Bokusgruppen (BOKUS) Q2 2024 earnings summary

Executive summary

• Net sales increased by 2.4% to 350.3 MSEK in Q2 2024 and by 3.3% to 814.7 MSEK for H1 2024, driven by growth in both physical stores and online channels.

• Both Akademibokhandeln and Bokus saw growth in active customers.

• EBITA improved to -12.7 MSEK for H1 2024 from -19.4 MSEK year-over-year, with a net result of -35.0 MSEK, a 5.2 MSEK improvement.

• Key events include the acquisition of Bok & Co AB (six franchise stores) and the takeover of a Umeå franchise store, strengthening the store network.

• Launched the "Bokomloppet" service for used books and completed a major e-commerce logistics transition.

Financial highlights

• Net sales for Q2 2024 were 350.3 MSEK, up from 342.1 MSEK in Q2 2023.

• Gross margin improved by 0.2 percentage points to 42.8% in Q2 2024; H1 2024 gross margin at 41.2%.

• EBITA for Q2 2024 was -23.4 MSEK, nearly unchanged from -23.5 MSEK in Q2 2023; H1 2024 EBITA: -12.7 MSEK.

• EBITDA for Q2 2024 was 14.3 MSEK (12.3 MSEK in Q2 2023); H1 2024 EBITDA reached 62.0 MSEK (49.8 MSEK in H1 2023).

• EPS before dilution was -1.95 SEK in Q2 2024 and -2.17 SEK for H1 2024, both slightly improved year-over-year.

Outlook and guidance

• Focus remains on developing a new e-commerce platform, aiming for launch in early 2025.

• Anticipates a strong autumn with major book releases and key sales periods like back-to-school and Christmas.

• Economic conditions in Sweden are improving, with limited current impact from external uncertainties.

• 2024 is considered a transition year, with major investments in e-commerce expected to yield results in 2025.

• Long-term financial targets: 4% annual net sales growth, 8% EBITA margin, and 35% ROCE.