Based on preliminary reporting, Solar increases its guidance for 2020 EBITA to
Moreover, we are adjusting revenue guidance to
CEO
"Our digital business model has excelled during this period of uncertainty and we have been able to continue to support and create value for our customers.
We have continued our journey towards improved profitability, delivering a 25% EBITA increase in Q3 despite lower revenue.
We are very pleased to report that the Better Business project initiatives we launched earlier in 2020 and the increase in sales of Solar Concepts have more than met our expectations. These two factors have provided the foundation for our better-than-expected Q3 numbers and our updated guidance.”
Key financial messages
- In Q3, EBITA increased to
DKK 132m (DKK 105m ) despite adjusted organic revenue growth of -4.8% (6.3%). The EBITA increase ofDKK 27m was mainly driven by an improved gross profit margin combined with efficiency gains and cost containment. - One-off income relating to extraordinary price increases positively affected the gross profit margin by approx.
DKK 10m .
Financial highlights (DKK million) | Q3 2020 | Q3 2019 | Q1-Q3 2020 | Q1-Q3 2019 |
Revenue | 2,618 | 2,777 | 8,408 | 8,602 |
Gross Profit | 563 | 548 | 1,748 | 1,721 |
EBITA | 132 | 105 | 310 | 245 |
Financial ratios (%) | ||||
Organic growth adj. | -4.8 | 6,3 | -0,8 | 5,8 |
Gross margin | 21.5 | 19.7 | 20.8 | 20.0 |
EBITA margin | 5.0 | 3.8 | 3.7 | 2.8 |
Guidance
Guidance 2020 overview DKK million | Updated guidance | August guidance |
Core business, revenue | 10,750 | 10,850 |
Core business, EBITA | 435 | 400 |
Related business, revenue | 550 | 550 |
Related business, EBITA | 0 | 0 |
11,300 | 11,400 | |
435 | 400 |
General guidance assumptions
Due to the resurgence of the COVID-19 pandemic, we see an increased risk in our market outlook. The new guidance is based on several assumptions:
- That the resurgence of COVID-19 will not result in new significant lockdowns in our markets.
- That the outcome from our Better Business project initiatives and increased sales of Solar Concepts continue to strengthen our gross profit margin alongside cost containment measures.
- That no significant restructuring costs are required.
Contacts
CEO
CFO
IR Director
Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.
We facilitate efficiency improvements and provide digital tools which transform our customers into winners. We drive the green transition and provide best-in-class solutions to ensure sustainable use of resources.
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.
Attachment
- No.17 2020 Solar increases its guidance for 2020 EBITA
© OMX, source