Wulff Group Plc’s Interim Report For January 1–March 31, 2019
INTERIM REPORT May 3, 2019 at 9.05 A.M.
Wulff invests on acquisitions of logistics properties
This is a summary of Wulff Group Plc’s interim report for January-March 2019. 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-group.com.
1.1.-31.3.2019 BRIEFLY
- Net sales totalled EUR 13.8 million (14.3), decreased by 2.9%.
- EBITDA and comparable EBITDA were EUR 0.6 million (0.4).
- Operating profit and comparable operating profit (EBIT) amounted to EUR 0.2 million (0.3).
- Earnings and comparable earnings per share (EPS) were EUR 0.01 (0.02).
- Equity-to-assets ratio was 39.7% (46.6).
- Wulff invested on the acquisition of the logistics property in Sweden with EUR 3.4 million
- After the reporting period Wulff invested EUR 2.2 million in its own office and logistics premises in Espoo, Finland.
- Kari Juutilainen, Ari Pikkarainen, 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 the comparable operating profit 2019 to grow from the comparable operating profit 2018.
WULFF GROUP’S CEO HEIKKI VIENOLA
“It is important to Wulff to make the world better one workplace at a time. That is why Wulff invests strongly on its strategy. With the LAB project more green and responsible options are brought more conveniently available to Wulff´s customers. Wulff invests strongly on its own properties, as well, now. The logistics center in Ljungby Sweden, which serves Scandinavia, was acquired on 9.1.2019. In Finland there is a call for Wulff to Espoo, the most sustainable and intelligent city in Europe (Intelligent Community of the Year 2018) in the fall. Wulff will move from Vantaa to Espoo to the premises it acquired in April. The premises will be renovated for Wulff´s use by utilizing sustainable development and green choices. Espoo attracted Wulff´s attention especially because it encourages companies to be more responsible. All forms of actions are developed across industry borders, together with the companies and residents.”
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-March 2019 net sales totalled EUR 13.8 million (14.3). Net sales decreased by 2.9% (-7.0) in January-March. The decline in net sales was impacted by the smaller fair business compared to the fair business in previous year.
In January-March 2019 the gross margin amounted to EUR 4.9 million (4.9) being 35.7% (34.7).
In January-March 2019 employee benefit expenses amounted to EUR 3.2 million (3.0) compared to net sales, 22.8% (21.1). Employee benefit expenses grew with the acquisition of the Canon Business Center printing equipment and solutions business in 2018. The company employs 12 people.
Other operating expenses amounted to EUR 1.3 million (1.6) in January-March 2019 being 9.2% (11.2) of net sales. Other operating expenses were less by EUR 0.2 million compared to previous year. The reason for this is the presentation of the office space rents and equipment leases in depreciations EUR -0.2 million and in interest expenses EUR -0.0 million instead of presenting them in other operating expenses. In addition, the first quarter 2018 included the growth of the credit loss provision, EUR -0.0 million. More information on the impact of the adaption of the IFRS 16 Leases standard has been presented in the notes to the Interim Report.
In January-March 2019 EBITDA and the comparable EBITDA amounted to EUR 0.6 million (0.4), 4.0% (2.6) of net sales.
The growth of EBITDA EUR 0.2 million and 1.7%-points was due to the implementation of IFRS 16 Leases standard. The operating profit (EBIT) and the comparable operating profit (EBIT) amounted to EUR 0.2 million (0.3), 1.4% (1.9) of net sales. The first quarters of 2019 and 2018 did not include items affecting comparability.
In January-March 2019 the financial income and expenses totalled EUR -0.1 million (-0.1) including interest expenses of EUR -0.0 million (-0.0) and mainly currency-related other financial items and bank expenses EUR -0.0 million (-0.1).
In January-March 2019 the result before taxes was EUR 0.1 million (0.1), and the operating result EUR 0.1 million (0.1). Earnings per share and comparable earnings-per-share (EPS) were EUR 0.01 (0.02) in January-March 2019.
KEY FIGURES
| I | I | I-IV | |
| EUR 1000 | 2019 | 2018 | 2018 |
| Net sales | 13 844 | 14 256 | 55 889 |
| Change in net sales, % | -2.9% | -7.0% | -1.8% |
| Gross profit | 4 946 | 4 949 | 19 670 |
| Gross profit, % | 35.7% | 34.7% | 35.2% |
| EBITDA | 556 | 367 | 1 920 |
| EBITDA margin, % | 4.0% | 2.6% | 3.4% |
| Operating profit/loss | 191 | 264 | 1 508 |
| Operating profit/loss margin, % | 1.4% | 1.9% | 2.7% |
| Profit/Loss before taxes | 134 | 147 | 1 243 |
| Profit/Loss before taxes margin, % | 1.0% | 1.0% | 2.2% |
| Net profit/loss for the period attributable to equityholders of the parent company | 99 | 132 | 1 025 |
| Net profit/loss for the period, % | 0.7% | 0.9% | 1.8% |
| Earnings per share, EUR (diluted = non-diluted) | 0.01 | 0.02 | 0.15 |
| Return on equity (ROE), % | 0.9% | 1.2% | 9.3% |
| Return on investment (ROI), % | 1.0% | 1.2% | 9.5% |
| Equity-to-assets ratio at the end of period, % | 39.7% | 46.6% | 49.1% |
| Debt-to-equity ratio at the end of period | 65.2% | 29.5% | 15.8% |
| Equity per share at the end of period, EUR * | 1.72 | 1.64 | 1.72 |
| Investments in non-current assets | 3 727 | 193 | 446 |
| Investments in non-current assets, % of net sales | 26.9% | 1.4% | 0.8% |
| Treasury shares held by the Group at the end ofperiod | 79 000 | 79 000 | 79 000 |
| Treasury shares, % of total share capital and votes | 1.1% | 1.2% | 1.1% |
| Average number of outstanding shares | 6 907 628 | 6 607 628 | 6 643 696 |
| Number of total issued shares at the end of period | 6 907 628 | 6 607 628 | 6 907 628 |
| Personnel on average during the period | 197 | 194 | 191 |
| Personnel at the end of period | 200 | 192 | 191 |
* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares.
The adaption of the IFRS 16 Leases standard as of 1.1.2019 has been accounted for in the calculation of the key figures. More information on the impact of the adaption has been presented in the notes to the Interim Report.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is strongly affected by the general economic development and the industry’s tight competition. 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
Wulff Group invested in its premises by acquiring a 3 600 m2 logistics property in Kilo, Espoo, on April 15, 2019. The debt-free purchase price of the real estate company acquired from Sponda Plc, approximately EUR 2.2 million, was mainly financed by external loans. Edistia, which is already operating in the premises, will continue as a tenant of Wulff. Wulff renews its property by utilizing, among other things, environmentally friendly and sustainable solutions, in line with its strategy for building a better world one workplace at a time. Wulff's Finnish operations will move to Espoo in fall of 2019.
The Group has not had any other significant subsequent events.
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 and as a listed company, Wulff is in a good position to be a more active player than its competitors.
The developing economic situation will enable Wulff’s business to develop positively. Wulff estimates that the comparable operating profit of 2019 will increase from 2018. 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 2019
Wulff Group Plc will release the following financial reports in 2019:
| Interim Report, January-June 2019 | Thursday August 1, 2019 |
| Interim Report, January-September 2019 | Thursday October 31, 2019 |
In Vantaa on May 3, 2019
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 300 870 414 or +358 50 65 110
e-mail: heikki.vienola@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. We offer the industry’s most comprehensive product and service range that can help you create an office wherever you want it. 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.