Interim report January – March 2012

11 May 2012 08:00

  • Revenues increased 25 per cent adjusted for currency effects and calculated on comparable numbers of workdays. Prior to adjustment, revenues increased 27 per cent to SEK 1,096 M (863).
  • EBIT increased 16 per cent to SEK 111 M (95) and the EBIT margin amounted to 10 per cent (11).
  • Profit after financial items rose 12 per cent to SEK 106 M (95).
  • Profit after tax amounted to SEK 77 M (70).
  • Earnings per share before and after dilution amounted to SEK 2.29 (2.12).
  • Net debt totalled SEK 611 M (448) at the end of the period.

Significant events

  • During the first quarter of 2012, the acquisition of Sørensen og Balchen in Norway impacted net sales by SEK 186 M (39) and operating profit by SEK 11 M (2). In the comparison period for 2011, sales and profit pertained only to the period 11 March –31 March.
  • The cost of Mekonomen’s long-term market initiatives had an impact of SEK 10 M (15) on operating profit in the first quarter. Non-recurring costs related to the acquisition of Meca had an additional impact of SEK 1 M (0) on operating profit in the first quarter.

 

CEO’s comments

A strong first quarter – operating profit increased 16 per cent and revenues rose 27 per cent

Mekonomen’s EBIT for the first quarter of 2012 increased 16 per cent to SEK 111 M (95) and revenues rose 27 per cent to SEK 1,096 M (863). Adjusted for currency effects and calculated on comparable numbers of working days, revenues increased 25 per cent during the period.

The number of affiliated workshops rose during the quarter to 1,707 (1,566) and the number of stores was 339 (306).

During the first quarter of 2012, we noted a slight recovery of the market growth in Norway, particularly regarding accessories and consumer sales. Mekonomen’s strong concepts and continued market activities also resulted in higher market shares.

The integration of Sørensen og Balchen continues successfully. Net sales in the first quarter amounted to SEK 186 M and operating profit was SEK 11 M. During the 12-month period, from the second quarter of 2011 to the first quarter of 2012, Sørensen og Balchen reported sales of SEK 757 M, with an operating profit of SEK 98 M. Before planned amortisation of the surplus values related to the acquisition, profit for the period was SEK 117 M. Sørensen og Balchen continued to develop its strong proprietary brands and concepts and its number of workshops increased by 24 to 228 in the past year.

The EBIT margin in Mekonomen Norway amounted to 15 per cent (14) and sales rose 16 per cent, due to higher sales to our affiliated workshops, more Medium and Mega units and the recovery of consumer sales.

The EBIT margin in Mekonomen Denmark decreased to 5 per cent (9), primarily due to intense marketing activities, as well as a tougher competitive situation. Net sales rose with 2 per cent.

The EBIT margin in Sweden amounted to 16 per cent (16) and sales rose 4 per cent. Sales to affiliated Mekonomen Service Centre workshops and MekoPartner workshops developed well and we continue to capture market shares. The marine venture has also progressed well during the first quarter.

In Finland, a regional warehouse was established in Helsinki in March, which provides us with strong logistics capacity in our continued deployment of units in Finland. It is an important step in our continuing ambition in the Finnish market, where we are planning to start four new Medium units in the second quarter. Costs for Mekonomen’s long-term market initiatives in the first quarter of 2012 had an impact of SEK 10 M on earnings. Non-recurring costs in conjunction with the acquisition of Meca had an additional SEK 1 M impact on earnings in the first quarter. In the case of a closing of the Meca transaction, given an approval from the Norwegian Competition Authority, earnings in the second quarter will be impacted by an additional SEK 9 M in costs.

Our expansion resulted in more people gaining employment at Mekonomen and Mekonomen-affiliated units. We are also focusing on reducing unemployment among young people, for example, through cooperation with Telge Tillväxt in Södertälje, which resulted in several young people entering the labour market.

We still do not regard the recovered market growth in the first quarter as sustainable, but with our strong concepts, I am looking forward to the rest of 2012 with confidence. With presence in all Nordic countries and concepts that clearly place the customer in focus, Mekonomen is the winner in the Nordic market.

Håkan Lundstedt
President and CEO

 

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

 

The information in this interim report is such that Mekonomen is obligated to publish in accordance with the Securities Market Act.
The information was submitted for publication on 11 May 2012.

Attached files

The full report

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