Bokusgruppen AB (publ) Interim Report January–June 2024
21 Jul, 2024, 21:55
Continued sales growth and acquisition of new stores
Q2 2024
· Net sales increased 2.4% to MSEK 350.3 (342.1)
· The gross margin increased to 42.8% (42.6)
· EBITA increased to MSEK -23.4 (-23.5)
· The Group’s net loss amounted to MSEK -31.5 (-31.4)
· Earnings per share before dilution amounted to SEK -1.95 (-1.94)
January–June 2024
· Net sales increased 3.3% to MSEK 814.7 (789.0)
· The gross margin increased to 41.2% (40.2)
· EBITA increased to MSEK -12.7 (-19.4)
· The Group’s net loss improved by MSEK 5.2 to MSEK -35.0
(-40.2)
· Earnings per share before dilution improved to SEK -2.17 (-2.49)
Significant events in the quarter
· Acquisition of Bok & Co AB, which operated six franchise stores in the Gothenburg area.
· Ownership transfer of the previously acquired franchise store in Umeå.
· Move to our new online logistics partner.
· The Bokomloppet service, where customers can drop off used books, was launched at Akademibokhandeln.
Comments from the CEO
The positive trend of increased sales and improved margins continued in the second quarter. Both Akademibokhandeln and Bokus reported increased sales, with the largest growth in Akademibokhandeln’s online channel. Six additional franchise stores were acquired by Akademibokhandeln during the quarter and the move to a new online logistics solution was successfully completed.
Total sales increased 2.4% during the second quarter. Akademibokhandeln once again accounted for the largest sales increase during the quarter at 2.8%. Physical stores noted a sales increase of 2.0%, while online sales accounted for a full 14.0% increase.
Bokus posted a net sales increase of 1.6%. Consumer sales and Bokus Play performed well, while the long-term negative trend in course literature and sales to businesses continued.
In addition to increased sales, Akademibokhandeln and Bokus both had a higher number of active customers during the quarter, which is the welcome result of our dedicated efforts to attract more customers.
It is also positive to note that our online channels had such an impressive sales trend, despite a certain impact from the move to a new logistics partner in April and May, since sales campaigns and other sales-driving initiatives needed to be minimised to reduce costs.
The quarter was charged non-recurring costs for the move to the logistics solution. Despite this, our margins improved and EBITA was unchanged from the year-earlier quarter. LTM return on capital employed (ROCE) improved 1.1 percentage points to 30.6% as a result of the positive earnings trend.
Even stronger store network after acquisition of franchise stores
Bok & Co AB and its six franchise stores in the Gothenburg region were acquired at the end of the quarter. Bok & Co AB generated approximately MSEK 60 in sales in 2023 and is profitable. I’m very pleased to be able to welcome these stores and their employees to Akademibokhandeln. They make our network of centrally owned stores even stronger and ensure our continued presence in several important locations. The ownership transfer of Bok & Co AB was completed in the beginning of July.
The ownership transfer of the previously acquired franchise store in Umeå was also completed in May.
These two acquisitions further strengthen Akademibokhandeln, and the store network now consists of 77 centrally owned stores and 18 franchises. Akademibokhandeln will retain the option of operating stores as a franchise, since this will allow the brand to establish a presence in several important locations in the country. The franchise concept is well-established and works well, and contributes to Bokusgruppen’s earnings. However, additional acquisitions of franchise stores or other related operations are not out of the question and may occur as opportunities arise.
Continued focus on online shopping
Development of the new online shopping platform continued during the quarter. The ambition is to launch the platform in the beginning of 2025. The new platform will improve the customer experience, enable faster and more cost-efficient business development, and provide better, easier-to-use work tools to make our employees more efficient. This is a major initiative for the year that also entails higher investments for the quarter, and the full year, than last year.
To further improve our online shopping offering, we also completed our move to a new logistics provider during the quarter. We are now back to normal operations, and even early in the startup phase we were able to successfully deliver to customers and generate a positive trend in terms of our Net Promoter Score (NPS) and other performance measures. Our focus going forward will be on increased productivity and thereby lower costs while simultaneously improving the customer experience.
New service increases reuse of books
The new Bokomloppet service was launched in all of our stores during the quarter. The service allows our customers to return books in exchange for a gift card that can be used in stores or online. Customers value the books online and then bring them to be checked at the store. The books are then sold to new owners through our partner. The service has quickly become incredibly popular among our customers and has helped them make room for new reading experiences, while more books enjoy a longer life.
During the quarter, we also had a broad focus on sustainability with additional preparations ahead of the new Corporate Sustainability Reporting Directive (CSRD). We also launched a major initiative to promote writing among children and young people under the name Vässa Pennan.
Outlook
Books are becoming increasingly visible, especially with the younger generation, for whom buying and reading paperbacks has become trendy. We can see this reflected, for example, in the growing number of young people joining Akademibokhandeln’s loyalty club. This is an encouraging trend with positive effects for our business as well as society and I hope that it will continue and grow over time.
A summer with a lot of reading and board games awaits our customers. We are preparing for the busy autumn season with major book releases and important sales periods, such as the beginning of the school year and Christmas.
Have a great summer!
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