Slides
Page 2
BJÖRN BORG AB Investor Presentation Q1 2025 STOCKHOLM, MAY 16 TH , 2025
Page 3
Content A. Executive Summary B. Where we want to go C. How far we got in Q1 2025 1. Brand heat 2. Top line 2. Bottom line 3. Balance sheet D. Key take-aways
Page 4
A. Executive Summary
Page 5
"Overall, it was a record sales quarter, driven primarily by our strategic focus areas: shoes (+208 percent) and sportswear (+13 percent)." " Henrik Bunge, CEO BJÖRN BORG AB
Page 6
Björn Borg Q1 2025 – Executive summary • Overall Net sales in Q1 2025 increased by +9% to SEK 280 m. • By channel, the largest channel Wholesale increased by +11% while at the same time own e-com continued to grow with a strong +26%. Own Retail Stores experienced a decline of –12% which was mainly due to store closures. Comparable store sales would have been –4%. Distributors also experienced a decline of –21%. • By product category, the growth in the quarter was predominantly driven by Footwear with +208% and Sports Apparel with +13%. Both are our strategic focus categories, where we see the most significant growth opportunities. Our largest category Underwear showed a decline of –12% due to timing in distribution, like Bags which declined with –8%. • Gross profit margin declined by 3.4 ppt to 49.9%. Currency neutral the gross profit margin decreased by 2.4 ppt to 50.9%. • Operating profit increased by 2.1% to SEK 34.2 m. Currency neutral the operating profit increased by 10.5% to SEK 37.0 m. • The financial position remains strong, showing an equity ratio of 52% and a net debt / EBITDA ratio of 1.08.
Page 7
B. Where we want to go
Page 8
OUR MISSION OUR LONG-TERM FINANCIAL OBJECTIVES OUR BUSINESS STRATEGY We inspire people to be more, through our belief that sports can make our minds, souls and bodies become something more than what we are today, and that anyone can become anything. • Increase share of on-line and business with e-tailers. • Grow business share and preference in sports apparel. • Expand geographically focused on Europe • Annual sales growth of min 10% • Annual operating margin of min 10% • Annual dividend of min 50% of net profit • An equity/assets ratio of min 35% Our mission, our business strategy and our long-term financial objectives are clearly set. BJÖRN BORG AB – WHERE WE WANT TO GO Source: BB AB Investor Relations
Page 9
C. How far we got in Q1 2025
Page 10
C1. Brand heat
Page 11
Our brand journey continues in the right direction with strong brand heat signs – especially in our growth market Germany BJÖRN BORG AB – SPORTS BRAND KPIS Q1 2025 HIGHLIGHTS Source: Brand Track Data from weekly end consumer surveys done by X TREME. 22k people/year. Markets: SE, NO, FI, DK, NL, BE, DE . PURCHASE INTENTION HIM +61% in DE 33.7% 20.9% in Q1 2024 CONSIDERATION HIM +28% in DE 28.6% 22.4% in Q1 2024 UNAIDED AWARENESS HER +78% in SE 6.4% 3.6% in Q1 2024 • A variety of touchpoints gives us a great reach and with that an increased awareness • Offline activations works well among our male target group, such as partnerships with Barry’s, Tough Viking, Train More, Zandsvoort race etc. • Our message “Train To Live” is resonating well with our target group • A strong online and influencer focus is clearly working
Page 12
A flat or slower trend seen in Q1 – First quarter usually shows weaker brand figures compared to the rest of the year BJÖRN BORG AB – BRAND HEAT KPIS 2018 - 2025 ALL COUNTRIES Source: Brand Track Data from weekly end consumer surveys done by X TREME. 22k people/year. Markets: SE, NO, FI, DK, NL, BE, DE . UNDERWEAR HIM Purchase intent APPAREL 16% 17% 25% 29% 30% 32% 33% 33% 0% 10% 20% 30% 40% 50% 18 19 20 21 22 23 24 25-Q1 28% 30% 39% 44% 44% 46% 49% 47% 0% 10% 20% 30% 40% 50% 18 19 20 21 22 23 24 25-Q1 Purchase intent
Page 13
C2. Top line
Page 14
