Volati's Q1 2021 results better than expected
Volati's results for the first quarter 2021 are better than Volati believes the market is expecting. According to preliminary figures for the first quarter, the Group's net sales, excluding Bokusgruppen, increased by 22 percent to SEK 1,254 million (1,028), while EBITA increased by 74 percent to SEK 102 million (59), compared to the corresponding quarter in 2020.
- The business and earnings growth developed strongly during the quarter, driven by continued good demand and additional acquisitions in the remaining business areas Salix Group and Industri. Margins in both Salix Group and Industry have been particularly strong in the first quarter, says Mårten Andersson, CEO of Volati.
- We continue to deliver strong growth, which is the result of our long-term and consistent work to develop our well-managed business units with strong positions in their respective markets as well as our ability to generate earnings growth. Since 2015, the average annual growth has been over 30 percent, he adds.
Preliminary results for the first quarter 2021:
Salix Group
The business area’s sales increased by 24 percent to SEK 730 million (590) and operating profit, EBITA, rose 70 percent to SEK 65 million (38).
The development is driven by a continued very strong Do it yourself market with good demand for products in the consumer-driven part of the construction, hardware and horticultural trade. Operations within the construction and wood industries as well as small farms have also had good demand and seen positive effects of the long-term organic growth initiatives implemented.
Business area Industri
The business area's sales increased 20 percent to SEK 524 million (438) and operating profit, EBITA, rose 63 percent to SEK 50 million (31).
Continued high demand for the business units' products combined with acquisitions led to increased sales during the quarter, compared to the corresponding quarter last year.
Bokusgruppen (discontinued operations)
Bokusgruppen's sales increased 4 percent to SEK 462 million (444), while operating profit, EBITA, amounted to SEK -7 million (-3).
Growth in the digital channels remained strong during the quarter, accounting for 54 percent of total sales, compared to 41 percent in the first quarter of 2020. Although the pandemic continued to have a negative impact on the influx of customers into stores during the first quarter when the bookstore's important annual book sale takes place, the stores' sales decrease was limited to 19 percent, which was offset by an increase of sales in digital channels by a total of 37 percent, compared to the first quarter of 2020.
In the notice to the Annual General Meeting 2021, Volati's Board of Directors has proposed a distribution of Bokusgruppen to the holders of ordinary shares. Revenue and results in Volati’s interim report for the first quarter will therefore exclude the Bokusgruppen, which is reported separately as discontinued operations, in accordance with current accounting rules.
The results for the first quarter is preliminary and the figures have not been audited or reviewed by the auditor.
Volati will not comment any further until the first quarter interim report is published on April 27, 2021, at 07:45 a.m.
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 17:00 CET on 14 April 2021.
For futher information, please contact:
Mårten Andersson, CEO Volati AB, +46 72-735 42 84, marten.andersson@volati.se
Andreas Stenbäck, CFO Volati AB, +46 70-889 09 60, andreas.stenback@volati.se
Volati AB (publ)
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8 21 68 40
Email: info@volati.se
Corp.reg.no.: 556555-4317
About Volati
Volati is a Swedish industrial group, founded in 2003, consisting of the business areas Salix Group, Akademibokhandeln and Industry. Volati mainly acquires companies with proven business models, leading market positions and strong cash flows at reasonable valuations 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, about 2,000 employees and annual sales of approximately SEK 6.5 billion. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.