Mekonomen: Year-End Report January - December 2013
SEGELTORP, Sweden--(BUSINESS WIRE)--Regulatory News:
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).
● 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 increase
The 2013 financial year was characterised by weak market growth. Revenues for the Mekonomen Group for full year 2013 increased 8 per cent to SEK 5,863 M (5,426) and EBIT declined to SEK 469 M (528), including an additional write-down of 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 from operating 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 was on streamlining our processes and procedures, as well as launching new concepts. The store network has been consolidated, purchasing has been further coordinated following the acquisition of Sørensen og Balchen and MECA and proprietary products were launched in the Group, ProMeister for spare parts and CarWise for accessories. Coordination of purchasing and launching of proprietary brand products strengthened the gross margin, in a market with tough competition and pressure on prices. The two most significant items that have reduced EBIT are an additional write-down pertaining to the discontinuation of an 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 sales fell 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 sales amounted to SEK 2,818 M (2,830). The underlying net sales rose 1 per cent (one). Mekonomen Sweden’s EBIT margin was 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 2013 amounted to SEK 156 M (150) and the EBITA margin was 7 per cent (9). EBIT in Denmark for the full year was a negative 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 our Danish operation will now be better equipped going forward to achieve growth and profitability whilst also taking advantage of our workshop chain Mekonomen Autoteknik having a strong position in Denmark. However, our assessment 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, with additional coordination of central functions. The programme is expected to generate a positive effect on the EBIT totalling SEK 30 M on a full year basis starting in 2015. Non-recurring costs due to the programme are expected to amount to SEK 15 M during the first quarter of 2014.
Our workshop chains continue to capture market shares and sales to our affiliated Mekonomen Service Centres and MECA Car Service workshops in Sweden, Norway and Finland rose 9 per cent and 12 per cent, respectively, in local currency during the full year 2013, compared with 2012. Mekonomen Group’s sales to non-affiliated workshops and consumers in Sweden, Norway and Finland declined 4 per cent in local currency, during the full year 2013, compared with 2012.
We expect no major changes in the total market in the Nordic region in 2014, compared with 2013. We believe that sales to our affiliated workshops will remain strong. During 2014, we will also be focusing more on increasing sales to non-affiliated workshops and consumers, partly through an expanded range in ProMeister and CarWise, and partly with more competitive products which will be generated through our cooperation with Inter Cars and through our Hong Kong office. In addition, e-commerce will remain important focus area. Organic growth is a primary focus in 2014 for the
Mekonomen Group. Our employees and leaders are Mekonomen Group's primary strength and together we will now take the additional step to meet competition and retain leadership!
President and CEO
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