2013-05-08 08:00:03 CEST
2013-05-08 08:00:08 CEST
REGULATED INFORMATION
Wulff-Yhtiöt Oyj - Interim report (Q1 and Q3)
Wulff Group Plc’s Interim Report for January 1 – March 31, 2013
Market Situation Remained Difficult, Net Sales and Operating Profit at last
year's level
WULFF GROUP PLC
INTERIM REPORT May 8, 2013 at 9:00 A.M.
WULFF GROUP PLC'S INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2013
Market Situation Remained Difficult, Net Sales and Operating Profit at last
year's level
-- In January-March 2013, the net sales totalled EUR 22.7 million (EUR 23.3
million).
-- EBITDA was EUR 0.41 million (EUR 0.48 million) being 1.8 percentages (2.0
%) of net sales.
-- The operating profit (EBIT) amounted to EUR 0.12 (EUR 0.22 million) being
0.5 percentages (0.9 %) of net sales.
-- Earnings per share (EPS) was EUR 0.00 (EUR 0.03).
-- Equity-to-assets ratio was 44.2 percentages (December 31, 2012: 44.3 %).
-- Equity per share rose up to EUR 2.53 (December 31, 2012: EUR 2.51).
GROUP'S NET SALES AND RESULT PERFORMANCE
In January-March 2013 the net sales totalled EUR 22.7 million (EUR 23.3
million) and EBITDA was EUR 0.41 million (EUR 0.48 million) being 1.8
percentages (2.0 %) of net sales. The operating profit (EBIT) amounted to EUR
0.12 (EUR 0.22 million) being 0.5 percentages (0.9 %) of net sales. The general
economic situation remained difficult which impacted the demand in the markets.
The Group continues to review its expense structure and optimise its operations
to improve the profitability of its businesses.
Wulff Group's CEO Heikki Vienola: “In the beginning of 2013 the market
situation has remained difficult as it was also last year. Due to the
seasonality of the business and promotional gift sales the majority of our
annual profit is generated in the second and the last quarter of the year. When
large companies and groups adjust their operations with e.g. personnel layoffs,
it impacts also the demand for Wulff's products and services. In a difficult
market situation it takes courage to focus on the strategy. This year we have
invested strongly in personnel training and coaching. We want to serve our
customers in the best possible way and we are able to do so when our
personnel's knowledge is the best in the industry. For Wulff it has always been
important to be the industry pioneer bringing the newest and the most modern
solutions first to its customers. Our customers want to be served through many
channels and that is why we constantly develop our sales channels and ways to
meet and serve our customers in their daily routines. Various web services
together with personal service are today's solutions. Our theme for 2013 is
“Professional care for customers and personnel alike”. I believe our customers
notice this as a better customer service experience.”
In January-March the financial income and expenses totalled (net) EUR -0.06
million (EUR +0.01 million) including dividend income of EUR 0.01 million (EUR
0.02 million), interest expenses of EUR 0.05 million (EUR 0.08 million) and
mainly currency-related other financial items (net) EUR -0.02 million (EUR
+0.06 million).
In January-March the result before taxes was EUR 0.06 million (EUR 0.22
million) and the net profit after taxes was EUR 0.05 million (EUR 0.18
million). Earnings per share (EPS) was EUR 0.00 (EUR 0.03).
Return on investment (ROI) was 0.4 percentages (1.1 %) and return on equity
(ROE) was 0.3 percentage (1.0%).
CONTRACT CUSTOMERS DIVISION
The Contract Customers Division is the customer's comprehensive partner in the
field of office supplies, IT supplies, business and promotional gifts as well
as international fair services. In January-March the division's net sales
totalled EUR 19.5 million (EUR 19.6 million) and operating profit was EUR 0.5
(EUR 0.5 million).
The general economic situation and the decrease in the products' demand have
led to the decrease in net sales. The Group's webstore Wulffinkulma.fi has
shown good growth and profit increase, and it is an important investment for
the future bringing quick results. According to the strategy, Wulff has
developed the Wulff brand, sales channels and the whole service range to be
more versatile and ecological. Wulffinkulma stores serve local small and
medium-sized corporate customers, entrepreneurs and consumers. For the first
time, the stores e.g. exhibit the Group's entire product range, Wulff's Green
products and recycling centres. The stores exhibit also seasonal business
gifts. The Contract Customers Division's result is affected by the cycles of
the business and promotional gift market: the majority of the products are
delivered and the majority of the annual profit is generated in the second and
the last quarter of the year.
