Q3: Dustin draws strength from increased digitalisation and a high pace of change

Third quarter

·   Net sales rose 3.2 per cent to SEK 3,271 million (3,169).

·   Organic sales growth was 1.3 per cent (15.3), of which SMB accounted for negative 5.7 per cent (6.6), LCP for 6.6 per cent (25.0) and B2C for 9.7 per cent (neg: 5.0).

·   The gross margin amounted to 15.1 per cent (16.8).

·   Adjusted EBITA amounted to SEK 106 million (124), corresponding to an adjusted EBITA margin of 3.2 per cent (3.9).

·   EBIT totalled SEK 52 million (78), including items affecting comparability of a negative SEK 29 million (neg: 26.2).

·   Profit for the quarter was SEK 31 million (48).

·   Earnings per share before dilution totalled SEK 0.35 (0.54).

·   Cash flow from operating activities amounted to SEK 468 million (101).

·   The short-term market trend is difficult to assess. Our assessment is that we will see a return to a more stable and normal market situation in the latter part of 2020.

September 2019-May 2020

·   Net sales rose 8.5 per cent to SEK 10,322 million (9,510).

·   Organic sales growth was 3.8 per cent (9.5), of which SMB accounted for negative 1.0 per cent (4.6), LCP for 8.5 per cent (15.3) and B2C for negative 2.5 per cent (neg: 5.2).

·   The gross margin amounted to 15.6 per cent (16.8).

·   Adjusted EBITA declined to SEK 416 million (440), corresponding to an adjusted EBITA margin of 4.0 per cent (4.6).

·   EBIT totalled SEK 303 million (388), including items affecting comparability of negative SEK 40 million (pos: 0.2).

·   Profit for the period amounted to SEK 209 million (283).

·   Earnings per share before dilution totalled SEK 2.36 (3.30).

·   Cash flow from operating activities amounted to SEK 848 million (193).

·   At the end of the period, net debt in relation to adjusted EBITDA in the past 12-month period, excluding the effects of the implementation of IFRS 16 Leases, was 2.5 (2.9 at the end of 2018/19). When calculated including these effects, the figure was 2.9 (-).

"The market is difficult to assess in the short term, but we have a long-term attractive position. The pace of digitalisation in society, with increasing online sales and a greater need for mobility, has accelerated, driven by the corona pandemic. We are well-positioned for these trends, which has made it possible for us to raise the pace of our transformation. In the third quarter, we further improved our working capital, thereby strengthening our balance sheet and reducing our leverage. We reported positive sales growth of 3.2 per cent for the quarter, of which more than 1.3 per cent was organic. Adjusted EBITA declined compared with the year-earlier quarter to SEK 106 million. Furthermore, based on the prevailing market situation, we have implemented measures to adapt the organisation and reduce our costs", says Thomas Ekman, President and CEO at Dustin.

For additional information, please contact:

Fredrik Sätterström, Head of Investor Relations

[e-mail], [phone]

Contact person:

Eva Ernfors, Head of Information

[e-mail], [phone]

This information is information that Dustin Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on July 1, 2020.

About Dustin

Dustin is a leading online IT partner with operations in the Nordics and the Netherlands. We help our customers to stay in the forefront by providing them with the right IT solution, at the right time and at the right price.

We offer approximately 255,000 products with related services to companies, the public sector and private individuals. The main focus is on SMEs. Sales for the financial year 2018/19 amounted to approximately SEK 12.5 billion and just over 90 per cent of the revenues came from the corporate market.

Dustin Group has more than 1,800 employees and has been listed on Nasdaq Stockholm since 2015 with headquarters in Nacka Strand just outside central Stockholm.

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