ACCOUNTS SUMMARY JANUARY-MARCH 2014
• Net sales for the quarter amounted to 68.1 (49.9) mSEK, corresponding to a growth of 37%
• Total income in the quarter amounted to 75.5 (54.8) mSEK
• Gross profit amounted to 21.3 (10.7) mSEK and the gross profit margin to 28% (20%)
• Operating profit amounted to 2.9 (0.1) mSEK
• Profit before tax amounted to 2.9 (0.0) mSEK
• Profit per share for the quarter 0.11 (0.0) SEK
• Liquid assets amounted to 23.8 (5.2) mSEK on the reporting date
SIGNIFICANT EVENTS DURING AND AFTER THE FIRST QUARTER OF 2014
STRONG GROWTH AND IMPROVED BOTTOM LINE IN Q1
• All markets showed growth in Q1. Total income amounted to 75.5 (54.8) mSEK, corresponding to a growth of 38%. Profit before tax in Q1 was also higher compared to the previous year, amounting to 2.9 (0.0) mSEK.
• The percentage spread of sales across the product lines in the first quarter was 61% for Zinzino Food and 39% for Zinzino Coffee. Sales for Food therefore amounted to 41.4 (9.5) mSEK, corresponding to a growth of 336%. Sales for Coffee amounted to 29.0 (40.4) mSEK, corresponding to a drop in sales of 28%.
• The geographical spread of sales from January to March 2014 looked as follows:Norway 27%, Finland 16%, Iceland 13%, Denmark 13%, Sweden 9%, Estonia 9%, Lithuania 5%, Latvia 4% and the USA 4%.
• Growth per country from January to March 2014 compared to the equivalent period in the previous year looked as follows: Iceland 392%, Lithuania 63%, Sweden 37%, Denmark 34%, Norway 18% Estonia 11%, Finland 7%, Latvia -15% and the USA n/a.
• Q1 saw 11,864 (11,300) new customers and 2,916 (2,700) new distributors.
ZINZINO MAKES A FURTHER INVESTMENT IN BIOACTIVE FOODS AS
To strengthen its influence in Bioactive Foods AS, Zinzino has increased its holding in the company from 6% to 10% through an additional investment of 2.4 mSEK. Zinzino has an agreement with Bioactive Foods AS to issue shares so that it can increase its share in the ownership in the company. Bioactive Foods AS and Zinzino have together developed strategically important products exclusively for Zinzino. Greater ownership in Bioactive Foods AS ensures access to products, skilled researchers and the production of goods within the framework of Zinzino Food. Over the long term, Zinzino expects the ownership in Bioactive Foods AS to generate lower buying costs, which will ensure better gross profit margins and in turn a stronger bottom line.
NEW DIVIDEND POLICY AND COMMUNICATION OF FUTURE FINANCIAL TARGETS
Zinzino’s Board of Directors has decided from the 2013 financial year to propose that the annual general meeting approves a dividend of 30% of the net profits to the shareholders annually, provided that the liquidity and financial strength of the Group permits this. For the 2013 financial year this means that a dividend of 0.10 SEK per share is being proposed to the general meeting.
The Board also wishes to communicate the following forecast for 2014 and financial targets for the period 2014-2016 for Zinzino:
• Net sales in 2014 shall exceed 290 mSEK, corresponding to a growth of around 28% based on the applicable forecast and combined with a net margin of more than 4%.
• The financial targets to be achieved in 2014-2016 are an average growth in sales of >25% and an increase in the net margin to 6%.
COMMENT FROM THE CEO
“I’m really pleased that we’ve maintained our good sales growth in Q1 and with the number of new customers. We’re strongly equipped for even better growth in the next quarter. We’ve invested a lot of capital and resources in personnel, IT, customer service and logistics so that we can look after our new and existing customers in the best way possible. We’re working actively with our offerings to customers and we can see the positive results in all Zinzino’s markets. We’re confidently looking forward to the expansion in USA, which has just got under way. By the end of the year we will have 80,000 customers on our markets and by the year 2020 we’re aiming at having one million customers.”
”The best has yet to come”
- Dag Bergheim Pettersen, CEO, Zinzino
NUMBER OF OUTSTANDING SHARES
The share capital is divided into 27,082,770 shares, of which 6,113,392 are ‘A’ shares (1 vote) and 20,969,378 ‘B’ shares (0.1 vote). The share’s quota value is 0.10 SEK. The company’s ‘B’ shares are traded on AktieTorget.
The quarterly report was not inspected by the company’s auditors.
NEXT REPORTING OCCASION
The next report is the interim report on 29 August 2014.
Zinzino AB (publ.)
The Board of Directors
For more information please contact:
Dag Bergheim Pettersen,CEO of Zinzino AB
Telephone: + 46 (0)31-771 71 50
Note: This report is published in Swedish and English. In the event of any difference between the English version and the Swedish original, the Swedish version shall prevail.
Zinzino is one of the fastest growing direct sales companies in Northern Europe, with sales in Sweden, Norway, Denmark, Iceland, Estonia, Finland, Latvia, Lithuania and USA. We market and sell espresso machines, coffee, tea and accessories, as well as a product line of functional foods, Zinzino Food.