Interim report January - June 2015

26 August 2015 07:46

● Revenue increased 10 per cent to SEK 1,527 M (1,387). Adjusted for currency effects and calculated on the comparable number of workdays, revenue rose 10 per cent.
● EBITA rose 7 per cent to SEK 224 M (210) and the EBITA margin amounted to 15 per cent (15).
● EBIT increased 8 per cent to SEK 197 M (182) and the EBIT margin totalled 13 per cent (13).
● The gross margin amounted to 54.7 per cent (55.2).
● Earnings per share, before and after dilution, amounted to SEK 3.74 (3.74).
● Cash flow from operating activities amounted to SEK 137 M (192), of which discontinued operations comprised negative SEK 45 M (neg: 15).
● Net debt at the end of the period amounted to SEK 1,841 M (1,848), compared with SEK 1,629 M at the end of the year.
● Magnus Johansson took up his position as President and CEO on 15 June.

CEO’s comments

Favourable performance in the second quarter

The Mekonomen Group reported continued favourable growth and improved earnings for the second quarter of 2015. All of the Group companies: MECA, Mekonomen Nordic and Sørensen og Balchen posted a stronger EBIT compared with the year-earlier period.

During the second quarter of 2015, revenue for the Group inceased 10 per cent to SEK 1,527 M (1,387) and EBIT rose 8 per cent to SEK 197 M (182). The posted EBIT was the highest ever for a single quarter. The performance of Mekonomen Nordic was particularly positive, where EBIT increased 20 per cent to SEK 124 M (104). MECA's export business to Denmark has reduced earnings for the second quarter.

Revenue for the first six months rose 9 per cent to SEK 2,909 M (2,677) and the EBIT increased 10 per cent to SEK 339 M (309). The market was slightly stronger than in the preceding year and we expect a stable market development for the remainder of 2015. MECA:s export business to Denmark and currency effects are estimated to have a negative impact on earnings during the third quarter.

In the second quarter, growth was 13 per cent in MECA, 9 per cent in Mekonomen Nordic and 7 per cent in Sørensen og Balchen. Sales to our affiliated workshops were healthy and posted growth of 15 per cent for the quarter and we recorded a continued healthy sales increase for our proprietary ProMeister brand, which accounted for about 12 per cent of spare-parts sales in the Group.

I took up my position as President and CEO on 15 June and I look confidently forward toward building on and further developing the Mekonomen Group’s strong position.

We have an increased focus on cost-efficiency and, moving forward, we will combine this to an increasing degree with investments in infrastructure and the organisation to continue to lead development in our industry with the aim of creating competitive advantages. We will also in greater occurence realise Group synergies to drive efficiency and growth. Ongoing projects will be complemented by new initiatives in key areas. For example is such an area a new Group-wide e-commerce platform for B2B and B2C.

The Mekonomen Group’s growth builds on our ability to maintain a leading position, drive development in our industry and continuously strengthen the offering to our customers. Innovation should permeate all parts of the Group and maintain strong focus on customer-oriented business development aimed at creating growth, by strengthening our position with existing and new customers.

Magnus Johansson

President and CEO

For further information, please contact:
Magnus Johansson, 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, International Business Director, 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 26 August 2015 at 7:30 a.m.