Year-end report 1 January-31 December 2018
STRONG Q4 SALES AND EBITA
- Net sales rose 18.5 percent to SEK 1,279.7 million (1,079.7),of which organic growth accounted for 12.5 percent, driven by organic growth of 18.3 percent in the DIY segment
- Adjusted gross profit* rose 23.1 percent to SEK 302.3 million (245.7), with an adjusted gross margin of 23.6 percent (22.8)
- Adjusted EBITA** increased to SEK 60.3 million (52.7), with an adjusted EBITA margin of 4.7 percent (4.9)
- Operating income (EBIT) increased to SEK 44.1 million (5.2), with an operating margin of 3.4 percent (0.5)
- Operating cash flow*** was SEK 7.8 million (80.3), driven by fewer invoicing days in December compared to last year
- Net income amounted to SEK 49.5 million (-8.2), an increase attributable to higher EBIT and reassessed earn-outs related to acquisitions
- Earnings per share amounted to SEK 0.45 (-1.37) before dilution and SEK 0.45 (-1.37) after dilution
- Management changes effective 1 April 2019: Current CFO Martin Edblad was appointed Acting President and CEO and head of Home Furnishings, Mikael Olander will leave his position as CEO to assume the role of COO with responsibility for M&A and will continue serving as head of DIY, Peter Rosvall will leave his position as COO and was appointed head of New Operations, and Adam Schatz was appointed as the new CFO of Bygghemma
1 January-31 December
- Net sales rose 25.7 percent to SEK 4,973.7 million (3,955.5), of which the Group’s organic growth accounted for 13.7 percent, driven by organic growth of 18.7 percent in the DIY segment
- Adjusted gross profit* increased 26.0 percent to SEK 1,077.9 million (855.2), with an adjusted gross margin of 21.7 percent (21.6)
- Adjusted EBITA** amounted to SEK 202.7 million (197.0), with an adjusted EBITA margin of 4.1 percent (5.0)
- Operating income (EBIT) amounted to SEK 87.2 million (91.5), with an operating margin of 1.8 percent (2.3)
- Operating cash flow*** was SEK 185.5 million (264.8), corresponding to a cash conversion of 80 percent (121), driven by seasonal effects with fewer invoicing days in December compared to last year
- Net income amounted to SEK 50.8 million (28.7), an increase attributable to the above and to reassessed earn-outs related to acquisitions
- Earnings per share amounted to SEK 0.00 (-3.99) before dilution and SEK 0.00 (-3.99) after dilution
- The Board of Directors’ proposal to the Annual General Meeting is that no dividend is to be paid for the 2018 financial year.
Key events after the period
- Acquisition of Designkupp AS (“vvskupp.no”) on 29 January 2019. Designkupp is the leading online retailer in Norway primarily focused on bathroom products and had a turnover of around SEK 100 million and an EBIT margin north of 3 percent in 2018
*Adjusted for items affecting comparability (refer to “Relevant reconciliations of non-IFRS alternative performance measures (APM)”). Items affecting comparability impacting gross profit amounted to SEK 4.2 million (11.5) for the quarter, relating to the last-mile project, and SEK 30.4 million (35.2) for the year, relating to the Furniturebox integration, the warehouse move and the last-mile project. Items affecting comparability impacting EBITA totalled SEK 6.6 million (38.2) for the quarter and SEK 77.9 (73.5) for the year, relating to (i) acquisition costs of SEK 0.4 million (1.4) for the quarter and SEK 2.0 million (10.0) or the year, (ii) integration and warehouse move costs of SEK 27.5 million (44.7) for the year, (iii) costs of SEK 11.4 million (-) for the year related to the long-term incentive program launched in connection with the IPO, (iv) costs for the listing on Nasdaq of SEK 30.7 million (18.8) and (v) costs for establishing an own distribution network of 6.3 million (-) for the quarter.
** Adjusted EBITA is defined as operating income before depreciation and amortisation related to acquisitions and items affecting comparability (described above).
*** Operating cash flow: Adjusted EBITDA including changes in working capital less investments in other non-current assets in the period. Cash conversion in percent: Operating cash flow / adjusted EBITDA (also refer to “Definitions” on page 32 in this report).
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 CET on 31 January 2019.
For further information, visit www.bygghemmagroup.se or contact:
|Mikael Olander, President and CEO||Martin Edblad, CFO|
|+46 (0)708-19 43 00
||+46 (0)734-24 68 51|
|Johan Hähnel, Head of Investor Relations|
|+46 (0)70-605 63 34|
TELECONFERENCE IN CONNECTION WITH PUBLICATION OF THE QUARTERLY REPORT
On Monday, 31 January at 10:00 a.m. CET, Mikael Olander, President and CEO, and Martin Edblad, 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)8-566 427 04 or go to the weblink https://tv.streamfabriken.com/bygghemma-group-q4-2018. 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