2015-08-06 08:00:04 CEST
2015-08-06 08:00:08 CEST
REGULATED INFORMATION
Wulff-Yhtiöt Oyj - Interim report (Q1 and Q3)
WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – JUNE 30, 2015
Operating result without non-recurring items turned positive
This is a summary of Wulff Group Plc's interim report for January-June 2015.
Wulff Group's interim report for January-June 2015 is attached as a PDF file
to this stock exchange release and is also available on the company's website
at the address http://www.wulff.fi/en/wulff+group+plc/home/.
JANUARY - JUNE 2015 BRIEFLY
-- Net sales totalled EUR 35.4 million (EUR 37.3 million). Net sales decreased
by 5.0 percentages from the previous year.
-- EBITDA without non-recurring items was EUR 0.8 million (EUR 0.1 million).
EBITDA was EUR 0.6 million (EUR 0.1 million).
-- Operating profit (EBIT) without non-recurring items amounted to EUR 0.5
million (EUR -0.4 million). Operating profit (EBIT) without non-recurring
items increased by EUR 0.9 million in the first half of the financial year.
Operating profit (EBIT) was EUR -0.4 (EUR -0.4 million).
-- Earnings per share (EPS) without non-recurring items were EUR 0.07 (EUR
-0.06). Earnings per share (EPS) were EUR -0.14.
-- Equity-to-assets ratio increased to 44.3 percentages during the first half
of the financial year (December 31, 2014: 39.5 %).
-- Wulff Group sold its business and advertising gifts business in May 2015 to
IDÉ House of Brands Finland Oy for the price of EUR 0.8 million. As a
result of the sale the Group booked non-recurring write-downs of EUR -0.9
million.
-- The operating profit (EBIT) without non-recurring items for 2015 is
estimated to be positive.
January - January - April - April -
June 2015 June 2014 June 2015 June 2014
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Net sales, EUR million 35.4 37.3 16.3 17.5
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Operating profit without 0.5 -0.4 0.3 -0.4
non-recurring items, EUR
million
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Operating profit, EUR million -0.4 -0.4 -0.6 -0.4
--------------------------------------------------------------------------------
Profit/loss before taxes, EUR -0.5 -0.6 -0.7 -0.6
million
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EPS, EUR -0.14 -0.06 -0.12 -0.07
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EPS without non-recurring 0.07 -0.06 0.04 -0.07
items, EUR
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WULFF GROUP'S CEO HEIKKI VIENOLA
Wulff Group's CEO Heikki Vienola:
“During the interim period, Wulff focused even more on its core business. As
per its strategy, Wulff continued to sell operations that are not part of its
core business and the business and advertising gifts business was sold. The
negative effect of this action on the result in the second quarter of the year
was approximately 0.9 million euros. In the long run, the sale of the business
and advertising gifts business is expected to improve the Groups' result and
cash flow.
In an unstable economic environment, it is especially pleasing to achieve
positive economic development. When the company's course is steady and its
operations strategic and developed with the customer in mind, the positive
effects can also be seen in the result. Our cash flow from operating activities
was positive during the second quarter. Our equity-to-assets ratio has risen
and our net debt with interest is notably smaller than last year. Our financial
position is also stronger than before and the successful cost-saving measures
that were started in 2013 have created a good base for the continuous
development of our business and strengthening our competitive position.
August 23rd is a special day for Wulff, our customers, and cooperation
partners. We will celebrate our 125th year then. Few companies can say that
they have survived two world wars, a great depression, and numerous shifts in
the markets. Wulff can. One of the most important reasons for our success is -
and always has been - the easiness of buying. It is important to know your
customers and know what goods and services they need and how they want to
acquire them. Through our different sales channels, the Group is a flexible and
efficient partner to businesses of all sizes: we have a non-exclusive webstore
Wulffinkulma.fi, a Contract Customers Division, regional sales professionals
and stores.”