The growth continues in the first quarter of 2025, delivering a clear first quarter sales record. BJÖRN BORG AB – NET SALES DEVELOPMENT BY QUARTER [SEK M] Source: BB AB Investor Relations 172 185 227 247 257 280 148 163 162 166 213 225 240 249 262 285160 181 198 198 235 2020 2021 2022 2023 2024 2025 +13% +7% +10% +7% +10% +4% -1% +23% +9% Q4 Q3 Q2 Q1 835 705 768 +3% +5% 0% 872 +4% +29% +9% 990 +19% +9%
Page 15
Strong momentum overall, especially in the largest markets; Sweden and Netherlands. BJÖRN BORG AB - TOTAL SALES DEVELOPMENT Q1 2025 BY COUNTRY Own subsidiaries Distributors. SWEDEN NETHERLANDS GERMANY FINLAND BELGIUM DENMARK NORWAY UK OTHER +11% +22% - 21% +2% +38% +22% +27% +25% - 57% Source: BB AB Investor Relations
Page 16
OWN RETAIL -12% VS Q1 2024 • Comparable stores -4%. Own e-commerce with very strong growth. Wholesale still holding up well while distributors decline. BJÖRN BORG AB – CHANNEL DEVELOPMENT Q1 2025 WHOLESALE • Wholesale e-tailers with weak quarter, -6%. • Brick and mortar stores back to strong growth with +20%. +11% VS Q1 2024 OWN E-COM • Own e-commerce keeps growing by a strong +26% +26% VS Q1 2024 DISTRIBUTORS • Distributors with a decrease of -21%. • Largest distributor, Norway, increase with +27%. -21% VS Q1 2024
Page 17
Online increase mainly coming from own e-commerce, while external e-tailers had a weaker first quarter vs previous years. BJÖRN BORG AB – ONLINE SALES 2021- 2025 [SEK M] Source: BB AB Investor Relations 24,3 25,1 33,3 40,6 51,3 60,5 68,6 57,7 60,7 57,4 2,1 1,6 2,4 6,2 4,9 47% 42% 38% 42% 41% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 160,0 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025 Own E-commerce E-tailers Marketplaces Share online 86,8 95,3 93,4 107,4 113,6
Page 18
Really strong performance in the footwear and sports apparel categories, while underwear suffer from timing in deliveries. BJÖRN BORG AB – CATEGORY DEVELOPMENT Q1 2025 Underwear -12% Apparel +13% Swim +25% Footwear +208%
Page 19
C3. Bottom line
Page 20
Gross margin declines vs last year related to the footwear integration. Operating income show steady increase. BJÖRN BORG AB – BOTTOM LINE KPIS Q1 2025 GROSS MARGIN [% NS] EBIT [m SEK] 50% 52% 53% 50% 0% 10% 20% 30% 40% 50% 60% 70% 22 23 24 25 Currency neutral 2025: 51% 29 31 33 34 5 8 10 31 41 42 8 20 17 22 23 24 25 23 25 21 36 0,3 4 7 22 32 355 15 10 22 23 24 25 51 76 73 Q4 Q3 Q2 Q1 NET INCOME [m SEK] Q4 Q3 Q2 Q1 101 73 102
Page 21
C4. Balance sheet
Page 22
All balance sheet KPIs on good levels. Net debt increasing vs last year due to Footwear integration. BJÖRN BORG AB – BALANCE SHEET KPIS AS PER Q1 2025 Net debt [SEK m]Equity [% of assets] WC 12 months rolling [% of GS] 48% 56%57%55% 52% 0% 10% 20% 30% 40% 50% 60% 21 22 23 24 25 99 46 48 89 121 0 20 40 60 80 100 120 140 20%19%20%20% 21% 0% 5% 10% 15% 20% 25% 21 22 23 24 2520 21 22 23 24 Source: BB AB Investor Relations
Page 23
D. Key take-aways
Page 24
31 The Björn Borg brand is gaining momentum in Germany, one of our key growth markets. Record sales driven by solid wholesale momentum and very good growth in our own e-commerce channel. The footwear integration is progressing according to plan, with a 208% growth compared to last year. 2 Another quarter with record BJÖRN BORG AB – KEY TAKE- AWAYS Q1 2025
Page 25
Björn Borg is on a solid basis to show continued profitable growth BJÖRN BORG AB – RATIONALES TO INVEST 1. Steady profitable growth since 2014. 2. Strategy for continued profitable growth in the years to come. 3. Stable and high dividend payments. 4. Safe equity ratio and net debt ratios way below bank covenant. 5. Strong, professional and committed management team. 6. Solid business foundation due to new ERP system, e.com platform, cyber security process and supply chain set-up. 7. Growth initiatives identified to support annual sales growth of at least 10%
Page 26
Thank you!