Wulff Group Plc’s Interim Report for January 1 – March 31, 2021
INTERIM REPORT APRIL 26, 2021 AT 10.00 A.M.
This is a summary of Wulff Group Plc’s Interim Report for January-September 2021. Wulff Group’s Interim Report as a whole is attached as a PDF file to this stock exchange release and it is also available on the company’s website www.wulff.fi.
Netsales increased by 4% and operating profit doubled
1.1.-31.3.2021 BRIEFLY
- Net sales totalled EUR 15.3 million (14.7), increased by 4.0%.
- EBITDA and comparable EBITDA were EUR 0.9 million (0.7).
- Operating profit and comparable operating profit (EBIT) amounted to EUR 0.6 million (0.3).
- Earnings and comparable earnings per share (EPS) were EUR 0.04 (0.00).
- Equity-to-assets ratio was 43.1% (38.6).
- Kari Juutilainen, Lauri Sipponen, Jussi Vienola, and Kristina Vienola were elected as members to the Board of Directors. Kari Juutilainen was elected as the Chairman of the Board by the Board of Directors.
- The outlook for the comparable operating profit remains the same; Wulff estimates that the net sales will grow from 2020 (EUR 57.5 million) and the comparable operating profit of will remain at a good level in 2021.
WULFF GROUP’S CEO ELINA PIENIMÄKI
I thank our customers, staff, and partners for a good start to the year! The positively developed net sales and earnings for the first quarter reflect confidence in Wulff and our expertise. These figures are result of sales force, adaptability, responsiveness, and a strong confidence in our strategy A better world – one workplace at a time. In exceptional circumstances, the world has been made better, especially by enabling safe ways to work, and it is remarkable that we have managed to do just that. Current hygiene, cleaning and protective products have come to our product range and people’s everyday lives in part to stay. At the same time, we are already looking strongly ahead at a more normal everyday life and, in particular, how we can serve companies, communities and entrepreneurs in the future. The changes in ways of working and for example the increasing amount of remote work from all work done changes the need for workplace products and services. For Wulff it is important to invest in new product and service areas, the best customer experience in the industry, digital development and strengthening its market position. In the future, value-based decision-making will also have an increasing impact on the choice of both individual products and contract partners. At Wulff, all development work and our own operations are guided by responsibility and the company is a natural choice for its customers as a responsible partner.
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-March 2021 net sales totalled EUR 15.3 million (14.7). Net sales increased by 4.0% (6.4). Succeeding in sales and due to the expansion of the product portfolio and the sales of hygiene, cleaning and protective products nets sales increased even though, due to restrictions on traveling and gathering, international exhibitions still are not held. The increase in net sales resulted mainly from expertise sales both in Finland and Scandinavia.
As a result of an increase in the net sales the gross margin amounted to EUR 5.3 million (5.2) being 34.8% (35.1) of net sales in January-March 2021.
In January-March 2021 employee expenses amounted to EUR 3.3 million (3.3) being 21.3% (22.1) of net sales. Employee expenses decreased from the comparison period when the company streamlined for example the Contract Customers segment and its back-office operations during 2020. There were fewer employees than in the comparison period.
Other operating expenses amounted to EUR 1.2 million (1.3) in January-March 2021 being 7.9% (9.1) of net sales. The group used fewer external services than in the comparison period.
In January-March 2021 EBITDA and the comparable EBITDA amounted to EUR 0.9 million (0.7), 6.1% (4.4) of net sales.
The operating profit (EBIT) and the comparable operating profit (EBIT) amounted to EUR 0.6 million (0.3), 3.7% (1.8) of net sales. The first quarters of 2021 and 2020 did not include items affecting comparability.
In January-March 2021 the financial income and expenses totalled (net) EUR -0.1 million (-0.2) including interest expenses of EUR -0.0 million (-0.0) and mainly currency-related other financial items and bank expenses EUR -0.1 million (-0.2). The f
financial expenses were EUR 0.1 million less than in the comparison period due to currency exchanges.
In January-March 2021 the result before taxes was EUR 0.5 million (0.1), and the operating result EUR 0.4 million (0.0). Earnings per share and comparable earnings-per-share (EPS) were EUR 0.04 (0.0) in January-March 2021.