The net sales and profitability of Wulff's Scandinavian operator Wulff Supplies
AB have remained at a good level and the company has managed to attract new
contract customers constantly. Today almost 50 percent of the Group's net sales
come from Scandinavia and Wulff's position in the Scandinavian market continues
to strengthen. Wulff Supplies has been a successful investment in serving
Wulff's Scandinavian and pan-Nordic customers.
International fair services are an even more significant part of Wulff's
business. Wulff Entre's investments in sales and its development have resulted
in both stronger customer relationships and an increase in clientele. In the
first quarter Wulff Entre succeeded in winning new customers and improving its
net sales and profit.
In 2013 Wulff Entre exports Finnish companies' know-how to more than 30
countries. Wulff Entre is the market leader in its field in Finland and there
has been a solid trust in Wulff Entre's ability to find the right international
venues for over 90 years.
DIRECT SALES DIVISION
The Direct Sales Division aims to improve its customers' daily operations with
innovative products as well as the industry's most professional personal and
local service. In January-March the division's net sales totalled EUR 3.3
million (EUR 3.7 million) and operating profit was EUR -0.09 (EUR -0.09
million).
The Division's profitability is improved by concentrating on profitable product
and service fields and by optimising the operations' efficiency. Wulff invests
strongly in the development of the product and service range and aims to
increase the synergy of the purchasing operations by group wide competitive
bidding and cooperation. Unifying the sales support systems and introducing the
new CRM program are important investments in the future.
Successful recruiting affects especially the performance of Direct Sales. New
sales personnel are being actively recruited by, for example, campaigning in
the social media and co-operating with the employment agencies. Wulff's own
introduction and training programmes ensure that every sales person gets both a
comprehensive starting training and further education on how to improve one's
own know-how. Wulff is prepared to employ even 100 new sales persons in Finland
and in Scandinavia. Wulff's sales growth is fuelled most importantly by the
talented sales personnel.
FINANCING, INVESTMENTS AND FINANCIAL POSITION
In January-March the cash flow from operating activities was EUR -1.9 million
(EUR -0.3 million). In this industry it is typical that the result and cash
flow are generated in the last quarter. A total of EUR 0.1 million less working
capital was tied in the inventories than a year ago.
For its fixed asset investments the Group paid a net of EUR 0.44 million (EUR
0.16 million) in January-March. The subsidiaries' non-controlling shareholders
were paid dividends of EUR 0.02 million (EUR 0.04 million). The Group paid EUR
0.03 million for the acquisition of non-controlling interests in Wulff Supplies
AB to the subsidiary's key personnel. The Group raised loans of net EUR 1.23
million in January March 2013 (EUR 0.10 million, net).
In general the Group's cash balance decreased by EUR 1.0 million in
January-March (EUR -0.5 million). The Group's bank and cash funds totalled EUR
2.7 million in the beginning of the year and EUR 1.7 million in the end of the
reporting period.
In the end of March 2013 the Group's equity-to-assets ratio was 44.2
percentages (December 31, 2012:
44.3 %). Equity attributable to the equity holders of the parent company
increased to EUR 2.53 per share (December 31, 2012: EUR 2.51).
SHARES AND SHARE CAPITAL
Wulff Group Plc's share is listed on NASDAQ OMX Helsinki in the Small Cap
segment under the Industrials sector. The company's trading code is WUF1V. In
the end of the reporting period the share was valued at EUR 1.90 (EUR 2.05) and
the market capitalization of the outstanding shares totalled EUR 12.4 million
(EUR 13.4 million).
In January-March 2013 no own shares were reacquired. In the end of March 2013,
the Group held 85,000 (March 31, 2012: 85,000) own shares representing 1.3
percentage (1.3 %) of the total number and voting rights of Wulff shares.
According to the Annual General Meeting's authorisation on April 10, 2013, the
Board of Directors decided in its organizing meeting to continue the
acquisition of its own shares, by acquiring a maximum of 300.000 own shares by
April 30, 2014.
