Okay. Welcome to the 2nd quarter presentation by Electrum Protrane. Today, we have the CEO with us, Andreas Niss and the CFO, Peter Biersta. And with that, I think I leave the floor to you guys. Just a short reminder that you can ask questions, but you need to do that in the chat function.
We will take them afterwards. Okay. Back to you guys.
Thank you. Thank you, everyone, for calling in. We'll take you through a brief presentation of our 2nd quarter results. To sum up the quarter, we see that we have revenue of SEK321 1,000,000, it's up 18% versus last year. Quite heavy comparables.
So we are satisfied with the growth that we have managed to achieve in the quarter. If we look at EBITDA, It's almost SEK40 1,000,000, slightly down from last year. You have to take into consideration that this year we have made Provisions for year end bonuses of SEK3 1,000,000 in this quarter. And last year, we did no such provisions. So Comparing apples to apples here, the adjusted EBITDA for Q2 is CHF 42,600,000.
Growth has continued. We have, as I said, faced tough comparables. Last year, we grew 40%. And if we compare to 2019, our sales are up 65%. It is B2B that is driving the growth.
We grow with 49% in the B2B customer segments. And within that segment, Electrical vehicle chargers is by far the fastest growing category. Our business to consumers have a slight decline. We were down in April May, but we managed to go back to growth again in June. That was Driven and supported by a good campaign.
Every time we open a new store, we have, I would say quite an aggressive campaign when it comes to price product, which we run-in all our stores and online. And it It usually works well and it did so as well in June. We opened, as I said, our 24 store this time in Yesseim, mid June and it has been received well so far by customers, both professional and consumers. Spot on, our digital service for electrical installation is now available in all our stores and we can offer Spot on So more than 70% of Norwegian households and also more than 70% of Norwegian cabins. Yes.
And that's where we are as of today with SpotOn. We have also signed one more new contract. It's for a new store in Stavanger, which we will open in November this year. I've added a slide on spot on because I think it's the first time we're actually mentioning this In one of our quarterly presentations. It's an online ordering and inspection for electrical installation.
Why should you do this? Why is there a space for spot on in the market? What we have found is that there is What should we say? Some frustration amongst the consumers when it comes to getting electrical installation done. It's hard to know Where to find a good electrician that you can trust and who has the right competence.
It can be difficult To agree on how much time the installation should take and when it should be done. And it can be Uncertainty around the cost of installation in terms of what am I paying for in terms of material and time. So what SpotOn is doing is that it's solving all of these three frustrations with giving you an electrician from 1 of our partners, digitally booking the time for when you want this installation to be made and giving you a fixed price on the job. So it's Easy, it's safe and it's fast. And this year, as we have started up with Potan and rolled it out across the country, we are now We have made 500 installations so far in the first half of the year with a total turnover of SEK4 1,000,000.
So this is just in its Early beginning, but we see we get great it's been received great from the customers that where we have made installations. So more to come on spot on. I also added A slide on ESG. Just to give you some short information on what we're doing on this. During first half On the year, we have started to structure our ESG work.
This we have done by selecting a number of actions where we believe we have the possibility to make an impact. We have clustered these actions into 5 of UN's 17 sustainability goals, as you can see. And we're working with several actions to secure a more Production and Distribution, for example, systemizing how we work with suppliers and producers to reduce waste and emissions. We're shifting all our truck lifts and our delivery trucks from fossil fuel to electricity. And for example, we're Now installing solar panels on our new central warehouse, which will be open in Q3.
Other initiatives that we do is that we to trigger more women to become electricians. We have signed a partnership with KAR Norway, who work for women rights and helping women out of poverty. And in order to get a good structure around the work that we do with ESG And in order to monitor the progress, we have started a certification process where we are becoming certified by the Norwegian, Milje Firthorn. And our aim is to have this certification completed by the end of the year. Yeah.
If we look at a bit more detail on the revenues. Sorry.
Yeah. We believe that we have delivered a good sales performance during this quarter, Growing from SEK 272,000,000 last year to SEK321,000,000 this year, 18% growth And that's after a year where we had 40% growth. As Andreas mentioned earlier that The big driver this quarter is the B2B sales. And then especially maybe the biggest driver there is increase of sale of EV charters. Last year, we had around €6,000,000 of sales.
