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Interim Report – 6 months 1 April-30 September 2019

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Second quarter (1 July-30 September 2019)

  • Revenue increased by 5 percent to MSEK 1,432 (1,369).
  • EBITA increased to MSEK 80 (72), corresponding to an EBITA margin of 5.6 percent (5.3).
  • Operating profit rose by 10 percent to MSEK 75 (68), corresponding to an operating margin of 5.2 percent (5.0).
  • Profit after financial items increased to MSEK 71 (66).
  • Net profit increased by 8 percent to MSEK 56 (52).
  • Earnings per share for the most recent 12-month period totalled SEK 8.25, compared with SEK 8.20 for the 2018/19 financial year.
  • Cash flow from operating activities for the most recent 12-month period amounted to MSEK 424.
  • The return on equity for the most recent 12-month period was 18 percent (18) and the return on working capital (P/WC) was 25 percent (24).
  • The operational net loan liability amounted to MSEK 349 (419) and the equity/assets ratio was 38 percent at the end of the reporting period.
  • Momentum Group’s 2019 Annual General Meeting was held on 29 August 2019. The dividend was set at SEK 3.20 per share.

Reporting period (1 April-30 September 2019)

  • Revenue increased by 3 percent to MSEK 3,008 (2,912).
  • EBITA increased to MSEK 155 (146), corresponding to an EBITA margin of 5.2 percent (5.0).
  • Operating profit rose by 5 percent to MSEK 145 (138), corresponding to an operating margin of 4.8 percent (4.7).
  • Profit after financial items increased to MSEK 137 (135).
  • Net profit amounted to MSEK 107 (106).


PRESIDENT’S STATEMENT

Positive earnings performance and strong cash flow during the first six months of the year
The sales trend for the first six months of the 2019/20 financial year has been continued stable for most of our major businesses. The second quarter of the year was characterised by relatively low activity among customers during the summer months of July and August, especially in Sweden and Finland, while sales during the end of the quarter displayed more positive trends once again. At the same time, our acquired businesses contributed positively and the Group’s total revenue has increased by 3 percent so far during the year.

The combination of stable sales trends and continued improvements in the Group contributed to a 6-percent increase in EBITA for Momentum Group so far during the financial year, and the EBITA margin is at 5.2 percent. The earnings performance during the year has been positively affected by stronger gross margins, primarily within TOOLS Sweden and Momentum Industrial, as well as acquisitions completed. The restructuring of the TOOLS Norway logistics function continues according to plan and has so far entailed extra costs of approximately MSEK 8 in Norway during the year, of which MSEK 2 incurred during the second quarter. During the last quarter, Momentum Industrial continued to report a positive sales and earnings perfor­mance in all of its product and service areas, and through the acquisition of ETAB Industriautomation earlier in the year has substantially expanded its offering of products and services within industrial hydraulics.

Thanks to our focused initiatives, the cash flow from operating activities has strengthened during the reporting period, even when adjusted for IFRS 16 effects.

Decentralised earnings responsibility and coordination are key
We are making concerted, continuous efforts to boosting our efficiency and improving our earnings, while at the same time reducing our funds tied up in working capital. The decentralised earnings responsibility and cost control in all of our units, in combination with increased coordination and shared resources within areas like logistics, offering and purchasing, are key to our success. Together with my many dedicated colleagues, I am confident that we will continue to capitalise on our future improvement opportunities. We also continue to assess interesting acquisition targets that would further strengthen our position in our main markets in Sweden, Norway and Finland.

Stockholm, October 2019

Ulf Lilius
President & CEO


Presentation of the Financial Report – 6 months 2019/20
Investors, analysts and media are welcome to participate in a webcast conference call in which CEO & President Ulf Lilius and CFO Niklas Enmark will present the Financial Report and answer any subsequent questions. The presentation will be held in English.

Time: Friday, 25 October 2019 at 11:00 a.m. CET.
Web link: https://financialhearings.com/event/12128.
Telephone no: SE +46 8 566 426 93/ UK +44 33 330 090 31 / US +1 83 352 683 98

Contact information

Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32

The information in this report is such that Momentum Group 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 persons set out above, at 8:00 a.m. CET on 25 October 2019.
   This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

Momentum Group is a leading reseller of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 6 billion and approximately 1,700 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.

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