Rugvista Group AB (publ)

So, excuse me. Good morning, everyone, and welcome to this Q4 quarter earnings call. My name is Ebba Ljungerud, and Joakim Tøvner, our CFO, is here as well. I would like to start out with, as I always do, talk a little bit about the images you'll see in this presentation. This is some news from one of our top-selling lines, Handloom Fringes, and hand loom flat weave that we make in India. And we have launched quite a few new pastel colors and shapes that you will see here in the upcoming slides. Really nice, I think. For the presentation, the structure is just as per usual. I will start with the business update and then Joakim will go a little bit deeper into the numbers. And then of course, we end with a Q&A. So if we start with the business, first of all, I think happy to say we're very proud of this quarter. Once again, we saw good growth with quite a lot tougher comparables. It's by some margin our best quarter ever, and we have all time highs in very many of our KPIs. Topline grew by almost 10%, 9.9% to 270 million. If we look at the organic growth, that represented just above 15%. And the year as a whole ended on 784 million, which is very nice to see a growth year for us. Very broad sales we sold in all of our segments, everything from very exclusive and expensive unique rugs to handmade rugs and also our machine-made rugs. So it was a good quarter overall. Looking at the orders, they increased to almost 130,000. And here we can see a bit more detailed on quarter by quarter development. This also is by a good margin are an all time high for us. And if you look at the rolling 12 months, it continues to go up. These comparables, as a lot of our comparables, are tougher and tougher, but we see that we are doing a lot of good things in our marketing that really brings in the orders. If we look at new customers, almost 92,000, that means we had a high amount of returning customers. 72% returning customers, which is actually on the high side for us, especially if you think about that it was the black quarter, black month and black week where we normally have a lot of new customers coming to us. And then the average order value, this you've heard me talk a lot about over this past year. Very happy to see that it's stable, even up a little bit. I think it was around 2% in March. in the report, but if you look at the local currencies it's almost 8%. This has been a long journey and now we see that we are getting the results even in this very discount driven quarter. We've made a lot of changes on site, we've made a lot of changes in how we market and what we market etc. This has definitely not been a quick fix and not just a silver bullet, but many different things. And we will continue to work on this going forward. And I'm sure we'll see it fluctuate, but we feel like we're on a good trajectory to keep it on a stable level. And here you can see a little bit more how it's developed over time. So you see that there was a very big drop in 23 and then it's gone down a little bit, but now it's been stable to up the past year. Moving over to the profitability, stable profitability, despite this very expensive black month. And also, as for those of you who read the report already know, we've had some fx wins against us in the quarter the gross margin ended up at 63.1 so that's up by one percent quite high discount rates as I said but the discount rates were even a little bit higher actually when we were selling out our our old inventory ahead of the move. And if we look at the year, the gross margin also increased year on year 63.3 versus 62.2 last year. Marketing then decreased to 32.3%. It's still by good margin, our most expensive quarter of the year. We have pointed this out before, but I think it is, It is interesting to reflect a little bit on that. We, as a lot of other companies, we rely very heavily on this quarter and very heavily on the black period. And of course, it's interesting to look at how we can reduce that dependency over time. But for us, it will continue to be a very important quarter. And this, of course, comes from the Black Month, but it also comes from that it is a good quarter for interior design and sprucing up your house, basically. The marketing led to a 25% increase in sessions. So that's almost 17 million sessions compared to 13.5 last year. We see that the growth is a little bit slower going forward. And this has to do with that more than a year ago. Now we shifted our marketing to being much higher up in the funnel, which does increase the sessions quite a bit. But now we have more like for like comparison when we go forward. But of course, we still intend to increase our visits to the site over time. And then if we look at the EBIT, 32.2%, sorry, million, so up year on year by also around 10%, and the margin was 11.9, which is the same as last year. I think it's worth mentioning here that there is a big negative impact on this, which comes from the re-evaluation of our assets. And it's mainly cash, right, Joakim?

Yeah, on the asset side, yes, it is.

And that's what's impacting it, yes. And without that effect, the growth would have been almost 18% for this quarter. Looking at the markets and the customers, we differentiate a lot in the markets and this also has to do with our marketing strategy. You can see here how it jumps from quarter to quarter. This slide shows the net revenue growth in percentage change year on year, so the quarter a year ago, basically, because obviously we shift so much from one quarter to the next, so it's not so relevant to look at the quarter by quarter. But here you can see that all these three big countries, Germany, Sweden and France, they did well in the quarter, but it does differ a lot quarter to quarter. And France has been very tough in the beginning of the year, and then it's actually ended up very strongly. And that will happen. And it has to do, of course, with the sentiment in the markets that we look at in the next slide, but also that we shift our budgets and our investments to where we see the best return on investment. So we don't have a strategy that we have to grow in a specific market like Sweden, for instance. And if we look at the customer sentiment, it does continue to fluctuate and actually be quite low. You see here, Germany is even down a little bit. Both Sweden and France are sort of low-ish stable. And we are waiting for this to change, but every time we see some indication that it will change, something happens from a geopolitical point of view that makes it very hard for us to impact. So for us, it's important to work on an individual market level, really, no matter what the consumer sentiment is. We, of course, value our Trustpilot score very much. It continues to be stable and high, 4.6, a little bit lower than before, which of course is not what we want. Since we moved in the summer, the warehouse has worked very, very well, but it was clear during peak that it is a big strain on the warehouse. And we saw some impact from that, I think, in the Trustpilot score. This is very important to us, so it will definitely be a theme going forward to make sure that this stays on a stable level and ideally goes up a little bit. Yes. And with this quarter and me having been on board now for more than a year and our management team being very aligned together with our board. We have decided to restate our financial targets. The ones we used to have were from the IPO 2021. And I think it's fair to say that that was a bit of a strange pandemic year when it was hard to judge exactly what the growth level was in the market. Our new targets are long-term double-digit organic growth on top line. and continue to have the 15% EBIT target on the profits. And we think that the double digit is realistic, tough, but realistic, and it's gonna fluctuate over time. And it's not gonna be every quarter or possibly even every year, but we do see that that's very doable for us. And when it comes to the EBIT, it's been a long time since we were on those levels, but we also see that with growth, we think that it's reachable for us. And then I'm also very happy to be able to announce that our board is presenting to the AGM a very large for us record dividend. Last year we stuck to our normal dividend policy which is 50% of the net profit but that was very much because we were going into this big move project and also we wanted to make sure that we had enough supply and enough inventories for our peak period. And I think it's fair to point out also that we have changed the strategy when it comes to our inventory as well that we have now all of our top sellers, we have larger volumes on them. So we make sure we don't run out. But anyway, this led to that we this year felt that we have finalized the move, we have changed our inventory strategy, and we're happy with that. So with this, the board have suggested the normal 50% net profit, which is 1.5 SEK, and then an extra dividend of 3.5 SEK, so altogether 5 SEK. And with that, I hand over to you, Joakim.