WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 - SEPTEMBER 30, 2018
INTERIM REPORT November 1, 2018 at 9.00 A.M.
Growth in net sales, profitability, and earnings-per-share
This is a summary of Wulff Group Plc’s interim report for January-September 2018. Wulff Group’s interim report as a whole is attached as a PDF file to this stock exchange release and it is also available on the company’s website www.wulff-group.com.
1.7. - 30.9.2018 BRIEFLY
- Net sales totalled EUR 13.0 million (12.2), growth of 6.6%
- EBITDA and comparable EBITDA were EUR 0.4 million (-0,0)
- Operating profit and comparable operating profit (EBIT) were EUR 0.3 million (-0.1)
- Earnings per share (EPS) was EUR 0.03 (-0.02)
- On August 14, 2018, Wulff Group Plc acquired Mavecom Palvelut Ltd that sells and produces Canon Business Center printing solutions
- Wulff´s outlook for the comparable operating profit remains the same; Wulff estimates the comparable operating profit to grow in 2018 compared to previous year
1.1. – 30.9.2018 BRIEFLY
- Net sales totalled EUR 41.1 million (41.1), decreased by -0.1 %
- EBITDA and comparable EBITDA were EUR 1.2 million (-0,0)
- Operating profit and comparable operating profit (EBIT) were EUR 0.9 million (-0.2)
- Earnings per share (EPS) was EUR 0.09 (-0.07)
- Equity-to-assets ratio was 45.4% (44.9)
WULFF GROUP PLC’S CEO HEIKKI VIENOLA
”2018 has been a good year for us. We have acquired new clients and increased our range of services. Our acquisition of Canon Business Center Vantaa in August has made Canon’s quality printing, monitoring, and maintenance services and modern data management solutions available to our clients in the Helsinki capital region. This had been highly requested by our clients – and it is great to be able to respond to these wishes with the products of the most respected brand in the field. Our renewed strategy is to make the world better, one workplace at a time. We help create better working environments and workdays, wherever people work. In addition to new products and services, we will invest in sustainability, environmentally-friendly and local products. Products and services have to do more than just fill a functional role: every choice we make has significance. With their choices, companies and individuals have an effect on the world we live in, and the future we are creating.”
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-September 2018 net sales totalled EUR 41.1 million (41.1), and EUR 13.0 million (12.2) in the third quarter. The 6.6% increase in net sales in the third quarter was a result of the acquisition of Mavecom Palvelut Ltd that specializes in Cannon Business Center printing solutions, a larger amount of biennial trade shows than the previous year, the favourable development of Contract Customer sales, and better and broader service to existing customers, and additional sales.
In January-September 2018 the gross margin amounted to EUR 14.1 million (13.9) being 34.4% (33.9) of net sales, and EUR 4.3 million (4.2) in the third quarter being 33.0% (34.2) of net sales. The gross margin developed positively due to successful additional sales in trade show projects and sales of printing equipment and solutions. Additionally, the sales channels have focused on measures that have improved the gross margin. In the third quarter, the gross margin percent was lower than in the comparative period due to lower additional sales volumes in trade show projects.
Employee benefit expenses in January-September 2018 amounted to EUR 8.4 million (9.0), being 20.6% (22.0) of net sales, and respectively EUR 2.5 million (2.7) in the third quarter, being 19.0% (21.8) of net sales. Other operating expenses amounted to EUR 4.6 million (4.9) in January-September 2018, being 11.2% (12.0) of net sales, and respectively EUR 1.5 million (1.6) in the third quarter, being 11.4% (12.7) of net sales. Cost-saving measures continued to impact the development of employee benefit expenses and other operating expenses.
In January-September 2018 EBITDA and comparable EBITDA amounted to EUR 1.2 million (0.1), being 2.8% (0.1) of net sales, and EUR 0.4 million (-0.0) in the third quarter.
In January-September 2018 EBIT and comparable EBIT amounted to EUR 0.9 million (-0.2), being 2.1% (-0.6) of net sales, and EUR 0.3 million (-0.1) in the third quarter.
Financial income and expenses totalled (net) EUR -0.2 million (-0.2) in January-September 2018, including interest expenses EUR -0.1 million (-0.1) and mainly currency-related other financial items and bank expenses (net) EUR -0.1 million (-0.1). In the third quarter, the financial income and expenses totalled (net) EUR -0.0 million (-0.0).
In January-September 2018 the result before taxes was EUR 0.7 million (-0,4), and EUR 0.3 million (-0.1) in the third quarter.
The net profit over the reporting period was EUR 0.6 million (-0.5) in January-September 2018, and EUR 0.2 million (-0.1) in the third quarter. Earnings per share (EPS) was EUR 0.09 (-0.07) in January-September 2018, and EUR 0.03 (-0.02) in the third quarter.
