Kjell Group (Stockholm:KJELL) Q3 2026 Earnings Call

0:00 Välkomna till Shell Group Q3 presentation 2026. Under den första delen av mötet kommer deltagarna att vara i lyssnarläge. Under frågestunden kan deltagarna ställa frågor genom att trycka fyrkant 5 på sin telefon. Jag lämnar nu över konferensen till talarna vd Sandra Gadd och CFO Fredrik Sjöholm. Varsågoda.

0:21 God morgon och välkomna till presentationen av vårt tredje kvartal. When we presented the second quarter a few months ago, we talked a lot about the trend break that we saw in the business. After a longer period of operational challenges, extensive change work and a large focus on solving acute problems, we saw clear evidence that the measures we implemented were ready to take effect. For the first time in a long time, the group leveraged growth while the profitability improved. If I were to sum up the third quarter, I would say work peace, stability and, in addition, momentum. Jag menar inte att det har varit lugnt. Tvärtom så har vi ett mycket högt tempo och många både stora och små förändringsinitiativ igång samtidigt.

1:08 Men skillnaden jämfört med tidigare är att vi under det andra kvartalet fick det här trendbrottet. Ett trendbrott som gav energi och självförtroende till organisationen, vilket gjorde det möjligt att flytta fokus från de främst lösa akuta problem till i allt högre grad utveckla verksamheten. Det kan låta som en liten skillnad, men det har faktiskt betytt ganska mycket för oss. När en organisation under lång tid tvingas lägga huvuddelen av sin kraft på branschläckning blir det svårt att bygga för framtiden. Under Q3 har vi i allt större utsträckning kunnat fokusera på sådant som utvecklar våra långsiktiga förmågor. Många saker kommer vi inte kunna se effekter av i de finansiella rapporterna förrän längre fram, men vi känner att vi tar oss framåt. We have created a new starting point that makes it possible to continue to move forward the positions. During today's presentation, we will go through the quarter, give an update on some of our most important initiatives and share our view on where the business is right now.

2:11 But even if we report the third quarter today, the truth is that a lot of our focus is already in the fourth quarter. We went into Q4 about 20 days ago, and for a retailer like us, the fourth quarter is always the most important year. We are happy with the trend break in Q2, we are happy with the implementation of Q3, but now it's all about execution in Q4. So if we go on to the next slide, we see a summary of how the third quarter was developed. And we can see that the positive momentum that we got in the second quarter continued throughout the third quarter. We grew up in both Sweden and Norway, in both stores and online. And in Denmark, where we grew up for the first time in two years, which is an important milestone in that the change work we have done has had an effect.

3:04 Fredrik will soon go through the figures in more detail, but we can see that the sales increased by 8.1%, corresponding to 6.7% in local currencies. The growth was mainly driven by external brands, Medan försäljningen av egna varumärken låg på ungefär samma nivå som föregående år. Och det är i linje med hur vi förväntat oss att utvecklingen ska se ut. Effekterna från att bygga en stark affär tillsammans med våra externa varumärken i kombination med andra kommersiella förbättringar går fortare än att förändra sourcing, arbetssätt och produktutvecklingen inom egna varumärken. Därför är det naturligt att vi ser effekten här först. Bruttovinsten ökade med 8,7% under kvartalet och bruttomarginalen stärktes med 0,2 procentenheter jämfört med den normaliserade bruttomarginalen under föregående år.

3:59 Vi gjorde ju en engångsnedskrivning av lagets föregående år som vi inte tar med oss i den här jämförelsen. i bruttovinsten ser vi fortsatt effekt från de leverantörsavtal som omförhandlades under förra året, men också från ett stort antal mindre förbättringar inom pris, kampanjstyrning, sortimentsarbete och kommersiell exekvering. Samtidigt ska man komma ihåg att den starka tillväxten inom externa varumärken delvis motverkas av en lägre andel egna varumärken i mixen. Det innebär att bruttomarginalen inte fullt ut speglar den underliggande förbättringen i verksamhet. Som vi har sagt tidigare så befinner vi oss mitt i en transformation. Det innebär att alla delar inte utvecklas i samma takt. Vår långsiktiga ambition om en högre andel egna varumärken ligger fast, men vägen dit kommer inte vara helt linjär. Det är också därför vi lägger så stor vikt vid att följa utvecklingen av bruttovinsten och inte bara bruttomarginalen.

4:55 Bruttovinsten är det som finansierar vår transformation och skapar utrymme för fortsatta investeringar i verksamhet. We also strengthened the adjusted EBITDA margin with 3.4% during the quarter, which shows that the improved gross profit, in combination with good cost control, also gets results even further down the line. In summary, we need to go back to the third quarter of 2023 to find a stronger quarter than the one we are delivering this year. And of course, we are very happy about that. But maybe even more important is that the positive development from the second quarter was not a one-time event.

