Wulff Group Plc’s Half-Year Financial Report For January 1 – JUNE 30, 2019

HALF-YEAR FINANCIAL REPORT     August 1, 2019 at 9.00 A.M.

Net sales and profitability increased

This is a summary of Wulff Group Plc’s half-year financial report for January-June 2019. Wulff Group’s half-year financial report as a whole is attached as a PDF file to this stock exchange release and it is also available on the company’s website www.wulff-group.com.

 1.4. – 30.6.2019 BRIEFLY

  •  Net sales totalled EUR 15.4 million (13.8), growth of 11.9%
  •  EBITDA and comparable EBITDA were EUR 0.9 million (0.4)
  •  Operating profit and comparable operating profit (EBIT) were EUR 0.6 million (0.3)
  •  Earnings per share (EPS) and comparable earnings per share (EPS) were EUR 0.06 (0.04)
  •  Equity-to-assets ratio was 36.0% (46.3)
  •  Wulff invested in its own premises in Kilo, Espoo in Finland
  •  The outlook for the comparable operating profit remains the same; Wulff estimates the comparable operating profit 2019 to grow from the comparable operating profit 2018.

1.1. – 30.6.2019 BRIEFLY

  •  Net sales totalled EUR 29.2 million (28.0), increased by 4.3%
  •  EBITDA and comparable EBITDA were EUR 1.5 million (0.8)
  •  Operating profit and comparable operating profit (EBIT) were EUR 0.7 million (0.6)
  •  Earnings per share (EPS) and comparable earnings per share were EUR 0.08 (0.6) 

WULFF GROUP PLC’S CEO HEIKKI VIENOLA

“It has been a pleasure to notice how the portion of responsible products, services and activity in our sales is growing constantly. Our customers and partners want to make the world better one workplace at a time with us. Our own actions will be more green and responsible when we move to our new premises in Kilo, Espoo. The solar plant built on our premises will enable producing all the electricity that we need by solar energy. The acquisition of the premises, the solar plant and renovating the premises and property using environmentally friendly solutions that are based on sustainable development is a huge and important investment for the future and comfort of our personnel. The beginning of the year 2019, measured by sales and profit, was good for us. It tells us that our strategy works. Our aim is to grow even more strongly and improve our profitability constantly. By listening our customers, by fulfilling their wishes and by investing in meaningful matters we offer the best customer experience in our industry.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-June 2019 net sales totalled EUR 29.2 million (28.0), and in April-June EUR 15.4 million (13.8). Net sales increased in the first half year period by 4.3% (-3.0) and by 11.9% (1.7) in the second quarter. In January-June the net sales increased due to the sales of Canon Business Center printing solution services. The Canon Business Center was acquired to the group in August 2018. The increase in net sales in the second quarter was mainly a result of fair events.  

In January-June 2019 the gross margin amounted to EUR 10.2 million (9.8) being 35.0% (35.0) of the net sales, and EUR 5.3 million (4.9) in the second quarter being 34.3% (35.3) of the net sales. In the reporting period, the gross margin grew due to sales of the Canon Business Center printing solution services. In the second quarter the gross margin grew due to increase of sales of fair services and the sales of printing solution services.

In January-June 2019 employee benefit expenses amounted to EUR 6.3 million (6.0) and 21.4% (21.3) of net sales, and respectively, in the second quarter EUR 3.1 million (3.0), being 20.1% (21.5) of net sales. The employee benefit expenses grew with the acquisition of the Canon Business Center printing equipment and solutions business in 2018. The company employs 12 people.

Other operating expenses amounted to EUR 2.6 million (3.1) in January-June 2019 being 8.9% (11.1) of net sales and respectively EUR 1.3 million (1.5) in the second quarter, being 8.6% (10.9%) of net sales. In total the other operating expenses were less by EUR 0.5 million compared to previous reporting period. The reason for this is presenting the office premises rents and equipment leases in depreciations EUR -0.5 million and in interest expenses EUR -0.0 million instead of presenting them in other operating expenses according to the IFRS 16 Leases -standard. More information on the impact of the adaption of the IFRS 16 Leases standard has been presented in the notes of the Report.

In January-June 2019 EBITDA and comparable EBITDA amounted to EUR 1.5 million (0.8) being 5.1% (2.9) of net sales, and EUR 0.9 million (0.4) in the second quarter, being 6.0% (3.2) of net sales. The growth of EBITDA EUR 0.5 million and 1.5%-points was due to the implementation of IFRS 16 Leases standard.

The operating profit (EBIT) and the comparable operating profit (EBIT) amounted to EUR 0.7 million (0.6), 2.6% (2.1) of net sales and respectively EUR 0.6 million (0.3), 3.6% (2.4) in the second quarter. The first half-year periods of 2019 and 2018 did not include items affecting comparability.

The depreciations of the properties were EUR -0.1 million in the reporting period and EUR -0.1 million in the second quarter. The premises in Kilo, Espoo and Ljungby, Sweden were acquired during the reporting period, so there were no depreciations of properties in the comparison period.

In January-June 2019 the net of financial income and expenses totalled EUR -0.2 million (-0.2) including interest expenses EUR -0.1 million (-0.0) and mainly the net of currency-related other financial items and bank expenses EUR -0.1 million (-0.1). In the second quarter, the financial income and expenses totalled (net) EUR -0.1 million (-0.0).

