Definitions of metrics and key performance indicators
In accordance with ESMA's guidelines for alternative performance measures (APMs), we have used certain financial measures that are not defined by IFRS in this report. These measures are used to provide additional insights into our business and financial performance. The APMs used are defined and calculated in accordance with ESMA's recommendations and provide useful complementary information to the financial measures reported in accordance with IFRS.
The company also presents other operational measures that are not defined as APMs according to ESMA's guidelines. The APMs and other operational measures presented in this report should not be seen as a substitute for the financial measures reported in accordance with IFRS, but rather as a complement that helps investors understand and analyze the company's financial results in a more detailed way.
| Measure | Definition | Explanation | Type of measure |
|---|---|---|---|
| Number of new customers | Number of orders from first time customers, before cancellations or returns. | A measure that provides an indication of how well the company succeeds in attracting new customers with its offering. | Operational |
| Number of orders | Number of orders placed by customers during the period, before cancellations or returns. | A measure that provides an indication of the company’s level of activity towards customers. Also used to calculate unit-based metrics. | Operational |
| Number of web-shop visits | Number of visits to the company’s online stores during the period. | A measure that provides an indication of the company’s ability to attract potential customers to its online stores. | Operational |
| Gross margin | Gross profit divided by the net revenue. | A measure that demonstrates profitability after costs for goods for resale. | APM |
| Gross profit | Operating income less the cost for goods for resale. | A measure that demonstrates what is left to finance other costs after the goods for resale have been paid for. | APM |
| Average order value | The average value, including VAT, of orders after cancellations during the period, divided by the number of orders during the period. | A measure that provides an indication of how much each customer is willing to pay for the company’s products. | Operational |
| Average Trustpilot value | The average value for customer responses on the TrustPilot platform during the period. The maximum value is 5.0. | A number which is used to measure customer satisfaction. | Operational |
| Inventory as % of LTM net revenue | Inventory value divided by the sum of net revenue during the past 12 months (LTM) | A measure that provides an indication of whether there is sufficient inventory on hand to support demand. | APM |
| Marketing costs as a share of net revenue | The costs for marketing activities carried out during the period, divided by net revenue during the period. | A measure that demonstrates how much is invested in marketing in relation to net revenue. | APM |
| Net revenue growth | Percent change in the period’s net revenue compared to the previous period. | A measure that demonstrates the growth rate of net revenue. | IFRS |
| Measure | Definition | Explanation | Type of measure |
|---|---|---|---|
| Net cash / (net debt) | Interest bearing liabilities less cash and cash equivalents. | A measure that displays the cash and cash equivalent available after having theoretical settled all interest-bearing liabilities; be it current or non-current. | APM |
| Net cash / (net debt) adjusted for leasing debt | Cash and cash equivalents minus interest-bearing liabilities, adjusted for lease liabilities attributable to IFRS 16. A positive figure indicates a net cash position, while a negative figure would indicate net debt. | A figure that shows the ratio between interest-bearing liabilities, adjusted for liabilities attributable to IFRS 16, and interest-bearing assets including cash and cash equivalents. In other words, it reflects the short-term ability to settle liabilities should the need arise. | APM |
| Organic net revenue growth | Percent change in the period’s net revenue excluding divested operations with adjustment made for currency effects compared to the previous period. | A measure that demonstrates the growth rate of net revenue for ongoing operations excluding currency effects. | APM |
| Profit margin | Profit for the period after taxes, divided by total income. | A measure that demonstrates the profitability after taxes. | APM |
| Return rate in percent | The value of returns (actual and expected) divided by the sales during the period. | A measure that provides an indication of the company’s customers are satisfied with the products they have ordered. | APM |
| Operating margin (EBIT margin) | Operating profit (EBIT) divided by net revenue. | A measure that demonstrates the profitability for the operations. | APM |
| Operating profit (EBIT) | Operating income less operating costs before net financial income and taxes. | A measure that demonstrates the operational profits. | IFRS |
| Earnings per share | Profit for the period attributable to the shareholders of the parent company, divided by the weighted average number of outstanding shares. | The purpose is to allocate the Company’s profit to each share. | IFRS |
| Equity ratio, % | Adjusted equity as a percentage of total assets. | A measure indicating the extent to which the Group’s assets are financed by capital attributable to the shareholders of the Group. | APM |