Wilh. Sonesson AB (publ.) Interim Report January 1 - June 30, 2002
January 1 - June 30, 2002
* Streamlining of Consumer Healthcare completed
* Acquisition of Bioglan
* Successful launch of Jabu'she
* Net sales of SEK 419.4 M (188.4)
* Operating profit before amortization of goodwill SEK 25.4 M (2.4)
* Profit after financial items SEK 0.5 M (loss: 11.8)
* Net sales SEK 217.5 M (97.1)
* Operating profit before amortization of goodwill SEK 13.1 M (loss:
* Profit after financial items SEK 0.3 M (loss: 9.9)
Wilh. Sonesson offers health products that satisfy a growing consumer
demand. Health products comprise pharmaceuticals, naturopathic
preparations, dietary supplements, and related personal care products.
Streamlining of Consumer Healthcare completed
During the second quarter, the focus has been on the sale to
shareholders of all of the shares in Active Capital AB, the company in
which all noncore operations were organized. A decision on this
divestment was approved at the Annual General Meeting on April 24 and
the divestment was conducted successfully during June and July. The
offer was fully subscribed and Active Capital was listed on the Nya
Marknaden exchange on July 22. Following the divestment of Active
Capital, Wilh. Sonesson has been streamlined into Consumer Healthcare
and has a strong financial position.
New Board and management strengthens expertise
At the Annual General Meeting on April 24, three new Board members were
elected: Åke Fredriksson, Lars Lindegren and Ewa Ställdal, while Anders
Sjöholm assumed the position of president. The changes in the management
and Board mean that expertise in the area of Consumer Healthcare has
Acquisition of Bioglan
Bioglan was acquired on May 13. This company operates in the production
and marketing of pharmaceuticals in the fields of dermatology and pain
control. In conjunction with the acquisition by Wilh. Sonesson, a
restructuring of Bioglan was implemented, in which the company's R&D
operations were divested to the UK research company SkyePharma Plc. At
the end of June, an optional agreement entered into at the time of the
acquisition - regarding the sale of certain product rights for the
German market - was completed. The acquisition of Bioglan means that
Wilh. Sonesson has an established pharmacy distribution network and a
strategic production expertise in the field of dermatology. Financially,
the acquisition led to a reduction of net debt and is expected to
generate a positive effect on earnings already during 2002. Bioglan's
sales during the period May 13 through June 30 amounted to SEK 14.0 M.
Comparable figures for the preceding year are not available because the
company's operations were restructured in conjunction with the
acquisition by Wilh. Sonesson.
A substantial strengthening of the product portfolio was achieved in
MaxMedica's operations. New agreements in the new product areas were
signed with BioGaia (for Reuteri tablets) and Novodieta (for sport
energizers). Negotiations aimed at securing rights to existing products
in the long term were completed with favorable results. The launch of
the Jabu'she skincare product, the effectiveness of which was shown in
clinical tests at the Karolinska Hospital in Stockholm, exceeded
MaxMedica's net sales during the period totaled SEK 57.9 M (50.1). In
the Hälsokostcentralen, a new contract was signed with Ferrosan, giving
Hälsokostcentralen the right to distribute all of Ferrosan's products
for self-care and cosmetics. Hälsokostcentralen's sales during the
period amounted to SEK 195.8 M (196.0). Australian Bodycare continued to
post weak sales attributable to structural changes in distribution. An
activity plan begun during the first quarter is expected to generate
results during the second half of 2002. Net sales during the period
amounted to SEK 16.1 M (17.7). Comparative figures for the preceding
year shown above pertain to a period when the operations were not part
of the Group.
Divestment of Active Capital
On January 1, 2002, all noncore operations were organized in the
subsidiary Active Capital. The Board made a proposal and a decision was
approved at the Annual General Meeting on April 24, that all shares in
Active Capital would be sold, with preferential rights for existing
shareholders. The divestment was conducted successfully during June and
generated total proceeds of approximately SEK 106 M before selling
expenses. In conjunction with the divestment and the subsequent
refinancing of Active Capital, Wilh. Sonesson issued a commercial loan
of SEK 27 m to Active Capital. The loan carries 6 percent interest, will
be amortized over three years and is secured by pledged shares. Active
Capital's share was listed on the Nya Marknaden (New Markets) list on
July 22, with Erik Penser Fondkommission as sponsor, and the company has
applied for listing on the O-List of Stockholmsbörsen (Stockholm
Since the divestment was completed by June 30, the transaction is
reported as fully completed in this interim report. This means that the
shareholders' equity effect of the sale and the dividend were reported
directly to shareholders' equity as per June 30 and that the
deconsolidation of the Active Capital Group was also implemented as of
this date. The sales proceeds, after deduction of the commercial loan
provided to Active Capital AB in conjunction with the divestment and the
reduction of interest-bearing liabilities, were reported under current
The operations included in Active Capital were consolidated in Wilh.
Sonesson's income statement for the period January-June 2002. The
Sonesson Inredning Group had net sales during the period of SEK 128.6 M
(132.1) and an operating profit of SEK 3.7 M (4.8). SoftCenter had net
sales of SEK 22.2 M (23.5) and an operating profit of SEK 10.4 M (11.4).
