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Odd Molly International AB (publ)
Stockholm, Sweden, October 19, 2016
Continued growth with increased profitability
January 1 - September 30, 2016
· Total operating revenue amounted to SEK 336.7 million (269.5), an increase of 25 percent.
· The gross profit margin was 54.5 percent (54.5).
· Operating profit amounted to SEK 24.8 million (15.2).
· Net profit amounted to SEK 16.9 million (12.3).
· Earnings per share amounted to SEK 2.94 (2.13).
July 1 - September 30, 2016
· Total operating revenue amounted to SEK 137.6 million (112.1), an increase of 23 percent.
· The gross profit margin was 53.8 percent (54.2).
· Operating profit amounted to SEK 18.8 million (11.9), an increase of 58 percent.
· Net profit amounted to SEK 13.9 million (9.6).
· Earnings per share amounted to SEK 2.42 (1.66).
Events during and after the quarter
· In September an Odd Molly store was opened in Bratislava, Slovakia, through a local partner.
· In September an Odd Molly pop-up shop was opened in A6 Center in Jönköping.
· Another two stores and a shop-in-shop through partners are expected to open later during the autumn in the US.
Comment from the CEO
It is very encouraging that Odd Molly continues to grow and reports a revenue increase of 23 percent for the third quarter. It is even more encouraging that we do so with increased profitability. Operating profit for the third quarter increased by SEK 7 million to SEK 18.8 million compared with the previous year, generating an operating margin of 13.7 percent for the quarter and 7.4 percent for the nine-month period.
Growth is mainly driven by our own retail operations, which accounted for 44 percent of sales in the first nine months, with the web shop leading the way.
We live in a constantly evolving world with changing consumption patterns. From the start our focus has been on the customer in terms of which products she wants and how she wants to buy them. We have to be where our customer wants us. Today many people shop online, so we have focused in recent years on being really good in e-commerce. And it’s evident in our sales.
We are convinced that all our channels strengthen each other, and that one doesn’t necessarily cannibalize the other. Just the opposite. We are committed to and proud of our retailers and our inspiring stores. Everything fits together. When we or a partner open a physical Odd Molly store, it is also reflected in digital sales. Odd Molly is very much a business that’s constantly developing with a concept that works in various channels, forms and collaborations.
Odd Molly takes a modern approach with flexible solutions and a business model where decisions to open new stores are based on how we can best drive profitable growth. One example is the Odd Molly store in Prague, where our external partner was able to tap a wealth of experience and deep understanding of the market to also open a store in Bratislava. Another two stores and a shop-in-shop through partners are in the works in the US and are expected to open before Christmas.
To conclude, I would like to remind of the fact that Odd Molly’s fourth quarter is seasonally weaker then the third, which this year showed very healthy growth, with sales on an all-time high on a rolling 12-month basis, increased profitability and further steps internationally. We are on our way!
Anna Attemark, CEO
Please see the full report in the attached PDF file.