Thank you very much and welcome everyone to our quarterly earnings call. Let's start off by going to page two and then let me give you a quick introduction and summary of the quarter. Overall, we are starting off with a situation where the macroeconomic climate continues to be challenging, but we have adapted successfully to ensure good profitability. The measures we announced during our Q2 report have had intended effects, which our EBIT margin of 13% for Q3 would indicate. The 13% is a 12.5 percentage point improvement versus Q2. The price adjustments and our focus on marketing spend efficiency were both critical for the improved profitability.
However, consumers across Europe continues to be negatively impacted by the macroeconomic climate, which has resulted in reduced purchasing power and lower confidence in the future economic outlook. This has, of course, impacted us by lowering the demand overall for the category. As such, our net revenues declined to SEK 128 million, which is about a 9% decline. Our organic net revenue growth was about -13%, and the difference between the non-organic and the organic, of course, is due to the SEK depreciation, especially versus the euro. The year has undoubtedly been challenging, but we are still financially strong with no bank loans.
We have SEK 55 million in net cash, and we have also seen now during the quarter that investment into our assortments have materialized. In addition to the above, we continue to deliver on our number one priority, which is to offer a world-class customer experience, and the all-time high NPS value of 72 is a testament to that fact. Before moving on and just summarizing, the macroeconomic climate is challenging, but we can still deliver healthy profitability also in this environment. Let me move over to page four, please, to start off with the business update. If looking at our KPIs related to our long-term strategy, there were somewhat mixed results.
We are of course extremely happy and proud that we continue to delight our customers, and as I said, the NPS value of 72 is a clear indication of that and also a huge improvement versus last year as well as quarter-over-quarter. In terms of orders and customer acquisition, those numbers are down and reflect the overall economic climate. Moving over to page five, talking a little bit about the consumer confidence indicators. As you can see on the graph, and we're following a couple of our key markets, we see that the consumer confidence indicators showed further decline during Q3 and reaching all-time lows or very close to all-time lows.
Overall the environment continues to be challenging, but we have taken measures to successfully navigate this climate. If we move over to page seven, please, and start digging deeper into the financials. As I said, we ended at SEK 128 million in net revenue. Organic decrease by 12.7% versus last year. The challenging market conditions have negatively affected consumer demand. The two segments especially are focusing on private consumers, which is the B2C and the MPO segments, has shown the most decline versus last year.
However, I think it's important to note that we did see indications in some markets of a slight recovery in consumer demand toward the end of the quarter. A bright spot, though, is our B2B segment, which actually grew double-digit and reached a growth rate of almost 11% versus last year. Here we continue to have stronger relationships with the interior design customer segment.
On a regional level for the B2C segment, which is on the right-hand side of the graph, the Nordic region continues to be challenging with the economic climate, and overall, the marketing intensity remains relatively high. Let's move to page four and a bit further into some of the key financial metrics. Looking first at our gross margin. Compared to last year, we did see a 0.9 percentage point decline, but I think the important thing here is to look quarter-on-quarter. Here we improved the gross margin by 3.4 percentage points. The price adjustment is a big driver or the main driver of this.
The negative pressure or the downward pressure comes from the discount, higher discount rates towards the customers, category mix effects and continued fuel surcharges. On a segment level, the gross margin on a segment level, the quarter-on-quarter improvement was similar across all three segments. However, slightly more pronounced within the MPO segment due to some of the efforts in our carrier mix has had a bigger impact on that segment versus the other. If we move to page nine, please. Also looking at a couple of additional line items in our income statement. We kind of talked about the goods for resale already.
I think the other external expenses is where our marketing expenditure is booked and that's the main reason we see a year-on-year improvement for Q3. In terms of personnel costs, we have 2.5 percentage point higher versus last year, and that's primarily driven by the higher number of FTEs. Other operating expenses higher versus last year by 1.4 percentage points, and that line item captures all of the effects from currency fluctuations.