GROUP'S NET SALES AND RESULT PERFORMANCE
In January-June 2015 net sales totalled EUR 35.4 million (EUR 37.3 million),
and EUR 16.3 million (EUR 17.5 million in the second quarter. In January-June
EBITDA was EUR 0.6 million (EUR 0.1 million) being 1.8 percentages (0.3 %) of
net sales, and EUR 0.3 million (EUR -0.2 million) in the second quarter. The
second quarter EBITDA was affected by non-recurring inventory and fixed assets
write-downs of EUR 0.2 million caused by the business and advertising gifts
business sale in May 2015. In January-June 2015 EBITDA without non-recurring
items was EUR 0.8 million (EUR 0.1 million), and EUR 0.5 million (EUR -0.2
million) in the second quarter.
In January-June 2015 the operating profit (EBIT) amounted to EUR -0.4 million
(EUR -0.4 million) being -1.3 percentages (-1.0 percentages) of net sales, and
EUR -0.6 million (EUR -0.4 million) in the second quarter. The first half year
period EBIT was affected by non-recurring inventory and fixed assets
write-downs of EUR 0.2 million related to the business and advertising gifts
business sale and a non-recurring goodwill write-down of EUR 0.7 million
related to the business and advertising gifts business sale. In January-June
2015 the operating profit (EBIT) without non-recurring items amounted to EUR
0.5 million (EUR -0.4 million). The operating profit (EBIT) without
non-recurring items improved by EUR 0.9 million in January-June 2015, which was
mainly achieved by systematically executing cost-saving measures. Typically in
the industry and in the Group, the annual profit is made in the last quarter of
the year.
In January-June 2015 employee benefit expenses amounted to EUR 7.2 million (EUR
8.4 million), and EUR 3.5 million (EUR 4.1 million) in the second quarter.
Other operating expenses amounted to EUR 4.2 million (EUR 4.8 million) in
January-June 2015, and EUR 1.9 million (EUR 2.4 million) in the second quarter.
Employee benefit and other operating expenses were still affected by the
implemented successful cost-saving measures. To improve its profitability, the
Wulff Group continues to examine its cost structure as part of ongoing reforms.
In January-June 2015 the financial income and expenses totalled (net) EUR -0.03
million (EUR -0.2 million) including interest expenses of EUR 0.1 million (EUR
0.05 million) and mainly currency-related other financial items (net) EUR 0.07
million (EUR -0.1 million). In the second quarter the financial income and
expenses (net) totalled EUR -0.03 million (EUR -0.2 million).
In January-June 2015 the result before taxes was EUR -0.5 million (EUR -0.6
million), and EUR -0.7 million (EUR -0.6 million) in the second quarter. In
January-June 2015 the result before taxes and non-recurring items was EUR 0.4
million (EUR -0.6 million), and EUR 0.2 million (EUR -0.6 million) in the
second quarter.
In January-June 2015 the net profit was EUR -0.9 million (EUR -0.5 million),
and EUR -0.7 million (EUR -0.5 million) in the second quarter. The net profit
was impacted by a write down of deferred tax receivables of EUR 0.3 million in
January-March 2015. In January-June 2015 the net profit without non-recurring
items was EUR 0.2 million (EUR -0.5 million), and EUR 0.2 million (EUR -0.5
million) in the second quarter.
Earnings per share (EPS) was EUR -0.14 (EUR -0.06) in January-June 2015, and
EUR -0.12 (EUR -0.07) in the second quarter. Earnings per share (EPS) without
non-recurring items was EUR 0.07 (EUR -0.06) in January-June and EUR 0.04 (EUR
-0.07) in the second quarter.
