Desenio Group, famous for its prints and posters, recently published its half-year report for January to June 2024, revealing notable financial results and strategic developments. In the second quarter alone, the company experienced a 10% decline in net sales, amounting to SEK 166.0 million, while achieving a significant increase in EBITA by 31.5% to SEK 6.3 million. Despite these gains, cash flow from operating activities recorded a deficit of SEK -48.0 million, reflecting ongoing operational challenges.
Photo: Desenio Group
Throughout the second quarter, Desenio Group reported a gross margin of 83.6%, slightly down from 84.0% in the comparative period. Operating profit (EBIT) stood at SEK 5.7 million, a positive shift from a loss of SEK -4.2 million previously, resulting in an operating margin of 3.4%. The company's adjusted EBITA, a key metric indicating profitability, rose to SEK 6.3 million with an adjusted EBITA margin of 3.8%. However, despite these improvements, profit before tax remained negative at SEK -22.8 million, influencing the overall financial outlook for the quarter.
For the first half of the year (January to June), Desenio Group reported a decline in net sales by 11.2% to SEK 394.9 million compared to SEK 444.8 million in the previous year. The gross margin for this period was 83.7%, slightly lower than 84.2% previously. Operating profit (EBIT) amounted to SEK 24.7 million, reflecting an operating margin of 6.3%, down from 6.5% in the prior year. Adjusted EBITA for the period was SEK 29.2 million, with an adjusted EBITA margin of 7.4%.
Looking ahead, Desenio Group anticipates further financial challenges in 2024, projecting a 5-10% decrease in net sales compared to 2023 and targeting an adjusted EBITA margin of 11-13%. For 2025, the company aims for modest net sales growth of 0-5% and an adjusted EBITA margin of 11-14%. Recent decisions by the board underscore a strategic shift towards achieving organic net sales growth exceeding 5% in the medium-term and improving the adjusted EBITA margin to over 15%.
Desenio Group operates primarily in the e-commerce sector, specializing in affordable wall art across Europe and expanding into North America. With approximately 9,000 unique designs available through 44 local websites in 37 countries, the company continues to enhance its market presence and broaden its product offerings to meet evolving consumer demands.
More information:
Desenio Group
www.deseniogroup.com