Local One Media AB is headquartered in Skellefteå and operates a handful of different e-commerce stores. Among the platforms are Sovo which sells sleep masks, Ryggform focusing on ergonomics, and Workears which sells hearing protection.
On the Sovo website, founder and CEO Johan Grankvist writes:
People who know me know that when I embark on a project, I do so wholeheartedly and with passion.
In the autumn of 2019, I came across a study by Hälsobarometern that blew me away. As much as 74 percent of the Swedish population suffers from sleep problems. It is primarily women who experience difficulties sleeping, with 80 percent reporting this. The corresponding figure for men is 68 percent. This study led me to start developing what is now Sovo.se.
The strategy of gathering several stores under the same umbrella has yielded results early on. When we wrote about Sweden's 100 fastest growing e-commerce companies last year, the Skellefteå company ranked 27th on the list.
Now it is clear that the strong sales momentum is continuing. In the company's recently published annual report, which covers the period from April last year to the end of March this year, a clear upward trend is visible.
Revenue landed at just over 8.5 million Swedish krona, which corresponds to an increase of over 30 percent compared to the previous year, when turnover was 6.6 million krona.
During the past financial year, we have seen increased demand for our range, which has resulted in higher turnover. This growth can also be attributed to the increased commitment and resources that have been invested in the company compared to previous years, the company writes in the report.
Margins are being squeezed
But increasing volumes comes at a cost. Despite the rising sales, it is clear from the accounts that expenses for goods purchases and running costs have eaten up large parts of the cake. Operating profit stopped at just under 11,000 krona and after financial items, the e-commerce company reports a surplus of approximately 1,500 krona. The previous year, the result was just over 19,000 krona.
The company, which has an average of one employee, is nevertheless on a solid financial footing. Equity is 68 percent. There are around 335,000 krona in the cash register, which provides room for ongoing business operations.