Wulff-Yhtiöt Oyj - Interim report (Q1 and Q3)

Wulff Group Plc's Interim Report January-March 2024: Wulff reports a fair performance in a weak economy

INTERIM REPORT | APRIL 22, 2024 AT 9.30 A.M.

This is a summary of Wulff Group Plc's Interim Report January-March 2024. The
complete report is attached to this stock exchange release as a pdf-file. The
report is also available at the website www.wulff.fi

JANUARY-MARCH 2024 BRIEFLY

  · Net sales totalled EUR 23.3 million (25.3), decreasing by 7.8 %
  · EBITDA was EUR 0.9 million (1.4), and comparable EBITDA was EUR 1.1 million
(1.4)
  · Operating profit (EBIT) was EUR 0.4 million (0.9), and comparable operating
profit (EBIT) was EUR 0.6 million (0.9)
  · Earnings per share (EPS) was EUR 0.03 (0.08) and comparable earnings per
share (EPS) was EUR 0.06 (0.08)
  · The equity ratio was 42.0% (41.6)

 FINANCIAL GUIDANCE 2024 (UNCHANGED)

Wulff estimates that net sales will increase, and that the comparable operating
profit will remain at a good level in 2024.

The guidance is based on management's assessment of the market and business
situation in Finland and Scandinavia. In particular, service businesses are
expected to grow from 2023. Key uncertainties affecting the outlook are the
development of inflation and interest rates as well as geopolitical crises and
tensions.

key figures

EUR 1000                                         Q1/2024  Q1/2023  2023
Net sales                                        23 279   25 252   93 782
Change in net sales, %                           -7.8%    -1.4%    -8.2%
EBITDA                                           889      1 417    5 110
EBITDA margin, %                                 3.8%     5.6%     5.4%
Comparable EBITDA                                1 065    1 417    5 470
Comparable EBITDA margin, %                      4.6%     5.6%     5.8%
Operating profit/loss                            390      909      3 170
Operating profit/loss margin, %                  1.7%     3.6%     3.4%
Comparable operating profit/loss                 566      909      3 530
Comparable operating profit/loss margin, %       2.4%     3.6%     3.8%
Comparable profit/loss before taxes              251      676      2 492
Comparable profit/loss before taxes margin, %    1.1%     2.7%     2.7%
Net profit/loss for the period attributable to   201      561      2 087
equity holders of the parent company
Net profit/loss for the period, %                0.9%     2.2%     2.2%
Comparable net profit/loss for the period        377      561      2 446
attributable to equity holders of the parent
company
Comparable net profit/loss for the period, %     1.6%     2.2%     2.6%
Earnings per share, EUR (diluted = non-diluted)  0.03     0.08     0.31
Comparable earnings per share, EUR (diluted =    0.06     0.08     0.36
non-diluted)
Cash flow from operating activities              -739     -1 405   4 560
Return on equity (ROE), %                        0.2 %    2.8%     9.9%
Return on investment (ROI), %                    0.9 %    2.4%     9.0%
Equity-to-assets ratio at the end of period, %   42.0%    41.6%    45.5%
Debt-to-equity ratio at the end of period        66.6%    68.4%    52.5%
Investments in non-current assets                494      451      1 649
Personnel on average during the period           263      275      262

WULFF GROUP PLC'S CEO ELINA RAHKONEN

Although our net sales decreased slightly, we are satisfied with that the
beginning of the year has started according to expectations and our position as
a partner in selected industries, for example in the care industry, has
strengthened.

In the beginning of the year, the net sales was affected by the general
sluggishness of the market both in Finland and Scandinavia. Our growth continued
strongly in our service business operations: staff leasing, accounting and
financial management services and Wulff Entre's international exhibition
services and in the sale of remote meeting solutions. I am especially happy that
the January-March start of Wulff Works, a staff leasing business that started at
the beginning of the year, has gone according to expectations.

We changed our reporting structure from the beginning of 2024 to better
highlight the development of the company's various businesses. The new reporting
structure consists of two reportable segments: Worklife Services and Products
for Work Environments.

The Worlife Services Segment includes exhibition, event, and space design
services both internationally and domestically, solutions and services for
office and professional printing and document management, accounting and
financial management services, and staff leasing services. The Products for Work
Environments Segment consists of the business of workplace products and services
in Finland and Scandinavia. The new reporting structure supports monitoring the
development of an important part of our strategy, i.e the growing service
business.

We have a good business strategy, we are committed to our guidance, and we
expect our net sales to grow and the comparable operating profit to remain at a
good level. I'm proud of how important it is for everyone in Wulff to inluence
the development of our business in becoming even more responsible and in
offering the best customer service in the industry. Wulff's strong sales culture
is also appreciated by our customers and partners: we are trusted as the best in
the industry and as the most expert distribution channel.

