Euroeat: 4Q2023 business review

*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 company speeded up the business efforts to re-act to the increasing challenges from our traditional Moomin retail business in China. We strengthened Moomin X Euroeat product development for better profitability and market share, expanded the wholesale channels of these products in Finland. And we further prioritized efforts on finding new service customers.

  • Moomin X Euroeat products mean Euroeat designed Moomin products.

Financial Highlights:

  • Revenue: Our Q4 revenue stood at €191,424, reflecting a stark decline of 38% compared to the previous year. This decline underscores the challenges faced by China’s online business during major sales festivals such as 11/11 and 12/12.

  • Gross Margin: The gross margin for Q4 was €83,819, representing a YoY decrease of 17%. The Moomin X Euroeat products played a vital role in maintaining our profitability.

  • Conversion Rate: Despite the overall decline in performance metrics, our conversion rate for Q4 was 3.6%, indicating an 8% improvement compared to the same period last year. This increase proves that our efforts to enhance the shopping experience, maintain good customer support, and streamline the purchasing process have yielded positive results.

Moomin X Euroeat product and channel development:

The Moomin X Euroeat product business started to look promising. The sales volume, sales profitability, and product feedback from Finnish Moomin channels including Moomin offline shops and had went beyond our expectation. The product feedback and lessons learnt were taken swiftly into the design and supply chain management efforts, which was made ready for boosting bigger business in year 2024. We believed also that this further development in product design and supply chain management could later yield new OEM/ODM business for the company.

New service customer development:

We had made a promising progress on the new service customer development, and there had been several new potential service cases for new brands under active negotiation. The company had prioritized this effort to further grow its business beyond the Moomin scope, for not only trying to find better growth opportunities but also to increase profitability and stability of the business.

Looking Ahead:

From the performance of the Q4, it was evitable that the growth and profitability from Moomin retail business in China had not reached our expectation. Therefore, it is important that the company to speed up its efforts on further expanding the channels, strengthening product development, and finding new growth opportunities as soon as possible through potential service customers for more brands. We expect these new actions would yield better business results in 2024.

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