“Improved underlying operating result and strong cash flow”

Statement from the CEO

Sales in the first quarter of 2020 were slightly lower compared to the same quarter last year, but the underlying operating result improved slightly and amounted to SEK 42 M (40). Both sales and result should be seen in the light of the slowdown in demand that began in the second quarter of 2019 and continued throughout the second half of the year. Looking at individual months, sales in March were in line with last year.

In addition to inventory losses of SEK -11 M (-6), the operating result was negatively affected by one-off costs of SEK 35 M related to centralizing warehouse and production operations in Norrköping and closing the warehouse in Malmö, as we communicated in mid-March. The operating result after this amounted to SEK -4 M (34).

The positive underlying result and good control of working capital resulted in a strong cash flow of SEK 93 M (62) from current operations.

The future

We are leaving a strong quarter behind us, but due to the rapid spread of Covid-19 and the enormous uncertainty at present, it is currently completely impossible to quantify the impact this will have on the business and the performance in future quarters and the full year 2020.

To fend off the lower demand that is coming, we have introduced shortened working week, renegotiated agreements and increased control over working capital and costs. We are prepared to take more and stronger measures while also being prepared to gear up at short notice and meet increasing demand from both new and old customers.

What we are doing at the same time is continuing to build a good company for the future. In addition to continuous improvements and adjustments in all parts of the business, the production investments in Norrköping are in their final phase and will soon be fully operational. The centralization of warehouse and production operations in Norrköping together with the closure of the warehouse in Malmö is proceeding according to plan. These measures will strengthen and renew what we offer the market while clearly reducing our ongoing costs.

Peter Andersson
President and CEO


Bridge 2019-2020 operating result SEK M
Q1 Q2 Q3 Q4
Brygga resultatutveckling 2019–2020. MSEK Q1 Q2 Q3 Q4
Operating result 2019 Rörelseresultat 2019 34 32 14 8
Reversal of inventory gains (-)/losses (+)
Återläggning lagervinster (-)/förluster (+)
6 0 -1 1
Items affecting comparability Jämförelsestörande poster
Underlying operating result 2019
Underliggande rörelseresultat 2019
40 32 13 9
Change in sales Försäljningsförändring -12
Change in underlying gross margin
Underliggande bruttomarginalförändring
Change in overhead costs Omkostnadsförändring -7
Underlying operating result 2020
Underliggande rörelseresultat 2020
Reversal of inventory gains (+)/losses (-)
Återläggning lagervinster (+)/förluster (-)
Items affecting comparability Jämförelsestörande poster -35
Operating result 2020 Rörelseresultat 2020 -4