Year-end Report 1 January - 31 December 2010

17 February 2011 08:00

1 January – 31 December 

• Revenues rose 10 per cent, adjusted for currency effects and calculated on the basis of comparable workdays.
  Prior to adjustments, revenues rose 8 per cent to SEK 3,447 M (3,206).
• EBIT increased 49 per cent till SEK 485 M (325), with the EBIT margin rising to 14 (10) per cent.
• Profit after financial items increased 50 per cent to SEK 485 M (323).
• Profit after tax amounted to SEK 351 M (237).
• Earnings per share before and after dilution amounted to SEK 10.95 (7.38).
• Cash flow from by 24 per cent to SEK 358 M (289).
• The return on capital employed rose to 49 per cent (36).
• The Board of Directors proposes a share dividend of SEK 8.00 (7.00).

1 October – 31 December 

• Revenues increased 13 per cent, adjusted for currency effects and calculated on comparable workdays.
  Prior to adjustments, revenues rose 9 per cent to SEK 892 M (815).
• EBIT increased 36 per cent to SEK 110 M (81), with the EBIT margin amounting to 12 per cent (10)
• Profit after financial items increased 35 per cent to SEK 111 M (82).
• Profit after tax totalled SEK 78 M (62).
• Earnings per share before and after dilution amounted to SEK 2.52 (2.05).
• Cash flow from operating activities rose 50 per cent to SEK 135 M (90).
• Net debt amounted to SEK 12 M compared with net cash in hand of SEK 30 M at year-end 2009.
• After the end of the period, Mekonomen signed an agreement to acquire Sørensen og Balchen from Otto Olsen Invest.

CEO’s comments

A successful year for Mekonomen

Profit after financial items increased with 50 per cent.
Mekonomen’s EBIT for full-year 2010 rose to SEK 485 M (325), with revenues rising 10 per cent, adjusted for currency effects and calculated on the basis of comparable workdays. Without adjustments, revenues increased 8 per cent to SEK 3,447 M (3,206). EBIT for the fourth quarter rose 36 per cent to SEK 110 M (81). Revenues increased 13 per cent, adjusted for currency effects and calculated on the basis of comparable workdays. Without adjustments, revenues increased 9 per cent. Mekonomen met its growth target of 10 per cent during 2010, with growth reaching 13 per cent during the fourth quarter.

EBIT for full-year 2010 in Denmark increased to SEK 45 M (5), with the EBIT margin rising to 6 per cent (1). Exchange rates had an adverse impact on revenues throughout the year, but particularly during the fourth quarter. It is very gratifying to see that the turnaround in Denmark has now been completed. This is the result of successful market programmes as well as the excellent work of the Danish management in their efforts to attain cost effectiveness.

Norway and Sweden reported favourable earnings. Norway increased its EBIT margin for the full year to 18 per cent (16), with sales rising by 12 per cent. Also in Sweden, the EBIT margin increased to 18 per cent (16), while revenues rose 10 per cent.

The number of affiliated workshops increased to 1,336 (1,206) and the number of stores to 230 (220). The first two Mega units opened in Finland in November and December, thereby raising Mekonomen’s geographic markets to four.

2010 was a strong year for Mekonomen, with the programmes initiated in 2008 and 2009 producing results. In particular, the first three quarters can be characterised as a period of consolidation, while also showing a sharp increase in EBIT. The nomination as “Store Chain of the Year” was one of several confirmations that 2010 was a successful year.  

During the fourth quarter of 2010 – and to date during the first quarter of 2011 – considerable efforts have focused on the new Mega units in Finland, preparations for establishing a position in Iceland, a widening of the product range with snow scooters and marine-related products (through, for example, the acquisition of Marinshopen), the integration of Speedy and preparations ahead of the acquisition of Sørensen og Balchen (BilXtra spare parts chain). The costs of these programmes during the fourth quarter amounted to SEK 10 M and are expected to amount to some SEK 25 M during the first quarter of the current year.

A new platform is being built for the next phase of Mekonomen’s development. Following the consolidation phase during the first three quarters of 2010, 2011 will be a year of aggressive programmes. 

The underlying market in January of the current year was sluggish compared with the corresponding period a year earlier. This is only natural considering the severe cold weather that prevailed last year. To date, February has shown a more positive trend and Mekonomen has noted stronger growth than the overall market in the Nordic region.

The acquisition of Sørensen og Balchen is part of Mekonomen’s nordic strategy and the pace is now increasing. The Group has a good structure for dealing with several parallel projects and for gaining the maximum effect from these. Mekonomen’s brand was strengthened in all the Nordic countries during 2010 and, given the new market-oriented programmes, Mekonomen will further advance its positions.

One of the key factors for Mekonomen’s success in 2010 was always putting the customer in focus and creating concepts that are in line with the times. We will continue with undiminished strength to pursue this strategy in 2011.

Mekonomen’s journey has just begun!

Håkan Lundstedt

President and CEO


For further information, please contact:
Håkan Lundstedt, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Gunilla Spongh, CFO Mekonomen AB, Tel: +46 (0)8-464 00 00


Mekonomen makes CarLife easier through a wide and easily accessible range of inexpensive and innovative solutions and products for consumers and companies. We are Scandinavia’s leading spare-parts chain with proprietary wholesale operations, more than 200 stores and more than 1,000 workshops operating under the Mekonomen brand.