Volati announces preliminary results for Q1 2020 and issues an update on the impact of the coronavirus
In view of the general uncertainty about the economic effects of the coronavirus, Volati today issues its preliminary results for Q1 2020 with a general update of the business situation.
According to preliminary figures for Q1 2020, the Group’s net sales increased by 7 percent to SEK 1,658 (1,544) million and EBITA rose by 65 percent to SEK 62 (37) million compared with the same quarter the previous year. Net sales for the last 12-month period, ending 31 March 2020, rose to SEK 6,947 million and EBITA increased to SEK 537 million.
Up to and including 16 April, the coronavirus has had a limited effect on Volati’s operations. Given the exceptional developments in the world, it is Volati’s assessment that the risk of future negative effects has increased but the extent of the potential impact on the Company cannot be predicted. In readiness for any future negative deviations, Volati is working systematically on measures to protect health and safety, strengthen liquidity and safeguard profitability in the Group’s operations. There are also plans for how the business units should act if the situation worsens.
Preliminary results for Q1 2020 and a current status assessment of the impact on the Group’s business units are set out below.
Trading Business Area
The business area’s net sales for Q1 increased to SEK 590 (496) million and EBITA rose to SEK 38 (29) million.
The business area has reported good sales throughout the quarter, with particularly good development in Sweden. Sales in Denmark, Norway and Finland have slowed down somewhat after the end of the quarter and cost savings have been initiated in relevant business units. Some disruptions to deliveries from China have been noted and future deliveries could potentially be affected by individual countries’ lockdowns. Currency changes have had a negative impact on sales and earnings for the quarter.
Industry Business Area
The business area’s net sales for Q1 increased to SEK 438 (373) million and EBITA rose to SEK 31 (15) million.
The business area has shown a very good order intake and strong sales throughout the quarter. Operations of individual business units outside the Nordic region have been negatively affected since mid-March. Cost savings have been initiated in the markets concerned.
Akademibokhandeln Business Area
The business area’s net sales for Q1 declined to SEK 444 (453) million and EBITA was unchanged at SEK -3 (-3) million.
The business area experienced good demand up to mid-March and has noted declining store sales since then. Since mid-March, store sales have been on average about 30 percent lower than the normal level for the period. The digital channels, including Bokus Play, have developed positively during the year. Spring is seasonally a period of lower sales and earnings for the business area. Akademibokhandeln has initiated cost savings, including short-time work allowance, and is engaged in discussions with landlords about rent reductions.
Consumer Business Area
The business area’s net sales for Q1 declined to SEK 186 (222) million and EBITA rose to SEK 6 (5) million.
The business area as a whole has not noted any significant effect on its operations so far. It should be noted that me&i, which is included in the comparative figures, is no longer a Volati business unit and is therefore no longer consolidated in Volati’s financial statements.
The above figures, which are based on management’s own analysis, are preliminary and unaudited. The full interim report will be published on 5 May 2020.
This information is information that Volati AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 14.45 CET on 16 April 2020.
For further information, please contact:
Mårten Andersson, CEO Volati AB, +46 72 735 42 84, email@example.com
Andreas Stenbäck, CFO Volati AB, +46 70 889 09 60, firstname.lastname@example.org
Volati AB (publ)
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8 21 68 40
Corporate reg. no. 556555-4317
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, over 2,000 employees and annual sales of approximately SEK 7 billion. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.