Compared with revenue for the corresponding quarter in the preceding year including Swedol (MSEK 2,258), revenue declined by 10 percent.*
2020 - A YEAR OF CHALLENGES AND OPPORTUNITIES
The first six months of the 2020 financial year for the Momentum Group were characterised by the integration of TOOLS and Swedol as well as the challenges entailed by the ongoing COVID-19 pandemic for us, our employees and our customers.
Sales and earnings performance during the reporting period
The general demand situation over the past quarters was characterised by restraint and caution among customers in all of our main markets in the Nordic region, although with some variations between customer segments and countries. Revenue for the Group declined by a total of approximately 8 percent during the reporting period compared with the preceding year (for comparable entities including Swedol), with the negative sales trend due primarily to the pandemic.
Measures already implemented to increase efficiency and raise margins have yielded a stable earnings performance for the business area Components & Services, which exceeded the preceding year's performance with an EBITA margin of over 13 percent. EBITA for the business area Tools, Consumables, Workwear & Protective Equipment decreased by 18 percent during the period compared with the preceding year (including Swedol) and the business area is working on initiatives to improve sales and efficiency. Within the framework for the integration of TOOLS and Swedol, the business area's operating profit for the second quarter of 2020 has been charged with a restructuring reserve totalling MSEK 97 pertaining to non-recurring costs for store and product range coordination, etc. This reserve had no effect on the cash flow.
The Group's cash flow from operating activities improved during the period, despite the turbulent operating environment.
New Group structure creates opportunities for the future
We are continuing to focus on what we can affect in our daily operations and the decentralised earnings responsibility entails, for example, that local measures are taken if and where needed. At the same time, the acquisition of Swedol and the new Group structure with two operationally independent business areas is creating new, interesting opportunities for the future.
Stockholm, October 2020
President & CEO
Presentation of the Interim Report - 6 months 2020
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 current status for the integration of Swedol and answer any subsequent questions. The presentation will be held in English.
Time: Friday, 23 October 2020 at 11:00 a.m. CET.
Web link: https://financialhearings.com/event/12837.
Telephone no: SE +46 8 505 583 73 / UK +44 33 330 092 73 / US +1 84 462 515 70
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 23 October 2020.
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.