Nilörngruppen AB

Good morning, everybody, and welcome to the presentation of the NE-Learn Q3 report. Me and Maria here will do a presentation and present the quarter to you. It has been quite a volatile quarter. I will just start to share my screen first here. And what I mean by that is it was quite volatile. As we end on my holiday, I was still on holiday when I wake up and got a telephone call from our IT manager telling me that our IT system is most likely hacked. And the journey we started from there was quite stressful. But looking back in the mirror, it went quite well. If something like this can go well, we contacted a consultancy. They worked hard together with our IT team. So overall, I must say that the IT hack went well, but it was a quite shocking moment. So today we will do a presentation of the financial report and what happens during the quarter. The order income increased 41%, which is a lot in percentage. Taking also here into consideration, there is one packaging order that we last year received in Q4, but we already this year received in Q3. That adds 8%. So adjusted for that 8%, we're still making good, 33%. So the order can be still good. It's not as good as the 41, but still good with the 33, I would say. Sales is down 3% to $208 million. And adjusted for the currency effect, it's up 1%. And looking at the quarter, it's been quite volatile. July was quite okay, good, I would say. August was not good at all. And here is also a question of what depends on the IT cyber attack we had and what depends on the volatility in the market system effect. Here, but overall, so August was very bad, slow, but September improved quite a lot again. So overall, I must say I was quite satisfied with this quarter. Also knowing that we went through this cyber attack. Operating profit, 15.3 million. And as we write in the report, cost for the cyber attack is 4.4 million. Adjusted for that, we end up to 19.7 million. And the cost for cyber attack, that is included external cost and cost for internal staff during that period. Accumulated, up all income 22%, sales 7%. And here we have a minor cancer effect, not much at all. And the operating profit of 63.4 million. And if you add the Q4 last year to get the 12 months rolling numbers, we end up on 72.6 million Swedish. This is not a forecast, just a presentation of the fact that this is what, if you now perform in Q4 the same as we did in last year, that we will end up in the 72.6 million. And on this slide here, we present the quarterly numbers and six months is not, this would be nine months here. What sticks out is actually this gross profit. ending up here on 48%, which is extremely high looking at the historical numbers. I would say this quarter was extremely high due to a few reasons. One was the product mix. I will present that on the next slide. And the other one is release of some stock provision that we have had. That means that we have made provision on stock, and then we managed to sell it, and we could release the stock provision that we have made. So on those goods that has been sold or even though they've been selling with rebates, we made 100% gain on this as they were provided for in the past. And these operating margins, 7.3% of the operating profit, if you adjust for these 4.4 million IT tech, you end up on an adjusted operating margin of 9.5%. Tax rate is around 25% in the quarter, and I think we can see the last quarter. We are in this range, I would say. Split per product group, as I mentioned, the packaging has a much lower percentage. It's bigger volume, but lower margins on that. So that has impacted on our overall gross profit as the low margin packaging decrease. In the quarter, this is the quarter numbers are not accumulated in quarter numbers that affected also the gross profit margin, gross margin. And the same also the risk product increase, which where we have higher margins. Also within risk product is different product groups with different margins. But overall, this has impacted positively on us. This is the same numbers, but this is actually accumulated, not quarterly. This is accumulated numbers. But you can see now that the label has gone down to 45% versus last year, 49%, where packaging is up to 90%. Even though packaging was low in this quarter, it has been higher in the previous quarters this year. So the same accumulated as last year, accumulated. Yeah, and what you can see on this picture is where you can see that also the gross margin has been very high in this quarter if you compare to the historical numbers. Operating costs and so on, I think it's in line. Not so much to be mentioned about that. I can also mention that the Chinese New Year, this next year, 2025, will be in end of January. And in 2024, it was starting the 10th of February. So it's slightly earlier this year. That can have some impact, not much this year, I think. If it's early Chinese New Year, it usually turns up to be turnover more early or end of the previous year versus if it's late Chinese New Year. So Chinese New Year, as we're delivering much into China, has a big impact on the turnover.

Quarterly comparison.

Yeah, you can see here this quarter slightly lower than last year. And this year before that was extremely good. And we'll see what's happened here in Q4.