1 July-30 September 2020
· Net sales declined 1 per cent to
· Adjusted EBIT amounted to
· EBIT totalled
· Earnings per share, before and after dilution, amounted to
· Cash flow from operating activities amounted to
· Net debt was
· Covid-19 had a limited impact on the quarter.
1 January-
· Net sales declined 3 per cent to
· Adjusted EBIT amounted to
· EBIT totalled
· Earnings per share, before and after dilution, amounted to
· Cash flow from operating activities amounted to
· New bank agreements signed 30 June with adjusted covenants reflecting the financial uncertainty that
· Covid-19 and data breaches affected the period negatively.
CEO comments
Growth, improved profitability and a favourable position for the future market
Stabilized demand and positive organic growth
In the third quarter, demand in our markets stabilized at close to normal levels as official restrictions related to the pandemic were eased and activity levels increased. Organic net sales growth was 3 per cent, while reported growth was burdened by currency effects and ended at a negative 1 per cent. At the end of the quarter we have seen Covid-19 infection rates rebound in most of our markets and restrictions are slowly being reintroduced. We believe that the uncertainty due to the pandemic will continue for some time. Our top priority is to safeguard the health and safety of our employees and our customers, while we are committed to forcefully mitigate the effects on our operations by taking the right actions. The underlying demand for our products and services is robust, as we have seen over time, and we expect a limited impact as long as society in our markets are not closed down.
Forceful actions and cost focus secure improved profitability
Our efforts resulted in a strengthened profitability during the quarter. EBIT increased to 208 MSEK (191) and the EBIT margin to 7 per
Strong cash flow and solid financial position
An important focus area this year has been to strengthen our cash flow and reducing our working capital. These activities have resulted in a strong cash flow in the third quarter. Our net debt decreased at the end of September and our net debt/EBITDA dropped to 3.3 times. A part of this is related to government aided tax deferrals in many of our markets during the second quarter. We have also continued to evaluate the investments we make even more carefully. At the end of the second quarter, we negotiated new financing terms with new covenants. Thanks to our performance in the quarter, following our cost savings and improved underlying operations, we have a solid financial position with available cash and a healthy distance to our covenants.Well positioned for the future market
Looking back, we have been an enabler of mobility for almost fifty years - and I am convinced we have an important role to play for many years to come. Society will inevitable be normalized and continue to evolve. This include new and greener technology in vehicles, new consumer behaviour, and an increased overall focus on sustainability. We have a leading position within our footprint, which we will build on to further strengthen our operations to a more sustainable and even stronger company for the future. As an example of this, I would like to mention that
times. It is also encouraging that
President and CEO
This information is such information that
The interim report is published in Swedish and English. The Swedish version is the original version and has been translated into English.
https://news.cision.com/mekonomen/r/interim-report-january---september-2020,c3232488
https://mb.cision.com/Main/550/3232488/1331467.pdf
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