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Strong Growth for Vuxen – Increases Profit by 80 Percent

Tobias Fransson, CEO
Launches dividend policy.

E-commerce group Vuxen Group reports increased turnover and improved results for its third quarter, which runs from November to January. Turnover amounted to SEK 80.1 million, which corresponds to an increase of 19 percent compared to the same period last year. At the same time, operating profit, EBITDA, strengthened by 80 percent and landed on SEK 6.5 million.

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During the period, which included Singles Day, Black Week and Christmas shopping, the company adopted an offensive strategy. CEO Tobias Fransson states that consumers' price sensitivity was noticeable and that the company met this by focusing on reaching new customer groups. The campaigns were aimed not only at short-term sales but also at introducing the company to consumers who had not previously shopped with them.

Despite the increase in turnover during the year's most intensive sales period, the company maintained fast delivery times. In the interim report, Tobias Fransson comments on the handling of volumes and capacity in the company's own warehouse.

"That we can scale up without compromising on the customer experience is a testament to the work we have put into our logistics apparatus," he says.

The positive profit development is explained as a direct result of the company's streamlining and focus on the sexual health segment, which today accounts for approximately 90 percent of turnover. According to management, this focus creates both growth and margin improvements, which in turn has strengthened the operating cash flow and created a solid balance sheet.

In connection with the report, the company's board of directors announces that a new dividend policy has been adopted. The ambition is to annually distribute a share of the profit after tax to shareholders, provided that it is consistent with the group's investment needs, acquisition opportunities and capital structure. The intention is to propose an ordinary dividend according to the new policy from the financial year 2025/2026.

The focus going forward is now on managing the expanded customer base. The company states that they are actively working to convert the quarter's customer acquisition into long-term relationships through relevant follow-ups and maintained service.

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Editorial Staff
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