Odd Molly International AB (publ)
Stockholm, Sweden, August 16, 2018
April 1 – June 30, 2018
- Total operating revenue decreased 7 percent to SEK 76.3 million (82.0).
- The gross profit margin was 57.6 percent (57.6).
- The operating loss was SEK -11.9 million (-7.5).
- The net loss amounted to SEK -10.3 million (-6.6).
- Earnings per share amounted to SEK -1.78 (-1.15).
JANUARY 1 – June 30, 2018
- Total operating revenue decreased 13 percent to SEK 181.8 million (208.1).
- The gross profit margin rose to 55.6 percent (55.4).
- The operating loss was SEK -18.6 million (0.0).
- The net loss amounted to SEK -17.0 million (-1.9).
- Earnings per share before dilution amounted to SEK -2.95 (-0.34).
- Earnings per share after dilution amounted to SEK -2.95 (-0.32).
EVENTS DURING AND AFTER THE QUARTER
- The share issue with pre-emption rights and overallotment issue were completed in June and provided the company with proceeds of SEK 35.3 million after issue costs.
- As of June 30, 2018 the share capital in Odd Molly amounts to SEK 841,933 and the total number of shares in the company is 8,419,333.
- New CEO, Deputy CEO and head of business development in the company’s management team.
Comment from the CEO
Fully focused on the future
Now that I am taking over as CEO, I fully focus on what’s ahead, on leveraging the concept work that has been done and rolling out Odd Molly in the world. The transformation of the company will continue at a high pace. The most important areas are to strengthen the company’s digital presence and growth, where we have a strong starting point, and to create the right conditions for an acceleration of the international sales. This, in combination with higher cost efficiency, optimized processes and reprioritization of resources, will over time generate results in form of increased growth and profitability, after a period of transformation.
How will Odd Molly succeed in accelerating international growth?
We have shown that we can accelerate growth and brand awareness if we take a comprehensive approach to the market: where a strong digital and selected physical presence provide improved conditions to drive sales in all distribution channels. A lot of energy has been devoted in recent years to creating a distinctive lifestyle concept and developing new categories and types of products. At the same time, we have been well ahead in transitioning to online sales, which is an area I am passionate about and where we have already made a great deal of progress, especially in Sweden. Now we are ready for the next step.
We need the right organization to get things done, and I am pleased that we can jumpstart the fall season with several key positions in place. Sara Fernström is our new Deputy CEO, charged with updating the business model to more of a digital focus and larger partner networks, and creating opportunities for increased international sales. We have also strengthened our team with a new international sales director and a head of business development to ensure that our expansion plans are executed wisely, through efficient processes, to generate the best return.
We have a strong concept and the right people in place to take the next step. However, the transformation and an increased share of sales generated from our own channels, particularly through our own web shop, also require capital. I am very pleased therefore that Odd Molly completed a successful, fully subscribed new share issue in June, which enables us to implement our strategy.
What happened in the quarter?
The second quarter is Odd Molly’s seasonally smallest. Revenue decreased by 7 percent compared to the same period last year. The slower sales development is primarily due to the challenges faced by the physical stores in Sweden. The percentage of digital sales – through our own web and those of other web retailers – is now well over 40 percent.
We have taken many proactive marketing initiatives, highlighted by Queens of Pop this summer. Odd Molly was the main sponsor of this music festival, which featured only female artists. The festival’s mission – to connect people in an inspiring and loving atmosphere for a more respectful community – fits in well with our ideas and how we see Molly and our environment.
What’s next on the agenda?
We have been clear that we want to increase sales in the international market. Today close to 70 percent of our sales is in Sweden. We are of the opinion that Odd Molly’s style and concept is at least as attractive in the global market as in the Swedish. With new strategic actions and new competences, we are eagerly looking forward to this.
We remain committed to our home market, not the least with a digital focus, and are critically evaluating our own physical stores presence, where decisions to close a number of stores already have been made.
We are fully focused on getting the most out of the groundwork that has been laid and reaching out to the rest of the world with our strong concept and brand. Everything is connected, and with a comprehensive approach, more international competence, a capital reinforcement, cost focus and lots of new energy we are sure to find more Mollys in the world.
Jennie Högstedt Björk, CEO
Please see the full report in the attached PDF file.