Interim report January-June July 18, 2012 Magnus Agervald and Pernilla Walfridsson

Transcription

1 Interim report January- July 18, 2012 Magnus Agervald and Pernilla Walfridsson

2 Summary January During the second quarter, Byggmax s sales increased by 7 percent Net sales amounted to SEK M (899.3) in Q2 and SEK 1,409.4 M (1,268.8) for the first six months of the year. Net sales for comparable stores declined 1.9 percent (declined 3.0) in Q2 and rose 2.9 percent (declined 0.9) for the first six months of the year. EBIT totaled SEK 64.6 M (83.7) in Q2 and SEK 54.9 M (70.6) for the first six months of the year. The EBIT margin was 6.7 percent (9.3) in Q2 and 3.9 percent (5.6) for the first six months of the year. Earnings per share amounted to SEK 0.7 (0.9) per share in Q2 and SEK 0.5 (0.6) for the first six months of the year. 2

3 Summary January Six (eight) new stores were opened Two (three) stores were opened in the first quarter: Two in Norway Four (five) stores were opened in the second quarter: Three in Sweden and one in Norway. 3

4 Stores 10 openings are planned for 2012 Store network at June 30, 2012 The following establishments have been announced: - Sweden: Sisjön, opened in 2012 Smedjebacken, Eslöv and Malmö - Norway: Opened in 2012 Moss, Askim and Stord - Finland: Oulu The stores will be announced when the contracts have been signed and the municipal permits secured. Byggmax plans to open 10 stores during Number of stores Finland Norway Sweden Q2 4

5 Byggmax wins price surveys During the quarter, a number of price surveys have been performed by various media. Byggmax won all the price surveys in which it was included and of which we are aware. Winning price surveys is key for our price position. Winning these surveys give us the opportunity to review our pricing to improve margins, without hurting our low price position Winner of DN s price survey for covered decks in June, our closest competitor was 25% more expensive. Source: Dagens Nyheter, June 24, 2012 Winner of the price survey by Matvarupriser.se of winterized garden sheds. The survey comprised 28 towns and 101 stores, Byggmax was the cheapest in all of the towns. Byggmax had the lowest price in TV2 s price survey in Norway. The survey investigated decking prices. Tv2.no Source : Matvarupriser.se

6 Healthy results from market surveys This year, we have brought forward marketing compared with the yearearlier period in all three countries, thus impacting costs. The Vi-i-villa Panel, May Percentage of house owners Our assessment is that, measured over the full year, we will increase marketing costs in line with sales. The success of our marketing is evidenced in the results we have achieved in market surveys, such as the survey by the Vi-i-villa Panel shown on the right. Vi-i-villa is one of Sweden s largest magazines for house owners. Top-of-mind (%) Where do you plan to purchase your building materials? (%)

7 Lysekil distribution hub reduces store stock levels The new distribution hub at Lysekil has started to impact in-store stock levels. The total stock level for the entire Company per store has not been significantly affected, since the stock level in Lysekil has increased due to more products being bought via that distribution hub. Buying in large volumes directly to the warehouse give purchasing advantages and a larger possible supplier base for products bought from outside the Nordics Average stock levels per store, comparable stores in Sweden

8 New financing agreement signed until July 2015 A new financing agreement was signed with Svenska Handelsbanken in July The agreement is three years long, lasting until July 2015 It is a revolver of SEK 400 million and revolving financing of at most SEK 170 million. Conditions are approximately the same as in the current financing

9 Financial information July 18, 2012

10 Results trend Net sales rose by 7 percent in Q2 The gross margin is 0.4% lower than in Q2 the preceding year. Overheads increased in Q2 primarily attributable to costs for stores opened after Q and higher marketing costs in connection with bringing forward marketing compared with

11 Sales trend The operation s net sales were SEK M (899.3) in Q2, up 6.5 percent and for the first six months totaled SEK 1,409.4 M (1,268.8), up 11.1 percent. Net sales for comparable stores declined by 1.9 percent in local currency in Q2 and for the first six months increased by 2.9 percent. In Q2, net sales amounted to SEK M (704.2) in Sweden and to SEK M (195.0) in the other Nordic markets. For the first six months net sales amounted to SEK 1,042.4 M (1,001.7) in Sweden and to SEK M (267.1) in the other Nordic markets. 11

12 Gross margin Q2 Gross margin 28.7 percent (29.1) The gross profit margin was negatively impacted by price pressure, which, to a certain extent, was compensated by improved procurement First six months of the year Gross margin 28.9 percent (29.1) Q2 6 months

13 Operating expenses Q2 Personnel and other operating expenses rose by SEK 29.2 M. Personnel expenses This was primarily attributable to expenses of SEK 15.1 M for stores opened after Q The second quarter reported higher marketing costs totaling SEK 13.9 M, due to marketing being brought forward compared with The assessment is that marketing costs for the full year will be approximately in line with the preceding year. First six months of the year Personnel and other operating expenses rose by SEK 49.4 M. This was primarily attributable to expenses of SEK 28.1 M for stores opened after Q The first six months of the year reported higher marketing costs totaling SEK 16.7 M, as well as higher consultancy fees for IT services of SEK 2.1 M compared with the year-earlier period. Q2 6 months Other operating expenses Q months

14 Net financial items Net financial items improved by SEK 7 M in Q2 year on year, which was primarily attributable to fair-value measurements of currency-hedging instruments. In 2012, Byggmax updated its currency policy and lowered the hedge horizon from 12 to six months. 14

15 Financial position and cash flow Cash flow from operating activities in Q2 declined SEK 32.7 M year on year. Cash flow from investing activities was impacted by Byggmax s choice to invest in equipment that previously had been leased. New leasing declined from SEK 13.1 M in Q2, 2011 to SEK 0.9 M in Q2,

16 Condensed financial statements January July 18, 2012

17 Income statement 17

18 Balance sheet 18

19 Cash-flow statement 19

20 Cash-flow statement continued Note that cash and cash equivalents in the cash flow are adjusted for blocked funds 20

21 Largest shareholders at June 30, 2012 Name/Address Number of shares Holding (%) ALTOR 2003 Sarl 21,720, Lannebo fonder 5,824, ZAMGATE INVESTMENTS (Stig Notlöv) 3,078, Schroder Investment Management North America, Inc. 2,497, JARRTON MANAGEMENT (Göran Peterson) 2,381, Norges Bank Investment Management 1,742, ULSLANE (Lars Lindberg) 1,715, Handelsbanken fonder 1,695, Schroder Investment Management Ltd. 1,259, Didner & Gerge Fonder Aktiebolag 1,077, Total ten largest shareholders (grouped by shareholders) based on holding 42,991, Total other shareholders 17,745, Total, June 30, ,737, Source: Euroclear. June,