After the end of the reporting period in April 2013, the parent company's
shareholders were paid a dividend of EUR 0.08 (EUR 0.07) per share, totalling
EUR 0.52 million (EUR 0.46 million) based on the decision made in the Annual
General Meeting on April 10, 2013.
PERSONNEL
In the first quarter of 2013 the Group's personnel totalled 326 (352) employees
on average. In the end of March the Group had 325 (345) employees of which 124
(137) persons were employed in Sweden, Norway, Denmark or Estonia.
The majority, approximately 60 percentages, of the Group's personnel works in
sales operations and approximately 40 percentages of the employees work in
sales support, logistics and administration. The personnel consists
approximately half-and-half of men and women.
Wulff has received plenty of positive feedback on the renewing of its training
and development programs. New development discussion models as well as bringing
the coaching leadership style and the ‘100-percent-responsibility' working
attitude to each organization level have a significant role in building a
well-being, developing and successful organization. The Group's own Wulff
Talent development program for the key personnel as well as the superior
training and the education of the entire personnel are important to Wulff:
these ensure that everyone understands the significance of their work and
influences customer work in a positive way. Important personnel themes for
2013, in addition to the company's values, are professional care for customers
and personnel alike, and giving feedback actively. The most important goal for
these training and education programs is to give the personnel skills that make
them better prepared for each customer appointment and to improve everyone's
self-management skills.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations'
personnel lay-offs and cost-saving initiatives made during the economic
downturn. The general uncertainty may still continue which will most likely
affect the ordering behaviour of some corporate clients.
Although the business gifts are seen increasingly as a part of the corporate
communications as a whole and they are utilized also in the off-season, some
cost savings may be sought after by decreasing the investments in the brand
promotion. The ongoing economic uncertainties impact especially the demand for
business and promotional gifts. During the uncertain economic periods, the
corporations may also minimize attending fairs.
Half of the Group's net sales come from other than euro-currency countries.
Fluctuation of the currencies affects the Group's net result and financial
position.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its industry. 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.
The Group continues taking actions for enhancing profitability. The Group
focuses on the growth and development of its sales operations. The Group
expects to win new customers and gain growth especially along with Wulff
Supplies AB in Scandinavia and with the webstore Wulffinkulma.fi in Finland. No
significant market changes are expected in 2013. The Group aims to improve
profitability through its own actions. Typically in the industry, the annual
profit is made in the last quarter of the year.
FINANCIAL REPORTING 2013
Wulff Group Plc will release the following financial reports in 2013:
Interim Report, January-June 2013 Tuesday August 6, 2013
Interim Report, January-September 2013 Tuesday November 5, 2013
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
INCOME STATEMENT I I I-IV
EUR 1000 2013 2012 2012
--------------------------------------------------------------------------------
Net sales 22 742 23 326 90 238
Other operating income 41 88 200
Materials and services -14 652 -14 884 -58 260
Employee benefit expenses -4 849 -5 072 -18 755
Other operating expenses -2 875 -2 983 -11 155
--------------------------------------------------------------------------------
EBITDA 407 476 2 269
Depreciation and amortization -287 -260 -1 136
--------------------------------------------------------------------------------
Operating profit/loss 120 216 1 132
Financial income 108 99 272
Financial expenses -164 -92 -413
--------------------------------------------------------------------------------
Profit/Loss before taxes 64 223 990
Income taxes -16 -44 -100
================================================================================
Net profit/loss for the period 48 179 890
Attributable to:
Equity holders of the parent company 29 174 717
Non-controlling interest 19 6 173
Earnings per share for profit
attributable to the equity holders
of the parent company:
Earnings per share, EUR 0,00 0,03 0,11
(diluted = non-diluted)
STATEMENT OF COMPREHENSIVE INCOME I I I-IV
EUR 1000 2013 2012 2012
--------------------------------------------------------------------------------
Net profit/loss for the period 48 179 890
Other comprehensive income which may be reclassified
