Bygghemma Group interim report Q2 and January-June 2018

RECORD SALES, EBITA AND CASH FLOW – ACCELERATED ORGANIC GROWTH TO 19 %

Second quarter

  • The Group's net sales rose 31.3 percent to SEK 1,417.8 million (1,080.0), of which the Group's organic growth accounted for 18.6 percent, driven by accelerated organic growth of 23.9 percent in the DIY segment
  • Adjusted gross profit* rose 30.6 percent to SEK 298.6 million (228.5), with an adjusted gross margin of 21.1 percent (21.2)
  • The Group's adjusted EBITA** (operating income before acquisition-related amortisations and write-downs, and items affecting comparability) amounted to SEK 71.7 million (64.3), with an adjusted EBITA margin of 5.1 percent (6.0)
  • The Group's operating income adjusted for items affecting comparability, primarily attributable to the ongoing integration of Furniturebox, increased to SEK 62.4 million (56.7), with an adjusted operating margin of 4.4 percent (5.3)
  • Operating cash flow*** was SEK 171.8 million (157.9), corresponding to a cash conversion of 218 percent
  • Net income amounted to SEK 32.1 million (23.1)
  • Earnings per share amounted to SEK 0.30 (-0.62) before dilution and SEK 0.30 (-0.62) after dilution
  • Higher raw material prices and weakened SEK (vs. EUR and USD) impacted EBITA in Home Furnishing by approximately SEK -12 million

January-June

  • Net sales rose 39.6 percent to SEK 2,442.9 million (1,749.7), of which the Group's organic growth accounted for 16.9 percent driven by organic growth of 21.5 percent in the DIY segment
  • The Group's adjusted gross profit* increased 43.0 percent to SEK 519.2 million (363.1), with an adjusted gross margin of 21.3 percent (20.8)
  • The Group's adjusted EBITA** amounted to SEK 102.4 million (83.8), with an adjusted EBITA margin of 4.2 percent (4.8)
  • The Group's operating income adjusted for items affecting comparability, primarily attributable to the company's IPO, amounted to SEK 83.8 million (69.6), with an adjusted operating margin 3.4 percent (4.0)
  • Operating cash flow*** was SEK 221.8 million (147.6), corresponding to a cash conversion of 192 percent
  • Net income amounted to SEK -22.9 million (19.6). The negative result was wholly related to items affecting comparability 
  • Earnings per share amounted to SEK -0.87 (-1.78) before dilution and SEK -0.87 (-1.78) after dilution 

Presentation / Audiocast / Telephone conference

A telephone conference will be held 20 July 10.00 CEST. CEO Mikael Olander and CFO Martin Edblad will present and comment on the report for the second quarter and January-June 2018. 

Details for the telephone conference; 

UK: +44 203 008 9802 

SE: +46 8 56 64 2699

US: +1 855 831 5948

The presentation can also be followed via webcast: https://financialhearings.com/event/11354

This information is information that Bygghemma Group First AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 08.30 CEST on 20 July 2018.

Contact information

For further information, visit www.bygghemmagroup.se or contact:

Mikael Olander, President and CEO, mikael.olander@bygghemmagroup.se, +46 (0)708-19 43 00

Martin Edblad, CFO, martin.edblad@bygghemmagroup.se,  +46 (0)734-24 68 51

John Womack, Head of Investor Relations, IR@bygghemmagroup.se,  +46 (0)706-78 24 99

*    Adjusted for items affecting comparability (refer to “Relevant reconciliations of non-IFRS alternative performance measures (APM)”). Items affecting comparability impacting the gross profit amounted to SEK 7.1 million (9.7) for the quarter and SEK 14.6 million (12.3) for the first six months, attributable to the Furniturebox integration. Items affecting comparability impacting EBITA totalled SEK 7.4 million (12.4) for the quarter and SEK 58.0 (19.6) for the first six months and were attributable to (i) acquisition costs of SEK 0.3 million (2.2) for the quarter and SEK  0.9 million (6.8) for the first six months, (ii) integration costs of SEK 7.1 million (10.2) for the quarter and SEK 15.0 million (12.8) for the first six months, pertaining to the integration of Furniturebox, (iii) costs of SEK 11.4 million (-) associated with the long-term incentive programme for some 60 key employees in the Group launched in connection to the IPO and (iv) costs for the listing on Nasdaq Stockholm of 30.7 million (-). 
**  Adjusted EBITA is defined as operating income before depreciation and amortisation related to acquisitions and total items affecting comparability (described above).
*** Operating cash flow: Adjusted EBITDA including changes in working capital less investments in other non-current assets in the period. Cash conversion in percent: Operating cash flow / adjusted EBITDA  (also refer to “Definitions”on page 28 in this report).