Bokusgruppen AB (publ) Interim Report January–March 2024

Comments from the CEO

Our success continued into the new year. Sales increased 3.9% over the year-earlier quarter, with Akademibokhandeln as the primary contributor, and earnings more than doubled. Several important steps forward were also taken during the quarter, in line with our strategic direction. At the same time, we updated our financial targets to focus on growth, profitability and a good return.

The positive sales trend continued during the first quarter with total net sales growth of 3.9%. As in the previous year, the increase was primarily due to Akademibokhandeln, which posted an increase of 6.0% in net sales. Bokus also increased its sales during the quarter, with net sales growth of 0.5%. It’s incredibly exciting that Bokus is continuing this positive trend from the previous quarter. The annual national book sale, an essential event in the quarter, was a success both for Akademibokhandeln and for Bokus, with more sales than in the previous year.

Our gross margins continued to develop positively and improved 1.6 percentage points compared with the year-earlier quarter. Continued price optimisation and positive channel, customer and product mixes had a positive impact on our gross margins.

Higher gross profit in combination with effective cost control meant that EBITA increased for the third consecutive quarter. The increase amounted to MSEK 6.7, corresponding to 164%.

Revised segment allocation

For the 2024 fiscal year, we have decided to revise our segment allocation. We have gone from three business segments to two. Akademibokhandeln Online and Akademibokhandeln Stores have been combined into one segment called Akademibokhandeln. Bokus Online remains unchanged, but has been renamed Bokus. After the change, our segments better reflect how we govern our operations in terms of business decisions. Akademibokhandeln has a single omnichannel offering with physical stores and online sales, and these are being increasingly integrated both internally and in our interactions with customers. Combining them into a single segment is simply logical.

Updated financial targets in line with our ambitions

Our financial targets have also been updated. We are to deliver healthy growth with a focus on profitability and a good return – our new financial targets are in line with these ambitions.

Since our original financial targets were established in connection with our listing in 2021, it has become clear that one of our strengths is our presence in a variety of channels and our ability to always meet customers where they want to shop. That is why we are transitioning from one growth target per channel to an overall growth target of 4%.

In the long term, we still see great growth potential online, but we are also prioritising the store network, which is continuing to perform well.

We achieved our EBITA margin target of 6% in 2023 and are now aiming even higher by establishing a long-term EBITA margin target of 8%.

To highlight and continue to focus on our good return on employed capital, we are adding a new performance measure in the form of return on capital employed (ROCE), with a target of 35%.

We simultaneously updated our Net Promoter Score (NPS) target for Akademibokhandeln and Bokus to more ambitious levels.

More details about our new financial targets are presented on page 10.

Focus on a competitive online shopping offering

During the beginning of the year, we took many important strategic steps forward. For some time, we have discussed the fact that we are in the middle of a transformation in our business-critical systems and that the final major step is our online shopping systems. After a thorough analysis and preparatory phase, we have now chosen a path forward, signed agreements with system suppliers and started implementation.

Shipping is another critical area when it comes to ensuring a competitive online shopping offering. To enable continued development of our offering to customers, we have chosen to change our online shopping logistics supplier to Postnord TPL, a market leader in the area in Sweden. Implementation will begin in early May.

A stronger store network

We also took steps forward to further strengthen the store network. We opened a new store in Tyresö Centrum in February and acquired a franchise store in Umeå in March. Transfer of the store in Umeå will begin in early May.

Strengthened by the positive trend for Akademibokhandeln, in terms of sales as well as the number of active customers and brand strength, we are actively reviewing opportunities to make additional investments going forward.

A climate report that shows we are on the right path

Our 2023 Annual and Sustainability Report was published in the end of March. In addition to interesting content about Bokusgruppen as a company, there is also information about our annual climate report.

We are very proud that we have taken clear steps forward – since 2020, we have reduced our greenhouse gas emissions a full 15%. This shows that we are on the right path and that our measures have been effective. Now we are further increasing this pace to reach our target of reducing greenhouse gas emissions 25% by 2026.

Outlook

With another very strong quarter behind us, we are heading into brighter times. Spring and summer are in the air and our customers’ finances will be eased by upcoming interest rate relief. Hopefully, this will create more demand for the products we sell later in the year.

We are fully focused on implementing both the new online shopping system and new online logistics, which will create the conditions for future growth in our online channels. At the same time, we are further strengthening our position in the retail channel.

We look forward to continuing to inspire our customers to enjoy reading and creativity.

Maria Edsman, CEO

Further information

For more information, please contact Maria Edsman, CEO Bokusgruppen, on +46 76 888 26 10 or Alexandra Fröding, Press Contact, on +46 70 775 27 83.

The Company is listed on Nasdaq First North Premier Growth Market. The Company’s Certified Adviser is Carnegie Investment Bank AB (publ).

Bokusgruppen AB (publ)
Corp.reg.no.: 559025-8637
Box 2100, 103 13 Stockholm, Sweden
Lindhagensgatan 126, plan 5, 112 51 Stockholm, Sweden
Tel: +46 10-744 10 00
Email: info@bokusgruppen.com