Interim report 1 January-30 September 2019

Strong growth and profit generation

HIGHLIGHTS

Third quarter 

  • Net sales increased 31.0 percent to SEK 1,639.0 million (1,251.1). Organic growth amounted to 14.7 percent
  • Gross profit increased 54.5 percent to SEK 378.1 million (244.8), with a gross margin of 23.1 percent (19.6)
  • Adjusted EBIT, excluding IFRS 16 effects, increased 100.8 percent to SEK 80.4 million (40.0), and the adjusted EBIT margin increased to 4.9 percent (3.2)*. Adjusted EBIT, including IFRS 16 effects, amounted to SEK 82.5 million, corresponding to an EBIT margin of 5.0 percent
  • Operating income, excluding IFRS 16 effects, increased 303.9 percent to SEK 70.1 million (17.4), corresponding to an operating margin of 4.3 percent (1.4)*. Operating income, including IFRS 16 effects, amounted to SEK 72.3 million, corresponding to an operating margin of 4.4 percent
  • Operating cash flow amounted to SEK 15.3 million (-43.9), corresponding to a cash conversion of 16.6 percent
  • Net income, excluding IFRS 16 effects, amounted to SEK 52.9 million (24.2)*. Taking IFRS 16 into account, net income amounted to SEK 52.7 million
  • Earnings per share amounted to SEK 0.48 (0.23) before dilution and SEK 0.48 (0.23) after dilution

1 January-30 September

  • Net sales increased 23.7 percent to SEK 4,567.8 million (3,694.0). Organic growth amounted to 10.5 percent
  • Gross profit increased 43.6 percent to SEK 1,076.2 million (749.3), with a gross margin of 23.6 percent (20.3)
  • Adjusted EBIT, excluding IFRS 16 effects, increased 64.4 percent to SEK 234.2 million (142.4), and the adjusted EBIT margin increased to 5.1 percent (3.9)*. Adjusted EBIT, including IFRS 16 effects, amounted to SEK 240.0 million, corresponding to an EBIT margin of 5.3 percent
  • Operating income, excluding IFRS 16 effects, increased 355.8 percent to SEK 196.6 million (43.1), corresponding to an operating margin of 4.3 percent (1.2)*. Operating income, including IFRS 16 effects, amounted to SEK 202.5 million, corresponding to an operating margin of 4.4 percent
  • Operating cash flow amounted to SEK 255.9 million (177.9), corresponding to a cash conversion of 96.2 percent
  • Net income, excluding IFRS 16 effects, amounted to SEK 116.8 million (1.3)*. Taking IFRS 16 into account, net income amounted to SEK 116.0 million
  • Earnings per share amounted to SEK 1.06 (-0.53) before dilution and SEK 1.06 (-0.53) after dilution

Key events during and after the quarter

  • Acquisition of Arc E-commerce AB (outl1.se) on 22 July, further strengthening the Group’s private label offering
  • Decision to expand the Helsingborg warehouse facility by 18,000 m2, which will increase delivery speed and accuracy
  • Extension of the M&A-related bank facility by SEK 300 million, securing a continued high M&A-related growth agenda

* 2019 figures are reported excluding the effect of IFRS 16 to facilitate comparison with 2018 figures, as 2018 has not been restated for IFRS 16.
** Refer to “Relevant reconciliations of non-IFRS alternative performance measures (APMs)” on page 33 of this report for a more detailed description.

 

This information is information that Bygghemma Group First AB 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 below, at 7:00 a.m. CET on 29 October 2019.
 

CONTACT INFORMATION

For further information, visit www.bygghemmagroup.se or contact:  
Martin Edblad, acting President and CEO Adam Schatz, CFO  
martin.edblad@bygghemmaGroup.se adam.schatz@bygghemmaGroup.se
+46 (0)734-24 68 51 +46 (0)709-32 43 00
   
  Johan Hähnel, Head of Investor Relations
  johan.hahnel@bygghemmaGroup.se
   +46 (0)70-605 63 34

   
CONFERENCE CALL IN CONNECTION WITH PUBLICATION OF THE QUARTERLY REPORT
On Tuesday, 29 October at 10:00 a.m. CET, Martin Edblad, acting President and CEO, and Adam Schatz, CFO, will hold a conference call concerning the publication of the quarterly report. The call will be held in English. To participate, please call +46 (0)8 566 426 92 or go to the weblink https://tv.streamfabriken.com/bygghemma-group-q3-2019

The presentation is available from Bygghemma Group’s website: http://www.bygghemmaGroup.com/investor-relations/presentations

QUARTERLY REPORTS ON WWW.BYGGHEMMAGROUP.SE
The full report for the period January-September 2019 and previous quarterly and full-year reports are available at http://www.bygghemmagroup.com/investor-relations/financial-reports/

ABOUT BYGGHEMMA GROUP
Bygghemma Group is the leading online supplier of home improvement products in the Nordic region. We offer our customers a broad product range at attractive prices, with convenient home delivery. We conduct operations in two segments: DIY and Home Furnishing. DIY comprises sales of products from well-known brands for homes and gardens, and Home Furnishing comprises sales of furniture and home decor, mainly under proprietary brands. Bygghemma Group includes a wide range of webstores, such as www.bygghemma.se, www.trademax.sewww.chilli.se, www.furniturebox.se, stonefactory.se and lampgallerian.se. Bygghemma Group had sales of SEK 5 billion in 2018, has its head office in Malmö and is listed on Nasdaq Stockholm Mid Cap.