Interim report 1 January-31 March 2019

SOLID FIRST-QUARTER SALES AND RECORD-HIGH MARGINS

HIGHLIGHTS

First quarter

  • Net sales increased 19.0 percent to SEK 1,220.1 million (1,025.1). Organic growth amounted to 8.0 percent. Orders in the period amounting to approximately SEK 20 million were not recognised during the quarter due to a calendar effect
  • Gross profit increased 41.0 percent to SEK 300.4 million (213.1), with a record-high gross margin of 24.6 percent (20.8)
  • Adjusted EBITA, excluding IFRS 16 effects, increased 74.4 percent to SEK 53.4 million (30.6), and the adjusted EBITA margin increased to 4.4 percent (3.0). Adjusted EBITA, including IFRS 16 effects, amounted to SEK 55.3 million, corresponding to an EBITA margin of 4.5 percent*
  • Operating income (EBIT), excluding IFRS 16 effects, increased to SEK 36.4 million (-29.2), corresponding to an operating margin of 3.0 percent (-2.9). EBIT, including IFRS 16 effects, amounted to SEK 38.3 million, corresponding to an operating margin of 3.1 percent*
  • Operating cash flow amounted to SEK 16.3 million (50.0), affected by the inventory build-up before the high season
  • Net income, excluding IFRS 16 effects, amounted to SEK 19.3 million (-55.0). Taking IFRS 16 into account, net income amounted to SEK 19.0 million*
  • Earnings per share amounted to SEK 0.17 (-1.73) before dilution and SEK 0.17 (-1.73) after dilution 

Key events during and after the period

  • Acquisition of Designkupp AS (“vvskupp.no”) on 29 January. Designkupp is the leading online retailer in Norway focused on bathroom products, with net sales of SEK ~100 million and an EBIT margin of about 3 percent in 2018
  • Acquisition of Nordiska Fönster on 1 March. Nordiska Fönster is a leading online retailer in the value-for-money private label doors and windows segment in Sweden, with net sales of SEK ~50 million and a marginal profit in 2018
  • On 1 April 2019, Martin Edblad assumed the role of acting President and CEO of Bygghemma Group
  • Bygghemma applies IFRS 16 as of 1 January 2019. The new accounting standard has increased the Group’s total assets by around SEK 360 million at the start of the year, and is expected to have a positive effect on EBITA and EBITDA of around SEK 7 million and SEK 90 million, respectively, on a full-year 2019 basis. As no pro-forma recalculation has been performed, comparisons with 2018 are made against figures for 2019, excluding the impact of IFRS 16

* 2019 figures are reported excluding the effect of IFRS 16 to facilitate comparison with 2018 figures as reported (not pro-forma for IFRS 16 2018).
** Refer to “Relevant reconciliations of non-IFRS alternative performance measures (APM)” on page 27 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 25 April 2019.
  
 
CONTACT INFORMATION

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

TELECONFERENCE IN CONNECTION WITH PUBLICATION OF THE QUARTERLY REPORT
On Thursday, 25 April at 10:00 a.m. CEST, 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 the following number: +46 (0) 8 505 583 58 or go to the weblink https://tv.streamfabriken.com/bygghemma-group-q1-2019. The presentation is available at Bygghemma Group’s website: http://www.bygghemmagroup.com/investor-relations/presentations

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 Bygghemma, Trademax, Chilli and Furniturebox. Bygghemma Group had sales of SEK 5 billion in 2018, has its head office in Malmö and is listed on Nasdaq Stockholm Mid Cap.

Tags: