actually so even though it sounds only five percent but I think it's we are satisfied with that number here looking at the sales plus 10 percent in the quarter and looking what happens in the quarter a big impact on the Chinese due years As you probably know, the Chinese New Year's appears in different months each year. And this year, the Chinese New Year's was in February. So looking what happened in the quarter was January numbers was strong. February was a little bit weaker. And then March again was quite strong. And now what's happened in April here, we had Easter in March this year and in April last year. So a lot of calendar effects and so on. But overall, I think it's a positive trend in the Q1. We've also seen, as presented in the report, continued strong development in the luxury segment. We see that also in the luxury segment there are some hesitations. Not that we see that from our order intake and sales, but in general terms, when listening to the client, they don't see the same... a strong trend as in the previous quarters. But I think that is natural. And I think for us, we have won quite good ground here in the luxury segment. So we will continue with that. And the outdoor segment, we see a recovery in the outdoor segment, but it's going slowly. And as we presented in the report, we think that the outdoor segment will be in full swing, up and running in the Q3 segment. Positively is that in general, talking about all brands and clients we have, it's more activity, more discussions and more easy for our salespeople to get appointment with the brands, which is generally positive. And we can also say in general, it's different in different markets. Some markets is stronger, some markets is more hesitating. Not sure why in different countries when I say different countries. And that probably depends on what effect in the different markets like in Holland and so on. We feel that we are not that strong, but in other areas we are much stronger. Almost no currency effect this quarter. The Swedish krona has been a little bit stronger again, which is good. More stabilized, I think. Operating profit is up here to 22.5 million Swedish and an operating margin of 9.3%.

Here is the... Just a second.

Here is these quarterly reports and the numbers. And as you can see here, the gross margin is slightly stronger than last year, even though the packaging was quite big in this quarter. Also, the personal cost has gone up. We are building a group, a big foundation, and make that strong in the group. So it takes a big effort, all this CSR and compliance and all that. But I'm coming back to that a little bit later in the presentation. Operating profit 9.3%, as I said. And also an operating... Sorry, the tax here is around the 21.3%. Looking forward for the tax, I think we will be around here 22, 25% for the full year. Quarterly, and as you can see here, Q1 is exactly the same turnover as it was in Q1 2022. And the margin here, if you compare to Q1 last year, is slightly stronger, not much, but slightly. Operating costs, we are up here to 78 million Swedish. Here is also an impact of, if you compare this quarter with this quarter, here we also have a currency effect between 22 and 24, so the turnover has been boosted slightly with the currency effect, but so has also the cost. So the cost here is operating cost is up 17 million, but also boosted by the currency effect. Operating margin 9.3%, as I mentioned earlier, it is back on track again. But also, I will show you on the next graph here, what happens in 21 and 22 was extremely strong. And for you who has been with us for quite some time now know that in an operating profit of between 10% and 12% is normalized within Elon. And 21% and 22% was extremely strong numbers. And as you can see here, we have had an extremely strong drop in Q4 at 22%. and here was especially as I mentioned earlier the outdoor segment that has been a tough period and with that we now see coming back again and this is the same but in a graph where you will see that when the first quarter here in turnover wise is the same as this 2022 so this is the strongest Quarter, if you also take 32 into consideration, stronger quarter first, quarter one we ever had in the group. And also looking at the profitability, this is, if you don't take 21 and 22 into consideration, this is the strongest Q1 profit-wise we ever had.