Comments on the report

Fourth quarter

Consolidated net sales for the period decreased by 15 percent compared to last year, amounting to SEK 984 M (1,154). The decrease is mainly attributable to negative organic growth of 17 percent. Price and mix effects of 1 percent and positive currency effects of 1 percent could only partly compensate for the declining demand in both business areas.

Gross profit amounted to SEK 138 M (152), with a stronger gross margin compared to last year of 14.0 percent (13.2). The operating result amounted to SEK 8 M (22), corresponding to an operating margin of 0.8 percent (1.9). Adjusted for inventory gains and losses of SEK -1 M (1) and items affecting comparability of SEK 0 M (4), the underlying operating result thereby amounted to SEK 9 M (17). The underlying operating margin during the period was 0.9 percent (1.4).

Full-year 2019

During the year, consolidated net sales decreased by 9 percent compared to last year, amounting to SEK 4,359 M (4,803). Tonnage in business area Sweden & Poland was below last year by 10 percent while Finland & Baltics delivered 9 percent less than last year. Price and mix effects negatively impacted net sales by 1 percent, which was partly compensated by positive currency effects of 2 percent. Inventory losses of SEK -6 M (27) affected the period.

Gross profit amounted to SEK 605 M (669), with a gross margin of 13.9 percent (13.9). However, adjusted for inventory gains and losses and items affecting comparability, the gross margin increased to 14.0 percent (13.4).

The operating result amounted to SEK 88 M (132), mainly due to negative organic tonnage growth of 10 percent and net sales decrease of 9 percent. Sales and administration expenses are SEK 10 M lower than last year. Adjusted for inventory gains and losses and items affecting comparability, the underlying operating result amounted to SEK 94 M (117). The operating margin amounted to 2.0 percent (2.8) and the underlying operating margin was 2.1 percent (2.4).

The Group´s sales growth and underlying operating result per quarter
The Group´s gross margin and gross profit per quarter