MW Trading had net sales of SEK 35.6 M (32.6) and an operating profit of
SEK 2.2 M (loss: 4.6).
Second quarter 2002
During the quarter, the Group's net sales amounted to SEK 217.5 M
(91.3), an increase of 124 percent. Operating profit before depreciation
amounted to SEK 20.6 M (2.6) and operating profit to SEK 7.6 M (loss:
4.6). Profit after net financial items amounted to SEK 0.3 M (loss:
Group sales and earnings, January - June 2002
During the period, the Group's net sales amounted to SEK 419.4 M
(188.4), an increase of 123 percent. Operating profit before
depreciation amounted to SEK 38.9 M (12.4) and operating profit to SEK
14.3 M (loss: 1.1). Profit after net financial items amounted to SEK 0.5
M (loss: 11.9). Results for the year-earlier period included capital
losses and nonrecurring costs totaling SEK 5.6 M.
The Group's liquid assets, including short-term investments, amounted to
SEK 35.8 M (13.7). The equity/assets ratio for the Group amounted to
50.3 percent (39.6) and for the Parent Company, 95.0 percent (82.5).
Shareholders' equity amounted to SEK 291.3 M (362.2). Interest-bearing
provisions and liabilities amounted to SEK 138.7 M (403.3). During the
period, shareholders' equity has been affected by the divestment of
Active Capital, which was reported, as was the dividend directly against
shareholders' equity, and the transfer of own shares in connection with
an acquisition costing SEK 3.5 M. Interest-bearing liabilities have been
affected by the deconsolidation of operations in Active Capital, as well
as by the amortization of debts.
During the period, net investments amounted to SEK 84.7 M (19.9). Gross
investments in intangible fixed assets amounted to SEK 0.3 M (0.2).
Gross investments in tangible fixed assets amounted to SEK 10.8 M (17.5)
and primarily involved machinery and buildings. Gross investments in
financial fixed assets amounted to SEK 36.4 M (12.2) and primarily
involved the commercial loan issued to Active Capital and shares in
Optilink. Net investments regarding company acquisitions amounted to SEK
102.6 M (neg: 10.6), pertaining to the acquisition of operations for
MaxMedica AS in Norway.
The average number of employees during the period amounted to 257 (269).
The decrease of 8 is primarily attributable to acquisitions of new
companies within consumer healthcare and partly the sale of Active
Capital. The number of employees at the end of the period was 168.
Net sales by the Parent Company during the period amounted to SEK 7.5 M
(1.6), attributable to Group-internal invoicing for services. Loss after
financial items amounted to SEK 3.9 M (loss: 12.7). Gross investments in
fixed assets during the period amounted to SEK 35.5 M (12.7), primarily
attributable to the commercial loan issued to Active Capital and shares
in Optilink. The change in liquid assets during the period was negative
in an amount of SEK 1.2 M. The change in interest-bearing liabilities
during the period was negative and totaled SEK 73.6 M.
Transfer of own shares
During 2001, a total of 600,000 of the company's own shares were
acquired. On February 15, 2002, the Company transferred 230,870 of its
own Series B shares as payment for the acquisition of operations for
MaxMedica in Norway. At the end of the period, the number of own shares
held by the Company amounted to 369,130. after the end of the period,
the Board approved the further acquisition of own shares, see below.
Optilink, in which Wilh. Sonesson and Industrifonden are the largest
shareholders, canceled a public offering of new shares during the period
and postponed plans for an exchange listing. This means that there is
considerable uncertainty regarding Wilh. Sonesson's plans to spin off
its holdings in Optilink to its shareholders. After the end of the
period, Wilh. Sonesson issued SEK 1.2 M in temporary finance to Optilink
and, on August 12, 2002, the Board decided to issue further temporary
finance to Optilink, see below.
Significant events after the close of the reporting period
After the close of the reporting period, full payment has been received
for the divestment of the shares in Active Capital AB. In addition, full
payment was received for Bioglan's sale of certain product rights for
the German market. Both of these transactions were taken into
consideration in accounting as of June 30, 2002.
At its meeting on August 12, 2002, the Board approved the purchase of
the Company's own shares. More information regarding this decision will
be issued in a special press release later today.
After the close of the period, Wilh. Sonesson issued SEK 1.2 M in
interim finance to Optilink, after which the total investment in
Optilink is SEK 38.3 M. At its meeting on August 12, 2002, the Board
decided to issue a further SEK 2 M in interim finance to Optilink.
Prospects for 2002
The divestment of Active Capital is a restructuring measure involving a
strengthening of the financial position and creates the conditions for
expansion. The Group's earnings for 2002 are expected to be better than
earnings for 2001.
The interim report has been prepared in accordance with the same
principles that applied in the 2001 Annual Report, and in accordance
with recommendations issued by the Swedish Financial Accounting
Future financial reports
November 12, 2002 Interim report for nine months ended September 30
February 12, 2003 Year-end financial report for 2002
Malmö, August 13, 2002
Wilh. Sonesson AB (publ)
For further information, contact:
Anders Sjöholm, President, Tel: +46 (0)705-23 86 24,
Fredrik Lindgren, Senior Vice President/CFO, +46 (0)705-61 61 77,
This report has not been reviewed by the Company's auditors.