LMK Group, a leading supplier of meal kits in the Nordic region and a leader in Scandinavian foodtech, today announced its financial results for the fourth quarter and full year 2022. Despite challenging market conditions, contribution margin levels were improved, reaching 29.7%, exceeding expectations. At the same time, Net sales continued to contract on a year-over-year basis and were down 22% for the quarter. Despite price increases to offset inflation, order frequency was stable and Average order value increased by 14.3%.
During the quarter, the operations teams increased production efficiency, a partnership with WW ViktVäktarna (Weight Watchers) made its debut in Sweden, and important technology upgrades to websites and customer interfaces were completed.
CEO Walker Kinman commented: “I am very proud of my colleagues’ efforts this past year in navigating a very tricky e-commerce environment. We have continued developing our product and services, keeping focus on the customer experience and operational excellence. Our target is profitable growth and our short-term priority to stabilize revenue development, however we foresee a continued market contraction during 1st half of 2023. Given our disciplined approach to profitability and clear immediate targets we are expecting EBITDA profitability in Q1.”
Fourth quarter 2022 (Q4 2021)
- Net sales decreased by 21.9% to 255.5 MSEK (327.0 MSEK same period last year). Adjusted for exchange rate differences that equals a decline of 24.6%
- Contribution margin after fulfillment cost was 29.7% (26.7%)
- EBITDA amounted to -95.7 MSEK (28.0). EBITDA-margin at -37.5% (8.6%), including an impairment reserve of 120 MSEK.
- Adjusted EBITDA amounted to 24.3 MSEK (28.0). Adjusted EBITDA-margin at 9.5% (8.6%)
- Operating profit (EBIT) at -107.6 MSEK (15.7), a margin of -42.1% (4.8%)
- Adjusted EBIT at 12.4 MSEK (16.9), a margin of 4.9% (-5.2%)
- Net loss for the period after taxes at -112.5 MSEK (14.5)
- Earnings per share SEK, before and after dilution at -8.87 SEK (1.14)
Full year 2022 (Full year 2021)
- Net sales decreased by 22.0% to 1081.4 MSEK (1387.3 MSEK). Adjusted for exchange rate differences that equals a decline of 24.6%
- Contribution margin after fulfillment cost was 25.1% (28.1%)
- EBITDA amounted to -99.5 MSEK (92.8). EBITDA-margin at -9.2% (6.7%), including an impairment reserve of 120 MSEK.
- Adjusted EBITDA amounted to 25.4 MSEK (105.7), Adjusted EBITDA-margin of 2.3% (7.6%)
- Operating profit (EBIT) at -149.3 MSEK (46.9), a margin of -13.8% (3.4%).
- Adjusted EBIT at -24.5 MSEK (61.0) gives a margin of -2.3% (4.4%)
- Net loss for the period after taxes at -154.6 MSEK (17.4)
- Earnings per share SEK, before and after dilution at -12.19 SEK (1.60)
Please see LMK Group Q4 and full year 2022 report attached and on https://lmkgroup.se/investors/financial-reports/
In connection with publishing its year-end report for 2022 on 28 February 2023, LMK Group invites investors, analysts and media to a teleconference and webcast on the same day at 09:00 CET. Details can be found here: https://lmkgroup.se/press-releases/press/?slug=invitation-to-presentation-of-lmk-groups-q4-and-year-end-report-2022
For further information, please contact:
Peter Bodor, Head of Corporate Communications, LMK Group
Mob: +46 706 48 70 65
E-post: peter.bodor@linasmatkasse.se
Walker Kinman, VD, LMK Group
Mob: +46 707 22 65 13
E-post: walker.kinman@linasmatkasse.se
Erik Bergman, CFO, LMK Group
Mob: +46 707 74 49 73
E-post: erik.bergman@linasmatkasse.se