This year, we have €34,000,000 of sales of EV charters. And that's mostly to the B2B customers. If you look at the stores, we have almost 11% like for like and the physical stores and 26.6 percent on 1 operation. During this quarter, we had some negative impact due to COVID restrictions. 13 of our stores were partially closed For B2C, Alna Abre opened at 12th May this year.
So they had some negative impact in the 2 1st months. Like for like of the B2C customers were positive in June back in June, so that's good. Also, I'll say that last year we had magnificent growth in the B2C. We had 45% growth last year on the B2C customers. So we are actually pretty happy to have, the same level also given that we have partially closed for this period.
So Sales are good. Looking at the margin, Doesn't look too good to go from 39.8 percent last year to 37.4 Slightly improvement from last quarter. The big driver here is sale of EV chargers because we have significantly lower margin on the 34,000,000 sales of evetroppers compared to other product categories. If you look at the margin development, when we Exclude the inventories, it's in line with last year margins. Yes.
If you look at the cost side, we have gone from 68,000,000 to around 80,000,000 of total OpEx. Of course, the provision we make, we started We were not listed last year. So we did not, make provisions for the year end bonuses, expect the year end bonuses before the last quarter. So we started actually July last year to make these kind of provisions. So we now make provisions on a monthly basis.
So that's NOK 3,000,000 compared to last year as an increase. We We have spent a little bit more on marketing to fuel, to fuel the growth And also a little bit more on distribution to distribution and also a little bit on chain and the growth. So we believe that we have A good cost control in our operation in the stores than in the back office and distribution. And we are satisfied with the development of OpEx. Just to look Take you through the bridge of adjusted EBITDA.
We had last year SEK 40,700,000 and reporting SEK 39,600,000 This year, the like for like stores, they are contributing with around €2,000,000 positive increase from last year online the same and also the new stores are delivering good results. Then the negative element of the provision of year end bonuses. And then on the NOK 3,200,000 on the other, that's So, increase in marketing, distribution costs and chain costs. Yeah.
Yes. To sum up the key financials, SEK321 1,000,000 were up 18%. Online share of sales is at 14%, up from 13%. B2B sales, 49% up, While B2C is down with about 2%, B2B share of business is now at 53%. It was at 42.6% last year.
Total like for like growth is on 13 with €26,600,000,000 and €11,000,000 in the physical stores. EV charges, as Peter was saying, is growing dramatically, SEK 34,000,000 this quarter compared to SEK 6,000,000 last year. Overall gross margin is down. Again, this is linked to the Shift from B2C to B2B and B2B buying a lot more EV chargers. OpEx to sales ratio of 25% on the same level as last year.
As We have said now a couple of times we have made these provisions that we need to take into account. If we consider that, we are Happy with the development in costs. Net cash is at SEK65,500,000. It's up from SEK2.8 last year. And we also have an overdraft facility of SEK120 1,000,000 which is not utilized.
If we look at what we think about the rest of the year, We believe that we will continue to grow sales and market share in B2B. This will be driven both by new customers and the penetration of that we get higher loyalty with the customers that we have and also continuous growth with electrical vehicle chargers. We expect the B2C sales in like for like to be on par with last year. You could say this is quite moderate, but we had a fantastic second half in 2020 in terms of B2C sales. So we are actually quite happy if we manage to reach those numbers.
But with the levels we saw in the last quarter, we believe that this is absolutely possible. Gross margins to remain at the same level as the first half, mainly due to the things that we said around B2B and EV chargers. We will continue to build the market awareness of SpotOn and believe that sales could be around SEK10 1,000,000 for the end of the year. We have signed one more store opening in Stavanger in November. We are expanding our central warehouse.
We're doubling the size of Our central warehouse and it will be ready in a month's time roughly. We also, As some of you know, I have discussed and analyzed the Swedish market and we will conclude on a strategy for Sweden before end of the year. That was our Brief presentation. So if there are any questions, we are more than happy to take them right now.
Okay. Thank you. I can start with one question. Your own brand, Amron, there you have a target to increase that to roughly 40%, I think, by the end of 2022. Now it's from my understanding, it's north of 30%.
Can you say something about the development on that brand? Thank you.
Yes. You're absolutely right. Our aim is to have a 40% share of number on sales. We were on track for that until we saw the explosion, if I may say so, in sales of electrical vehicle chargers. This is a product group where we, as of today, do not have a number on range.