KEY FIGURES
| I | I | I-IV | |
| EUR 1000 | 2021 | 2020 | 2020 |
| Net sales | 15 314 | 14 730 | 57 541 |
| Change in net sales, % | 4.0% | 6.4% | 2.1% |
| Gross profit | 5 327 | 5 176 | 20 748 |
| Gross profit, % | 34.8% | 35.1% | 36.1% |
| EBITDA | 929 | 655 | 5 204 |
| EBITDA margin, % | 6.1% | 4.4% | 9.0% |
| Operating profit/loss | 559 | 270 | 3 541 |
| Operating profit/loss margin, % | 3.7% | 1.8% | 6.2% |
| Profit/Loss before taxes | 476 | 56 | 3 101 |
| Profit/Loss before taxes margin, % | 3.1% | 0.4% | 5.4% |
| Net profit/loss for the period attributable to equityholders of the parent company | 263 | 21 | 2 174 |
| Net profit/loss for the period, % | 1.7% | 0.1% | 3.8% |
| Earnings per share, EUR (diluted = non-diluted) | 0.04 | 0.00 | 0.32 |
| Return on equity (ROE), % | 2.7% | 0.4% | 19.1% |
| Return on investment (ROI), % | 2.2% | 0.5% | 15.2% |
| Equity-to-assets ratio at the end of period, % | 43.1% | 38.6% | 41.9% |
| Debt-to-equity ratio at the end of period | 59.1% | 77.7% | 57.3% |
| Equity per share at the end of period, EUR * | 2.04 | 1.75 | 2.00 |
| Investments in non-current assets | 228 | 214 | 719 |
| Investments in non-current assets, % of net sales | 1.5% | 1.5% | 1.2% |
| Treasury shares held by the Group at the end ofperiod | 137 260 | 79 000 | 144 260 |
| Treasury shares, % of total share capital and votes | 2.0% | 1.1% | 2.1% |
| Average number of outstanding shares | 6 766 246 | 6 828 628 | 6 791 043 |
| Number of total issued shares at the end of period | 6 907 628 | 6 907 628 | 6 907 628 |
| Personnel on average during the period | 177 | 199 | 189 |
| Personnel at the end of period | 179 | 197 | 176 |
* 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
General economic and market developments as well as the employment rate have a significant impact on the demand for workplace products and services. The general uncertainty in the global economy also impacts Wulff's operations. The effects of the Coronavirus pandemic, its preparedness and the constraints associated with virus management have a broad impact on the needs of both the global and local economy and customers. In addition, megatrends in the global economy, such as digitalization and responsibility, are affecting market change. There are both risks, and opportunities involved in developing a range of products and services in line with changing markets and needs. Typical business risks include the successful implementation of Wulff's strategy and operational risks arising from the personnel, logistics and IT environment. Intense competition in the workplace products and services industry can affect the profitability of the business. Changes in exchange rates affect the Group's net result and balance sheet, as approximately half of the Wulff Group's net sales come from non-euro countries.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
MARKET SITUATION AND FUTURE OUTLOOK
Megatrends play a role in Wulff’s operations. The company's operating environment is positively affected by the growing share of information work in all work performed. On the other hand, demographic developments are actively reducing the number of people in employment at present. The integration of technology into products and services is an opportunity for Wulff. Digitalisation brings new ways for an already multi-channel company to reach and serve customers and streamline its own operations. Of the megatrends, the most significant for Wulff's operations and future is responsible operations and, in particular, consideration for the environment: whether it treats the environment as a resource or whether the goal is to improve the state of the environment. Future success is strongly built on these themes and their growing importance in business and consumer decision-making. Wulff has chosen responsibility and especially positive climate action and increasing equality as important elements of his strategy.
Demand for products is significantly affected by general economic and market developments as well as the employment rate. In recent years, the market for workplace products and services in the Nordic countries has remained stable. Teleworking has increased and increased the number of workstations and the demand for products needed in workstations. Wulff estimates that a significant portion of the growth in the workstation product market will be in the b-to-b market. The Coronavirus pandemic increased demand for hygiene, protection, and cleaning products. Wulff estimates that the overall market for workplace products and services will remain stable in 2021: although the Coronavirus pandemic has had a negative impact on the general economy and employment, the company expects demand for hygiene, cleaning, security, and IT supplies to continue to stay strong, as at the same time demand for printing solutions and office supplies grows when people return to workplaces as vaccine coverage develops.
Consolidation of the market for workplace products and services is expected to continue, and Wulff is well placed to be a more competitive player in M&A.
Demand for Wulff Entre's services, which provides planning and project management for international exhibitions, has declined due to the Coronavirus pandemic, which will weaken Wulff's net sales and operating profit in 2021.
Changes in the operating environment weaken the predictability of the whole year. Wulff estimates that the net sales will grow from 2020 (EUR 57.5 million) and the comparable operating profit will remain at a good level in 2021. Wulff's medium-term financial targets remain unchanged. Wulff targets in the medium-term an average annual growth of 5-10% of the net sales, a growing comparable operating profit per cent and an increasing dividend per share.
WULFF GROUP PLC’S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2021:
Half-Year Report January-June 2021 Monday July 26, 2021
Interim Report January-September 2021 Monday October 25, 2021
In Espoo on April 26, 2021
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
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 hygiene- and protective products, air purifiers, office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, 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/en.
