Interim report January – March 2013
• Revenues for the quarter rose 36 per cent adjusted for currency effects and calculated on a comparable number of workdays. Prior to adjustment, revenues increased 28 per cent to SEK 1,405 M (1,096).
• Excluding the acquisition of Meca (Meca excluding Denmark), adjusted for currency effects and calculated on a comparable number of workdays, revenues declined 2 per cent.
• EBITA rose 9 per cent to SEK 129 M (119) and the EBITA margin was 9 per cent (11).
• EBIT declined 7 per cent to SEK 103 M (111) and the EBIT margin was 7 per cent (10). Earnings were negatively impacted by non-recurring effects of SEK 8 M (0) in Denmark.
• Excluding the acquisition of Meca (Meca excluding Denmark), operating profit declined to SEK 70 M (111).
• Profit after financial items declined 18 per cent to SEK 87 M (106).
• Profit after tax amounted to SEK 65 M (77), has been positively impacted by reduced corporate tax in Sweden.
• Earnings per share before and after dilution amounted to SEK 1.77 (2.29).
• Net debt at the end of the period amounted to SEK 1,878 M (611) compared to SEK 1,875 M at year end.
• The acquisition of Meca on 23 May 2012 had a positive impact of SEK 394 M during the first quarter of 2013, as well as SEK 1,000 M for the 23 May – 31 December 2012 period. EBIT was positively impacted by SEK 33 M during the first quarter of 2013 and SEK 130 M during the 23 May – 31 December 2012 period.
Continued investments in a weak first quarter
* Revenues rose 28 per cent, EBIT declined 7 per cent
* Weak earnings in Denmark, the operating margin was a negative 8 per cent
Revenues for the Mekonomen Group for the first quarter of 2013 rose 28 per cent to SEK 1,405 M (1,096) and the EBIT declined 7 per cent to SEK 103 M (111). Adjusted for currency effects and calculated on comparable number of workdays, revenues rose 36 per cent. EBITA increased 9 per cent to SEK 129 M (119).
The weak underlying market was affected by fewer workdays compared with the year-earlier period.
MECA Scandinavia, excluding Denmark, reported EBIT of SEK 33 M and net sales of SEK 394 M during the first quarter. EBIT was charged with amortisation of intangible assets totalling SEK 15 M identified in connection with the acquisition. The integration work remained successful. The total EBIT for MECA, including Denmark, amounted to SEK 21 M and EBITA was SEK 38 M. EBIT in Denmark declined to a loss of SEK 13 M (profit: 12) and the EBIT margin decreased to a negative 8 per cent (pos: 6). Earnings in Denmark were impacted by lower gross margin and sales, as well as non-recurring effects of SEK 8 M. In Denmark, we have a weak underlying market combined with continued intense competition. A new management was appointed in Denmark to implement the action plan. Denmark is an important market and the focus is on turning around our operations in Denmark. Additional structural expenses totalling SEK 15 M are expected to impact Denmark’s earnings during the second quarter of 2013.
EBIT for Sørensen og Balchen rose to SEK 15 M (11) and the EBIT margin increased to 8 per cent (6). EBITA increased to SEK 19 M (16). The earnings increase occurred in a weak consumer market during the first quarter, where the net sales for Sørensen og Balchen declined to SEK 174 M (186). The underlying net sales rose 2 per cent, thanks to the continued development of Sørensen og Balchen’s strong brands and concept and the successful integration into the Mekonomen Group.
EBIT for Mekonomen Norden declined to SEK 75 M (94) and the EBIT margin decreased to 11 per cent (13). EBITA declined to SEK 80 M (97) and the EBITA margin decreased to 12 per cent (13). The underlying net sales declined 2 per cent. EBIT for Mekonomen Sweden was SEK 62 M (72), with an EBIT margin of 15 per cent (16). EBIT for Mekonomen Norway was SEK 25 M (30), with an EBIT margin of 13 per cent (15).
During 2013, we will also be reviewing our costs, stores and logistics structure and implementing successive measures to adapt to a period of continued weak market conditions. During the quarter we have consolidated the store network and reduced the number of stores by eight. Mekonomen makes initiatives to strengthen our presence and our sales in digital channels and we expand our product and service range to continue capturing market shares. Car-glass was launched in February and vehicle insurance in March. Mekonomen Norden’s new e-commerce website was launched in April.
With our strong concepts and the investments we implement, I confidently look forward to the rest of 2013. With a strong focus on quality that clearly places the customer in focus, the Mekonomen Group is the winner in the Nordic market.
President and CEO
For further information, please contact:
Håkan Lundstedt, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Per Hedblom, CFO Mekonomen AB, Tel: +46 (0)8-464 00 00
Gunilla Spongh, Head of International Business Mekonomen AB, Tel: +46 (0)8-464 00 00
The information in this interim report is such that Mekonomen is obligated to publish in accordance with the Securities Market Act.
The information was submitted for publication on 8 May 2013.