Desenio Group AB (publ) Half Year Report January June 2024

During Q2, net sales decreased by 10% to SEK 166.0 million while EBITA increased by 31.5% to SEK 6.3 million. Cash flow from operating activities amounted to SEK -48.0 million.

SECOND QUARTER

• Net sales decreased by 10% to SEK 166.0 (184.5) million.
• Gross margin for the quarter was 83.6% (84.0%).
• Operating profit (EBIT) amounted to SEK 5.7 (-4.2) million, corresponding to an operating margin of 3.4% (-2.3%).
• EBITA increased by 31.5% to SEK 6.3 (4.8) million, corresponding to an adjusted EBITA margin of 3.8% (2.6%).
• Profit before tax was SEK -22.8 (-17.4) million.
• Cash flow from operating activities amounted to SEK -48.0 (-37.7) million.
• Earnings per share was SEK -0.16 (-0.12).

JANUARY - JUNE

• Net sales decreased by 11.2% to SEK 394.9 (444.8) million.
• Gross margin for the period was 83.7% (84.2%).
• Operating profit (EBIT) amounted to SEK 24.7 (28.9) million, corresponding to an operating margin of 6.3% (6.5%).
• Adjusted EBITA was SEK 29.2 (46.9) million corresponding to an adjusted EBITA margin of 7.4% (10.5%).
• Profit before tax was SEK -26.7 (-8.2) million.
• Cash flow from operating activities amounted to SEK -67.2 (4.9) million.
• Earnings per share was SEK -0.21 (-0.08).

SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD
The dialogue with Desenio Group's bondholders continued during the second quarter. As part of the discussions, Desenio Group's expected future financial development was made public on 15 July. For the full year 2024, net sales is expected to decrease by 5-10% compared to 2023 and the adjusted EBITA margin to be 11-13%. For the full year 2025, net sales growth is expected to amount to 0-5% and the adjusted EBITA margin to be 11-14%.

On July 15, Desenio Group's board decided on updated financial targets: - An organic annual net sales growth of >5% in the medium-term. - Improve the adjusted EBITA margin to >15% in the medium-term.

Webcast
A webcast - in English - will be held 16 July at 09.00 CEST. Fredrik Palm, CEO, and Anna Ståhle CFO will present the Quarterly Report. If you wish to participate via webcast, please use the link below. Via the webcast you are able to ask written questions. https://ir.financialhearings.com/desenio-group-q2-report-2024/register

If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50048685

Financial reports
The interim reports are available on the website: www.deseniogroup.com

For further information, please contact:

Fredrik Palm, CEO, [email protected], +46 70 080 76 37
Anna Ståhle, CFO, [email protected], +46 70 922 10 21
Johan Hähnel, Head of IR, [email protected], +46 706 05 63 34

About Desenio Group

Desenio Group is the leading e-commerce company within affordable wall art in Europe, with a growing presence in North America. We offer our customers a unique and curated assortment of about 9,000 designs as well as frames and accessories in 37 countries via 44 local websites and are steadily expanding to new markets.

Desenio Group is well positioned to build upon our dynamic growth model, including our proprietary technical platform, industrialized creative processes and efficient customer acquisition approach.

We are headquartered in Stockholm, Sweden, with fulfilment centres in Sweden, Czech Republic and USA. Our share is traded on Nasdaq First North Growth market, under the ticker "DSNO".

This information is information that Desenio Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-16 07:00 CEST.

Certified Adviser

FNCA Sweden AB is the company's certified adviser.