Comments on the report
Consolidated net sales for the period decreased by 9 percent compared to last year, amounting to SEK 1,193 M (1,312). The decline is primarily attributable to the relatively weaker growth in the distribution businesses and Lecor Stålteknik. Gross profit amounted to SEK 164 M (179), with a gross margin of 13.8 percent (13.6). The operating result increased to SEK 32 M (22), corresponding to an operating margin of 2.7 percent (1.6). Last year, the operating result was impacted by a provision for an anticipated bad debt and adjustment of inventory in the Baltics of SEK -12 M and an item affecting comparability of SEK -16 M related to the exit of the operations in Czech Republic. In addition to this, Lecor had a weak development and measures have been taken while unprofitable businesses were phased out during the quarter. Adjusted for inventory gains and losses of SEK 0 M (12), the underlying operating result was SEK 32 M (26). The underlying operating margin during the period was 2.6 percent (2.0).
First six months
During the first six months, the Group’s net sales decreased by 6 percent compared to last year and amounted to SEK 2,398 M (2,538). Tonnage in business area Sweden & Poland decreased by 3 percent compared to last year, while Finland & Baltics delivered 8 percent less. Positive currency effects of 1 percent partially compensated for the lower tonnage. Gross profit amounted to SEK 330 M (366) and the gross margin amounted to 13.8 percent (14.4).
The operating result amounted to SEK 66 M (77). The weaker result is primarily attributable to inventory losses of SEK -6 M (19) and the lower net sales. Adjusted for items affecting comparability and inventory gains and losses, the underlying operating result amounted to SEK 72 M (74). Operating margin amounted to 2.7 percent (3.0) and the underlying operating margin amounted to 3.0 percent (2.9).
|uEBIT, SEK M|||Sales growth, %|
|Gross profit, SEK M|| |
|Gross margin, %