Wulff Group Plc’s Financial Statements Release January 1–December 31, 2019
FINANCIAL STATEMENTS RELEASE 17.2.2020 at 9.00 A.M.
This is a summary of Wulff Group Plc’s Financial Statements Release January 1–December 31, 2019. The complete report is attached to this stock exchange release as a pdf-file. The report is also available at the website www.wulff-group.com.
Net sales and operating profit grew in the final quarter of the financial year
1.10.–31.12.2019 BRIEFLY
- Net sales totalled EUR 15.1 million (14.8), increased by 1.7%
- EBITDA and comparable EBITDA were EUR 1.1 million (0.8), 7.6% of net sales (5.1)
- Operating profit (EBIT) and comparable operating profit (EBIT) were EUR 0.8 million (0.6)
- Earnings per share and comparable earnings per share (EPS) were EUR 0.09 (0.07)
- Wulff Group Plc Board of Directors made a resolution of medium-term financial targets of average annual growth of net sales of 5-10%, growing comparable operating profit-% and growing dividend per share
1.1.–31.12.2019 BRIEFLY
- Net sales totalled EUR 56.3 million (55.9), increased by 0.8%
- EBITDA was EUR 3.1 million (1.9), 5.4% of net sales (3.4) and comparable EBITDA was EUR 3.2 million (1.9), 5.7% of net sales (3.4)
- Operating profit (EBIT) was EUR 1.6 million (1.5) and comparable operating profit (EBIT) was EUR 1.7 million (1.5). Comparable operating profit (EBIT) grew 11.9%
- Earnings per share (EPS) were EUR 0.15 (0.15) and comparable earnings per share were EUR 0.17 (0.15)
- Equity-to-assets ratio was 39.2 % (49.1)
- Elina Pienimäki, 40, started as new Wulff Group Plc CEO and Chairman of Wulff Group Plc’s Executive Board
- Wulff invested in its own premises EUR 6.5 million in Finland and Sweden
- The Board proposes to the Annual General Meeting to be held on April 2, 2020 that a dividend of EUR 0.11 per share to be paid
- Wulff estimates that the comparable operating profit of 2020 will increase from 2019
WULFF GROUP PLC’S CEO ELINA PIENIMÄKI
“Thank you for our customers that you have been creating growth with us. We got to end the final quarter of 2019 with positive figures. It is great that both our net sales and operating profit grew. The figures present good choises made and uncompromised actions taken according to our strategy: also our partners and customers believe, that the world is possible to make the world better one workplace at a time. It is important for us to develop our own and our customers’ operations more sustainable constantly. In addition to developing our product and service portfolio one of our significant sustainable actions taken last summer was building a solar power system in our premises in Espoo, Kilo. We participate in preventing the climate change in compensating all Wullfsters’ carbon footprint by planting trees. Wulff staff will plant trees together with the Savotta forestry management association in the spring of 2020. The year 2020 is for Wulff the year of developing good energy, sustainability and growth: I believe that together with good and skilful people we can generate profitable growth. The 130th anniversary of the company makes the year also great! Few companies can say they have survived two world wars and the Great Depression. Wulff can and gets to celebrate its 130th anniversary together with customers and partners in the fall.”
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-December 2019 net sales totalled EUR 56.3 million (55.9), and EUR 15.1 (14.8) million in the final quarter. Net sales increased by 0.8% during the whole financial year mainly due to the sales of Canon Business Center printing solution services. The Canon Business Center was acquired to the group in August 2018. The increase in the net sales in the fourth quarter was mainly due to fair event sales growth.
In January-December 2019 the gross margin amounted to EUR 19.8 million (19.7) being 35.2% (35.2), and EUR 5.5 million (5.6) in the final quarter being 36.3% (37.5). The gross margin developed positively from printing equipment and solutions sales in January-December 2019.
In January-December 2019 employee benefit expenses amounted to EUR 11.9 million (11.5), 21.2% (20.7) of net sales and EUR 3.2 million (3.1), 20.9% (20.9) of net sales in the fourth quarter. The employee benefit expenses grew with the acquisition of the Canon Business Center printing equipment and solutions business in 2018. The company employs 11 people.
