Increased focus on real estate, continued pick-up in results in fashion operations despite large effects from the pandemic

1 April – 30 June 2020

• Total operating revenue decreased 40 percent to SEK 37.7 million (62.7).
• The gross profit margin increased to 62.2 percent (50.6).
• The operating loss was SEK was SEK -9.3 million (-17.9).
• The net loss amounted to SEK -11.2 million (-19.2).
• Earnings per share amounted to SEK -0.30 (-2.12).

1 January – 30 June 2020

• Total operating revenue decreased 30 percent to SEK 104.8 million (148.9).
• The gross profit margin increased to 55.9 percent (49.8).
• The operating loss was SEK -15.2 million (-35.5).
• The net loss amounted to SEK -18.5 million (-38.4).
• Earnings per share amounted to SEK -0.50 (-4.39).

Important events during and after the end of the quarter

• Underlying costs decreased in the quarter by SEK 14 million in line with the action plan to gradually generate savings of approximately SEK 75 million on a full-year basis with full effect in 2020.  Accumulated savings during 2019-2020 amount to approximately SEK 72 million. During the second quarter, additional savings measures were decided with an expected effect of approximately SEK 10 million on a full-year basis.
• In April, the company applied for and granted aid under state aid packages as a result of the pandemic, which had a positive impact on the cash flow and earnings of the quarter. However, the vast majority of cost savings are the result of ongoing action programmes.
• On July 13, the wholly owned subsidiary Odd Molly Fastigheter AB signed a new lease agreement with the existing tenant in the property Kristianstad Vä 1:10, which also includes the construction of a new logistics building on the property, which is expected to be completed in spring 2021. The agreed annual rent amounts to approximately SEK 1.8 million with a triple-net lease that runs 11 years, until July 2031. The total annual net operating income of Kristianstad Vä 1:10 is thus expected to increase by nearly 20 percent to SEK 11.9 million.
• On August 18, an agreement was reached to acquire four logistics and warehouse properties in Småland through the acquisition of 100 percent of the shares in Millennium Fastigheter AB. The property portfolio comprises a rentable area of 29,840 square meters and generates annual rental income of approximately SEK 11.7 million and net operating income of approximately SEK 9.8 million. In connection with the acquisition, Odd Molly plans to carry out a directed issue of 4,260,110 new class A ordinary shares at a price of SEK 4.80 per share to the sellers of Millenium Fastigheter AB and a directed cash rights issue totalling 2,916,668 new Class A ordinary shares at a price of SEK 4.80 per share to a group of investors. In total, issues of just over SEK 34 million are planned.
• On July 22, a letter of intent was signed with Ytrade Group AB about a possible merger between Odd Molly’s wholly owned subsidiary Used By International AB and Ytrade Group. After in-depth analysis, the parties have jointly decided not to go through with the merger.

This information is information that Odd Molly International AB is obliged to make public pursuant to the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set above, on August 26, 2020 at 8.00 am CET.

This is an extract translation of the original Swedish language report. In the event of discrepancies, the original Swedish wording shall prevail.

For the full report, please see attached PDF (in Swedish).

For further information, please contact:

Jennie Högstedt Björk, CEO
+46-8-522 28 509
jennie.hogstedtbjork@oddmolly.com

Johanna Palm, CFO and Deputy CEO
+46-760-10 24 55
johanna.palm@oddmolly.com