Euroeat: 1Q2024 business review

*AOV = Average Order Value
**Conversion = The percentage of shop visitors who bought something

Group Level Business Review (Non-audited, Excluding Eliminations):

The group’s retail sales performance of Moomin products in China was weaker than we expected due to the continuous stagnation of the consumer market in China and the decline of traffic on Tmall, which has affected all ecommerce businesses. Although we managed to keep the average order value almost at the same level and the conversion rate considerably higher, the low traffic caused a downturn in the revenue.

The group kept developing its product business, exporting more of its Moomin products from factories in China to the market of Finland. In Q1, the company managed to expand the exports to Norway.

We continued systematic efforts to find new service customers by offering them the company’s whole range of services. As a result, we have now successfully completed two new deals and also our sales funnel has clearly improved. We expect to close one new service customer during the 1H or soon after that.

Looking Ahead:

We are expecting a better sales performance of Moomin retail sales in China while Q2. China operation is being upgraded adapting to the new market status. These upgrades include widening channels to multiple platforms, introducing new products, answering market demands, and optimizing service quality to consumers. In China especially during May and June there will be sales festivals which we believe will help the sales.

Along with the delivery of 1st order from Norway and former orders from Finland, the revenue from exporting Euroeat designed Moomin products are expected to grow as well.

The group will continue its efforts to make more service deals with potential customers and deliver the agreed deals to get service revenue from existing customers.

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