Interim Report - 9 months 1 April-31 December 2018

Third quarter (1 October-31 December 2018)

• Revenue increased by 4 percent to MSEK 1,552 (1,486).
• Operating profit rose by 12 percent to MSEK 85 (76), corresponding to an operating margin of 5.5 percent (5.1).
• The return on working capital (P/WC) for the most recent 12-month period was 24 percent (24) and the return on equity was 18 percent (8).
• Profit after financial items rose by 14 percent to MSEK 84 (74).
• Net profit increased by 10 percent to MSEK 64 (58).
• Earnings per share for the most recent 12-month period totalled SEK 7.65, compared with SEK 6.45 for the 2017/18 financial year.
• The operational net loan liability amounted to MSEK 297 (256) and the equity/assets ratio was 45 percent (41) at the end of the reporting period.

Reporting period (1 April-31 December 2018)

• Revenue increased by 7 percent to MSEK 4,464 (4,179).
• Operating profit amounted to MSEK 223 (180). Adjusted operating profit (excluding items affecting comparability) increased by 17 percent to MSEK 223 (191), corresponding to an adjusted operating margin of 5.0 percent (4.6).
• Profit after financial items rose by 25 percent to MSEK 219 (175).
• Net profit increased by 25 percent to MSEK 170 (136).

After the end of the reporting period

• In January 2019, TOOLS Norway acquired all of the shares in the industrial reseller TOOLS Løvold. The acquisition further strengthens TOOLS’ position as the leading supplier to Norwegian industry. TOOLS Løvold generates annual revenue of approximately MNOK 95 and has 28 employees.

PRESIDENT’S STATEMENT

Increased profitability and improved cash flow
Momentum Group’s operating margin has improved continuously in recent years and the Group’s cash flow and financial position are stronger than they have been for a long time. We thus have a solid foundation to carry out further corporate acquisitions and continue to boost the profitability of both of our operating segments through the improvement efforts we are implementing within the Group.

For Momentum Group as a whole, adjusted operating profit (excluding items affecting comparability) has increased by 17 percent to date in the financial year and the operating margin was 5 percent. At the same time, we have improved our operating cash flow through the activities implemented in order to optimise the Group’s funds tied up in working capital.

Overall demand for our products and services was stable during the first nine months of the financial year. From a geographic perspective, the Norwegian market remained favourable and the positive sales trend in TOOLS Norway continues. The Swedish TOOLS operations have noted a reduction in revenue during the year, mainly due to the planned winding down of less profitable sales units and product ranges. Our Group companies in workwear and promotional products contributed positively to the earnings trend during the quarter, and Momentum Industrial continued to report favourable revenue growth for industrial components to Swedish industry.

Our aim for the end of the financial year is for all operations to continue improving their profitability. Decentralised responsibility and customer proximity remain a high priority in our daily work.

Stockholm, February 2019

Ulf Lilius
President & CEO

Presentation of the Interim Report – 9 months 2018/19
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, 8 February 2019 at 11:00 a.m. CET.
Web link: http://www.financialhearings.com/event/10942.
Telephone no: SE +46 8 505 583 55/ UK +44 33 330 092 72 / US +1 64 672 249 04

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. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 8 February 2019.
   This document is in all respects a translation of the Swedish original Financial Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

Momentum Group is one of the leading resellers 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 5.8 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.