CDON announces interim report for 1 January – 30 June 2014.
16% sales growth and positive cash flow of SEK 72 million in Q2 Second quarter. Net sales were up 16%, amounting to SEK 1,110.9 (958.5) million. Including divested operations, net sales totalled SEK 1,110.9 (969.2) million. Operating profit, including divested operations and non-recurring items, amounted to SEK 35.0 (-48.9) million. Profit excluding divested operations and non-recurring items totalled SEK 0.0 (-5.6) million. Net income totalled SEK 21.2 (-44.7) million.
Earnings per share amounted to SEK 0.19 (-0.62). Cash flow from operations improved by SEK 36.2 million to SEK 72.2 (36.0) million. In the quarter, operations in Rum21 were divested for SEK 68.0 million, generating a profit of SEK 35.0 million First six months. Net sales rose by 13%, amounting to SEK 2,244.0 (1,990.9) million. Including divested operations, net sales totalled SEK 2,244.0 (2,020.3) million. Operating profit, including divested operations and non-recurring items, amounted to SEK 35.0 (-56.6) million.
Operating profit excluding divested operations and non-recurring items totalled SEK 0.0 (-9.8) million. Net income totalled SEK 17.1 (-62.0) million. Earnings per share amounted to SEK 0.15 (-0.92). Cash flow from operations improved by SEK 195.8 million to SEK -95.4 ( -291.2) million CEO statement Paul Fischbein, President and CEO, comments, “During the second quarter CDON Group continued to deliver in line with the company’s strategy: healthy growth and underlying improvements in earnings.
“The Group maintained sales momentum, and growth in the quarter was 16%, fuelled primarily by the Sports & Health segment, which grew by 26%, and Fashion, which saw a 23% rise in sales. In addition, Lekmer and Tretti displayed a continued healthy sales growth. Underlying cash flow from operations continued to improve during the quarter, amounting to SEK 72 million. Furthermore, operations in Rum21 were divested during Q2 for SEK 68 million, which generated capital gains of SEK 35 million.
“All the measures and initiatives that have been implemented within Nelly.com over the past two years are gradually starting to produce results; growth has returned and the operating margin has improved, partly due to a logistics upgrade and a higher percentage of sales of private label products. Launches in France, Belgium and Poland, and NLY Man, are also progressing according to plan.