Interim report January - September 2015
● Revenue increased 5 per cent to SEK 1,405 M (1,340). Excluding the acquisition of Opus Equipment revenue increased 3 per cent. Adjusted for currency effects and calculated on the comparable number of workdays, revenue rose 8 per cent. Sales in comparable units rose 4 per cent.
● EBITA amounted to SEK 196 M (214) and the EBITA margin amounted to 14 per cent (16).
● EBIT amounted to SEK 168 M (186) and the EBITA margin amounted to 12 per cent (14).
● EBITA and EBIT have been negatively affected by SEK 32 M compared with the year-earlier period; from currency effects in the balance sheet of SEK 12 M (pos: 4) as well as from currency effects pertaining to the NOK of SEK 16 M compared with the year-earlier period.
● The gross margin increased to 55.8 per cent (55.4).
● Earnings per share, before and after dilution, amounted to SEK 3.01 (3.69).
● Cash flow from operating activities rose to SEK 155 M (113), of which discontinued operations comprised a negative SEK 18 M (neg: 39).
● Net debt at the end of the period amounted to SEK 1,760 M (1,763), compared with SEK 1,629 M at the end of the year.
Good growth but negative currency effects in the third quarter
Growth remained favourable during the third quarter and cash flow strengthened compared with the
year-earlier period. In the quarter however, Mekonomen Group was impacted by negative currency effects amounting to SEK 30 M and did not match the earnings of the year-earlier period.
Mekonomen Group’s revenue for the third quarter of 2015 increased 5 per cent to SEK 1,405 M (1,340) and the operating profit declined to SEK 168 M (186). The operating margin declined to 12 per cent (14). MECA’s export business to Denmark negatively impacted profit for the third quarter with a negative EBIT impact of SEK 9 M.
Cash flow strengthened during the quarter.
Revenue for the nine-month period rose 7 per cent to SEK 4,314 M (4,016) and the EBIT increased 3 per cent to SEK 507 M (494). The market trend was stable compared with the year-earlier period and our assessment is that this trend will continue for the rest of the year.
MECA’s export business to Denmark is expected to have a continued negative impact on earnings in the fourth quarter. Measures have been taken to offset the gross margin effects of the weaker NOK, but expectations are that the currency effects will continue to have some negative impact on earnings for the Group also in the fourth quarter.
In the third quarter, the good growth has continued with a 12 per cent increase in MECA, 2 per cent in Mekonomen Nordic and 1 per cent in Sørensen og Balchen. Sales increased with 5 per cent to our affiliated workshops, with 8 per cent to consumers and with 4 per cent to other workshops during the quarter. The affiliation of our concept workshops in Sweden, in MECA and Mekonomen to the Swedish Association of Vehicle Workshops is one example of how we continuously increase quality requirements in our concept workshops, to thereby ensure continued growth.
We posted continued healthy sales increase for our proprietary brand ProMeister, which accounted for about 13 per cent of spare-parts sales in the Group in the third quarter.
With the aim of enhancing our efficiency and speed, Mekonomen Sweden and Mekonomen Norway will be reporting directly to me as from 2016. This means that one organisational level, Mekonomen Nordic, is removed. The measure is expected to result in savings with a positive EBIT effect of SEK 15 M per year, which will start to generate an effect in 2016 and will be fully realised after the first half of 2017.
To ensure the good growth, we will implement programmes aimed at raising quality levels in our workshops, which will include training courses, as well as the development and launch of new workshop concepts. In addition, we will take further steps in our digital business, where our Group-wide e-commerce platform for B2B and B2C comprises the single largest project decided to date.
It is by strengthening our relationships with existing and new customers that we generate profitable growth. This effort is progressing in all parts of the Group!
President and CEO
For further information, please contact:
Magnus Johansson, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Per Hedblom, CFO 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 11 November 2015 at 7:30 a.m.