INTERIM REPORT JANUARY - SEPTEMBER 2018

Positive effects of strategic efforts, challenging external factors

During the third quarter, implementation of the strategic plan continued at a high pace. The quarter was also affected by challenging external factors. The sales trend was negatively affected by the hot summer, and increased raw material prices for timber continued to negatively impact the gross margin. The sales trend was also negatively impacted by the choice to decrease unprofitable sales in Skånska Byggvaror. Year-on-year Byggmax Group’s sales decreased 5.5 percent in the quarter, and profitability measured as EBITDA decreased to SEK 218 M (260).

The initiatives to ramp up growth in the Byggmax segment gave positive effects. To date this year, we have opened fifteen new Byggmax stores, eleven garden departments and continued to develop our e-commerce business. The initiatives contribute well and increasingly to Byggmax sales.

The transformation of Skånska Byggvaror towards a modern leader within “Garden living” continues at a high pace. Gross margins have returned to historically high levels and costs have decrease according to the decided restructuring program. Although the sales trend was negatively impacted by the unusually hot weather, profitability measured as EBITDA increased SEK 11.3 M year-on-year, to SEK 18.5 M (7.2).

July 1 – September 30

• Net sales amounted to SEK 1,712.7 M (1,812.8), down 5,5 percent.

• Net sales for comparable stores decreased 12.6 percent (+1.0).

 • The gross margin decreased to 30.7 percent (31.6).

• EBITDA amounted to SEK 218.1 M (260.1). EBITDA excluding non-recurring items amounted to SEK 218.1 M (266.0).

• EBITDA margin was 12.7 percent (14.3) . EBITDA margin excluding non-recurring items was 12.7 percent (14.7). 

• EBIT amounted to SEK 175.8 M (221.0).

• Profit after tax was SEK 133.7 M (171,9).

• Earnings per share totaled SEK 2.2 (2.8).

January 1 – September 30

• Net sales amounted to SEK 4,109.1 M (4,371.2), down 6.0 percent.

• Net sales for comparable stores decreased 12.6 percent (down: 0.3).

• The gross margin decreased to 30.7 percent (31,0).

• EBITDA amounted to SEK 328.6 M (446.8). EBITDA excluding non-recurring items amounted to SEK 318.7 M (452.7).

• EBITDA margin was 8.0 percent (10.2). EBITDA margin excluding non-recurring items was 7.8 percent (10.4).

• EBIT amounted to SEK 204.4 M (330.9).

• Profit after tax was SEK 152.0 M (252.9).

• Earnings per share totaled SEK 2.5 (4.1).

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