Other operating expenses were to EUR 5.0 million (6.3) in January-December 2019 being 9.0% (11.4) of net sales and respectively EUR 1.2 million (1.8) in the fourth quarter, being 8.2% (11.8) of net sales. In total the other operating expenses were less by EUR 1.3 million compared to previous reporting year. The main reason for this is presenting the office premises rents and equipment leases in depreciations EUR -0.9 million and in interest expenses EUR -0.0 million instead of presenting them in other operating expenses according to the IFRS 16 Leases -standard. More information on the impact of the adaption of the IFRS 16 Leases -standard has been presented in the notes of the Report.
In the third quarter Wulff moved to its own premises in Kilo, Espoo, Finland in September 2019. The relocation arrangements resulted in nonrecurring other operating expenses and employee costs of approximately EUR 0.1 million in total. The relocation arrangements have been presented as items affecting comparability, which impact has been recognised in EBITDA, operating profit (EBIT) and earnings per share (EPS). There were no items impacting the comparability in the fourth quarter of 2019 or in 2018.
In January-December 2019 EBITDA amounted to EUR 3.1 million (1.9), being 5.4% (3.4) of net sales, and EUR 1.1 million (0.8) in the fourth quarter, being 7.6% (5.1) of net sales. The growth of EBITDA EUR 0.9 million and 1.5%-points was due to the implementation of IFRS 16 Leases standard. In January-December the comparable EBITDA amounted to EUR 3.2 million (1.9), being 5.7% (3.4) of net sales.
The depreciations of the properties were EUR -0.2 million in the reporting period and EUR -0.1 million in the fourth quarter. The premises in Kilo, Espoo and Ljungby, Sweden were acquired during the reporting period, so there were no depreciations of properties in the comparison period.
The operating profit (EBIT) amounted to EUR 1.6 million (1.5), being 2.8% (2.7) of net sales and respectively EUR 0.8 million (0.6), 5.1% (4.3) in the fourth quarter. The comparable operating profit (EBIT) for the whole year amounted to EUR 1.7 million (1.5), being 3.0% (2.7) of net sales. Comparable operating profit (EBIT) grew 11.9% in January-December 2019.
In January-December 2019 the financial income and expenses totalled (net) EUR -0.4 million (-0.3) including interest expenses of EUR -0.2 million (-0.1) and mainly currency-related other financial items (net) EUR -0.2 million (-0.2). In the fourth quarter, the financial income and expenses (net) totalled EUR -0.1 million (-0.1).
In January-December 2019 the result before taxes was EUR 1.2 million (1.2), and EUR 0.7 million (0.5) in the fourth quarter. The comparable result before taxes for the financial year was EUR 1.3 million (1.2).
The net profit was EUR 1.0 million (1.1) in January-December 2019 and in the fourth quarter EUR 0.6 million (0.4). The comparable result was EUR 1.2 million (1.1) in January-December 2019.
Earnings per share (EPS) were EUR 0.15 (0.15) in January-December 2019, and EUR 0.09 (0.07) in the fourth quarter. Comparable earnings per share (EPS) were EUR 0.17 (0.15) in January-December 2019.