GROUP'S NET SALES AND RESULT PERFORMANCE

In January-March 2024 net sales totalled EUR 23.3 million (25.3). Net sales
decreased by 7.8% (1.4). Worklife Services Segment's net sales increased by
50.8%. The growth in net sales was influenced by the strong performance of the
new staff leasing business and Wulff's accounting and financial management
services business growth. The acquisition of Tilitoimisto Lundström Oy and its
subsidiary Sandström & Lundström Oy implemented in February 2024 increased net
sales by EUR 0.2 million. Products for Work Environments Segment's net sales
decreased by 9.9%, excluding the effect of the Scandinavian Expertise Sales sold
in autumn 2023. Net sales decreased both in Finland and in Scandinavia.

The gross margin amounted to EUR  7.1 million (7.8) being 30.3% (30.7) of net
sales in January-March 2024. The development of relative sales margin was
affected by the changes in the focus areas of demand for the products sold by
Wulff. There were no disturbances in the availability of products during the
reporting period. After price inflation leveled off, geopolitical tensions
continue to cause cost pressure throughout the supply chain.

In January-March 2024 employee benefit expenses amounted to EUR 4.3 miljoonaa
euroa (4.6) being 18.4% (18.1) of net sales. Personnel costs increased in
relation to turnover by 0.3% units due to Wulff's change negotiations that took
place during the reporting period, which resulted in non-recurring cost of EUR
0.2 million. The one-time expense has been removed from the comparable result.

Other operating expenses amounted to EUR 1.9 million (1.8) in January-March 2024
being 8.2% (7.1) of net sales. The change in other operating expenses in
relation to net sales comes from the growth in the Worklife Services Segment.

In January-March 2024 EBITDA amounted EUR 0.9 million (1.4), or 3.8% (5.6) of
net sales. Comparable EBITDA amounted to EUR 1.1 million (1.4), or 4.6% (5.6) of
net sales. Operating profit (EBIT) amounted to EUR 0.4 million (0.9), or 1.7%
(3.6) of net sales. Comparable operating profit (EBIT) amounted to EUR 0.6
million (0.9), or 2.4% (3.6) of net sales.

In January-March 2024, the financial income and expenses totalled (net) EUR -0.3
million (-0.2), including interest expenses of EUR -0.2 million (-0.2), and
mainly currency-related other financial items (net) totalled EUR -0.1 million (
-0.1). Financial expenses were EUR 0.1 million higher than the comparison period
due to the rise in interest rates.

In January-March 2024 the result before taxes was EUR 0.1 million (0.7), and the
comparable result before taxes was EUR 0.3 million (0.7).

The net profit was EUR 0.1 million (0.6) and comparable net profit was EUR 0.2
million (0.6).

Earnings per share (EPS) were EUR 0.03 (0.08) and comparable (EPS) were 0.06
(0.08) in January-March 2024.

SUBSEQUENT EVENTS

Wulff Group Plc's Annual General Meeting was held in the Wulff house in Espoo on
April 4, 2024. More has been said about the decisions of the meeting in the
report in ”Decisions of the Annual General Meeting and Board of Directors”. The
Group has not had any other significant subsequent events.

WULFF GROUP PLC'S FINANCIAL REPORTING

Wulff Group Plc will release the following financial reports in 2024:

Half-Year Report January-June 2024                      Thursday July 18, 2024

Interim Report January-September 2024                Monday October 21, 2024

In Espoo on April 22, 2024

WULFF GROUP PLC
BOARD OF DIRECTORS

Further information:
CEO Elina Rahkonen
tel. +358 40 647 1444
e-mail: elina.rahkonen@wulff.fi

DISTRIBUTION
Nasdaq Helsinki Oy
Key media
www.wulff.fi/en


A better world - one workplace at a time. We enable better and more sustainable
work environments and a perfect working day. We make the workplace where you do
your work. Here you can find today's workplace products: e.g. cafe supplies,
real estate and cleaning maintenance products, office and IT supplies,
ergonomics, first aid, hygiene, protection and safety products, air
purification, and innovative products for construction sites. Our selection also
includes high-quality Canon printing and document management services as well as
financial management services. Our customers also purchase international
exhibition services and solutions for remote meetings from us. It is important
for us to constantly develop our product range to be more and more sustainable
and our customer experience to be the best in the field. Staff leasing is one of
our newest service additions. In addition to Finland, Wulff Group operates in
Sweden, Norway, and Denmark.

Attachments:

04225000.pdf