Interim Report 6 months - 1 January-30 June 2022

Report this content

SECOND QUARTER (1 APRIL-30 JUNE 2022)

  • Net sales increased by 17 percent to SEK 1,745 million (1,488), of which currency-adjusted sales rose by 12 percent.
  • Operating profit before depreciation and amortisation (EBITDA) excluding non-recurring items of SEK -17 million (-43) amounted to SEK 143 million (144). 1)
  • Operating profit amounted to SEK 55 million (38) and the operating margin was 3.2 percent (2.6). Operating profit was charged with non-recurring items of SEK -24 million (-43). 1)
  • Profit after financial items totalled SEK 36 million (16).
  • Profit after tax amounted to SEK 23 million (9).
  • Earnings per share totalled SEK 0.07 (0.03). 2)
  • Cash flow from operating activities amounted to SEK -4 million (-158).

 

REPORTING PERIOD (1 JANUARY-30 JUNE 2022)

  • Net sales increased by 17 percent to SEK 3,518 million (3,011), of which currency-adjusted sales rose by 12 percent.
  • Operating profit before depreciation and amortisation (EBITDA) excluding non-recurring items of SEK -28 million (-57) amounted to SEK 318 million (323). 1)
  • Operating profit amounted to SEK 147 million (140) and the operating margin was 4.2 percent (4.7). Operating profit was charged with non-recurring items of SEK -45 million (-57). 1)
  • Profit after financial items totalled SEK 123 million (85)
  • Profit after tax amounted to SEK 84 million (59).
  • Earnings per share totalled SEK 0.32 (0.34). 2)
  • Cash flow from operating activities amounted to SEK -63 million (-56).
  • The equity/assets ratio at the end of the period was 46 percent (45).
  • Net debt excluding lease liabilities amounted to SEK 820 million (415).

 

1) Non-recurring items mainly consist of costs relating to transformation work under ITAB’s One ITAB strategy.
2) In connection with ITAB’s recapitalisation in 2021, the number of shares increased by 115,716,762 to a total of 218,100,192 shares.

 

SIGNIFICANT EVENTS DURING THE REPORTING PERIOD

  • The acquisition of Checkmark, one of the leading suppliers of retail technology solutions such as checkouts in the Nordic region, further strengthens ITAB’s market position.
  • Due to the invasion of Ukraine, a decision was made to discontinue ITAB’s current operations in Russia. These operations correspond to approximately 2.5 percent of the Group’s annual sales.
  • In connection with the annual financial statements for 2021, the Board adopted new financial targets focused on sustainable growth, increased profitability, and capital efficiency.

 

President’s comments –
INCREASED SALES BUT MARGINS PUT UNDER PRESSURE

The start of 2022 has been characterised by uncertainty and operating challenges for ITAB as a result of rapidly rising costs for input goods, while transportation disruptions and shortages of critical components are placing high demands on our ability to ensure deliveries to customers. Combined, this is resulting in a highly challenging market situation, with many customers facing uncertainty. Our demand has so far been stable, but we are seeing customers expressing concern over the current economic development and a number of customers are being impacted by delays due to shortages among other suppliers. At the same time, we have noted increased interest in our solutions from both new and existing customers. To summarise the first six months of the year, our currency-adjusted net sales increased by 12 percent as a result of price increases and continued business from our customers, while operating profit (excluding non-recurring items) decreased by some 2 percent since our price adjustments and other cost-saving measures have not yet yielded full effect.

Price increases have resulted in organic growth of approximately 10 percent so far this year. At the same time, the gross margin has been negatively impacted since our price increases are not yet in balance with the prevailing cost increases and rapidly rising inflation. Over the past few quarters, we have also taken other cost-saving measures in the operations to offset the negative effects on profit. While cost increases continue to occur at a highly rapid rate and are more unpredictable than in the past, our current assessment is that the customer price increases we have implemented and announced across the Group, along with our other initia­tives to reduce our cost base, will strengthen the gross margin during the rest of the year, provided that demand continues. Adjusted for non-recurring items, EBITDA for the first six months amounted to SEK 318 million (323), corresponding to an EBITDA margin of 9.0 percent (10.7). Corresponding profit after financial items increased by 18 percent to SEK 168 million (142), concludes President & CEO Andréas Elgaard.

For the full President’s comments, refer to the interim report.

 

Jönköping, 13 July 2022

 

ITAB Shop Concept AB (publ)

 

Conference call on 13 July 2022 at 10:30 a.m. CEST
ITAB arranges a conference call today, 13 July 2022 at 10:30 a.m. CEST, in which Andréas Elgaard, President & CEO, and Ulrika Bergmo Sköld, CFO, present the interim report for the second quarter of 2022 and answer any subsequent questions. Weblink and telephone numbers are available at https://financialhearings.com/event/43990.

 

The information in this report is such that ITAB Shop Concept AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU Regulation No 596/2014) and is published in accordance with the Swedish Securities Act (2007:528). The information was submitted for publication, through the agency of the contact persons set out below, at 7:00 a.m. CEST on 13 July 2022.
   This report is in all respects a translation of the Swedish original interim report. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.

 

For further information, please contact:
Andréas Elgaard, President & CEO
Telephone: +46-732 32 16 35

Mats Karlqvist, Head of Investor Relations
Telephone: +46-70 660 31 32

ITAB Shop Concept AB (publ), Box 9054, SE-550 09 Jönköping, Sweden
itab.com, itabgroup.com


AT ITAB we help customers turn consumer brand experience into physical reality with our know-how, solutions, and ecosystem of partners. We co-create with our customers, efficient retail solutions that deliver convenient and inspiring consumer experiences. The offer includes consultative design services, custom-made interiors, checkout systems, consumer guidance solutions, professional lighting systems and interactive digital solutions for the physical store. ITAB has annual sales of approximately SEK 6.7 billion and approximately 2,900 employees. ITAB's share is listed on Nasdaq Stockholm.

Subscribe

Quotes

Price increases have resulted in organic growth of approximately 10 percent so far this year. At the same time, the gross margin has been negatively impacted since our price increases are not yet in balance with the prevailing cost increases and rapidly rising inflation.
Andréas Elgaard, President & CEO