Desenio Group AB (publ)

Desenio Group AB (publ) has a negative equity position of -77 million SEK, indicating a significant financial leverage burden. The company's liquidity position is weak, with a current ratio of 0.12, suggesting it may struggle to meet short-term obligations. Despite holding 72.5 million SEK in cash and equivalents, the company's long-term debt of 1.24 billion SEK far exceeds its cash reserves, leading to a negative net cash position.

Profitability metrics reveal a mixed picture. The company's return on equity is 30.39%, which is high in absolute terms but misleading due to the negative equity base. In contrast, the return on assets is -1.87%, indicating that the company is not generating returns from its asset base. These figures fall below typical industry benchmarks for profitable retail operations.

Geographically, Desenio's revenue is concentrated in its domestic market, with no disclosed international segments. The company's business is heavily dependent on its department store operations, which are subject to retail sector volatility. There is no indication of diversification into other revenue streams or geographic regions.

Looking ahead, the company's revenue is expected to remain under pressure. The operating cash flow is negative at -67.1 million SEK, and capital expenditures are minimal at -300,000 SEK. These figures suggest a lack of investment in growth and a focus on cost containment. The company's net income is also negative at -23.4 million SEK, signaling ongoing financial challenges.

The risk assessment highlights liquidity as a medium concern, with the company's cash reserves insufficient to cover its long-term debt. The dilution risk is low, as there is no indication of recent or planned share issuances. However, the negative equity position and high debt-to-equity ratio of -16.11 suggest a high financial risk profile.

Recent filings and transcripts indicate ongoing financial stress, with the company reporting a net loss and negative operating cash flow. There are no recent positive developments or strategic initiatives disclosed that would suggest a turnaround is imminent. The company's financial health remains a concern, with no clear path to profitability or debt reduction.

The company's debt-to-equity ratio of -16.11 is best-in-class, significantly lower than the cohort median of 0.52.

Cash conversion of 2.87 exceeds the Department Stores cohort median of 1.47, indicating above-average efficiency.

Operating income improved to 94.7 million SEK in FY-1, reversing the negative trend from the prior year.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

Credit risk is flagged as high, signaling significant potential for financial distress or default issues.

Net margin of -14.1% places Desenio in the bottom quartile of the Department Stores cohort.

Revenue kr 267.2M; Operating income kr 48.3M.

• ▍Revenue kr 267.2M
• ▍Operating income kr 48.3M
• ▍Net margin 6.5%

Revenue kr 192.6M; Operating income kr 21.8M.

• ▍Revenue kr 192.6M
• ▍Operating income kr 21.8M
• ▍Net margin -4.8%

Revenue kr 166.0M; Operating income kr 5.7M.

• ▍Revenue kr 166.0M
• ▍Operating income kr 5.7M
• ▍Net margin -14.1%

Revenue kr 854.7M, −11,6% YoY; Operating income +154,1% YoY.

• ▍Revenue kr 854.7M, −11,6% YoY
• ▍Operating income +154,1% YoY
• ▍Net income +92,0% YoY
• ▍Net margin -2.7%

Revenue kr 967.2M, +0,2% YoY; Operating income −431,4% YoY.

• ▍Revenue kr 967.2M, +0,2% YoY
• ▍Operating income −431,4% YoY
• ▍Net income −1 168,8% YoY
• ▍Free cash flow −1 577,3% YoY
• ▍Net margin -29.4%

Revenue kr 964.9M, −21,4% YoY; Operating income −63,1% YoY.

• ▍Revenue kr 964.9M, −21,4% YoY
• ▍Operating income −63,1% YoY
• ▍Net income −139,2% YoY
• ▍Free cash flow +106,2% YoY
• ▍Net margin -2.3%

Revenue kr 1.23B; Operating income kr 143.0M.

• ▍Revenue kr 1.23B
• ▍Operating income kr 143.0M
• ▍Net margin 4.7%