We have seen throughout the year to a large extent a high degree of negative impact on that line item compared to what we've seen historically. Of course, the SEK depreciation versus essentially all currencies has driven that. Our EBIT margin, as we said, ended at 13%, which is a 3.2-3.3 decline versus last year, but improved 12.5 percentage points versus Q2. If we move to page 10, please. Just looking a little bit on a longer-term perspective.
Year to date, or LTM rather, net revenue is down. Last twelve months due to the challenges so far, these three quarters of 2022. However, we are still able to maintain a double-digit twelve-month EBIT margin, which is still a healthy level. If we move to page 11, please. Looking at our inventory and some of the other balance sheet or inventory as a starting point. We have seen during the quarter that investment into our assortment have materialized ahead of the peak season.
Those efforts, the assortment investments, of course, during the COVID period were limited due to the fact that we could not travel and part of our product development process is actually to work with the producers directly, and one has to do that in person. Now since COVID has eased during the past year or so, we have been able to jumpstart those efforts, and we're seeing those materialize now ahead of the important peak season. The inventory as a percent of LTM net revenue, however, is a bit higher than our target range, and that is primarily driven by the lower net revenues.
To note is that we historically have seen a very low, what I would call a fashion risk in our assortment and within the product category itself. Even though the ratio is a bit above our target range, it's not a major concern for us. If we move to page 12, please. Looking at our cash flow. Cash flow from operating activities during the quarter declined also- SEK 24 million. That was primarily driven by working capital development and the cash going into inventory was a major driver there.
If looking at cash flow from investing activities, we had about SEK 3 million in total, of which about SEK 2.8 million was driven by the capitalization of technology development costs. Looking at the right-hand side of the page, we have an overview of how our net cash has developed. As we can see there, quarter-on-quarter, it declined SEK 27 million roundabout. That was primarily driven by the working capital. Of course, the big drop between Q1 and Q2 was driven to a large extent by the dividend payout of SEK 52 million. If we move to page 13, please.
Let me then just summarize the quarter and also some thoughts in terms of the outlook. The year has been extremely challenging with the yeah I would call it unprecedented disruptions to the world economy. These events have eroded the consumer confidence, purchasing power and demand, which has negatively affected our prospects. However, we have adapted to this new reality and can still deliver good profitability as our Q3 profit EBIT margin would indicate. Year to date, our net revenue is down to 10.5% versus last year, but our EBIT margin year to date is still at a healthy 9%.
Our rolling 12-month EBIT margin is still over 12%. Our financial position remains strong, with no bank loans, with a net cash position of SEK 55 million. We have SEK 82 million cash on hand and investment into our assortment has materialized ahead of the peak season, so we feel that we're well prepared. Of course, we're also very pleased about the actions we took during the last quarter or so to improve profitability and the fact that they've had the intended effect. The 12.5 percentage point EBIT margin improvement versus Q2 indicates that those actions were successful.
We are still aware and then of course very humble around the fact that the current market conditions are turbulent and the outlook remains uncertain. We must continue to be vigilant in how we drive our business. As such, we did a reorganization within our warehouse team during the early part of Q4. We did that to continue to optimize our organization to the current situation. We are also continuing to introduce new carriers, which will improve the customer experience and over time also optimize our carrier costs.
Finally, I'd like to also say that we are in the beginning of our peak, and our focus now is to continue to deliver on our customer promises, ensure that we execute at a world-class level across all functions, that we maintain a high degree of marketing spend efficiency, and of course capitalize on some of the early signs of recovering consumer demand in some of the markets. With that being said, I'd like to thank you for your attention, and we'll now leave the floor open for potential questions.
Thank you. If you wish to ask a question, please press zero followed by the one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero followed by the two. Once again, to register for a question, please press zero followed by the one on your telephone keypad. Our first question comes from Benjamin Wahlstedt from ABG. Please go ahead. Your line is open.
