*AOV = Average Order Value
**Conversion = The percentage of shop visitors who bought something
Group Level Business Review (Non-audited, Excluding Eliminations):
In this quarter, the challenges we faced in the previous quarter persisted in the China online market, such as shifts in consumer behaviour and economic fluctuations. Despite these obstacles, we have worked diligently to adapt to the challenging market conditions by keeping a good cost control and getting new sources of revenue.
Revenue: We observed a 13% decrease in revenue compared to the same quarter last year, resulting in a total revenue of 219,035 EUR (YoY).
Gross Margin: Despite the revenue decline and ongoing inventory write-offs, our gross margin remained stable at 61,106 EUR (YoY) . This accomplishment reflects our unwavering efforts to maintain profitability.
Licensing Agreement Extension:
A significant milestone for this quarter is the extension of our Moomin licensing agreement. We have secured an additional two years, ensuring the partnership remains in effect until the end of 2025. This extension demonstrates our strong and enduring cooperation with Moomin.
International Sales Channel Growth:
One development is the promising performance of our international sales channels. Our investments in this area have started to yield positive results, contributing to our overall strategy. Notably, we successfully delivered 21 Stock Keeping Units (SKUs) to the Moomin retail arm in Finland called ATC (All Things Commerce).
One of our primary challenges is adapting our product offerings to meet the evolving needs of consumers. To address this, we have been actively developing exciting Moomin branded products for online launch during Alibaba’s main sales festivals, Double 11 on November 11th and Double 12 on December 12th.
Our primary initiative involves seeking new customers, and we are actively working on this goal. Negotiations are currently underway in the process of finalising a business deal. Concurrently, we are exploring potential partners to aid in this pursuit. Presently, our focus is on shortlisting potential customers from Japan, Europe and the Middle East.
Although Q3 was relatively quiet as it used to be, we are now gearing up for our busiest quarter yet, with preparations well underway for the upcoming Double 11 (November 11th) and Double 12 (December 12th) sales festivals. We are working hard to overcome the challenges posed by the changing market landscape and continuing our journey toward growth and success.