WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2016
Wulff Group Plc’s net sales declined in the first quarter
This is a summary of Wulff Group Plc’s interim report for January-March 2016. Wulff Group’s interim report for January-March 2016 is attached as a PDF file to this stock exchange release and is also available on the company’s website at the address http://www.wulff.fi/en/wulff+group+plc/home/.
KEY POINTS JANUARY – MARCH 2016
- Net sales totalled EUR 15.5 million (EUR 19.2 million). Net sales decreased by 19.2 percentages from the previous year.
- EBITDA was EUR -0.2 million (EUR 0.4 million) being -1.3 percentages (2.0 %) of net sales.
- Operating profit (EBIT) amounted to EUR -0.3 million (EUR 0.2 million) being -2.0 percentages (1.0 %) of net sales.
- Earnings per share (EPS) was EUR -0.06 (EUR -0.01) in January-March.
- Wulff Group’s outlook for the 2016 operating result remains unchanged.
WULFF GROUP’S CEO TOPI RUUSKA
”We have invested strongly in our competitiveness, and renewed our operations and practices during the first quarter. The initiated projects have required investments that have affected our result. At the same time, the first quarter sales have not fulfilled our expectations and we have fallen short of our net sales target. However, we believe that the whole of 2016 will be positive for us: the investments made now are important for the development of our competitiveness. Domesticity, sustainable development, cost-efficiency, customer encounters and service in the channels our customers prefer are still themes around which we will build our operations this year.”
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-March 2016 net sales totalled EUR 15.5 million (EUR 19.2 million). In January-March EBITDA was EUR -0.2 million (EUR 0.4 million) being -1.3 percentages (2.0 %) of net sales. In January-March the operating profit (EBIT) amounted to EUR -0.3 (EUR 0.2 million) being -2.0 percentages (1.0 percentages) of net sales. Typically in the industry and in the Group, the annual profit is made in the last quarter of the year.
In January-March 2016 employee benefit expenses amounted to EUR 3.5 million (EUR 3.8 million). Other operating expenses amounted to EUR 2.0 million (EUR 2.3 million) in January-March. Employee benefit and other operating expenses were still affected by the implemented successful cost-saving measures. To improve its profitability, the Wulff Group continues to examine its cost structure as part of ongoing reforms.
In January-March the financial income and expenses totalled (net) EUR -0.01 million (EUR -0.01 million) including interest expenses of EUR 0.03 million (EUR 0.07 million) and mainly currency-related other financial items (net) EUR 0.06 million (EUR 0.06 million).
In January-March the result before taxes was EUR -0.4 million (EUR 0.2 million). In January-March the net profit after taxes was EUR -0.4 million (EUR -0.2 million). Earnings per share (EPS) was EUR -0.06 (EUR -0.01) in January-March.
KEY FIGURES
| I | I | I-IV | |
| EUR 1000 | 2016 | 2015 | 2015 |
| Net sales | 15 490 | 19 174 | 68 820 |
| Change in net sales, % | -19.2 % | -3.0 % | -7.3 % |
| EBITDA | -194 | 381 | 2 019 |
| EBITDA margin, % | -1.3 % | 2.0 % | 2.9 % |
| Operating profit/loss | -312 | 185 | 505 |
| Operating profit/loss margin, % | -2.0 % | 1.0 % | 0.7 % |
| Profit/Loss before taxes | -365 | 180 | 354 |
| Profit/Loss before taxes margin, % | -2.4 % | 0.9 % | 0.5 % |
| Net profit/loss for the period attributable to equity holders of the parent company | -362 | -90 | -195 |
| Net profit/loss for the period, % | -2.3 % | -0.5 % | -0.3 % |
| Earnings per share, EUR (diluted = non-diluted) | -0.06 | -0.01 | -0.03 |
| Return on equity (ROE), % | -2.8 % | -1.5 % | -1.6 % |
| Return on investment (ROI), % | -2.0 % | 1.3 % | 2.7 % |
| Equity-to-assets ratio at the end of period, % | 49.0 % | 43.8 % | 46.4 % |
| Debt-to-equity ratio at the end of period | 25.1 % | 48.5 % | 23.8 % |
| Equity per share at the end of period, EUR * | 1.79 | 1.94 | 1.84 |
| Net cash flow from operating activities | -193 | -1 323 | 1 693 |
| Investments in non-current assets | 14 | 37 | 161 |
| Investments in non-current assets, % of net sales | 0.0 % | 0.2 % | 0.2 % |
| Treasury shares held by the Group at the end of period | 79 000 | 79 000 | 79 000 |
| Treasury shares, % of total share capital and votes | 1.2 % | 1.2 % | 1.2 % |
| Number of total issued shares at the end of period | 6 607 628 | 6 607 628 | 6 607 628 |
| Personnel on average during the period | 222 | 251 | 233 |
| Personnel at the end of period | 218 | 261 | 226 |
* 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 office supplies is strongly affected by the general economic development. During the economic downturn, organizations’ personnel lay-offs and cost-saving initiatives affect the purchase behavior of corporate customers. As the ongoing economic uncertainty continues, the cost saving measures will have an effect on the ordering behavior of corporate customers. The decrease and changes in the allocation criteria of the internationalization subsidies granted by the Ministry of Employment and the Economy affect companies’ chances of taking part in international fairs. Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group’s net result, however the effect of the fluctuation is expected to be moderate.
EVENTS AFTER THE REPORTING PERIOD
Wulff Group Plc’s CEO Topi Ruuska and the Group’s Board of Directors have agreed that Ruuska will step down from his position on September 30th, 2016. Wulff Group Plc has initiated the search for a new Managing Director. The Group has not had other material events after the reporting period.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions, and as a listed company Wulff has a good opportunity to be a more active player than its competitors.
Wulff does not believe the demand for office supplies to increase quickly. As the uncertainty continues it is important to continue to go through the cost structure and enhance the company’s operations. Wulff’s goal is to continue to improve the profitability of its business operations. Wulff estimates the 2016 result to be positive. In the industry it is typical that the result and cash flow are generated in the last quarter.
WULFF GROUP PLC’S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2016:
| Interim Report, January-June 2016 | Thursday August 4, 2016 |
| Interim Report, January-September 2016 | Thursday November 3, 2016 |
In Helsinki on May 6, 2016
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
Chairman of the Board of Directors Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com