Rugvista Group AB (publ)

this first quarter earnings call with me, Ebba Jungerud, and you Joakim. How are you this morning?

I'm great. I'm feeling good. Good.

We will do this the way we normally do it. Starts with a bit of a business update that I will run through. Then Joakim will focus on the financials and then we will have a Q&A. in the end. I would also like to point out that the images in the presentation that you will see are from various campaigns that we've released during the quarter. Most of them are actually from our outdoors campaign for rugs that work both outdoors and indoors. But we have also started playing around quite a bit with AI and to AI generate the images. So there are one or maybe two in there so feel free to guess which ones when you when we go through the report so if we start with the business update we think we have had a very strong beginning to the year super happy with that top line came in at 197 million yen so that's an increase of almost 12 percent and apart from one of the covid q1s is actually the best q1 result we've had so that's very nice january did start a bit on the slow side and then the quarter picked up i think it's fair to point out that the comparables in march are a bit skewed because easter was in march last year which is normally not the best sales period for us but still we're very happy with the top line And then if we move over to the orders, they increased by a little bit more than 17% compared to last year to almost 97,000 from 82. And here you can see the quarterly order development. And the top one is quarter by quarter and the bottom one is rolling 12 on a quarter level so to speak so it's it's you can see that this is not news to the those of you who followed us for a while but we are growing quite consistently on orders over time which of course we're very happy with Customers also grew 69,000 compared to 60,000 last year. And actually both orders and new customers were an all-time high for the first quarter in the year. So also strong numbers. And then you've heard me talk a lot about the average order value. We came in almost flat year on year. Sorry, not year on year, quarter on quarter and down 3% year on year. Here you can see the development over time and what we have done is we've done a lot of changes on the site during the quarter to mitigate the drop that we've seen previously and we've also consistently really worked with how we plan our campaigns. I think We will continue to work with this, but I think it's important to point out that this will shift quarter to quarter because it does depend a lot on what we do and how we plan both discounts and how we plan campaigns and what types of rugs we have in the campaigns, etc. Then if we move over to the profitability, we had a gross margin of 64%, which is higher than normal and it comes from stronger fundamentals really. We had a decreased marketing spend 29% compared to 30.5 last year. In Q4 last year, it was almost 33%. And again, this is something that fluctuates quarter by quarter. So it's not a consistent sort of downward trend. But it is also true that over time, we are trying to reduce this a little bit, even though not huge amounts. um also important to look at is that our sessions on site increased by 53 this comes from the shift that we are in the middle of and still working on optimizing where we have gone from being very very close to the customer doing a purchase to being much higher up in the funnel And this really in reality means that we have shifted from more or less only being in search engines to being on much more visual platforms as well, like Meta and Pinterest and TikTok, et cetera. And also really changing our ads and the formats and making them more visual over time. And then. this led to an ebit of 27.2 million compared to 20 million last year so that is a margin of 13.8 percent and the improvement is actually 36 compared to last year so also very happy with that if we look at the market um Consumer sentiment is still actually decreasing in several of our main markets. If we look here, this is just a snapshot of three markets. Sweden is backing a little bit, that's the top one. Germany also, France is quite stable. So I think this is something to be aware of and it's of course something that we do pay attention to. It's of course connected to the general uncertainty in the world that we're seeing. What we are doing is that it becomes even more important for us to be active in choosing where we push sales efforts and marketing efforts and what markets and how we balance what we sell and what rugs we sell to get the best ROI. And on that note, I've said many times that we have seen that customers trade down when they come onto the site. And this is still in some cases true, but it really depends on what type of rug and what type of customer. So we have seen a shift that we sell a lot more handmade and that comes from more visually driven customers. So that really helps with balancing the AOV for this quarter. And then if we look a little bit more on our focus areas, the move is coming up. We've been talking about this for what, two years now? It's a very big move. Of course, the warehouse is the big move. So that will happen. We'll start early June with that. And then the office will move later in June. But that's, of course, a smaller part of this very big project. But we are moving to a lot more automated processes, et cetera, in the new warehouse. So we're also currently undergoing a lot of training and looking over how we work and so on. uh we are continuing to refine our assortment both in reviewing the total range what we have and what types of rugs we have and also uh we are being a bit more cautious in expanding our essential range which is our cheapest range that we have Customer journeys continues to be a huge focus for us and will continue to be a huge focus for a long time ahead. Being in the whole vertical means that we have a lot of different customers that want to buy different rugs. So the importance of guiding them to end up on the right side site part of the site is super important. we we can do this a lot by what we market and how we market and our search functions and the crm but there is still a lot of work when it comes to personalization on site and localization that that needs to be done um so you will hear me talk about this for a long time or hear us talk about it uh last but not least i want to mention our customer kpis that we continue to be very very proud of uh here you see the development this is trust pilot We did a shift in November where now we split. So before everyone just got the question, how do you feel about the whole purchase experience? From November, we actually split. So half of the questions go, what do you think about this specific rug? and half go to what you think about the whole experience. And this gives us a better indication on, for instance, qualities that are great or less great. So it gives us more granular feedback, which is really good for us. And that also means that we are now pushing more of the customers and hence you only see the Trustpilot score here to answer this. So we get more input and more feedback on that. And with that, over to you Joakim and some financials.