Interim report January - March 2017

1 January - 31 March 2017

● Revenue increased 7 per cent to SEK 1,518 M (1,424). Adjusted for currency effects and calculated on the comparable number of workdays, revenue decreased 3 per cent. Sales in comparable units rose 5 per cent.
● EBITA increased to SEK 155 M (149) and the EBITA margin amounted to 10 per cent (10).
● EBIT increased to SEK 126 M (121) and the EBIT margin was 8 per cent (9).
● The gross margin amounted to 53.6 per cent (54.2).
● Earnings per share, before and after dilution, rose to SEK 2.33 (2.28).
● Cash flow from operating activities rose to SEK 37 M (30).
● Net debt amounted to SEK 1,457 M (1,624), compared with SEK 1,437 M at year-end.

CEO’s comments

Increased sales in the Group, negative impact from Mekonomen Sweden
The first quarter of the year showed a sales increase for Mekonomen Group of 7 per cent. The improvement in the first quarter was helped by currency effects and more workdays. The growth was positive in MECA, Mekonomen Norway and in Sørensen og Balchen, while Mekonomen Sweden reported decreased sales compared to the first quarter last year. EBIT increased to SEK 126 (121) M in the first quarter and cash flow from operating activities increased to SEK 37 (30) M.

Sales to affiliated workshops continued to show a strong growth and increased 10 per cent in the first quarter. Also the sale of spare parts under our own brand ProMeister had a favourable development.

We have had a lower gross margin in the Group during the quarter, affected by increased share of sales to affiliated workshops and large customers, as well as increased sales of accessories.

Increased sales of car radios adapted to the digital solution DAB+ in Norway during the first quarter affected our accessories sales positively, however with a negative impact on the gross margin. We expect that DAB will have an impact on sales and margin primarily during 2017.

The development in MECA was stable during the first quarter. Opus Equipment, which is a part of MECA and which had a negative trend during 2016, has developed in the right direction during the quarter. Sørensen og Balchen showed a continued favourable growth of accessories sales and good cost control.

In Mekonomen Sweden, the efforts to reinstate a more decentralised sales organisation was completed during the quarter. Sales and profit development however continued to be weak during the quarter and our greatest focus going forward is to regain market shares in order to get back to growth and improved profitability. The cost and efficiency program is progressing according to plan and contributed positively to the profitability in the quarter.

Market update
The market was stable during the first quarter even if we noted a certain slowdown in the market. Specifically, the sales of cold related products were lower in the first quarter compared to the same period last year, due to weather circumstances.

For the full year we see potential for an increasing overall total market as recent statistics shows that the number of miles driven increased for the third year in a row in Sweden, the car park is growing and new car sales have increased steadily the last years. For Mekonomen Group, the potential for a stronger market is primarily linked to an increased car park for cars three years and older.

Focus 2017
The project for our new digital spare parts catalogue is progressing and we plan to launch this catalogue during the year. Also the project to streamline our central warehouse structure is proceeding as planned and the building of the wholly automated part of the central warehouse in Strängnäs has been initiated.

The focus during the last quarters has been, and continues to be, to drive profitable growth in all our Group companies. The highest priority is to turn the development in Mekonomen Sweden. This is based upon the possibilities and the responsibility which the store managers are given to develop their local business. The focus is also to strengthen and broaden the offering to our affiliated workshop, which is the part of our business where we see the greatest future growth potential and where it is strategically most important to grow.

Pehr Oscarson

President and CEO

For further information, please contact:
Pehr Oscarson, President and CEO, Mekonomen AB, tel +46 (0)8-464 00 00
Per Hedblom, CFO Mekonomen AB, tel +46 (0)8-464 00 00

This information is information that Mekonomen AB (publ) 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 person set out above, at 07:30 a.m CET on 10 May 2017.

About Us

Mekonomen group is the leading spare-part chains in the Nordic region and consists of three subgroups; Meca Scandinavia, Mekonomen Nordic and Sørensen og Balchen. We offer a broad and an easily accessible range of value-for-money and innovative solutions and products for consumers and companies. Within Mekonomen Group operates the leading. Mekonomen Group has approximately 400 stores and over 2,300 workshops.

Subscribe

Documents & Links