Rugvista Group AB (publ) has published is Interim Report for January to June 2024. 'We continue to see that the purchasing power of European households is weak and that their buying behaviour is characterised by a large focus on price and discount offers,' says Comments from Michael Lindskog, CEO.
'Despite the challenging market conditions, we grew the number of orders by double digits compared to last year. We also improved the gross margin as well as marketing spend efficiency compared to the first quarter of the year.'
Photo: Rugvista
In the second quarter net revenue was SEK 128.4 (129.1) million, corresponding to a decrease of -0.5% (6.5%). Operating profit amounted to SEK 2.4 (11.8) million, and profit for the period amounted to SEK 2.6 (10.2) million.
Lindskog continues, 'EBIT for the quarter was SEK 2.4 (11.8) million representing an EBIT margin of 1.8% (9.1%). That the EBIT margin decreased, despite improved variable profitability compared to last year, was to a large extent attributable to reorganization costs of one-off characteristic and a negative outcome in the line item "other operational expenses" which is driven by currency effects.'
'During the quarter, we paid out SEK 1.80 per share to our shareholders in accordance with a decision by the Annual General Meeting. With SEK 155 million in liquid assets and the fact that we do not have any debt to financial institutions, we have a strong financial position which is a reassuring starting point considering the uncertain market conditions.'
'We continue working toward the vision of becoming the centre of gravity for the European rug industry. Focus areas during the quarter included preparations ahead of our move into our new warehouse, logistics and office facility, continued development of the user experience in our web shops, and the integration of a new email marketing platform.'
'Despite the challenging market situation, we remain focused on effectively navigating the conditions and preparing for this year's peak season. We look forward to, are prepared for, and have the capabilities to capture demand once the purchasing power of the European households improves.'
'I am convinced that a balance between navigating the current market conditions in parallel with continuing the work to improve our customer offering and organization gives us the best possibilities for profitable growth both in the short- and long-term.'
More information:
Rugvista
www.rugvistagroup.com