In January-June 2019 the result before taxes was EUR 0.6 million (0.4), and the net profit over the reporting period was EUR 0.5 million (0.4). In the second quarter the result before taxes was EUR 0.4 million (0.3) and the net profit was EUR 0.4 million (0.3). Earnings per share (EPS) and comparable EPS were EUR 0.08 (0.06) in January-June 2019, and EUR 0.06 (0.04) in the second quarter.

KEY FIGURES

II  II  I-II  I-II  I-IV 
EUR 1000 2019  2018  2019  2018  2018 
Net sales 15 384  13 754 29 228  28 010 55 889
Change in net sales, % 11.9%  1.7% 4.3%  -3.0% -1.8%
Gross profit  5 281  4 852  10 227  9 801  19 670
Gross profit, %  34.3%  35.3%  35.0%  35.0%  35.2%
EBITDA 929  436 1 485  804 1 920
EBITDA margin, % 6.0%  3.2% 5.1%  2.9% 3.4%
Operating profit/loss 557  336 748  600 1 508
Operating profit/loss margin, % 3.6%  2.4% 2.6%  2.1% 2.7%
Profit/Loss before taxes 436 297 570  444 1 243
Profit/Loss before taxes margin, % 2.8%  2.2% 1.9%  1.6% 2.2%
Net profit/loss for the period attributable to equity holders of the parent company 436  248 535  379 1 025
Net profit/loss for the period, % 2.8%  1.8% 1.8%  1.4% 1.8%
Earnings per share, EUR (diluted = non-diluted) 0.06  0.04 0.08  0.06 0.15
Return on equity (ROE), % 3.5%  2.4% 4.5%  3.7% 9.3%
Return on investment (ROI), % 2.5%  2.2% 3.5%  3.4% 9.5%
Equity-to-assets ratio at the end of period, % 36.0%  46.3% 36.0%  46.3% 49.1%
Debt-to-equity ratio at the end of period 89.7%  31.6% 89.7%  31.6% 15.8%
Equity per share at the end of period, EUR * 1.68  1.62 1.68  1.62 1.72
Investments in non-current assets 2 516  58 6 243  251 446
Investments in non-current assets, % of net sales 16.4%  0.4% 21.4%  0.9% 0.8%
Treasury shares held by the Group at the end of period 79 000  79 000 79 000  79 000 79 000
Treasury shares, % of total share capital and votes 1.1%  1.2% 1.1%  1.2% 1.1%
Average number of outstanding shares  6 907 628 6 607 628 6 907 628 6 607 628 6 643 696
Number of total issued shares at the end of period 6 907 628 6 607 628 6 907 628 6 607 628 6 907 628
Personnel on average during the period 199  190 196  192 191
Personnel at the end of period 195  187 195  187 191

* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares

The adaption of the IFRS 16 Leases standard as of 1.1.2019 has been accounted for in the calculation of the key figures. More information on the impact of the adaption has been presented in the notes to the Interim Report.

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for workplace products and office supplies is strongly affected by the general economic development and the market’s tight competition. Business operations are also affected by normal business risks such as the success of the Group’s strategy and operative risks stemming from the personnel, logistics and IT environments. Approximately half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and balance sheet. 

SUBSEQUENT EVENTS

Wulff acquired its own premises in Espoo by EUR 2.2 million during the reporting period. The investments in new premises and sustainable solutions will total approximately EUR 3.0 million.  

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Its aim is to lead the way, renew the field and be at the forefront of change. Wulff believes that the role of values and sustainability will come to have an increasingly important part in sourcing decisions and companies’ business partner selections in the future. With its new strategy, Wulff will build its competitiveness and make sure that it can offer customers what they want: solutions for making the everyday work life smoother and the world better one workplace at a time. The market traditionally understood as the office environment changes and develops rapidly. Competition is tough in the traditional market and the new market has a lot of opportunities. Wulff believes that the future is bright due to the strong, constantly developing new strategy, its active customer and partner networks, and its professional, committed personnel. The Group has an ongoing readiness to carry out new strategic acquisitions and as a listed company, Wulff is in a good position to be a more active player than its competitors.

The developing economic situation will enable Wulff’s business to develop positively. Wulff estimates that the comparable operating profit of 2019 will increase from 2018. In the industry, it is typical that the result and cash flow are generated in the last quarter.

WULFF GROUP PLC’S FINANCIAL REPORTING

Wulff Group Plc will release the following financial report in 2019:

Interim Report, January-September 2019           Thursday October 31, 2019

In Vantaa on August 1, 2019

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:
CEO Heikki Vienola
tel. +358 300 870 414 or +358 50 65 110
e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com

A better world – one workplace at a time. Wulff’s goal is a perfect workday! We enable better working environments and create workplaces, wherever you are. More comfortable, healthier, safer, more enjoyable, more active and more diverse? How do you want to better you workday and working environment? Wulff has the solution. We offer our customers office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, air purifiers, and innovative products for worksites. Customers can also acquire international exhibition services from Wulff. In addition to Finland, Wulff operates in Sweden, Norway, and Denmark. Check out our products and services at wulff.fi.

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