Compared with revenue for the corresponding period in the preceding year including Swedol for the entire reporting period (MSEK 4,656), revenue increased by 5 percent.*
POSITIVE PERFORMANCE CONTINUES FOR THE GROUP'S OPERATIONS
Most of the Group's operations delivered a positive sales and earnings performance during the second quarter after a more hesitant start to the financial year. EBITA for the entire Group increased by 38 percent during the quarter. Many of the Group's customers have also indicated that they are optimistic about the outlook for the rest of the year, which hopefully indicates continued increases in volumes going forward. At the same time, the efficiency measures we have taken, and are continuing to take as needed, have a positive contribution to our earnings performance and we are continuing to generate strong cash flows. This provides us with favourable conditions for continued profitable growth.
The integration between TOOLS and Swedol in the business area Alligo continues with an undiminished focus, with the aim of achieving our goals in terms of synergies and economies of scale over time. The establishment of a joint product range with new purchasing agreements and the introduction of proprietary product brands in additional businesses within the business area, along with the coordination of stores, are proceeding according to plan.
In the business area Components & Services, we are continuing our efforts to achieve acquisition-driven growth (while maintaining profitability) and the four acquisitions we completed during the first quarter are now integrated in the business area and contribute to sales and earnings performance. We are already seeing interesting collaboration opportunities between these newly acquired companies and our existing operations. During the quarter, a new organisational structure was implemented to strengthen our focus on growth, both organic and through acquisitions.
PRIORITIES FOR THE FUTURE
Despite the positive signals from our customers and suppliers, uncertainty continues in our operating environment and in the Group's markets. We are seeing this in the form of the effect on demand, prices and supply chains. There is currently a surplus demand for certain product areas which, in combination with a shortage of materials and disruptions to the global logistics chain, leads to a significant increase in prices within a number of areas and for raw materials and transportation. Our decentralised profit responsibility, proximity to customers and ability to quickly adapt to changes in our operating environment remain the key to our success.
The Group's priorities for the coming quarter include securing our own ability to deliver products to our customers through proactive procurement and analyses. We continue to take appropriate measures in our operations, focus on the coordination project and realising synergies within the business area Alligo and to increase sales to new and existing customers in our daily work. In the business area Components & Services, we are also focusing on establishing contacts with and visiting potential acquisition candidates.
In addition to these priorities, as previously announced, the Board has assigned Group management the task of investigating the possibility of splitting the Group into two separate listed companies. The purpose is to strengthen each business area's conditions for achieving its ambitions in the best possible way and thereby creating increased shareholder value. The Board intends to present further information on the results of the investigation during the financial year.
Stockholm, July 2021
President & CEO
Presentation of the Interim Report - 6 months 2021
Investors, analysts and media are welcome to participate in a webcast conference call in which CEO & President Ulf Lilius, CFO Niklas Enmark and Business Area Manager Clein Johansson Ullenvik will present the Report and answer any subsequent questions. The presentation will be held in English.
Time: Thursday, 15 July 2021 at 11:00 a.m. CEST.
Web link: https://financialhearings.com/event/13464.
Telephone no: SE +46 8 505 583 53 / UK +44 33 330 090 30 / US +1 83 324 984 05
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32
The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CEST on 15 July 2021.
This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.
Momentum Group is a leading reseller of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 9,5 billion and approximately 2,700 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.