5:35 It continued through the entire Q3, which strengthens our confidence that the improvements we are experiencing now are beginning to get an increasingly clear outcome in the business. We can also note that after the third quarter we have taken back the strong income losses we had during the first quarter. Our accumulated sales growth from the January to September period rounded 1% with strongly improved profitability. And that's a milestone in itself. Delivering a quarter with better numbers is of course important, but it's not our benchmark. Our goal is to build a company that can be strong and competitive over a long period of time. Therefore, we continue to invest a lot of time and energy in processes, working methods, systems and organizational capabilities.

6:26 . . . . . . . . . . . Arbetet med att trimma in laget fortsätter, men från och med nu kan vi lägga betydligt mer energi på att utveckla verksamheten istället för att hantera begränsningar.

7:25 En annan viktig prioritet är vårt ERP-byte. Förberedelserna accelererade under kvartalet och engagemanget i organisationen är starkt. Jag tänker att ERP-implementationer, ibland lite missvisande, bara beskrivs som ett systembyte, vilket det visserligen är. But apart from what it actually means, it's a lot about defining processes, data, working methods, and that's exactly what we're working with a little bit everywhere right now. The system change itself doesn't make us any better. It's a necessary shift, as is our current platform in the ageing process, but it gives us much better opportunities to build modern, effective and scalable processes forward, and it forces us to think through how we do things.

8:12 It's long-term good for us, even if it both costs time and money in the short term. And despite that, it means that we have to wait with several other improvements that we want to initiate. Most of those who have been involved in an ERP implementation know that it rarely becomes a completely stable journey. But we meet an organization that really wants to make changes. Many have waited a long time for this modernization and the will to succeed is great. The plan is stuck and the first phase is planned to go live during the second quarter next year. In parallel, we continue to develop our organization. During the quarter, we have centralized additional parts of the business to the headquarters. We have strengthened the organization with several key competencies and we have recruited a new leader for the Norwegian business, a market where we see significant potential.

9:00 We have already seen clear improvements in Norway, but we are far from finished. Through clear leadership and better structure, we see great opportunities to continue to develop the business. And this is where we are as a company today. In some areas, we have come a long way and are working hard to develop our capabilities. In other places, we are still building basic capabilities. I think it will continue to look like this over time. But what gives us self-confidence is that we are building a stronger team with clear competence, better structure and higher ability to change. And in the end, it is actually the people in the organization that decide how far we can take this company. Ina jag lämnar över till Fredrik vill jag nämna några små korta ord om våra kunder.

9:47 I kvartalet ökar vår aktiva medlemsbas. Detta mått omfattar alltså bara de av våra kunder som är registrerade som medlemmar med 4%, vilket är ungefär 80 000 personer. Således är vi nu väldigt nära att nå 2 miljoner aktiva medlemmar. Aktiva medlemmar definierar vi som en kund som har handlat hos oss minst en gång de senaste 12 månaderna. We have Net Promoter Score, net as a rolling 12-month scale, was at 66, which is two lower than last year, and on the same level as in the second quarter. We have 72% promoters, which is a very strong level, but which we, in the long run, of course, want to increase even more. And with that, I hand it over to Fredrik and his deep dive into the quarter.

10:32 Thank you, Sandra. Let me start with the financial summary, where we can see that the positive momentum we saw in the second quarter continued through the third. The net turnover increased by 8.1% to 639 million kronor. The comparable growth rose to 6.2%, adjusted for both currency and changes in the store network. The growth was driven by improved law availability, stronger commercial execution and good development in both stores and online. . . . . . . Danmark växte med 10,4% under kvartalet, 10,8% i lokalvaluta, vilket markerar det första kvartalet med tillväxt sedan det tredje kvartalet 2024.

11:37 Det är ett viktigt steg framåt, även om mycket arbete återstår. Sammanfattningsvis ser vi ett kvartal där fokus i allt större utsträckning kunnat flyttas från akuta åtgärder till mer värdeskapande aktiviteter och utveckling av verksamheten. Det är fortfarande tidigt i transformationen, men utvecklingen går i rätt riktning. Om vi sedan går vidare till det som faktiskt finansierar vår transformation, bruttoresultatet, kan vi konstatera att det är uppgiftigt 267 miljoner kronor, vilket är en ökning om 56% mot föregående år, men 8,7% om man justerar för den lagernärskrivning som genomfördes under det tredje kvartalet 2025. Bruttomarginalen uppgick till 41,8% jämfört med ett rapporterat jämförelsetal på 29,1% vilket på justerad basis uppgick till 41,6% under föregående år. Det innebär att vi trots en högre andel externa varumärken och därmed en lägre andel egna varumärken levererar den marginalförbättringen om 0,2% enheter.

