Compared with EBITA for the corresponding period in the preceding year including Swedol (MSEK 547), EBITA declined by 12 percent while the EBITA margin amounted to 7.1 percent (7.4).*
* ACQUISITION OF SWEDOL CLOSED AS OF 1 APRIL 2020
Momentum Group's acquisition of Swedol was completed during spring 2020 and closed on 1 April 2020. Any instances where the comparative figures in this report include Swedol for the period prior to the closing date on 1 April 2020 are specifically noted. The bases for the financial history including Swedol are presented in a separate press release dated 24 June 2020 - Supplementary financial information relating to the 2019/20 financial year for the Momentum Group.
AN EVENTFUL AND CHALLENGING YEAR
As we at Momentum Group reflect on another financial year (shortened to 9 months ahead of the transition to the calendar year as our financial year) - our fourth as an independent listed company - it was a year filled with both challenges and future opportunities. As was the case for all businesses and societies across the world, the COVID-19 pandemic and its effects dominated our year 2020. From March 2020 onwards, we have worked with intensity and focus to maintain our operations and profitability by delivering on our customer promises in a safe manner and by making continuous adjustments to the Group and all our operations to adapt to the "new normal" through central and local initiatives. Where possible, we transitioned to remote working and to digital meetings, seminars and training courses with customers and suppliers. The general demand situation was characterised by restraint and caution in all of our main markets in the Nordic region, although with certain variations between customer segments and countries, with the most significant impact experienced in Norway. Sales gradually stabilised during the year, and the Group's operations experienced a certain level of recovery during the final quarter. In summary, we thus succeeded in maintaining our profitability and generated significantly higher cash flow from the operations in 2020, leading to a strong financial position for the Group. This provides us with favourable conditions for continued profitable growth, both organically and through acquisitions.
In the business area Tools, Consumables, Workwear & Protective Equipment, the integration of TOOLS and Swedol was in focus during the year, and in accordance with our plans we launched a new shared organisation, started the integration of stores, negotiated joint purchasing agreements and began the introduction of proprietary brands in several parts of the business area. In parallel, this new, strong business area's sales initiatives have resulted in a number of new customer agreements that will contribute positively to future development.
We established a strategic approach focused on acquisition-driven growth in the business area Components & Services and, in early February 2021, had the pleasure of announcing no less than four acquisitions generating total annual revenue of approximately MSEK 285, with favourable profitability. We will continue to evaluate attractive acquisition opportunities with the aim of further strengthening our market positions.
Our Group structure creates opportunities for the future
Much of the uncertainty concerning the effects of the pandemic remain as we head into the coming quarters. We are therefore continuing to focus on what we can affect in our daily operations in order to achieve increased sales and efficiency - with our decentralised earnings responsibility entailing that local measures are taken if and where needed. At the same time, our Group structure with two operationally independent business areas is creating new, interesting opportunities for the future.
In conclusion, I would like to extend my sincere thanks to all of our dedicated employees for your many outstanding contributions during this particularly challenging year - and to our customers and business partners for your continued confidence. We will continue along the path we have established, with a focus on earnings growth in our existing units, reduced funds tied up in working capital and corporate acquisitions in order to increase profitability.
Stockholm, February 2021
President & CEO
Presentation of the Financial Report - 9 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, 18 February 2021 at 11:00 a.m. CET.
Web link: https://financialhearings.com/event/12838.
Telephone no: SE +46 8 566 427 04 / UK +44 33 330 092 61 / US +1 83 382 305 87
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. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 18 February 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.