Thank you very much, and good morning. Could you perhaps elaborate a bit on, I mean, you mentioned the indications of a slight recovery in consumer sentiment in some markets? Could you elaborate on what markets and maybe what indications as well you are referring to here, please?
Yeah, in some of the selected markets across Europe, we've seen that year-over-year search volumes are up or were up towards the end of last quarter. Yeah, explicitly which markets we will not share right now. Overall, I think the situation in Europe overall is quite depressed, of course. There are differences in terms of how the current situation is affecting consumers.
For instance, in Sweden, the mortgages and the development in terms of how interest rates are going to develop moving forward has a big impact on discretionary spend, whereas that is not necessarily the case in some of the other European markets.
That brings me to the next question as well. If you could perhaps elaborate a bit more on the relative weakness in the Nordics. Is this just due to different leverage in households or a different marketing allocation or is there something else we need to understand here?
It's a combination of multiple factors, where of course the consumer sentiment is a major one. But we've mentioned in the past in terms of sort of how the references or the other players active within our category somewhat changed during the COVID. It also differs between the different regions. The Nordics is one of the regions where the multi-channel players definitely took a big step forward during the COVID period. We also see continued high activity from some of the online specialists.
Perfect. Thank you very much. I was also interested in if you could give us a rough estimate on the total level of price increases during the quarter, please? Also perhaps if you could give us an indication of future price increases, that would be helpful as well.
Absolutely. What we shared during the last earnings call was that the price increases we implemented on a large portion of the assortment were tied to or were driven by the need to adjust to how the USD versus euro had developed. That number of course is known information in terms of how that was and then our price increase was of course in that range because the main driver for the increase was how those currencies had changed during year to date back then or at the end of Q2, beginning of Q3.
All right. We should understand that as no further price increases during Q3, then? Am I understanding that correctly?
Oh, yeah. Thank you for the second portion of your question. Yeah. We haven't done any major changes to our pricing during or since subsequent to those. It is of course something in terms of or something we're monitoring, the USD versus euro exchange rates. There's always a bit of a balance of course in terms of ensuring healthy gross margins and ensuring that we have an assortment that is attractive and affordable for the consumers given the current climate.
Loud and clear. Thank you. If you could give us a bit more flavor on the reorganization in the warehouse that you mentioned in early Q4. What has been done specifically?
The reorganization resulted in some of the team members being well, the Swedish term. But the English term I would use is let go. That is of course not the correct translation of the factual Swedish term. Essentially the outcome was that.
All right. Thank you very much. Those were all of my questions.
Thank you. As a reminder, if you wish to ask a question, please press zero followed by the one on your telephone keypad. Our next question comes from Carl Deijenberg from Carnegie. Please go ahead, your line is open.
Yes, good morning. A couple of questions from my side. First, on the marketing spend here in Q3. Maybe if you could share a bit if you think this is a sustainable level going forward. Maybe my second question on that topic is if the sort of improvement that you see here sequentially is this sort of mainly a result of what you see as improved marketing efficiency or is it basically also that you're scaling down your marketing budgets. To understand maybe the mixture in between. Could you say anything about that?
Yeah. If we kinda talk about the expectations moving forward, what we are doing is to ensure that we have an efficient level in terms of how COS is the term I use, but that our marketing spend efficiency is at a level that we feel is appropriate. There's always a trade-off in terms of investing more into marketing versus. There's always a margin versus growth trade-off. I think what we have done is to ensure that the marketing investments that we do make are done in as an efficient manner as possible.
Of course, what that more explicitly means is that we're reviewing where we spend money in terms of markets, as well as which channels we use. Those two main actions in combination has been the driver of the improved efficiency, and something that we will continue to ensure and focus on, also here during the peak season.
Okay, great. Maybe following up on that, on sort of the general climate and prices on keywords, if we take AdWords for instance. Do you see it from your side that these prices have also sort of declined sequentially? Is this something that you're sort of familiar with or seeing? Has this contributed also then, I guess?
