Interim report January-September 2010
1 July – 30 September
- Revenues increased 8 per cent adjusted for currency effects and calculated on comparable workdays. Prior to adjustment, revenues increased 4 per cent to SEK 839 M (808).
- EBIT increased 41 per cent to SEK 141 M (100) and the EBIT margin rose to 17 per cent (12).
- Profit after financial items increased 44 per cent to SEK 140 M (97).
- Profit after tax amounted to SEK 100 M (70).
- Earnings per share before and after dilution amounted to SEK 3.07 (2.16).
1 July – 30 September
- Revenues increased 9 per cent adjusted for currency effects and calculated on comparable workdays. Prior to adjustment, revenues increased 7 per cent to SEK 2,555 M (2,391).
- EBIT increased 54 per cent to SEK 375 M (244) and the EBIT margin rose to 15 per cent (10).
- Profit after financial items increased 56 per cent to SEK 374 M (240).
- Profit after tax amounted to SEK 273 M (175).
- Earnings per share before and after dilution amounted to SEK 8.43 (5.33).
- Net indebtedness totalled SEK 87 M (29) at the end of the period.
| SUMMARY OF THE GROUP’S EARNINGS TREND | July – September | January – September | 12 months | Full-year | ||||
| 2010 | 2009 | Change % | 2010 | 2009 | Change % | Oct - Sep | 2009 | |
| Revenues, SEK M | 839 | 808 | 4 | 2,555 | 2,391 | 7 | 3,370 | 3,206 |
| EBIT, SEK M | 141 | 100 | 41 | 375 | 244 | 54 | 456 | 325 |
| Profit after financial items, SEK M | 140 | 97 | 44 | 374 | 240 | 56 | 456 | 323 |
| Profit after tax, SEK M | 100 | 70 | 43 | 273 | 175 | 56 | 336 | 237 |
| Earnings per share, SEK | 3.07 | 2.16 | 42 | 8.43 | 5.33 | 58 | 10.49 | 7.38 |
| EBIT Margin, % | 17 | 12 | 15 | 10 | 14 | 10 | ||
CEO’s comments
Strong third quarter for Mekonomen
- EBIT for the third quarter rose 41 per cent
- EBIT margins in Norway and Sweden remained high
- Denmark displayed stable EBIT margin at 6 per cent
Mekonomen's EBIT for the third quarter of 2010 increased 41 per cent to SEK 141 M (100) and the EBIT margin amounted to 17 per cent (12). Without adjustments, revenues increased 4 per cent to SEK 839 M (808). As in the second quarter of 2010, the strong EBIT margin was partly due to improved gross margin through more efficient purchasing and partly due to cost control throughout the operations.
EBIT for the third quarter in Denmark rose to 12 per cent (3) and the EBIT margin amounted to 6 per cent (2). The turnaround in Denmark is evident and the operation is now on a stable profitability level.
In Norway, sales increased 8 per cent. The EBIT margin amounted to 20 per cent (18). Both growth and profitability were attributable to continued efforts in the Mekonomen concept. During the quarter, a number of new partnerships were initiated, including the workshop chain Fyksen Servicecenter, with five facilities in Norway.
In Sweden, the EBIT margin amounted to 21 per cent (18). Growth was 6 per cent.
The sale of Mekonomen's own branded products remain successful and during the third quarter additional spare parts under the brand name Mekonomen Original was launched.
The number of workshops affiliated to Mekonomen increased and totalled 1,275 (1,197) at the end of the period. The number of stores during the same period amounted to 224 (215). Sales to Mekonomen Service Centres increased 15 per cent during the third quarter signifying that the Mekonomen Service Centre chain has the strongest growth among workshop chains in Scandinavia. It is also very gratifying that the MekoPartner chain increased 19 per cent during the third quarter. The demand for our workshop services is high and the challenge lies in increasing growth in existing workshops, with more mechanics, as well as more workshops. It is also clear that Mekonomen Workshop Centres are an important factor to the increased growth in the workshop segment.
Based on the current market situation, with clear plans for further development, Mekonomen is well equipped for the future. According to a recent survey conducted by NORM, knowledge of Mekonomen among car owners in Sweden is a full 99 per cent. In Norway, knowledge increased from 87 to 91 per cent and in Denmark from 54 to 66 per cent. Particularly satisfying is that Mekonomen's workshops received high ratings from customers.
The market trend in Sweden and Norway displayed strong growth of approximately 5 per cent, year-on-year (currency adjusted), while the Danish market is about 0 per cent.
The strong earnings during the third quarter confirmed that our repositioning has generated higher revenues and improved EBIT margins. The launch of the Mekonomen concept continues with full power, to make CarLife easier for customers.
Håkan Lundstedt
President and CEO
For further information, please contact:
Håkan Lundstedt, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Gunilla Spongh, CFO Mekonomen AB, Tel: +46 (0)8-464 00 00
Mekonomen makes CarLife easier through a wide and easily accessible range of inexpensive and innovative solutions and products for consumers and companies. We are Scandinavia’s leading spare-parts chain with proprietary wholesale operations, more than 200 stores and more than 1,000 workshops operating under the Mekonomen brand.
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