12:40 The improvement comes primarily from the supplier changes that were carried out at the end of last year and we therefore assess that it is structural to its character. In the short term, the most important thing is that the gross profit continues to grow. It is the one that gives us the opportunity to invest in organization, processes, systems and our ERP preparations, while the profitability is improved. If we then look at the cost base, we see a continued improvement. Personalkostnaderna minskade jämfört med föregående år, främst som ett resultat av tidigare genomförda omstruktureringar och effektiviseringar. Samtidigt belastades kvartalet av kostnader för incitamentsprogram och fortsatta omstruktureringsåtgärder. Övriga externa kostnader ökade, vilket huvudsakligen förklaras av att lagerpersonal efter outsourcingen redovisas som externa kostnader samt av kvarvarande flyttrelaterade kostnader. We see gradual efficiency improvements in the business, especially in central functions, but not least in logistics, where we begin to look away from the reconstruction that is carried out due to a non-functioning packaging machine.

13:49 At the same time, we are aware that significant potential is still to be realized. This leads us to the brutus result. Justerade bita förbättrades till 40 miljoner kronor jämfört med 16,7 miljoner kronor föregående år. Det motsvarande är bitamarginalen om 6,3% jämfört med 2,8%. Resultatsförbättringen drevs av ett antal faktorer. Högre försäljning, starkare bruttoresultat och en successivt bättre kostnadsstruktur med hjälp av positiv valutautveckling på försäljning i Norge. Det är särskilt positivt att förbättringen kommer från flera delar av verksamheten samtidigt och att den byggts upp över flera kvartal.

14:34 Jämförelsesstörande poster upp till 4,5 miljoner kronor och avser huvudsakligen omstruktureringskostnader, incitamentsprogram och flyttrelaterade kostnader för den tomställda fastighet som vi lämnar helt i oktober. If we look at the segment, we see that the improvement is broad. In Sweden, the subject adjusted the EBITDA margin to 5.3% compared to 6.6% last year. The decrease is primarily due to costs related to the new central law in Staffanstorp, such as revisions of new legal access through IFRS 16 and other new installations. Norway delivered an even stronger quarter with a adjusted EBITDA margin of 11.8%.

15:19 The combination of strong growth and improved product margin contributed to a significant increase in results, along with beneficial development of the currency. In Denmark, the adjusted EBITDA margin was improved to a positive 0.2% compared to a minus 13.1% in the previous year. At the same time, the business returned to growth during the quarter. And that is probably the most encouraging signal from the segment transition, that we are now seeing progress on all markets at the same time. Finally, a few words about the balance sheet, where the moving capital rose to 148 million kronor compared to 60 million kronor last year, which means an increase of 6.2% of sales over the last 12 months from 2.4% last year.

16:09 Fortsättningsvis uppgick kassaflödet från den löpande verksamheten till 7 miljoner kronor under kvartalet. Det är lägre än föregående år men ska precis som rörelsekapitaluppbyggnaden ses som ett bakgrund av att vi medvetet byggt lager inför årets viktigaste försäljningsperiod. Lageruppbyggnaden är planerad och syftar till att säkerställa god tillgänglighet under högsäsongen som kommer. The financial net debt rose to 269 million kronor and the debt was improved to three times the adjusted EBITDA, exclusively in IFR 16, compared to 5.6 times the previous year. At the end of the quarter, the interest-bearing debts rose to 298 million kronor, which is a decrease of 187 million kronor compared to the previous year. Solidity was strengthened at the same time to 45.9% from 39.0% the previous year. In summary, we leave the third quarter with continued growth, improved profitability, a stronger balance sheet and an organization that can focus on value creation in an ever-growing extent, rather than a burnout. There is still a lot of work ahead of us. But after breaking the trend during the second quarter, I think that the third quarter shows that the momentum exists. Now the focus is to turn that momentum into a strong fourth quarter.

17:34 Thank you Fredrik. And now we are already in the most important quarter. And during this quarter the theme is very simple. Execuering. Over the past twelve months we have put a lot of time into improving the conditions. We have worked with sortiment, accessibility, process, organization and leadership. We have built, adjusted, changed and improved. It is about implementing all this work into results. The fourth quarter will test our processes, our operational discipline and our ability to deliver a really good customer experience when demand is at its highest. And it will also be very clear where we are not strong enough. We go into the quarter with both self-confidence and humility. Self-confidence because the business today stands stronger than it did a year ago.

18:21 Humility because we know that there is a lot that still remains to be done. Most people usually understand sports analogies, so if we are to draw one such, I would say that we are very far from a dribbling Messi, but we have taken up a couple of divisions. It's a team sport we're doing, and it's as a team that we go into this game and help each other. When we entered the year, we said that it was first during the fourth quarter that we expected to return to growth on a growth level. We got there faster than we ourselves had dared to hope. And that is of course joyful. Of course, we now want to beat the 8% growth we have had during the second and third quarter, so that is the goal we are following. In terms of profitability, we drive our ambition through gross profit, as we have said a few times. It is the KPI we are in charge of.

