SEGELTORP, Sweden--(BUSINESS WIRE)--Regulatory News:
1 October - 31 December 2014
● Revenues for the quarter increased 2 per cent to SEK 1,481 M (1,450). Adjusted for currency effects and calculated on a comparable number of working days, revenues rose 2 per cent.
● During the quarter a decision on restructuring in Denmark has been made which has affected EBITA negatively with non-recurring costs of SEK 241 M and EBIT SEK 280 M.
● Excluding total non-recurring effects, EBITA amounted to SEK 150 M (129). Including non-recurring effects, EBITA amounted to negative SEK 91 M (pos: 124).
● Excluding total non-recurring effects, EBIT amounted to SEK 122 M (102). Including non-recurring effects, EBIT amounted to negative SEK 158 M (pos: 52).
● Gross margin amounted to 49.4 per cent (54.6). Excluding total non-recurring effects, gross margin amounted to 54.6 per cent (54.5).
● EBIT excluding Denmark (pro forma) amounted to SEK 145 M (75).
● Earnings per share before and after dilution amounted to negative SEK 4.68 (pos: 0.88).
● Cash flow from operating activities totalled SEK 178 M (173). 1 January - 31 December 2014
● Revenue for the full year increased 1 per cent to SEK 5,924 M (5,863). Adjusted for currency effects and calculated on a comparable number of working days, revenues rose 1 per cent.
● EBITA was negatively impacted by total non-recurring effects of SEK 264 M (16) and amounted to SEK 427 M (626).
● EBIT was negatively impacted by total non-recurring effects of SEK 303 M (61) and amounted to SEK 274 M (469).
● EBIT excluding Denmark (pro forma) amounted to SEK 639 M (527).
● Earnings per share before and after dilution amounted to SEK 3.34 (8.56).
● Net debt amounted to SEK 1,629 M (1,642).
● Cash flow from operating activities totalled SEK 413 M (557).
● The Board of Directors proposes a share dividend of SEK 7.00 (7.00).
Improved sales and increased operating profit excluding Denmark
Mekonomen Group, excluding Denmark, experienced strong growth, improved operating profit and increased market share in both the quarter and full-year 2014. The restructuring effort in Denmark has affected EBIT with non-reccuring costs of SEK 280 M in the fourth quarter.
Excluding Denmark, the Group's revenues rose 4 per cent in the fourth quarter. Including Denmark, revenues rose 2 per cent to SEK 1,481 M (1,450). Excluding non-recurring costs, operating profit increased to SEK 122 M (102). The restructuring effort in Denmark had a negative impact on operating profit of SEK 280 M during the fourth quarter.
Mekonomen Group's revenue for full-year 2014, excluding Denmark, rose 3 per cent. Including Denmark, revenues rose 1 per cent and operating profit, excluding non-recurring costs, increased to SEK 577 M (530). EBITA excluding non-recurring costs increased to SEK 691 M (642).
Our assessment ahead of 2014 was that there would be no major change in the overall market and we can now see that 2014 was a year of steady market growth. The Nordic market showed some increase in the fourth quarter and our expectations for 2015 are for a somewhat stronger market, driven by such factors as lower fuel prices.
Improved profitability in all Group companies, excluding Denmark
Increased growth combined with effective cost control led to improved profitability for the full-year 2014 in all Group companies. During the year, we had strong growth in our affiliated workshops. Quality work in our affiliated workshops is a key factor behind this growth. The investment in ProMeister is our other growth engine. In the ProMeister venture, we are benefitting from our purchasing office in Hong Kong, which was strengthened during the year. At the same time, continuous efficiency enhancements are being implemented, for example, in the coordination of central functions, which was in focus in 2014.
Restructuring of the Danish operation
Comprehensive structural changes and repositioning were implemented in the Group's Danish operation to secure profitability in Denmark. All of the stores, which are also local and regional warehouses, and the head office for Denmark are being closed. The franchise workshops are retained and these now recieve their deliveries of spare parts directly from the central warehouse in Sweden, meaning that we achieve efficient logistics without intermediaries in the distribution chain. This enables a long-term presence in the Danish market through our franchise workshops and will contribute positively to Mekonomen Group's profitability and development.
The basis for our long-term growth is innovation, which involves both products and services as well as the way in which we can ease the way for our customers through smart services. In 2014, our focus has been on ProMeister, our training venture ProMeister Academy and Lasingoo, the car portal that we own jointly with other industry players.
In 2015, the focus will be on continued initiatives in our affiliated workshops and the development of the workshop concepts, an increased share of ProMeister sales and the expansion of ProMeister Academy. Coordination of central functions, with further efficiency enhancement, is also a focus area.
Excluding the Danish operation, we have had a favourable fourth quarter, with growth in all customer segments. Through the strength we have in our concepts, with our able and committed employees and with a somewhat stronger market, Mekonomen Group has good prospects for growth during 2015. 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, International Business Director, Mekonomen AB, Tel: +46 (0)8-464 00 00
The information in this interim report is such that Mekonomen AB (publ) is obligated to publish in accordance with the Securities Market Act.
The information was submitted for publication on 12 February 2015 at 7:30 a.m.
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