Sales skyrocket at CDON Group in H1

Second Quarter

· Net sales up 38% year on year to SEK 952.1 (689.1) million and organic growth of 25%

· Gross profit of SEK 109.0 (126.4) million with a gross margin of 11.4%; when excluding non-recurring items of SEK -33,9 million the gross margin is 15.0%·

· Operating profit of SEK -43.5 (19.1) million and operating margin of -4.6%; when excluding non-recurring items of SEK -37.7 million the operating margin is -0.6%

· Net income of SEK -37.1 (10.4) million

· Basic earnings per share of SEK -0.54 (0.16)

Half Year

· Net sales up 51% year on year to SEK 1,906.4 (1,260.9) million and organic growth of 33%

· Gross profit of SEK 244.6 (236.3) million with a gross margin of 12.8%; when excluding non-recurring items of SEK -47.9 million the gross margin is 15.3%

· Operating profit of SEK -55.6 (39.2) million and operating margin of -2.9%; when excluding non-recurring items of SEK -51.7 million the operating margin is -0.2%

· Net income of SEK -50.1 (23.1) million

· Basic earnings per share of SEK -0.72 (0.35)

CEO’s statement Paul Fischbein, President and CEO of CDON Group commented: “The second quarter was another strong growth quarter for CDON Group with a sales increase of 38%. We continue to grow faster than both the traditional retail and online market, thereby strengthening our position in the e-commerce market.”

“During the second quarter, we worked intensively to consolidate CDON.com as the leading internet shopping mall in the Nordic region. Tretti.com’s assortment of white goods, household appliances and outdoor products were recently added to CDON.com, further strengthening our consumer offering. At the same time we are creating opportunities for other group companies to capitalize on CDON.com’s leading market position in the Nordics.”

“We performed one of our largest internal re-organisations ever in the period, as we moved the entire Nelly.com warehouse operations. This was a necessary measure that made a considerable impression on the Fashion segment’s results in the quarter, both through higher than expected moving costs but also through a decreased growth rate in the period.

“We have now recruited a new management for the Group's Fashion segment which, combined with our new and more efficient warehouse, makes us a well positioned as we again accelerate our marketing efforts. At the same time we will continue to fine-tune our internal processes.”

CDON Group AB