Maybe we will get it, but not this year. But if we exclude the EV chargers, we see that we are making great progress in smart homes and Electro Materials, where we have throughout the first half of the year, we have continued to launch new products within these 2 product groups and we also have more to come during the year. So We are actually happy with the development that we have with Namron. But the target of 40% might be harder to reach if we do not introduce our own electrical vehicle charger in the market.
Thank you. A follow-up there on the B2B sales significantly growth. Are you seeing any initiatives from the legacy players in this market like Ugandan and or Alcel? They're doing anything to try to limit your growth?
Well, we should say I mean, I'm not sharing those So the details here because I don't know if I can, but I mean the market that we operate in together with our competitors in the wholesale segment has been good for the last months. So for the last 4 or 5 months, the growth in the market has been good. And we're taking our share and a bit more than that. But I'm guessing are having quite an okay first half of the year as well. And well, We have thought I think I've said this, but we thought in 2015 that maybe we would have one more year being alone with doing what we're doing.
But obviously, we are we were wrong because no one It's trying to copy the business model that we have, probably for good reasons. But we don't see Any actions? I mean, we compete with the other players on the same way that we have always had. And the competition in the market is quite tough. But we don't see anyone targeting us or doing something Well, if you say opening up for consumers, for example, which would be quite an aggressive approach towards us, but we don't see them doing that.
Okay. Thank you. And then we have some questions coming in, which relates to the B2B business. I mean, how do you see the development for the rest of the year here in the B2B business. I would assume that Q2 was somewhat that the B2C sales was somewhat negative affected by some temporarily closed stores in the beginning of the quarter.
In terms of B2C?
Now B2B and B2C, the split there in the second half. Is it possible to give some?
Yes. I mean, Yes. We believe we lost some sales in B2C due to closed stores. That's for sure. I mean, we Well, it's a given.
If you close down the store, you don't have the same sales, even though some of it was converted over to online. So If we manage to keep the levels in like for like, B2C, as we say, on par with last year and then have Some growth in the growth to come from online and from the new stores that we open. Probably, the mix should be more fifty-fifty than the other way. So now we see 53, 47 in B2B, B2C, probably it should be closer to fifty-fifty at the end of the year. Also given that December is a month Where we have significantly more B2C sales than we have B2B.
And also in Black Week.
And also, yes, also the last week of November where we During the Black Week marketing hype, which we usually do quite
some time. Also we have July where a lot of installers take holiday. So it's a lower activity on the B2B side during the, yes, summer months development.
Perfect. Then we have two questions here. How do you see the freight costs developing going into the second half of the year and also through 2022? That was the first question. So we can start with that one, I guess.
Well, freight rates are increasing for us as I guess they are for most People that most companies that ship things out of China, 95% of what we sell in Amron is shipped out of China. And we see increased rates there and I believe they will continue to grow throughout the year. If we hit the peak or not in terms of in 2021 or 2022, I don't know. But what we can say around that is that even though freight rates are dramatically higher than they have Usually, Ben, it doesn't have a huge impact on us in terms of lower margins because The products that we send from China are usually quite small and quite costly with high margin. So we can put a lot of products into 1 container with a high turnover on each product and a healthy margin.
So of course, when freight rates go up, we will have to pay them as everyone else. But it will not have we don't see we haven't seen and we don't believe it will have a significant impact on our margin. I hope that makes sense.
Absolutely. And then the second question here related to the assessment on moving into Sweden. What are the most important questions that you need to, let's say, sort out before you make a decision there?
Well, there are several things, of course, that we need to consider. One is To make sure that the business that we have today, Good growing business that we have today do not suffer from us starting to enter into Sweden. So Being sure that we can run the business that we do today in Norway in the same way whilst also putting resources into Sweden. So that's one thing. Another thing is making sure that we understand the customers enough.
You can assume that Swedes and Norwegians are quite the same, but a lot of other companies trying to enter Sweden from Norway have Hopefully, found out that that is not always the case. So we are digging into customer service, etcetera, to find out more about The customers. Another thing is, of course, also to decide on the speed And the magnitude of how to do it, should we go only online as a start to try to find out A bit more about the market and how it works, what are people searching for, what are the most interesting products and the most searched for products. And then maybe after a while open a physical store where we can tune the assortment to the Swedish market because in my view, the assortment getting the right assortment at the right cost price is probably the most important thing in terms of success or no success. So understanding the customers, what is it that they need, then making sure that we can get all of the products that we need to satisfy the customers at a healthy price.
Those are the major things. And then, of course, you also need to decide should we do this greenfield, so just try to do it ourselves Or is there a possible route to do it through an acquisition?
