SEGELTORP, Sweden--(BUSINESS WIRE)--Regulatory News:
SUMMARY OF THE SECOND QUARTER, 1 April – 30 June 2013
- Revenues for the quarter rose 19 per cent to SEK 1,591 M (1,341). Adjusted for currency effects and calculated on a comparable number of workdays revenues increased 20 per cent.
- Excluding the acquisition of Meca (Meca excluding Denmark), adjusted for currency effects and calculated on a comparable number of workdays, revenues increased 2 per cent.
- EBITA rose 26 per cent to SEK 195 M (154) and the EBITA margin amounted to 12 per cent (12).
- EBIT increased 18 per cent to SEK 166 M (141) and the EBIT margin was 10 per cent (11).
- Profit after financial items increased 21 per cent to SEK 160 M (132).
- Earnings per share before and after dilution increased to SEK 3.24 (2.65).
- Net debt at the end of the period amounted to SEK 1,905 M (2,186), compared with SEK 1,875 M at the end of the year.
- Cash flow from operating activities amounted to SEK 262 M (120).
- Refinancing totalling SEK 700 M with a five-year maturity term was signed during the second quarter.
Good EBIT in the second quarter 2013
- Revenues rose 19 per cent; EBIT increased 18 per cent
- Cash flow from operating activities rose to SEK 262 M (120)
- Weak earnings in Denmark, with a negative operating margin of 12 per cent
- Higher operating margin in Mekonomen Nordics
Revenues for the Mekonomen Group in the second quarter of 2013 rose 19 per cent to SEK 1,591 M (1,341) and the operating profit increased 18 per cent to SEK 166 M (141). Adjusted for currency effects and calculated on a comparable number of workdays, revenues rose 20 per cent. Comparable sales increased 5 per cent. EBITA increased 26 per cent to SEK 195 M (154).
The market displayed a slight increase during the period following six quarters of negative growth.
MECA Scandinavia, excluding Denmark, reported EBIT of SEK 45 M, operating margin of 11 per cent and net sales of SEK 423 M during the second quarter. EBIT was charged with amortisation of intangible assets totalling SEK 15 M identified in connection with the acquisition. The integration work remained successful. The total EBIT for MECA, including Denmark, amounted to SEK 33 M and EBITA amounted to SEK 51 M. EBIT in Denmark declined to a loss of SEK 12 M (loss: 3) and the operating margin decreased to a negative 7 per cent (neg: 2). Earnings in Denmark were impacted by lower sales, as well as non-recurring negative effects of SEK 2 M (0). The underlying market in Denmark was weak, combined with continued tough competition. The implementation of the action plan and the reversal of the trend in Denmark will require additional time.
EBIT for Sørensen og Balchen declined to SEK 25 M (27) and the EBIT margin decreased to 13 per cent (14). EBITA declined to SEK 30 M (31). Net sales rose to SEK 195 M (194). The underlying net sales for the second quarter increased 3 per cent.
EBIT for Mekonomen Nordics rose to SEK 112 M (103) and the EBIT margin increased to 14 per cent (13). EBITA increased to SEK 119 M (107) and the EBITA margin rose to 15 per cent (14). The underlying net sales increased 4 per cent during the second quarter. EBIT for Mekonomen Sweden was SEK 84 M (70), with an EBIT margin of 17 per cent (16). EBIT for Mekonomen Norway was SEK 41 M (37), with an EBIT margin of 19 per cent (17). The growth of proprietary Mekonomen Service Centres was 13 per cent compared to the second quarter 2012.
Cash flow was strong during the quarter, partly as a result of reduced working capital.
The number of affiliated workshops and sales through affiliated workshops continued to increase during the period. This is a result of our customer focus and purposeful quality efforts. It also applies to our own workshops, which reported a positive trend.
Despite the slight upswing in the market during the quarter, we do not anticipate any significant improvement during the remainder of 2013. Accordingly, we will continue to implement successive measures to adapt to a period of continued weak market conditions. During the first six months, we consolidated the store network and reduced the number of stores by 13, which, combined with other measures, had a positive impact on profitability for the quarter.
While we are adapting costs, we will be investing for further expansion, in both digital channels and in the development of our workshop concepts. We want to make CarLife easier and with this as the objective in all our efforts, we will ensure that we maintain the leading position in the Nordic market.
President and CEO
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 27 August 2013.
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