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 first quarter 2023. The year has started well with solid profitability in the first quarter and continued improvement in Contribution margin which reached 31.6%. The company progressed its strategic must-win-battles to drive profitability, improving production efficiency, updating its tech-platforms, launching a successful partnership in Sweden and acquiring the customer relationships of a competitor in Denmark.
Active customers grew sequentially by 18.4% from Q4 to Q1 however Net sales continued to contract on a year-over-year basis and were down 17.4% for the quarter. Winter school holidays in the Nordics and a higher inflow of new customers contributing to a decline in order frequency of 13.4% which was partly offset by an increase in Average Order Value by 13.6%.
CEO Walker Kinman commented: “Our expectations for the start of the year have been broadly met, and our fantastic team remains focused on executing on our Must-win-battles to stabilize the top-line and profitably drive growth. We have stood out in the retail and food e-commerce space by demonstrating the ability to make a profit by providing a service that simplifies putting great-tasting, home cooked food on the dinner table. Our focus on operational excellence and margin discipline enables us to generate profits without compromising on the customer experience and gives us competitive strength in a time when capital is very expensive, and stakeholders are looking for sound financial performance.”
First quarter 2023 (Q1 2022)
- Net sales decreased by 18.4% to MSEK 287.8 (MSEK 352.9 same period last year). Adjusted for exchange rate differences that equals a decline of 17.4%
- Contribution margin was 31.6% (24.4%)
- EBITDA amounted to MSEK 24.0 (-6.5). EBITDA-margin at 8.3% (-1.8%)
- Adjusted EBITDA amounted to MSEK 24.0 (-4.1). Adjusted EBITDA-margin at 8.3% (-1.2%)
- Operating profit (EBIT) at MSEK 12.1 (-19.7), a margin of 4.2% (-5.6%)
- Adjusted EBIT at MSEK 12.1 (-17.4), a margin of 4.2% (-4.9%)
- Net profit for the period after taxes at MSEK 7.1 (-18.9)
- Earnings per share SEK, before and after dilution at SEK 0.56 (-1.49)
Please see LMK Group Q1 report attached and on https://lmkgroup.se/investors/financial-reports/
In connection with publishing its Q1 report for 2023 on 3 May 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-q1-2023-report
