Q2: Continued stable development despite increased market uncertainty

Second quarter

•   Net sales rose 10.2 per cent to SEK 3,543 million (3,215).

•   Organic growth was 4.0 per cent (7.8), of which SMB accounted for 2.8 per cent (0.1), LCP for 4.1 per cent (16.1) and B2C for 12.5 per cent (neg: 13.5).

•   The gross margin amounted to 15.7 per cent (16.3).

•   Adjusted EBITA amounted to SEK 154 million (154), corresponding to an adjusted EBITA margin of 4.3 per cent (4.8).

•   EBIT totalled SEK 133 million (160), including items affecting comparability of SEK 3 million (23).

•   Profit for the quarter was SEK 92 million (124).

•   Earnings per share before dilution totalled SEK 1.04 (1.41).

•   Cash flow from operating activities amounted to SEK 155 million (144).

•   The start of the third quarter has been characterised by increased demand for hardware in the form of monitors, web cameras, cables and accessories for home offices, combined with a stable trend in the public sector. At the same time, the market uncertainty regarding the effects of the coronavirus has increased significantly.

September 2019-February 2020

•   Net sales rose 11.2 per cent to SEK 7,051 million (6,341).

•   Organic growth was 5.0 per cent (6.9), of which SMB accounted for 1.4 per cent (3.9), LCP for 9.3 per cent (10.7) and B2C for negative 7.6 per cent (neg: 5.4).

•   The gross margin amounted to 15.8 per cent (16.9).

•   Adjusted EBITA declined to SEK 310 million (316), corresponding to an adjusted EBITA margin of 4.4 per cent (5.0).

•   EBIT totalled SEK 251 million (309), including items affecting comparability of negative SEK 11 million (pos: 26).

•   Profit for the period amounted to SEK 178 million (235).

•   Earnings per share before dilution totalled SEK 2.00 (2.78).

•   Cash flow from operating activities amounted to SEK 380 million (92).

•   At the end of the period, net debt in relation to adjusted EBITDA in the past 12-month period, excluding the effects of the implementation of IFRS 16 Leases, was 3.1 (2.9 at the end of 2018/19). When calculated including these effects, the figure was 3.5 (-).

“We are reporting healthy sales growth in the quarter, despite a continued cautious market. The adjusted EBITA margin decreased as a result of a changed sales mix, with a high share of sales of clients with lower margin and relatively higher costs as part of our transformation towards an expanded offering of services and solutions. We successfully integrated Core Services and Purity IT, and in early March, we updated our brand position and our visual identity.

The rapid spread of the novel coronavirus will have an impact on our business in the short and probably the longer term, and the market uncertainty has increased significantly. The start of the third quarter has been characterized by increased demand for products and accessories for home offices among our B2B customers in the Nordic countries. We are actively following developments and are taking a proactive approach in preparing for various scenarios depending on the market development. This is to enable us to act swiftly, from both a cost and risk perspective, but also to leverage the opportunities that our strong online position can offer us and our customers”, says Thomas Ekman, President and CEO at Dustin.

For additional information, please contact:

Fredrik Sätterström, Head of Investor Relations: fredrik.satterstrom@dustin.se, +46 705 10 10 22

Contact person:

Eva Ernfors, Head of Communication: eva.ernfors@dustin.se, +46 70 258 62 94

This information is information that Dustin 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 person set out above, at 08:00 CET on April 1, 2020.

About Dustin

Dustin is a leading online IT partner with operations in the Nordics and the Netherlands. We help our customers to stay in the forefront by providing them with the right IT solution, at the right time and at the right price.

We offer approximately 255,000 products with related services to companies, the public sector and private individuals. The main focus is on SMEs. Sales for the financial year 2018/19 amounted to approximately SEK 12.5 billion and just over 90 per cent of the revenues came from the corporate market.

Dustin Group has more than 1,800 employees and has been listed on Nasdaq Stockholm since 2015 with headquarters in Nacka Strand just outside central Stockholm.