STOCKHOLM, Jan 25, 2017 /PRNewswire/ --

FOURTH QUARTER[1]

• Net sales for continuing operations increased by 2 percent and amounted to SEK 1,523.4 (1,487.6) million
• Operating income before depreciation and amortisation (Ebitda) for continuing operations increased with SEK 68.1 million and amounted to SEK 48.0 (-20.1) million. Adjusted[2] Ebitda (Ebitda excluding items affecting comparability) increased by SEK 41.9 million and amounted to SEK 48.0 (6.1) million  
• Operating income (Ebit) for continuing operations increased by SEK 57.6 million and amounted to SEK 25.6 (-32.0) million. Adjusted Ebit increased by SEK 31.4 million and amounted to SEK 25.6 (-5.8) million  
• Earnings per share amounted to SEK 0.13 (-0.20) before and after dilution

FULL YEAR 2016[1]

• Net sales for continuing operations increased by 1 percent and amounted to SEK 4,468.6 (4,430.6) million
• Operating income before depreciation and amortisation (Ebitda) for continuing operations increased by SEK 78.9 million and amounted to SEK -6.2 (-85.1) million. Adjusted Ebitda increased by SEK 46.1 million and amounted to SEK 18.1 (-28.0) million  
• Operating income (Ebit) for continuing operations increased by SEK 37.2 million amounted to SEK -86.6 (-123.8) million. Adjusted Ebit increased by SEK 15.5 million and amounted to SEK -51.2 (-66.7) million 
• Earnings per share excluding discontinued operations amounted to SEK -0.51 (-0.69) before and after dilution. Earnings per share including discontinued operations amounted to SEK -1.24 (-0.68) before and after dilution

[1] Continuing operations exclude Tretti, which is recognised under Discontinued operations in the consolidated income statement. Comparative figures in the income statements and cash flow statements have been adjusted correspondingly.

[2] The term adjusted is used to indicated that the result has been adjusted to exclude items affecting comparability and the result for discontinued operations. Items affecting comparability are specified on page 8.

Qliro group turns to profit in the fourth quarter and sets new strategic priorities

Qliro Group reported a solid end to the financial year, with revenue growth of two percent and improved margins in the fourth quarter. Qliro Group has during the autumn conducted a strategy review and has now set the revised strategic direction and adopted new long-term targets, with the ambition to secure and further strengthen the groups position as the leading Nordic player within the e-commerce segment. The decision has been made to focus the group's operations on the business areas Marketplace, Fashion and Financial Services. 

Growth and higher margins

Qliro Group's sales increased by 2 percent in the fourth quarter, corresponding to a sales growth of 1 percent excluding currency effects. The gross margin increased by 4.2 percentage points to 18.7 percent, primarily driven by Nelly's focus on private label and continued efforts with the assortment strategy, along with Qliro Financial Services' continued increase in earnings. The adjusted operating income before depreciation and amortisation, EBITDA, improved to SEK 48.0 (6.1) million and the EBITDA margin increased to 3.2 (0.4) percent.

CDON Marketplace reports a higher total gross merchandise value for the quarter, largely driven by strong sales generated for external merchants, and operating income improved slightly. Nelly reports strong sales growth, amounting to 9 percent in the fourth quarter. Operating income increased significantly, to just over SEK 30 (-4.1) million, boosted by the general sales growth, a larger share of private label sales and an improved assortment strategy.

Net sales for Gymgrossisten decreased by 2 percent in the quarter and by 5 percent for the full year. Operating income amounted to SEK 5.8 (10.0) million, affected by increased costs related to sales and process management as well as marketing. Lekmer reports revenue growth of 11 percent during the quarter, while profitability remains weak as a result of continued high fulfillment costs.

Qliro Financial Services shows strong growth, with an increase of 70 percent in total operating revenue in the fourth quarter. Earnings have continuously improved, and the company achieved an operating income before tax of SEK 11.2 (0.2) million in the quarter and thereby achieved its first positive full-year result before tax since the start. Qliro Financial Services remains focused on product development in order to broaden and strengthen the offering to both consumers and merchants. The dialogue with Finansinspektionen (the Swedish Financial Supervisory Authority) continued during the quarter with regards to the decision on the license to operate as a credit market company. 

Revised strategic direction

Qliro Group has during the autumn conducted a strategy review and has now set its revised strategic direction and adopted new long-term targets. As part of the strategy review, we have reviewed every company and their respective challenges and opportunities, while also conducting a review of the operational structure to evaluate synergies, optimise scalability and maximise the potential of Qliro Financial Services. 

There are a number of synergies and significant economies of scale between a broad and attractive e-commerce platform and the payment solutions and financial services of today and tomorrow. We see several trends and factors pointing to continued strong growth within e-commerce and associated services. At the same time, continuous technical and functional development, not least within financial services, makes it necessary to focus our operations and devote ourselves to the chosen core areas in order to secure and strengthen the group's competitiveness. 

Qliro Groups overall goals are tostrengthen the position as the leading e-commerce platform for consumers in the Nordics, to provide an attractive offering within payment solutions and associated financial services for both consumers and merchants and establish a position as a leading e-tailer within selected segments in the Nordic fashion field. The Group will focus its operations on the core business areas Marketplace (CDON), Fashion (Nelly, NLY Man, Members) and Financial Services (Qliro Financial Services).

The business units Lekmer and Gymgrossisten will be run with a focus on improved profitability and positive cash flow. We will actively pursue potential partnerships to facilitate continued investments and to take advantage of the ongoing consolidation in each sector to generate additional shareholder value.

The foundation for future profitable growth will be built on more efficient operations, driven by investments and a structured approach focusing on continuous improvements. By working according to this strategic direction, I am certain that we will create the right conditions to manage, invest in and thereby develop the business in an efficient and profitable manner. 

Stockholm, January 2017

Marcus Lindqvist

CEO

For additional information, please visit www.qlirogroup.com  or contact:

Marcus Lindqvist,
Chief Executive Officer
Tel: +46 10 703 20 00

Mathias Pedersen, Chief Financial Officer                     
Tel: +46 10 703 20 00

Questions from media, investors and research analysts:

Erik Löfgren, Head of Communications
Tel: +46 700 80 75 06
E-mail: press@qlirogroup.com, ir@qlirogroup.com

About Qliro Group

Qliro Group is a leading e-commerce group in the Nordic region. Since the start in 1999, the Group has expanded and broadened its product portfolio and is now a leading e-commerce player in consumer goods and lifestyle products through CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com) and Gymgrossisten (Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com and Fitness Market Nordic). The group also comprises the payment and consumer financing solution Qliro. In 2016, the group generated 4.5 billion SEK in revenue. Qliro Group's shares are listed on Nasdaq Stockholm's Mid-cap list under short name "QLRO".

This information is information that Qliro Group AB 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 08:00 CET on 25 January 2017.

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SOURCE Qliro Group AB (publ.)