Sweden's Cdon Q3 GMV rises 18%, sales up 3%

Overview

• Sweden online marketplace group's Q3 GMV rose 18% yr/yr, net sales up 3%

• Adjusted EBITDA positive but down from last year, reflecting higher investment in tech and brand

• Take rate fell as large European merchants joined at lower commission levels

Outlook

• Company expects operating leverage to start showing towards year-end as GPAM grows

• CDON maintains ambition for 2027 EBITDA to approach SEK 100 mln

• Company sees ongoing headwinds from EU customs duties on low-value cross-border parcels

Result Drivers

• TECH AND AI INVESTMENT - Co said expanded engineering team and AI-driven platform improvements accelerated sales and gross profit in Q3

• ARTICLE GROUPING LAUNCH - Launch of article grouping improved shopping experience and drove immediate GMV and GPAM growth, mainly at Fyndiq

• EU CUSTOMS DUTY IMPACT - EU's new €3 customs duty on low-value parcels dampened Fyndiq's conversion in summer, though feed expansion later offset some impact

Company press release:

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Cdon AB is SEK75.00, about 75.2% above its October 21 closing price of SEK42.80

Reuters Recommended Reads

• Oct 20 - Sweden's Byggmax Q3 sales and profit rise

• Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

• Oct 21 - Sweden's Inwido Q3 sales rise 22%, order backlog hits record

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)