Interim report
- Net sales increased 4 percent to
SEK 3,001 M (2,874). Organic growth was 10 percent. Net sales were negatively impacted 4 percent due to currency effects. -
Adjusted EBIT amounted to
SEK 224 M (98) and the adjusted EBIT margin was 7 percent (3). -
EBIT totaled
SEK 186 M (59) and the EBIT margin was 6 percent (2). EBIT was not impacted by any items affecting comparability during the quarter. -
Earnings per share, before and after dilution, amounted to
SEK 1.85 (neg: 0.29). -
Cash flow from operating activities amounted to
SEK 179 M (62). -
Net debt was
SEK 2,733 M (3,928) at the end of the period, compared withSEK 2,673 M atDecember 31, 2020 . - Restrictions related to covid-19 impacted the quarter, the comparative period was negatively impacted by the outbreak of covid-19 and the data breach.
-
New financing through the issuance of a senior unsecured bond of
SEK 1.25 billion . -
Capital markets day was held on
February 25 , where an updated strategy for achieving the long-term financial goals was presented.
Strong organic growth and increased profitability
We began 2021 with strong organic growth, increased profitability and a strong cash flow. The market was characterized by stable demand for our products and services in the first quarter. Covid-19 has had some impact through severe restrictions in several of our markets and generally fewer vehicle kilometers driven. We have further strengthened our financial position through new financing and a maintained low net debt/equity ratio. We continued to develop attractive solutions for our customers and partners with the launch of simple and predictable service agreements in Mekonomen Sweden and a new standard for electric car service in all of our markets. Overall,
Strong organic growth in a weak market
We have reached strong organic net sales growth of 10 percent for the first quarter, with clear effects of our efforts to stimulate sales. Currency effects had a negative impact on growth of 4 percent. Market development benefited from a slightly colder winter, but was adversely affected by the continuing severe restrictions in the wake of covid-19 in several of our markets, with closed branches and fewer kilometers driven by the vehicle fleet as a consequence. A shortage of certain components and disruptions in supply chains had some impact on the market development. We benefited from being proactive in purchasing and from our strong relationships with suppliers, which ensured good access to spare parts and accessories, as well as an opportunity to accumulate some stock during the quarter. We expect underlying demand for our products and services to remain favorable, even if market developments and the supply of goods are difficult to assess in the short term.
Continued improvements in profitability
Strong growth and a focused effort to reduce our costs have resulted in continued improvements in profitability during the first quarter. EBIT increased to
New financing and stronger financial position
It is gratifying to see that we diversified and extended our financing during the quarter through the issue of a senior unsecured bond of
our covenants.
Well-attended capital markets day
At the end of February, we held a well-attended digital capital markets day, where we explained our strategy and position as an enabler of mobility. The overall goal is to reach sales of
Attractive solutions for continued growth
In line with the strategy, we are working intensively in our focus areas to identify attractive solutions for our customers and workshops. During the first quarter,
already next year.
Good position for tomorrow's market
I am proud to say that we can look back on another strong quarter.
and through our updated strategy, we are now increasing the pace of transformation towards an even more sustainable and profitable
company. Our goal is clear: We will be the best and broadest partner for everyone that services and maintains cars in our markets -
today and in the future. We are well equipped for continued long-term and profitable growth.
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---march-2021,c3342520
https://mb.cision.com/Main/550/3342520/1414225.pdf
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