STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
61% YEAR ON YEAR SALES GROWTH IN THE THIRD QUARTER
CDON Group AB (publ.)(STO:CDON) ("CDON Group” or “the Group") (NASDAQ OMX Stockholm’s Mid Cap market: CDON) today announced its financial results for the third quarter and nine months ended 30 September 2011.
Third Quarter Highlights
- Net sales up 61% year on year to SEK 826.4 (513.7) million with an organic growth of 33% (29%)*
- Gross profit of SEK 136.5 (93.0) million with a gross margin of 16.5% when excluding non-recurring items
- Operating profit of SEK 33.7 (30.8) million and operating margin of 4.1% when excluding non-recurring items
- Net income of SEK 11.5 (19.3) million
- Basic earnings per share of SEK 0.18 (4.05)
Nine Months Highlights
- Net sales up 45% to SEK 2,087.3 (1,441.1) million with an organic growth of 31% (27%)*
- Gross profit of SEK 372.8 (281.2) million with a gross margin of 17.9% when excluding non-recurring items
- Operating profit of SEK 77.6 (96.5) million and operating margin of 3.7% when excluding non-recurring costs
- Net income of SEK 34.6 (64.2) million · Basic earnings per share of SEK 0.53 (32.76)
- Acquisition of white goods and household appliances e-retailer Tretti AB for SEK 346 million in June
* Excluding Tretti AB and Rum21 AB
Mikael Olander, President and CEO of CDON Group, commented: “I am very pleased to report another record quarter for CDON Group. While we undertake substantial investments in geographical expansion and in new businesses, we deliver our strongest third quarter ever, in terms of both revenue and profit, adjusting for one-off costs.“
“All our four business segments continue to grow fast and contribute to the Group's profitability. The record sales growth shows our ability to develop our operations, acquire and launch new online stores and to expand into new markets, while maintaining profitability. During this year we have acquired two businesses. In the third quarter we also launched a new business, the shopping-club Members.com.“
“We continue to invest heavily in the development of all our existing companies. The ongoing expansion of the Sports & Health segment in Denmark, Norway and Finland contributes to the segment's continued high growth and the ongoing shift from media products towards consumer electronics in the Entertainment segment also strengthened the Group’s revenues during the third quarter. Both the Fashion and the Home & Garden segments continue their geographic expansion with the Nordic roll-out of Tretti.se and the launch of Nelly.com on 20 new markets in the European Union, which is a first step towards a global launch of Nelly.com. We have also during September and October rolled out the online furniture and interior decoration retailer Rum21 in all Nordic countries.“
“We still expect to deliver a slight year on year increase in the underlying Group operating margin for the full year 2011, when adjusted for acquisitions, launches, expansions and the costs of being an independent listed company. However, a continued faster than expected growth of consumer electronic products within the Entertainment segment could render a revision.”
“We are on track regarding sales, gross margins and EBIT levels and look forward with confidence to Q4 - historically CDON Group’s strongest quarter of the year."
17 October 2011
Mikael Olander,
President & CEO
CDON Group AB
Bergsgatan 20
Box 385
SE-201 23 Malmö
Corporate
ID number: 556035-6940
The company will host a conference call today at 15.00 Stockholm time, 14.00 London time and 09.00 New York time.
| To participate in the conference call, please dial: | ||||
| Sweden: | +46 (0)8 5593 6764 | |||
| International: | +44 (0)20 3106 4822 | |||
| US: | +1 646 254 3361 |
The access pin code for the conference call is 9438653.
To listen to the conference call online, please go to www.cdongroup.com.
About CDON Group
CDON Group is the leading e-commerce group in the Nordic region. Established in 1999, the Group has continuously expanded its product portfolio and is now a leading e-commerce player in the Entertainment (CDON.COM, BookPlus.fi, Lekmer.com), Fashion (Nelly.com, Heppo.com Members.com), Sport & Health (Gymgrossisten.com, Bodystore.com) and Home & Garden (Tretti.com and Rum21.se) segments. CDON Group’s nine online stores attracted approximately 115 million site visits and two million unique customers in 2010.
The information in this announcement is that which CDON Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 13:00 CET 17 October 2011.
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