Press release

FNG Nordic AB (publ) Interim report January - June 2021

The interim report for FNG Nordic AB (Ellos Group) is published today.

THE SECOND QUARTER 2021

• Net sales increased by 11.8 % to SEK 852.9 (763.1) million. Currency effects had a negative effect on
• The gross margin decreased to 53.9 (54.7) %.
• The operating profit/loss amounted to SEK 19.0 (105.7) million. The operating margin was 2.2 (13.9) %.
• Adjusted EBITA amounted to SEK 54.6 (104.8) million. The adjusted EBITA margin stood at 6.4 (13.7) %.
• Adjusted EBITDA amounted to SEK 78.3 (128.0) million. The adjusted EBITDA margin stood at
• Cash flow from operating activities amounted to SEK 19.7 (13.6) million.
• Operating cash flow, that is, cash flow from operating activities and cash flow from investing activities,
• Cash and cash equivalents amounted to SEK 198.3 (202.7) million.
• Net sales increased by 19.9 % to SEK 1 683.2 (1 403.6) million. Currency effects had a negative effect on
• The gross margin increased to 52.4 (52.1) %.
• The operating profit/loss amounted to SEK 26.6 (81.0) million. The operating margin was 1.6 (5.8) %.
• Adjusted EBITA amounted to SEK 86.1 (105.7) million. The adjusted EBITA margin stood at 5.1 (7.5) %.
• Adjusted EBITDA amounted to SEK 133.3 (151.4) million. The adjusted EBITDA margin stood at
• Cash flow from operating activities amounted to SEK -66.8 (-37.0) million.
• Operating cash flow, that is, cash flow from operating activities and cash flow from investing activities,
• Cash and cash equivalents amounted to SEK 198.3 (202.7) million.

Comment from the CEO of FNG Nordic AB (publ)

A QUARTER WITH CONTINUED PROFITABLE GROWTH

Ellos Group continued its growth journey during the second quarter with a growth of approximately 12 per cent. Net sales for the first six months landed at almost SEK 1.7 billion which corresponds to a sales growth of about 20 per cent. The adjusted EBITA margin for the second quarter amounted to 6.4 per cent and 5.1 per cent for the first six months. With a strong half-year, Ellos Group continues to strengthen its position as the Nordic region’s leading ecommerce group within home and fashion.

We are pleased to see a continued increase in number of customers on our e-commerce sites. Both the home and fashion categories grew during the first six months of the year. This was despite a strong second quarter in 2020 when home furnishings and product categories had a significant growth rate, due to customers spending more time at home. Our marketing investments are yielding results.

Ellos Group is currently present in several growth markets outside the Nordic region, through our own geographical expansion in Europe and collaborations with external online platforms. Our European growth strategy with a focus on home furnishings, which was launched a year ago, continues with the same intensity. During the quarter, we invested in our logistics and scalable platform with a focus on continued cost-effective operations and an improved customer experience in both the Nordic region and Europe.

As previously informed, global logistics chains have a challenging situation regarding freight capacity and higher prices. For us, this has led to increased freight costs. Despite this, we deliver a continued high gross margin of 53.9 per cent in the quarter.

The strategic review with the objective to give Ellos Group the best possible setting, capital structure and future possibilities, which we have previously communicated, has begun. The review includes an evaluation of the conditions for a potential listing as one strategic alternative. No decisions have been made yet, but we will inform if and when any such decision is made.

I am very pleased to today announce the appointment of Arthur Engel as the new Chairman of the Board and Kristina Schauman, Robert Furuhjelm and Patrik Illerstig as new Board members of Ellos Group. The expansion of the Board is a natural part of Ellos Group's development and the newly appointed members add significant competence and experience in, above all, business development, digitalization and internationalization as well as valuable new perspectives. I really look forward to working with Arthur Engel and the rest of the Board to support Ellos Group in the next chapter of the company's growth journey in the Nordics and Europe.

We are pleased to see that the world is gradually opening as more and more people are vaccinated, and coronavirus restrictions are eased. However, there is a high degree of uncertainty regarding consumer behavior and how prices, and production and transport capacity, will develop. We are monitoring this development closely and take necessary measures to be able to successfully navigate the market today as well as in the future.

To summarize, we have delivered a quarter with continued profitable growth. This is a clear sign that Ellos Group has a strong and profitable platform to build on. I am convinced that we, as a leading e-commerce player with strong brands in home and fashion, are well positioned to take advantage of the significant growth potential online.

Paul Lembrechts, CEO of FNG Nordic AB (publ).

For more information:

Johan Stigson, CFO, Telephone. +46 (0)33 16 08 05
______________
This information is information that FNG Nordic AB (publ) is legally obliged to disclose in accordance with
the EU Market Abuse Regulation and the Swedish Securities Market Act. Through the agency of the contact
persons shown above, the information was released for publication on 31st of May 2021 at 08.00 CET.

ABOUT ELLOS GROUP
The Ellos Group, which includes Ellos, Jotex, Stayhard, and Homeroom, is the Nordic region’s leading e-commerce
group. Working closely with our millions of customers, we are constantly striving to develop and offer attractive and
sustainable fashion and household items for the entire family. Our focus is always on the customer. We
continuously work to develop our business through innovation, creativity, and sustainability. The Ellos Group,
headquartered in Borås, and with operations in all Nordic countries, has around 550 employees and sales of
around SEK 3.2 billion. www.ellosgroup.com