Interim report January - March 2018
During the first quarter, the implementation of the strategic plan continued at a high pace. This year, we are planning to open 20 new Byggmax stores, ten Byggmax Garden departments, and to grow our e-commerce business. The transformation of Skånska Byggvaror has started well.
The implemented improvements created positive effects. The gross margin increased to 32.0 percent, an improvement of 1.7 percentage points compared to the same period last year. Cost control remained solid and growth in Byggmax online exclusive product categories exceeded 20%.
The season for outdoor projects has however started later than for at least a decade, which has negatively affected the consumer market and Byggmax Group’s sales. Byggmax Group's net sales in the first quarter decreased 15.0% and profitability measured as EBITDA decreased to a negative SEK 58 M, compared to negative SEK 24 M in the same period last year. Historically, a late seasonal start has not necessarily implied poor sales development for the full year. Byggmax’s sales of indoor categories trended favorably, suggesting consumer interest in DIY projects remains high.
January 1 – March 31
• Net sales amounted to SEK 665.2 M (782.6), down 15.0 percent.
• Net sales for comparable stores decreased 16.9 percent (+0.2).
• The gross margin increased to 32.0 percent (30.3).
• EBITDA amounted to a negative SEK 57,5 M ( neg: 23,5). EDITDA excluding non-recurring items1 amounted to a negative SEK 66.2 M (neg: 23.5).
• EBITDA margin was negative 8.6 (neg: 3.0) percent. EBITDA margin excluding non-recurring items was negative 10.0 percent (neg: 3.0).
• EBIT amounted to negative SEK 98.0 M (neg: 61.9).
• Profit after tax was negative SEK 78.4 M (neg: 51.6).
• Earnings per share totaled a negative SEK 1.3 (neg: 0.8).