Yes and no. It's a bit again, we operate in quite a few markets as you know. In some markets, yes, there has been also in the keyword area some sequential decline in CPCs. In some markets there hasn't been that trend. A bit of a mixed bag, but a big driver and really the most important driver in terms of the Q2 versus Q3 development on the marketing spend ratio has been actions and decisions that we've taken internally versus the general market condition, I would argue.
Okay. Very well. Following up on another topic here on the inventory situation, you elaborated a bit about this in the presentation, but I'm just curious. I guess there's also a USD or U.S. dollar revaluation effect here in Q3, sort of obviously taking up the value in the balance sheet, if I just take sort of the absolute level versus Q2. Is that correct? Would it be possible to say anything, sort of the magnitude, the sequential magnitude, Q2 versus Q3 from sort of the currency development there?
Yeah. There's actually not a revaluation of the goods on hand. If we had the goods on hand at a given point, we value the goods once it's brought into our sort of realm of control. We put it on the balance sheet finally when we receive it. The currency rate at that given point in time is used to value the goods in the inventory.
Those specific goods, of course, for that, will have that value in our inventory in SEK throughout its lifespan. However, what if we take articles that we reorder, what it can mean is that we have a constant USD price that we buy for, and back earlier this year it was one price, and then if we brought it in at that point in time, it would have one SEK value, and the same number of items brought in here during the last quarter or so would have a different value.
The main driver in terms of the increase quarter-on-quarter, with that being said, is that we've made investments into developing new designs and new collections, and those have arrived now ahead of the peak season, and that's the main driver of the quarter-on-quarter increase in our inventory.
Okay, great. That's very clear. I think a final one on the balance sheet, if you could say anything about the receivables line here. It's up quite significantly sequentially. I think you ended Q2 at around SEK 12 million versus SEK 46 million during Q3. So any comment on that would be helpful.
Yeah, absolutely. That's driven by that we moved money into our tax account. Taxes to be paid, so moved it out of our bank account into the tax account that with the Swedish tax authorities, and that's the main driver on the vast majority actually in terms of the quarter-on-quarter development there.
Okay. Thank you very much.
Mm-hmm.
My final question is, if you could just share a bit the development on the new webshop that you've been working for some time. I know that you launched it in a few more markets here in Q3. Maybe if you could say how many markets are you live with that version, and how many left are there to sort of upgrade them, and when do you think you are fully transformed?
Absolutely. Yeah. The team did a tremendous push during both Q2 and Q3 in terms of moving the development of our essentially we're rebuilding our entire e-com platform. The front end, which is only one portion of the entire work. What you see the webshop is live in Croatia and Austria. The degree of maturity still is something that needs to be enhanced before we move into additional markets. That is work that is ongoing and currently, Austria and Croatia are the only domains with the new infrastructure.
Okay. Very well. I think that was all from my side, so thank you very much.
Thank you.
Thank you. There appear to be no further questions, so I'll return the conference back to you.
Thank you. There was a related question, a written question here to the inventory numbers, specifically in terms of the increase of the inventory as a share of LTM net revenues, the ratio between them. Quarter-on-quarter, it increased, was it about four points, right? No, actually about seven points or almost eight points. That is or since the beginning of the year, and that's the quarter-on-quarter sequential development is really the more important one here.
That is really driven by number one, of course, the investment into the assortment that we've spoken about. Second, of course, is that the LTM net revenue is down versus before. Though that, and then of course the ratio has increased above the target level that we have. However, as I mentioned, there is a low degree of fashion risk within our category or vertical. We still feel confident that over time we will be able to sell the items.
Of course, the new items that we have invested in or the new collections, and that we've invested in, we feel strongly that they will enhance our assortment and be attractive to consumers. Over time, we feel that we can get back, let's say to a level closer to our target range. The inventory value by itself is not a major concern. Anything? No, that was everything from the written questions. If nothing else, I would like again to thank everybody for your attention and look forward to speaking to you all again next time. Thank you.