Following a strong debut for the company's new CEO Daniel Hörnqvist, Söder sportfiske, which operates Sportfiskeprylar.se among others, presents new figures for the third quarter.
During the period of July to September, net sales increased by 12 percent to SEK 73.1 million, up from SEK 65.4 million last year.
In the domestic market of Sweden, sales increased by 14 percent while foreign sales increased by 6 percent. At the same time, profitability improved significantly. Adjusted operating profit (EBIT) increased by 69 percent to SEK 9.2 million (5.5), which raised the adjusted operating margin from 8 to 13 percent.
Ordinary operating profit amounted to SEK 8 million (4.2) and profit after tax at the bottom line ended at SEK 6.2 million compared to SEK 3.2 million last year.
The development of results clearly demonstrates the operational leverage in the business. I am pleased with the development and we are now approaching the levels of profitability that we have historically demonstrated and where we believe we should be during this period of the year, writes CEO Daniel Hörnqvist in the report.
Own brands surge by 50 percent
Behind the improvement in results is active assortment work where the company has steered sales towards more profitable categories. During the quarter, the gross margin was strengthened to 41 percent (40).
An important driver is the company's focus on moving content in social media and the newly launched brand 4strike, which targets younger anglers.
We have now gone through a transition phase and established new working methods, both operationally and commercially. The quarter is characterized by the active category shift that I have previously highlighted. Our strategic assortment work has enabled more competitive prices and contributed to steering sales towards the parts of the range that we prioritize. At the same time, our focus on film and image material for social media has strengthened sales of our own brands by 50 percent, which, together with an improved product mix, has contributed to lifting the gross margin, says Daniel Hörnqvist.
Building own AI agents to avoid consultants
Alongside the assortment, the e-commerce company has focused on automating internal processes during the quarter. By developing its own digital tools using AI agents, the company wants to scale up operations and avoid expensive external IT consultants and system suppliers.
To create conditions for further growth and scalability within our existing organization, we have taken several steps in the development of self-developed digital tools and simplified working processes with the support of AI agents. The work is in line with our continued cost discipline and creates opportunities to streamline operations while reducing dependence on external system suppliers, explains Daniel Hörnqvist.
Pikefight and advent calendars ahead of the final sprint
Content and community continue to be a cornerstone of the company's marketing. During the autumn, the newly recorded season of the fishing competition Pikefight will be broadcast on Youtube, and ahead of the last months of the year, the company is also releasing advent calendars for both Pikefight and the perch series Perchfight.
This is an important part of our content work and a significant contact surface to strengthen the community between us and our customers, says Daniel Hörnqvist.
Now the company is looking forward to the Christmas trade and the most intense weeks of the year.
We are now entering the final quarter of the year with a business that is on a more stable foundation than before. The changes we have made are starting to yield clear results, while we continue to focus on developing our offer and strengthening our competitiveness. Our ambition going forward is to combine sustainably high profitability with an increased growth rate, concludes Daniel Hörnqvist.