Perfect. Then I have a question on the growth potential in Norway. I mean, ending this year, you will probably have 25 stores. How would you see this in the coming years? And how many stores do you that you can open on a yearly basis?
We believe that there is room for roughly 20, 25 more stores in Norway. We have an interesting test going at Jarlhagen Center in Klep where we have opened a store in a mall, in a shopping mall on the 2nd floor. And if that works, I think the expansion could be Much wider than just 2025 stores because then a whole new space opens up in terms of new stores. But Let's say we stick to the model that we've had. We have the capacity to open
5 to
10 stores a year. But what is now stopping us to go faster than we're doing is that we are quite picky when it comes to location. We need to have an A location, which means in terms of how we're looking at it now, on the 1st floor In an area with good neighbors that spends a lot of money on marketing so they can attract customers to the same parking lot that we share. Easy parking? Easy parking in and out for the installers, good visibility from the roads passing by.
And that is It was much easier to find those for the 10 1st location than it would be for the 20 to come. But, yeah, that's how we're looking at it. So I believe 2 to 3 to 4, 5 Stores a year is the speed that we'll have.
Perfect. Then I have a question on the spot on. I mean, you now have 500 deliveries. Where do you see that in the next 2 to 3 years on an annual basis? What are you planning on?
First of all, we must say that it takes time to build up something new. This is a whole new way of getting electrical installation done. And It takes time to create awareness and understanding of the new brand, the new service amongst private consumers. But if we're at the SEK10 1,000,000 as we're saying here at the end of the year, I don't see why that shouldn't double at least in the next year. And where it goes from there, who knows?
I mean, Because we also need to continue to develop the service. There are some things that are perfect with it today and super, but it can also grow in terms of what we offer. So I would say we need this year as proof of concept, which I believe We're far in getting. And once we get that this year, we I mean, the market potential is SEK 50,000,000,000. That's the market we're operating in.
So, well, I can only speculate but It's a huge market. And if this service is even as close as good as I think it is, If most people think that as well, then the potential is big.
Understood. I have a question here asking how many EV chargers did you sell in the quarter? And what is the sales growth excluding EV chargers?
Sales of EV chargers was at €34,000,000 in the quarter. Our growth in €1,000,000 was well, and it was €6,000,000 last year. So the growth in EV charges is SEK28 1,000,000, right? And then sorry, I should of course
I think it will be around 8%, if I do the math correctly here, if I just take it out.
Yeah. So around 8% 8% to 10%. I mean, and we sell these charges at roughly SEK8,000 including VAT. So then we're not giving you the number of what we sell them to the installers. That's yes, that's the answer.
Then a question on the gross margin. With the gross margin now 37.8% and maybe around 39% without the chargers. How high is the gross margin on the number of products?
It's
considerably higher. The average margin on AMRAN today is
It's almost 60%. It's over 60%.
Perfect. I think we have gone through all the questions. Just let me take a second look here. Another one on gross margin here. I mean, if you exclude the dilution effect from the higher to be sales and the EV chargers.
Is there any other key drivers for the gross margin change year over year in the second half?
I think you have if you look at the other categories, you have the SmartHouse category That's growing more than the average on other categories. And there, we have a lower margin, but also we are Introducing new more or some number of products into that category. So even though it's a big growth area, We are getting better margin on the product category, but still a little bit lower than the average margin. And then you, of course, we have Namron. We are increasing Namron more than other products.
If you exclude the guitarist, That's around 20 percentage point higher margin than on the other categories. That's a positive element. And then you have other drivers like Elku products. We partially where we buy it and that's also is some variation The resource sorts of products. I think that's the biggest But in all fairness, you
could say that if you exclude the EV chargers, We believe that we have a healthy margin development. So we do not see margin pressure, Big margin pressure on any other categories than the EV charges.
I think you said if you exclude the EV charges, it's a flat margin on the B2C and the B2B Compared to last year. Yes.
Perfect question here. When is Electrolym Paterne on Oslo Bosch?
We have an ambition to be listed on Oslo Busch.
We started the work looking at going into IFRS for so we started that process to work on that
Maybe within 24 months.
Okay, perfect. Then I think we have Went through all the questions. So by that, I thank you guys for allowing us Percanc to hold this Q2 presentation. And we look forward to seeing you again, hopefully, physically, at the Q3 presentation.
Okay. Thank you very much everyone. Thank you. Bye bye.