19:09 It is the one that finances the transformation and creates trading space for future investments. While we continue to focus on developing our own brands, this is not something that we expect for a successful next year. We are not yet where we want to be when it comes to speed in our development of our own brands, and it is an ability that we need to build over time. When I think of the fourth quarter, it is a lot about inventory management, where many possibilities and risks lie, But I also think about our stores. In September, we all gathered our store managers for a few days together. We talk about the future, leadership and where we are on our way as a company. And it is at such times that you are reminded of the strength that exists in this organization. Kjeller has always been a company with an unusually strong curiosity for technology.

19:57 And that is not least noticeable with our store managers. They really love technology and to teach our customers about technology. But what made me a little more happy when we saw was the energy level. At se så många ledare som tror på riktningen, som vill utvecklas och verkligen vill vara med och bygga nästa kapitel för Kjell, det gör mig faktiskt genuint glad och väldigt, väldigt hoppfull. För i slutändan så är det inte våra system som möter kunderna, det är inte våra processer som skapar försäljning, det är människorna i våra butiker. Och när jag ser det engagemang och den kompetens och vilja som finns där ute så är jag väldigt stolt och optimistisk för vad som ligger framför oss. Under frågestunden kan deltagarna ställa frågor genom att trycka fyrkant på sin telefon. Om du vill dra tillbaka din fråga, vänligen tryck fyrkant .

20:59 Next question comes from Adrian Elmlund from Nordea. Welcome.

21:05 Hello, good morning, both Sandra and Fredrik. I have a couple of questions. I think I can take them one after the other. First and foremost, we see a pretty big difference in the profit development in Sweden versus Norway. I was just going to ask if you could give a little more explanation as to exactly why, and then also what you think the difference should be between the countries in the long term.

21:32 Yes, absolutely. There are a number of components in the explanation of the economy in Sweden, where we have mentioned that costs related to the new central law are negatively affecting Sweden. In addition, the gross margin in Sweden is negatively affected by about 1% in comparison with the previous year, due to the lower EMB share. Därtill så har vi en intern prissättningsstrategi som vi ser över där ofördelaktigt mycket kostnader allokeras till Sverige som i det här läget kanske borde ha allokerats till Norge också. Så vi ser över den problematiken för att ha en mer rättvisande fördelning av kostnader framöver.

22:17 Ja, och det blir väl då till nästa år kan jag tänka mig.

22:20 Ja.

22:21 Och sen om det ska se ut framöver, eller... Alltså... Vi ser väldigt stora möjligheter i Norge och vi vet ju också att vi har underpresterat där men exakt hur lönsamheten ska fördelas men man kan ju titta på hur andra bolag har sina lönsamhetsfördelningar mellan Sverige och Norge. Norge är det ju en stor potential i men vi har mycket kvar att göra där men vi ser ju en betydande möjlighet i Norge.

22:51 Thank you for that. Another question I have regarding the cost of marketing. Have you seen that they have come down in line with these nonsense reports from Europe? I'm thinking mainly about these Chinese giants.

23:05 I think if we had been in some kind of normal situation, then we could have done the measurement. We put quite a bit of money on marketing in general, but of course the transactional, we measure, we have a solution on how we invest in marketing. You can't say anything about the sales, if you've seen anyone that has ticked up a bit, thanks to this? We are very focused internally now, I have to say, because there is so much that we haven't done right and that we focus on ourselves before we look out.

24:03 So I can't really say what is what. It would be a very strange analysis to put numbers on, I have to say. Okay.

24:13 Last question, I don't know if you can get any indication of how Q4 has started?

24:23 No, we can't do that. That's what we say, as I just said, that we've had around 8% growth in Q2 and Q3, and we want to beat that in Q4. And that's with the gross profit, and we're expecting this continued effect of our own brands taking longer to develop and so on. So that's about the level we're guiding. It's still quite specific to us.

24:53 It's worth a try, that I've also done. There are no more questions right now, so I'll hand over the floor to the speakers for any written questions and closing comments. Perfect, thank you. We have received a written question from Mikael Bussler.

25:19 Vilka konkreta åtgärder gör ni för att öka försäljningen långsiktigt och kortsiktigt? Vad gör ni i Q4?

25:26 Ja, vi gör väldigt många saker skulle jag säga. Långsiktigt handlar det om att göra grunden rätt och det är väldigt mycket av det här arbetet som vi investerar vår tid och vår energi i. Det handlar ju om sortimentet. Hur ska sortimentet se ut? Det handlar om att utveckla egna varumärken, säkerställa att vi har en tydlig, vilka kategorier vi vill vinna i. Group AB Group AB Group AB Group AB . . Thank you very much!