Year-end report January - December 2013
13 February 2014 07:32
| 1 January – 31 December 2013 |
| ● Revenues for the full year increased 8 per cent to SEK 5,863 M (5,426). Adjusted for currency effects and |
| calculated on comparable number of workdays, revenues rose 10 per cent. |
| ● EBITA rose 4 per cent to SEK 626 M (602) and the EBITA margin was 11 per cent (11). |
| ● EBIT was negatively impacted by a write-down of SEK 45 M and amounted to SEK 469 M (528). |
| The EBIT margin was 8 per cent (10). |
| ● Earnings per share before and after dilution amounted to SEK 8.56 (10.80). |
| ● Net debt amounted to SEK 1,657 M (1,875). |
| ● The Board of Directors proposes a dividend of SEK 7.00 (7.00). |
| 1 October – 31 December 2013 |
| ● Revenues for the quarter declined 7 per cent to SEK 1,450 M (1,556). Adjusted for currency effects and calculated |
| on a comparable number of workdays, revenues declined 4 per cent. |
| ● EBITA amounted to SEK 124 M (152) and the EBITA margin was 9 per cent (10). |
| ● EBIT was negatively impacted by a write-down of SEK 45 M and amounted to SEK 52 M (125). |
| The EBIT margin was 4 per cent (8). |
| ● Gross margin rose to 54.6 per cent (51.6). |
| ● Profit after financial items amounted to SEK 49 M (109). |
| ● Earnings per share before and after dilution amounted to SEK 0.88 (3.36). |
| ● Cash flow from operating activities amounted to SEK 173 M (224). |
| Significant events |
| ● EBIT was adversely impacted by an additional write-down totalling SEK 45 M pertaining to the discontinuation |
| of an IT system in the fourth quarter. CEO’s commentsINCREASED FOCUS ON ORGANIC GROWTH● Revenues for the full year 2013 increased 8 per cent● EBIT amounted to SEK 469 M (528), including an additional write-down of SEK 45 M● Weak results in Denmark for the full-year● Gross margin increaseThe 2013 financial year was characterised by weak market growth. Revenues for the Mekonomen Group for full year 2013increased 8 per cent to SEK 5,863 M (5,426) and EBIT declined to SEK 469 M (528), including an additional write-downof SEK 45 M pertaining to the discontinuation of an IT system. EBITA for the full year increased 4 per cent to SEK 626 M(602). EBIT for the fourth quarter, excluding the additional write-down, amounted to SEK 97 M (125). Cash flow fromoperating activities amounted to SEK 173 M (224) for the fourth quarter.Our assessment ahead of 2013 was that it would be a weak year in the market, which is why our focus during the year wason streamlining our processes and procedures, as well as launching new concepts. The store network has beenconsolidated, purchasing has been further coordinated following the acquisition of Sørensen og Balchen and MECA andproprietary products were launched in the Group, ProMeister for spare parts and CarWise for accessories. Coordinationof purchasing and launching of proprietary brand products strengthened the gross margin, in a market with toughcompetition and pressure on prices.The two most significant items that have reduced EBIT are an additional write-down pertaining to the discontinuation ofan IT system of SEK 45 M and that Denmark's EBIT was SEK 37 M lower than in 2012.EBIT for Sørensen og Balchen rose to SEK 81 M (78) for the full year. EBITA for the full-year increased to SEK 99 M(97) and the EBITA margin rose to 14 per cent (13). Net sales amounted to SEK 701 M (748). The underlying net salesfell 1 per cent (one).EBIT for Mekonomen Nordics for the full year 2013, excluding the additional write-down, amounted to SEK 361 M (376).EBITA for the full year 2013 amounted to SEK 383 M (390) and the EBITA margin was 13 per cent (13). Net salesamounted to SEK 2,818 M (2,830). The underlying net sales rose 1 per cent (one). Mekonomen Sweden’s EBIT marginwas 16 per cent (16) and Mekonomen Norway’s EBIT margin rose to 15 per cent (14) for the full year.MECA’s EBIT, including Denmark, amounted to SEK 84 M (109) for the full year 2013. EBITA for the full year 2013amounted to SEK 156 M (150) and the EBITA margin was 7 per cent (9). EBIT in Denmark for the full year was anegative SEK 58 M (neg: 21). Repositioning in Denmark with a strong focus on workshops continues. During 2013,MECA’s business system and catalogue were introduced in Denmark. Implementation is completed, meaning that ourDanish operation will now be better equipped going forward to achieve growth and profitability whilst also takingadvantage of our workshop chain Mekonomen Autoteknik having a strong position in Denmark. However, ourassessment is that it will take time to reach profitability in Denmark.In addition to the efficiency enhancements in Denmark, a cost-savings programme was initiated in the Group, withadditional coordination of central functions. The programme is expected to generate a positive effect on the EBIT totallingSEK 30 M on a full year basis starting in 2015. Non-recurring costs due to the programme are expected to amount toSEK 15 M during the first quarter of 2014.Our workshop chains continue to capture market shares and sales to our affiliated Mekonomen Service Centres andMECA Car Service workshops in Sweden, Norway and Finland rose 9 per cent and 12 per cent, respectively, inlocal currency during the full year 2013, compared with 2012. Mekonomen Group’s sales to non-affiliated workshopsand consumers in Sweden, Norway and Finland declined 4 per cent in local currency, during the full year 2013, comparedwith 2012.We expect no major changes in the total market in the Nordic region in 2014, compared with 2013. We believe that salesto our affiliated workshops will remain strong. During 2014, we will also be focusing more on increasing sales tonon-affiliated workshops and consumers, partly through an expanded range in ProMeister and CarWise, and partly withmore competitive products which will be generated through our cooperation with Inter Cars and through our Hong Kongoffice. In addition, e-commerce will remain important focus area. Organic growth is a primary focus in 2014 for theMekonomen Group.Our employees and leaders are Mekonomen Group's primary strength and together we will now take the additionalstep to meet competition and retain leadership!Håkan LundstedtPresident and CEO |