Movinn Q1 2023 - Interim Report: +27% topline growth, Sweden evolving as expected with bottom line metrics in Denmark below expectations

Growth remain substantial and Movinn Sverige is close to B/E point. Demand in Denmark has been weaker than expected but we see improvement in Q2 and we maintain guidance for the full year. 

Company Announcement nr. 26 - 2023
4 May 2022 09.00 CET. 
This company announcement contains inside information. 

Copenhagen, Denmark - The Interim Report covers results from the first quarter (Q1) of the year (1 January - 31 March 2022), as approved by Executive Management and the Board of Directors. 

In Q1 Movinn has realized revenue of 20.63 mDKK - up from 16.24 mDKK in the same period last year - corresponding to a 27% revenue increase. 

As we have now launched in Sweden, we will be reporting on additional financial information on international markets going forward. The financial information concerning the existing danish operations will be reported seperately and consolidated figures containing information on international markets will be reported as consolidated figures. 

Realized EBITDA from existing danish operations was 987 tDKK corresponding to an EBITDA-margin of 5.0%. Realized EBIT was (469) tDKK in Denmark and (753 tkr) on Group Level corresponding to a (2.4%) EBIT-margin. Annualized Return On Invested Capital (ROIC) was 4.8% for the existing danish operations. The same numbers for the consolidated group was 3.7% (EBITDA), (3.6%) (EBIT) and 3.3% (ROIC). 
Bottom line metrics are less than the comparable period last year. This is due to a) steeper growth is tearing on bottom line metrics, b) continued ramp up of the swedish operations and c) a weak first quarter in Denmark. 

The Swedish operations are closing in on a B/E point, which is in line with expectations, but the performance in Denmark has not been satisfactory. The core focus in therefor in Denmark right now and we see recent sales and marketing efforts resulting in a pick up in Demand. 

The Executive Management is executing on the international expansion plan, with a launch in Germany being the next area of focus. We have some prospective projects in Hamburg that is progressing although nothing is final. We are also working on domestic projects in line with our sourcing strategy of adding fewer, but larger projects to the portfolio. We are applying strict criteria for the projects we aim to source, so we are limiting risk, investments and operational cash burn - thereby improving bottom line metrics and value drivers. 

Financial highlights in Q1 2023: 

• Revenue increased by 27% to 20.63 mDKK (16.24 mDKK) 
• EBITDA margin from danish operations of 5.0% (11.5%)
• EBITDA margin from consolidated operations of 3.7% 
• EBIT margin of (3.6%) (9.3%)
• Return On Invested Capital (ROIC) of 4.8% / 3.3% (6.3%)
• Maintaining guidance for the full yea.

Business highlights in Q1 2023: 

• We have launced our Collective Youo (furniture rentals) which is now delivering a 1% revenue share.  
• We are making progress in Germany. 
• Sweden is closing in on a B/E point. 
• We have added focus on the existing Danish operations. 

Patrick Blok, Movinn CEO states: 
"This Quarter is representing some mixed emotions to be honest. On the plus side, Germany is moving ahead and operations in Sweden is performing well and closing in on a break-even point and we have launched Collective Yoyo as an added revenue stream, to help sustain long term growth and diversification. The product is also creating a lot of synergies and added value to our existing clients which will make Movinn a stronger business partner in the long run. In the disappointing end, Denmark have not been performing as expected. We continue to grow substantially, but we are not performing well enough on bottom line metrics. So getting the bottom line up where it belongs, will have a large part of my focus in the coming quarters. We already see some improvement in Q2 and we maintain guidance for the full year, in a tireless effort to deliver on our targets - and ultimately value to our shareholders".

Disclosure regulation

The attached Q1 Interim Report contains forward looking guidance. Such guidance are subject to risk and uncertainties as different factors, some of which are beyond the control of Movinn, may cause the actual development and results to differ from forward looking expectations. Interim Report has not been subject to audit or review.