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Interim Report January–September 2018

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Q3 July–September 2018

  • Net sales increased by 20 percent to SEK 1,470 (1,224)
  • EBITA increased by 29 percent to SEK 123m (96).
  • Organic EBITA growth was 0 percent.
  • Profit after tax increased by 41 percent to SEK 74m (53)
  • Earnings per common share after deduction of preference share dividends increased by 60 percent to SEK 0.72 (0.45)

Period January–September 2018

  • Net sales increased by 50 percent to SEK 4,252 (2,839)
  • EBITA increased by 10 percent to SEK 259m (235).
  • Organic EBITA growth was -1 percent.
  • Profit after tax increased by 3 percent to SEK 153m (149)
  • Earnings per common share after deduction of preference share dividends increased by 4 percent to SEK 1.28 (1.24)

Events after the reporting period

The Nomination Committee for the 2019 Annual General Meeting has been appointed during October, where the three largest shareholders are represented. The Committee consists of Carin Wahlén (chair), representing Patrik Wahlén, Karl Perlhagen representing himself and Jannis Kitsakis representing the Fourth Swedish National Pension Fund.

COMMENTS FROM THE CEO

Growth in sales and earnings

All key figures developed in the right direction and we showed strong growth in both sales and EBITA.

Net sales for Q3 increased by 20 percent to SEK 1,470m compared with the same quarter the previous year. EBITA increased by 29 percent during the quarter and amounted to over SEK 400m on a rolling twelve-month basis. It is also satisfying to report 60 percent growth in earnings per common share as we now start to obtain leverage from our strong balance sheet, enabling growth through acquisitions.

Good development in all business areas

Behind the strong figures is positive development for all business areas. The Trading business area showed growth in both sales and earnings during Q3. The Trading business area’s operations are mainly concentrated on hardware, building and garden products. These are market segments that have had weather-related challenges during the year due to the cold start and the subsequent record-hot summer. I see it as testament to our strength that despite this, we have shown good results during the quarter.

The Consumer business area developed in line with our expectations and reported earnings growth in Q3. All underlying operations within the Industry business area have developed well in terms of sales and earnings. Continuing high efficiency and strong market positions in the operations are the main reasons for this. I would also like to welcome S:t Eriks into the Volati family. The company is consolidated in the Industry business area with effect from September and we look forward to continuing to develop S:t Eriks together with management.

Exciting business development work is in progress in the Akademibokhandeln business area, with a focus on efficiency and profitability. Industry statistics from the Swedish Booksellers Association show that book sales (both physical and digital) increased by over six percent in the Swedish market during the first half of 2018.  I am very pleased with the progress made by Akademibokhandeln in grasping the growing market’s opportunities by being active in all channels and formats.

Well positioned for continuing value creation

We have a strong balance sheet and generate good cash flows, which means that we can act when the right acquisition opportunity presents itself. However, we can see that the market’s price expectations are highly inflated, particularly for somewhat larger acquisition candidates.

With the business area organisation in place, we are well positioned for the continuing process of creating long-term value in our existing operations. This is achieved by continuing to develop the operations and making complementary acquisitions.

Mårten Andersson, CEO


Conference call

CEO Mårten Andersson and CFO Mattias Björk will present the interim report in a conference call on 6 November at 9.00. The presentation will be conducted in Swedish.

Phone number to access the conference call: +46 (0)8-566 426 65. For a webcast of the conference call, go to www.volati.se.

This information is information that Volati AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact persons set out below, at 7.45 a.m. (CEST) on 6 November 2018.

For more information, please contact:

Mårten Andersson, CEO, +46 (0)72-735 42 84, marten.andersson@volati.se
Mattias Björk, CFO, +46 (0)70-610 80 89, mattias.bjork@volati.se

Volati AB (publ)
Corporate reg. no. 556555-4317
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8-21 68 40
www.volati.se

About Volati
Volati is a Swedish industrial group, formed in 2003, organised in four business areas: Trading, Consumer, Akademibokhandeln and Industry. Volati mainly acquires reasonably valued companies with proven business models, leading market positions and strong cash flows and develops them, with a focus on long-term value creation. The strategy is to build on the companies’ identity and entrepreneurial spirit, adding leadership, expertise, processes and financial resources. Volati has operations in 16 countries and, more than 2,000 employees and, after the acquisition of S:t Eriks, annual sales of approximately SEK 6.7 billion. Volati’s common shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.

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