WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2015

Wulff Group Plc improved its profitability in the first quarter

This is a summary of Wulff Group Plc’s interim report for January-March 2015. Wulff Group’s interim report for January-March 2015 is attached as a  PDF file to this stock exchange release and is also available on the company’s website at the address http://www.wulff.fi/en/wulff+group+plc/home/

KEY POINTS JANUARY – MARCH 2015

  • Net sales totalled EUR 19.2 million (EUR 19.8 million). Net sales decreased by 3.0 percentages from previous year.
  • EBITDA was EUR 0.4 million (EUR 0.3 million) being 2.0 percentages (1.5 %) of net sales.
  • Operating profit (EBIT) amounted to EUR 0.2 million (EUR 0.0 million) being 1.0 percentages (0.2 %) of net sales.
  • Earnings per share (EPS) was EUR -0.01 (EUR 0.00) in January-March.
  • Wulff Group’s outlook for the 2015 operating result remains unchanged.

WULFF GROUP’S CEO HEIKKI VIENOLA

“I am pleased and delighted that we have managed to improve our profitability despite the challenges in our operating environment and the economic situation. The most important thing is that our customers are satisfied.Through our different sales channels, the Group is a flexible and efficient partner to businesses of all sizes. We take good care of our major customers and big corporations and serve medium-sized companies efficiently. Equally important for us is to serve the smallest companies well: every new company is a potential customer for Wulff. It is a pleasure to help and support new entrepreneurs with Wulff’s comprehensive services and the expertise our personnel have to offer. In 2015, we will focus on cost-saving measures, invest in sales, and improve our operations to better respond to the market situation. We will also concentrate on positively improving our result. The most important values in our operations at all times have been customer orientation and profitability. Wulff will reach 125 years in the fall, and these same values are still the foundation for the future success of the company.”  

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-March 2015 net sales totalled EUR 19.2 million (EUR 19.8 million). In January-March EBITDA was EUR 0.4 million (EUR 0.3 million) being 2.0 percentages (1.5 %) of net sales. In January-March operating profit (EBIT) amounted to EUR 0.2 (EUR 0.0 million) being 1.0 percentages (0.2 percentages) of net sales. Typically in the industry and in the Group, the annual profit is made in the last quarter of the year.

In January-March 2015 employee benefit expenses amounted to EUR 3.8 million (EUR 4.3 million). Other operating expenses amounted to EUR 2.3 million (EUR 2.4 million) in January-March. Employee benefit and other operating expenses were still affected by the implemented successful cost-saving measures. To improve its profitability, The Wulff Group continues to examine its cost structure as part of ongoing reforms.

In January-March the financial income and expenses totalled (net) EUR -0.01 million (EUR -0.08 million) including interest expenses of EUR 0.07 million (EUR 0.05 million) and mainly currency-related other financial items (net) EUR 0.06 million (EUR -0.03 million). 

In January-March the result before taxes was EUR 0.2 million (EUR -0.05 million). In January-March the net profit after taxes was EUR -0.2 million (EUR -0.04 million). The net profit was impacted by a write down of deferred tax receivables of EUR 0.3 million in January-March 2015. Earnings per share (EPS) was EUR -0.01 (EUR 0.00) in January-March.   

KEY FIGURES

  I I I-IV
EUR 1000 2015 2014 2014
Net sales 19 174 19 775 74 262
Change in net sales, % -3,0 % -13,0 % -11,1 %
EBITDA 381 289 2 096
EBITDA margin, % 2,0 % 1,5 % 2,8 %
Operating profit/loss 185 31 1 109
Operating profit/loss margin, % 1,0 % 0,2 % 1,5 %
Profit/Loss before taxes 180 -53 478
Profit/Loss before taxes margin, % 0,9 % -0,3 % 0,6 %
Net profit/loss for the period attributable to equity holders of the parent company -90 13 696
Net profit/loss for the period, % -0,5 % 0,1 % 0,9 %
Earnings per share, EUR (diluted = non-diluted) -0,01 0,00 0,11
Return on equity (ROE), % -1,5 % -0,34 % 4,4 %
Return on investment (ROI), % 1,3 % -0,01 % 3,5 %
Equity-to-assets ratio at the end of period, % 43,8 % 39,2 % 39,5 %
Debt-to-equity ratio at the end of period 48,5 % 60,5 % 36,9 %
Equity per share at the end of period, EUR * 1,94 1,83 1,95
Net cash flow from operating activities -1 323 -1 559 -205
Investments in non-current assets 37 238 488
Investments in non-current assets, % of net sales 0,2 % 1,2 % 0,7 %
Treasury shares held by the Group at the end of period 79 000 79 000 79 000
Treasury shares, % of total share capital and votes 1,2 % 1,2 % 1,2 %
Number of total issued shares at the end of period 6 607 628 6 607 628 6 607 628
Personnel on average during the period 251 295 268
Personnel at the end of period 261 295 240

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

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for office supplies is strongly affected by the general economic development. During the economic downturn, organizations’ personnel lay-offs and cost-saving initiatives affect the purchase behavior of corporate customers. The ongoing economic uncertainties impact especially the demand for business and promotional gifts. During uncertain economic periods, corporations may also minimize attending fairs. As the ongoing economic uncertainty continues, the cost saving measures will have an effect on the ordering behavior of corporate customers and therefore Wulff must adapt to the developing market situation if needed.

Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group’s net result, however the effect of the fluctuation is expected to be moderate.

EVENTS AFTER THE REPORTING PERIOD

The Group has not had material events after the reporting period.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions, and as a listed company Wulff has a good opportunity to be a more active player than its competitors. 

Wulff estimates the market situation to remain unchanged. Therefore it is important to continue to implement the cost structure and improve the efficiency of the operations. Wulff’s goal is to further improve the profitability of its businesses. 

Wulff estimates the 2015 operating profit to be positive. Typically in the industry, the annual profit and cash flow are made in the last quarter of the year.

WULFF GROUP PLC’S FINANCIAL REPORTING 

Wulff Group Plc will release the following financial reports in 2015:

Interim Report, January-June 2015 Thursday August 6, 2015
Interim Report, January-September 2015 Thursday November 5, 2015

In Vantaa on May 6, 2015

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

CEO Heikki Vienola

tel. +358 9 5259 0050 or mobile: +358 50 65 110

e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com