Selskabsmeddelelse

Desenio Group AB (publ) – Year-end Report January – December 2024

During Q4, net sales decreased by 8.6% to SEK 268.8 million while the adjusted EBITA margin increased from 12.8% to 20.1%. Cash flow from operating activities amounted to SEK 48.1 million.

FOURTH QUARTER

Net sales decreased by 8.6% to SEK 268.8 (294.2) million.
Gross margin for the quarter was 87.0% (84.2%).
Operating profit (EBIT) amounted to SEK 49.5 (-220.0) million, corresponding to an operating margin of 18.4% (-72.2%).
Adjusted EBITA was SEK 54.1 million (37.7), corresponding to an adjusted EBITA margin of 20.1% (12.8%).
Profit before tax was SEK 26.0 (-254.8) million.
Cash flow from operating activities amounted to SEK 48.1 (29.6) million.
Earnings per share was SEK 0.12 (-1.71).

JANUARY – DECEMBER

Net sales decreased by 11.5% to SEK 856.2 (967.2) million.
Gross margin for the period was 85.1% (84.0%).
Operating profit (EBIT) amounted to SEK 96.0 (-175.0) million, corresponding to an operating margin of 11.2% (-18.1%).
Adjusted EBITA was SEK 106.7 (109.7) million, corresponding to an adjusted EBITA margin of 12.5% (11.3%).
Profit before tax was SEK -6.8 (-273.6) million.
Cash flow from operating activities amounted to SEK -16.8 (43.6) million.
Earnings per share was SEK -0.15 (-1.91).

SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD
On 7 November, Desenio Group received support from bondholders representing approximately 67% of the adjusted nominal amount of the bonds to initiate a written procedure to inter alia extend the maturity of the outstanding senior secured bonds 2020/2024 to 31 January 2025, with a possibility of further extension through a simplified procedure to 31 March 2025.

On 28 November, Johan Roslund was appointed as new CFO of Desenio Group, effective 13 January 2025.

On 24 December, Desenio Group entered into a term sheet for the restructuring of its bonds, including a debt-for-equity swap implying 75% write-down of the bonds and 95% dilution of the shareholders, and published a trading update.

On January 27, Desenio Group published a notice of an extraordinary general meeting to vote on the term sheet for the restructuring of bonds and capital structure. The extraordinary general meeting will take place on March 4, 2025. On 5 February, Desenio Group announced that the Company had initiated a written procedure to request necessary approval of the restructuring from the bondholders. The voting record date was 12 February 2025 and the last day for voting in the written procedure is 24 February 2025.

Webcast
A webcast - in English – will be held February 20 at 09.00 CET. Fredrik Palm, CEO, and Johan Roslund, CFO, will present the Year-end Report. If you wish to participate via webcast please use the link below. Via the webcast you are able to ask written questions. https://desenio-group.events.inderes.com/q4-report-2024

If you wish to participate via teleconference please register on the link below. https://events.inderes.com/desenio-group/q4-report-2024/dial-in

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

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”.