KEY FIGURES
II II I-II I-II I-IV
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EUR 1000 2015 2014 2015 2014 2014
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Net sales 16 265 17 515 35 439 37 290 74 262
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Change in net sales, % -7,1 % -15,6 % -5,0 % -14,2 % -11,1 %
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EBITDA 252 -167 633 122 2 096
--------------------------------------------------------------------------------
EBITDA margin, % 1,5 % -1,0 % 1,8 % 0,3 % 2,8 %
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Operating profit/loss -631 -418 -446 -387 1 109
--------------------------------------------------------------------------------
Operating profit/loss margin, % -3,9 % -2,4 % -1,3 % -1,0 % 1,5 %
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Profit/Loss before taxes -656 -574 -475 -627 478
--------------------------------------------------------------------------------
Profit/Loss before taxes margin, % -4,0 % -3,3 % -1,3 % -1,7 % 0,6 %
--------------------------------------------------------------------------------
Net profit/loss for the period -796 -425 -886 -412 696
attributable to equity holders of
the parent company
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Net profit/loss for the period, % -4,9 % -2,4 % -2,5 % -1,1 % 0,9 %
--------------------------------------------------------------------------------
Earnings per share, EUR (diluted = -0,12 -0,07 -0,14 -0,06 0,11
non-diluted)
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Return on equity (ROE), % -5,7 % -3,8 % -7,2 % -4,2 % 4,4 %
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Return on investment (ROI), % -4,0 % -2,5 % -2,0 % -2,5 % 3,5 %
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Equity-to-assets ratio at the end of 44,3 % 37,4 % 44,3 % 37,4 % 39,5 %
period, %
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Debt-to-equity ratio at the end of 39,3 % 70,2 % 39,3 % 70,2 % 36,9 %
period
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Equity per share at the end of 1,74 1,79 1,74 1,79 1,95
period, EUR *
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Net cash flow from operating 1 287 -564 -36 -2 183 -205
activities
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Investments in non-current assets 44 162 138 400 488
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Investments in non-current assets, % 0,3 % 0,9 % 0,4 % 1,1 % 0,7 %
of net sales
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Treasury shares held by the Group at 79 000 79 000 79 000 79 000 79 000
the end of period
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Treasury shares, % of total share 1,2 % 1,2 % 1,2 % 1,2 % 1,2 %
capital and votes
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Number of total issued shares at the 6 607 6 607 6 607 6 607 6 607
end of period 628 628 628 628 628
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Personnel on average during the 247 282 236 282 268
period
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Personnel at the end of period 233 269 233 269 240
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* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is strongly affected by the general economic
development. During the economic downturn, organizations' personnel lay-offs
and cost-saving initiatives affect the purchasing behavior of corporate
customers. During uncertain economic periods, corporations may also minimize
attending fairs. As the ongoing economic uncertainty continues, the cost saving
measures will have an effect on the ordering behavior of corporate customers
and therefore Wulff must adapt to the developing market situation if needed.
Half of the Group's net sales come from other than euro-currency countries.
Fluctuation of the currencies affect the Group's net result, however the effect
of the fluctuation is expected to be moderate.
EVENTS AFTER THE REPORTING PERIOD
Wulff Group Plc board member Sakari (Saku) Ropponen has passed away on July 30,
2015. Due to the incident, Wulff Group Plc's Board of Directors has convened
and restructured. Sakari Ropponen's responsibilities have been divided to the
other board members for now.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Wulff's mission is to
help its corporate customers to succeed in their own business by providing them
with leading-edge products and services in a way best suitable to them. The
markets have been consolidating in the past few years and the Nordic markets
are expected to consolidate in the future as well. Wulff is prepared to carry
out new strategic acquisitions.
Wulff estimates the market situation to remain unchanged. Therefore it is
important to continue to implement the cost structure and improve the
efficiency of the operations. Wulff's goal is to further improve the
profitability of its businesses.
Wulff updated the outlook for 2015 in May 18, 2015. Wulff estimates the
operating profit (EBIT) without non-recurring items for 2015 to be positive. In
the interim report January 1 - June 30, 2015 Wulff estimated the operating
profit (EBIT) for 2015 to be positive.
Wulff estimates the 2015 operating profit to be positive. Typically, in the
industry, the annual profit and cash flow are made in the last quarter of the
year.
WULFF GROUP PLC'S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2015:
Interim Report, January-September 2015 Thursday November 5, 2015
In Vantaa on August 5, 2015
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
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