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Interim Financial report January – September 2020

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Coming off the significant Covid-19 related revenue drop we experienced in our second quarter, LEAX third quarter revenue rebounded, specifically in September. After the seasonally slow summer period in July and August, which was exacerbated by Covid-19 effects, September showed us the first signs of pre-Covid-19 demand and the U-shaped recovery we have been expecting. Despite overall revenue still lagging Q3 2019 by greater than 20% our performance has improved by nearly 7% in EBITDA margin with Q3 2020 coming in at 11.3% versus a 4.6% EBITDA margin in Q3 2019. This improvement has been driven by key cost control activities and the maturation within our key projects.

Short-term demand looks solid with several customers calling off higher volumes in the coming months, in some cases even greater than the period leading up to the pandemic. This higher volume is a mix of pent-up demand following the Covid-19 period and the general underlying demand related to recovering global markets. Estimating the long-term situation remains a challenge and LEAX must remain vigilant to changes in demand from our end markets. Being agile and flexible to ensure outstanding service while maintaining our positive financial trend continues to be our top priority.

Summary of the third quarter of 2020

  • Net Sales amounted to SEK 298.4 million (377.4)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 17.3 million (11,8)
  • Earnings before tax (EBT) increased to SEK -18.1 million (-26.4)
  • Profit margin before tax (EBT%) amounted to -6.1% (-7.0%)
  • Cash flow from operating activities decreased to SEK 8.1 million (32.3)
  • Net income for the period increased to SEK -12.4 million (-26.0)

Summary of the first nine months of 2020

  • Net Sales amounted to SEK 999.6 million (1,378.6)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 63.7 million (92.3)
  • Earnings before taxes (EBT) decreased to SEK -41.6 million (-5.1)
  • Profit margin before tax (EBT%) amounted to -4.2% (-0.4%)
  • Cash flow from operating activities decreased to SEK 83.9 million (86.1)
  • Net income for the period decreased to SEK -35.7 million (-8.0)
 

Roger Berggren, Acting President & CEO
Telephone: +46 (0)70 655 99 71
E-mail: roger.berggren@leax.com

This information is information that LEAX Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on November 12, 2020 at 08:30 CEST

About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group have a turnover of more than SEK 1,8 billion on a yearly basis.

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