KEY FIGURES
| III | III | I-III | I-III | I-IV | |
| EUR 1000 | 2018 | 2017 | 2018 | 2017 | 2017 |
| Net sales | 13 048 | 12 240 | 41 058 | 41 102 | 56 931 |
| Change in net sales, % | 6.6% | -8.7% | -0.1% | -5.5% | -4.0% |
| Gross profit | 4 311 | 4 185 | 14 112 | 13 923 | 19 239 |
| Gross profit, % | 33.0% | 34.2% | 34.4% | 33.9% | 33.8% |
| EBITDA* | 366 | -12 | 1 170 | 60 | 461 |
| EBITDA margin, % | 2.8% | -0.1% | 2.8% | 0.1% | 0.8% |
| Operating profit/loss | 264 | -108 | 864 | -230 | 74 |
| Operating profit/loss margin, % | 2.0% | -0.9% | 2.1% | -0.6% | 0.1% |
| Profit/Loss before taxes | 251 | -134 | 695 | -417 | -247 |
| Profit/Loss before taxes margin, % | 1.9% | -1.1% | 1.7% | -1.0% | -0.4% |
| Net profit/loss for the period attributable to equityholders of the parent company | 221 | -121 | 600 | -467 | -193 |
| Net profit/loss for the period, % | 1.7% | -1.0% | 1.5% | -1.1% | -0.3% |
| Earnings per share, EUR (diluted = non-diluted) | 0.03 | -0.02 | 0,09 | -0.07 | -0.03 |
| Return on equity (ROE), % | 2.0% | -1.1% | 5.7% | -4.3% | -2.0% |
| Return on investment (ROI), % | 1.6% | -0.7% | 5.1% | -2.3% | -1.1% |
| Equity-to-assets ratio at the end of period, % | 45.4% | 44.9% | 45.4% | 44.9% | 47.0% |
| Debt-to-equity ratio at the end of period | 35.6% | 38.9% | 35.6% | 38.9% | 19.8% |
| Equity per share at the end of period, EUR ** | 1.66 | 1.60 | 1.66 | 1.60 | 1.64 |
| Investments in non-current assets | 136 | 96 | 388 | 413 | 429 |
| Investments in non-current assets, % of net sales | 1.0% | 0.8% | 0.9% | 1.0% | 0.8% |
| Treasury shares held by the Group at the end ofperiod | 79 000 | 79 000 | 79 000 | 79 000 | 79 000 |
| Treasury shares, % of total share capital and votes | 1.1% | 1.2% | 1.1% | 1.2% | 1.2% |
| Average number of outstanding shares | 6 685 150 | 6 528 628 | 6 581 375 | 6 528 628 | 6 528 628 |
| Number of total issued shares at the end of period | 6 907 628 | 6 607 628 | 6 907 628 | 6 607 628 | 6 607 628 |
| Personnel on average during the period | 191 | 199 | 191 | 198 | 198 |
| Personnel at the end of period | 194 | 199 | 194 | 199 | 195 |
* The presentation of the Consolidated Statement of Income has been changed in the first quarter of 2018 in such a way that all bank expenses have been classified as financial expenses. The comparison period 2017 has been adjusted according to the new reporting principle: bank expenses have been reclassified from other operating expenses to financial expenses impacting the EBITDA and operating profit by EUR 0.0 million in Q3, EUR 0.1 million in January-September and EUR 0.1 million for 2017.
In 2017, the impact on the EBITDA margin-% and on the operating profit/loss margin-% was +0.2% in Q3 and in January-September + 0.1%. The impact on the EBITDA margin-% and operating profit/loss margin-% was +0.2% in the whole financial year 2017.
** Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for workplace products and office supplies is strongly affected by the general economic development and competition in the market. Business operations are also affected by normal business risks such as the success of the Group’s strategy and operative risks stemming from the personnel, logistics and IT environments. Approximately half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and balance sheet.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Wulff creates workplaces and its mission is to help corporate customers succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. Wulff is prepared to carry out new strategic acquisitions and as a listed company, Wulff is in a good position to be a more active player than its competitors.
The developing economic situation will enable Wulff’s business to develop positively. Wulff’s outlook for the comparable operating profit remains the same; Wulff estimates the comparable operating profit to grow in 2018 compared to previous year. In the industry, it is typical that the result and cash flow are generated specially in the last quarter.
In Vantaa on November 1, 2018
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 300 870 414 or tel. +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
A better world – one workplace at a time. Wulff’s goal is a perfect workday! We enable better working environments and create workplaces, wherever you are. More comfortable, healthier, safer, more enjoyable, more active and more diverse? How do you want to better you workday and working environment? Wulff has the solution. We offer our customers office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, air purifiers, and innovative products for worksites. Customers can also acquire international exhibition services from Wulff. In addition to Finland, Wulff operates in Sweden, Norway, and Denmark. Check out our products and services at wulff.fi.