Annual Report 2010 - CDON Group

CDON Group Group AB AB
Annual Report report 2010
the brand in Norway in October 2008 and in Denmark in February 2011. In addition to online
sales, Gymgrossisten.com also retails its products through six franchises: five in Sweden and one
in Norway. Gymgrossisten.com offers a wide variety of dietary supplements. The products are
available in several different forms, such as bars, powders, and beverages. Their main usage areas
are muscle-building, meal replacement, performance enhancement, weight loss, and to achieve
general good health. The products contain vitamins, minerals, carbohydrates, and protein. The
internet store offers attractive external brands such as Better Bodies, Abilica, Multipower, and
SAN Nutrition, together with its own brand “Star Nutrition”. Gymgrossisten.com also has a
growing selection of books, training equipment, and training clothing.
Bodystore.com is one of Sweden’s leading online stores for beauty, health foods, and general
well-being, with a selection of more than 1,700 articles. The online store was included in the
acquisition of Gymgrossisten in 2008. Since then, it has undergone substantial improvements
including a new layout better adapted to its target audience. The product range includes a wide
assortment of health and beauty products, dietary supplements, workout apparel, and exercise
equipment. The product range includes name as well as in-house brands.
Overview
Sales and earnings increased significantly in 2010. The Entertainment segment was broadened by
widening the home electronics segment and launching household products through CDON.COM
as well as acquiring the Lekmer.com toy store, which expanded in the Nordics during the year. The
Fashion segment has continued its highly expansive growth, mainly driven by the development of
in-house brands, the widening of its product range, and continued geographic expansion. The
segment broadened further during the year through the Nordic launch of shoe retailer
Heppo.com, and the January 2011 acquisition of RUM21.se, a brand furniture and interior design
retailer. The Sports & Health segment strengthened its position in all geographic markets,
particularly in Norway and Finland. In February 2011, the segment expanded into the Danish
market. Partnerships between Group subsidiaries regarding marketing and logistics in all markets
have enabled additional growth.
The CDON Group was demerged from its former parent company Modern Times Group MTG AB
(“MTG”) and distributed by means of stock dividend to MTG shareholders. The CDON Group was
listed on the Nasdaq OMX Stockholm exchange under the symbol “CDON” and commenced
trading on 15 December 2010.
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