KEY FIGURES
| IV | IV | I-IV | I-IV | |
| EUR 1000 | 2019 | 2018 | 2019 | 2018 |
| Net sales | 15 081 | 14 831 | 56 344 | 55 889 |
| Change in net sales, % | 1.7% | -6.3% | 0.8% | -1.8% |
| Gross profit | 5 477 | 5 557 | 19 825 | 19 670 |
| Gross profit, % | 36.3% | 37.5% | 35.2% | 35.2% |
| EBITDA | 1 148 | 750 | 3 067 | 1 920 |
| EBITDA margin, % | 7.6% | 5.1% | 5.4% | 3.4% |
| Operating profit/loss | 763 | 643 | 1 570 | 1 508 |
| Operating profit/loss margin, % | 5.1% | 4.3% | 2.8% | 2.7% |
| Profit/Loss before taxes | 703 | 548 | 1 194 | 1 243 |
| Profit/Loss before taxes margin, % | 4.7% | 3.7% | 2.1% | 2.2% |
| Net profit/loss for the period attributable to equity holders of the parent company | 605 | 424 | 1 039 | 1 025 |
| Net profit/loss for the period, % | 4.0% | 2.9% | 1.8% | 1.8% |
| Earnings per share, EUR (diluted = non-diluted) | 0.09 | 0.07 | 0.15 | 0.15 |
| Return on equity (ROE), % | 4.9% | 3.6% | 8.5% | 9.3% |
| Return on investment (ROI), % | 4.5% | 4.4% | 7.9% | 9.5% |
| Equity-to-assets ratio at the end of period, % | 39.2% | 49.1% | 39.2% | 49.1% |
| Debt-to-equity ratio at the end of period | 66.2% | 15.8% | 66.2% | 15.8% |
| Equity per share at the end of period, EUR * | 1.76 | 1.72 | 1.76 | 1.72 |
| Investments in non-current assets | 290 | 59 | 7 359 | 446 |
| Investments in non-current assets, % of net sales | 1.9% | 0.4% | 13.1% | 0.8% |
| Treasury shares held by the Group at the end of period | 79 000 | 79 000 | 79 000 | 79 000 |
| Treasury shares, % of total share capital and votes | 1.1% | 1.1% | 1.1% | 1.1% |
| Average number of outstanding shares | 6 828 628 | 6 828 628 | 6 828 628 | 6 643 696 |
| Number of total issued shares at the end of period | 6 907 628 | 6 907 628 | 6 907 628 | 6 907 628 |
| Personnel on average during the period | 200 | 193 | 198 | 191 |
| Personnel at the end of period | 200 | 191 | 200 | 191 |
* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for workplace products and office supplies is strongly affected by the general economic development and
competition in the market. Business operations are also affected by normal business risks such as the success of the Group’s strategy and operative risks stemming from the personnel, logistics and IT environments. Approximately half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and balance sheet.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events after the reporting period.
BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT
The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR 1.6 million. The Group’s net result attributable to the parent company shareholders was EUR 1.0 million (1.0), i.e. EUR 0.15 per share (0.15). The Board of Directors proposes to the Annual General Meeting to be held on April 2nd, 2020 that a dividend of EUR 0.11 per share, i.e. EUR 0.8 million, be paid for the financial year 2019, and the remaining distributable funds be left in retained earnings in the shareholders’ equity.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Its aim is to lead the way, renew the field and be at the forefront of change. Wulff believes that the role of values and sustainability will come to have an increasingly important part in sourcing decisions and companies’ business partner selections in the future. With its new strategy, Wulff will build its competitiveness and make sure that it can offer customers what they want: solutions for making the everyday work life smoother and the world better one workplace at a time. The market traditionally understood as the office environment changes and develops rapidly. Competition is tough in the traditional market and the new market has a lot of opportunities. Wulff believes that the future is bright due to the strong, constantly developing new strategy, its active customer and partner networks, and its professional, committed personnel. The Group has an ongoing readiness to carry out new strategic acquisitions. As a listed company, Wulff is in a good position to be a more active player than its competitors in business acquisitions.
The developing economic situation enables Wulff’s business to develop positively. Wulff estimates that the comparable operating profit of 2020 will increase from 2019. In the industry, it is typical that the result and cash flow are generated in the last quarter.
WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2020
Wulff Group Plc will release the following financial reports in 2020:
Annual Report 2019 Monday March 9, 2020
Interim Report January-March 2020 Monday April 27, 2020
Half-Year Report January-June 2020 Monday July 27, 2020
Interim Report January-September 2020 Monday October 26, 2020
Wulff Group Plc’s Annual General Meeting will be held on Thursday April 2, 2020. A separate notice to the Annual General Meeting will be published prior to the meeting.
In Espoo on February 17, 2020
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Elina Pienimäki
tel. +358 40 647 1444
e-mail: elina.pienimaki@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
A better world – one workplace at a time. Wulff’s goal is a perfect workday! We enable better working environments and create workplaces, wherever you are. More comfortable, healthier, safer, more enjoyable, more active and more diverse? How do you want to better you workday and working environment? Wulff has the solution. We offer our customers office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, air purifiers, and innovative products for worksites. Customers can also acquire international exhibition services from Wulff. In addition to Finland, Wulff operates in Sweden, Norway, and Denmark. Check out our products and services at wulff.fi.