Mekonomen Group withdraw dividend proposal and gives update on effects from the coronavirus
20 March 2020 09:10
Mekonomen Group believes there is a considerable risk of financial impact during the first half of 2020. The Board of Directors of Mekonomen Group has in the light of this decided to withdraw the previously communicated proposal to the Annual General Meeting regarding a dividend of SEK 0.50 per share.
Mekonomen Group is working diligently to manage the effects of the coronavirus situation, the highest priority being the health and safety of employees and customers. All activities in the company are being carefully evaluated from a cost and risk perspective in order to mitigate the negative financial effects associated with the virus.
As a result of the rapid spread of the coronavirus and its impact in markets where Mekonomen Group has a significant presence and the currencies the company is exposed to, the company believes that the risk of adverse effects has increased significantly.
January and February have developed in line with the corresponding period last year, while recent weeks have shown a significantly lower market activity and demand for workshop services and products. The difference in activity among our markets is considerable, with Norway standing out as very weak. The supply chain is working well in the current situation and the company's branches and warehouses operate at normal levels. The effects of the coronavirus situation will affect Mekonomen Group's sales, earnings and cash flow for the first quarter and for some portion of the rest of the year.
Due to the rapidly changing situation, it is not possible to predict the duration or scope of the impact on the company thereof and therefore the company cannot predict the full potential financial impact.
As a consequence of the uncertainty regarding the market development, the Board of Directors of Mekonomen Group has decided, in order to further strengthen the company's financial position, to withdraw the previous dividend proposal for 2019 to the Annual General Meeting of SEK 0.50 per share.
Mekonomen Group reports the results for the first quarter of 2020 on May 7 and will provide further updates at that time.
For further information, please contact:
Pehr Oscarson, President & CEO Mekonomen AB,
Tel +46 (0)8-464 00 00 E-mail: pehr.oscarson@mekonomengroup.com
Åsa Källenius, CFO Mekonomen AB
Tel +46 (0)8-464 00 00 E-mail: asa.kallenius@mekonomengroup.com
Fredrik Sätterström, IRO Mekonomen AB
Tel +46 (0)8-464 00 00 E-mail: fredrik.satterstrom@mekonomengroup.com
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This information is such information that Mekonomen AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through Pehr Oscarson, at 9:10 a.m. CET on 20 March 2020. This press release will be published in Swedish and English. The Swedish version represents the original version and has been translated into English. |