Rugvista Group AB (publ)

Hi everyone, good morning and welcome to our Q1 2026 earnings call. So I am Ebba Ljungerud and Joakim Tuvner our CFO is here with me as well today. Today's presentation will as always start with a business run through and then more deep dive into the numbers by Joakim. But first, I would just like to point out that the images in the presentation today come from our outdoor campaign that we launched during the quarter. And as you might have read in the CEO world, that collection has started off really, really well. It has been growing for a couple of years, but we continue to see potential in that part of the business. So that's really nice. Going into the business update, we have continued double digit growth in the quarter with net revenue coming in at 212 million compared to 197 last year. So that's a 7.6% growth, which organically then ends up being 12.5%. we're very proud of this i have to say i think it's a really good result for us uh moving over to orders they ended up on 103 000 compared to 96.6 last year and looking at these charts you see that that's a 6.5 percent increase quarter on quarter and And rolling 12, we continue to grow over time, which of course is something that we want to do. So also happy with this result. New customers came in at 75,000 compared to 69,000 last year, so that's just above 8% growth on that metric as well. And then AOV, average order value, you've heard us talk a lot about that the last 18 months, ended up on 2,874, which looking at this chart you see is pretty much flat year on year, but if you take the foreign exchange effect into consideration, it's just above 5% growth. So that means that the top line growth came from more or less half orders, half average order value, which is it's nice for us to see the balance and see that we grow in both. You've heard me talk about before that we really want to balance these two. And we see that if one goes up too much, so to speak, it tends to have a negative effect on the other. So we want to balance them over time. We've made a lot of changes over the years and we actually yesterday launched a new AB test to try to improve AOV as well. So this continues to be something we work on and will always be something we work on. But we are very happy with having stabilized this as you can see for quite a few quarters now. Then moving a little bit further down in the P&L, we had a strong gross margin and also high marketing investments in the quarter. The gross margin ended up on almost 65%, 64% last year. This is in spite of increased freight costs. We can see it both in the carrier mix and in the carriers or the companies themselves having increased prices. Moving over to the marketing, it ended up on 32.3 versus 29% last year. 32.3 is definitely on the high side, but we started the quarter a little bit slowly. We saw momentum when we invested more, so we decided to increase the investment for the quarter. yeah i think this is something we've flagged many times this percentage goes up and down and um i think it's also relevant to point out that 29 percent lost q1 was very low uh but of course this is something that we keep our eye on and and the trajectory over time rolling, we want to trend slightly downwards. This in itself then led to sessions on site increasing by 23% to just above 14 million visits. We see this growth not stabilizing, but slowing down a little bit. You see it was 52% Q1 last year. This is, of course, because now we are comparing more like for like. We have shifted our marketing investments from being primarily Google to being much broader, which increased the sessions a lot. And now we're comparing a more similar quarter. But of course, we still want this to grow. This for us will lead to that conversion becomes a more and more important KPI for us to keep track of. Last year, you heard me talk about the average order value all the time. it we are increasingly looking at conversion and this has to do of course both with that we have stabilized the session so now we have similar comparisons but also that we see that the currently not that big increase in ai search but we see that it's growing and we all know that it's growing it looks like the efficiency in that group is is a little bit better which means that we will want to increase conversion rate over time Having said that, having this high average order value, average cart, tends to also bring slightly lower conversion rates just if you compare to other companies, because we just have a high average order value, basically. Yes. I think that was it on that point. And then EBIT we ended up on 23.9 versus 27.2 last year. So that's a margin of 11.3 and last year was 13.8%. This quarter as well, we have seen an FX effect that you will go into more detail. So that drives the results quite a bit. And then of course also there's marketing spending there. Looking at the markets and the customers, Different markets continue to differ how much they grow. And we are quite happy with our strategy that we move investments to the markets where we see the best exchange. This quarter, France was a very strong growth growing around just above, I think, 12%, which is out of the bigger markets, one of the higher growth numbers. And I think it's worth pointing out that we will continue this strategy to move money. So we're not so focused on one individual market growing at a certain pace. It's much more about how the portfolio of markets grow. Looking at the consumer confidence, it's positive. continued stable low, I would say, in the quarter. This is not so strange considering the state of the world, but we also see that it's, we have seen some numbers for April, right Joachim? Yes. Yeah, and they are also continuously quite low, so of course there is a concern in the world which affects the consumers. And then looking at what we see more due to what the state of the world is, the war in Iran affects us both really for the prices for the oil that we need both for our machine-made rugs, but also for the freight. So that's of course something that we keep very, very close track of. And then we see a lot of movements thanks to, or maybe, because of AI and for us it means a lot of opportunities, but of course also some challenges when our customers are moving to different types of search and how they find us. We think that we are in a pretty good place. We have changed the whole structure of our site in the past year to more adapt to this, and we see good effects of that. But of course, this is something that is incredibly important, both in how we work in the company, but also how we build our tech stack and how we work with the different networks that are out there for getting customers in to the site. And then we have continuously stable and high Trustpilot scores. We are on 4.6 for the quarter. You might remember that I said in the Q4 report that we had some challenges in the warehouse over peak. It was a lot of rugs going out and that spilled over a little bit into Q1. So we're very happy that we have managed to keep this up going forward. And this will also be a very high focus for us, both because we think it's very important. We want to live by our purpose to help people to whom they love, but also because we know that these types of indicators are very important in the AI search tools. So with that, I hand over to you, Joakim.

Thank you, Ebba. And as you said, yet another quarter with a double digit organic growth. So in local currencies, we grew by 12.5%. And as you can see here, the negative currency impact, then it was 4.9%. So when you look at the right here, you need to add on another 4.9 to get to the organic growth number. So DACH grew by 17.2, hence 22, about 22 in local currency. And the biggest region here is Germany that grew by 10.5%. The Nordics grew by 9.6%, and then Sweden, without a currency effect, of course, grew by 6%. The rest of the world was growing 3.2%, and the biggest market there is France.

And in general, it's mainly Europe, right?