to profit or loss subsequently (net of tax)
Change in translation differences 100 67 181
Fair value changes on available-for-sale investments -15 28 -22
Total other comprehensive income 85 95 159
--------------------------------------------------------------------------------
Total comprehensive income for the period 133 274 1 049
Total comprehensive income attributable to:
Equity holders of the parent company 96 239 839
Non-controlling interest 37 35 210
STATEMENT OF FINANCIAL POSITION March March Dec 31
31 31
EUR 1000 2013 2012 2012
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Goodwill 9 592 9 484 9 546
Other intangible assets 1 372 1 269 1 308
Property, plant and equipment 1 953 2 146 1 890
Non-current financial assets
Interest-bearing financial assets 34 88 43
Non-interest-bearing financial assets 299 405 327
Deferred tax assets 2 091 1 783 1 972
--------------------------------------------------------------------------------
Total non-current assets 15 341 15 174 15 085
Current assets
Inventories 10 100 10 337 10 236
Current receivables
Interest-bearing receivables 17 47 16
Non-interest-bearing receivables 14 619 15 940 13 350
Financial assets recognised at fair value through 3 68 78
profit/loss
Cash and cash equivalents 1 747 1 973 2 749
--------------------------------------------------------------------------------
Total current assets 26 486 28 364 26 429
================================================================================
TOTAL ASSETS 41 827 43 538 41 513
EQUITY AND LIABILITIES
Equity
Equity attributable to the equity holders of the
parent company:
Share capital 2 650 2 650 2 650
Share premium fund 7 662 7 662 7 662
Invested unrestricted equity fund 223 223 223
Retained earnings 5 947 5 701 5 849
Non-controlling interest 1 251 1 067 1 283
--------------------------------------------------------------------------------
Total equity 17 733 17 303 17 667
Non-current liabilities
Interest-bearing liabilities 5 782 7 238 6 008
Deferred tax liabilities 99 133 102
--------------------------------------------------------------------------------
Total non-current liabilities 5 880 7 371 6 109
Current liabilities
Interest-bearing liabilities 3 189 2 408 1 685
Non-interest-bearing liabilities 15 025 16 456 16 052
--------------------------------------------------------------------------------
Total current liabilities 18 214 18 864 17 737
================================================================================
TOTAL EQUITY AND LIABILITIES 41 827 43 538 41 513
STATEMENT OF CASH FLOW I I I-IV
EUR 1000 2013 2012 2012
--------------------------------------------------------------------------------
Cash flow from operating activities:
Cash received from sales 21 493 23 450 93 018
Cash received from other operating 45 16 65
income
Cash paid for operating expenses -23 180 -23 375 -89 063
--------------------------------------------------------------------------------
Cash flow from operating activities before financial -1 642 92 4 020
items and income taxes
Interest paid -54 -75 -169
Interest received 7 31 39
Income taxes paid -202 -360 -592
--------------------------------------------------------------------------------
Cash flow from operating activities -1 891 -312 3 297
Cash flow from investing activities:
Investments in intangible and -490 -325 -946
tangible assets
Proceeds from sales of intangible 46 165 269
and tangible assets
Disposal of other non-current 12
investments
Loans granted -2 -13
Repayments of loans receivable 33 4 8
--------------------------------------------------------------------------------
Cash flow from investing activities -413 -156 -670
Cash flow from financing activities:
Dividends paid -21 -40 -531
Dividends received 7 19 20
Payments for subsidiary share -33 -127 -129
acquisitions
Payments received for subsidiary 81
share disposals
Cash paid for (received from) 77 -11 -32
short-term investments (net)
Withdrawals and repayments of 1 762 235 -254
short-term loans
Withdrawals of long-term loans 355 355
Repayments of long-term loans -483 -487 -1 952
--------------------------------------------------------------------------------
Cash flow from financing activities 1 309 -57 -2 443
================================================================================
Change in cash and cash equivalents -995 -525 184
Cash and cash equivalents at the beginning of the 2 749 2 464 2 464
period
Translation difference of cash -7 34 101
Cash and cash equivalents at the end of the period 1 747 1 973 2 749
STATEMENT OF CHANGES IN EQUITY
EUR 1000 Equity attributable to equity holders of the parent company
Fund
for in
vested
non Trans Re Non
* net Share re lation tai cont
of pre strict diffe ned rollin
g
tax Share mium ed Own ren Earn inte
capita fund equity shares ces ings Total rest TOTAL
l
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -283 -116 5 860 15 996 1 198 17 195
Jan 1,
2012
Net profit 174 174 6 179
/ loss
for the
period
Other
comprehen
s.
income*:
Change in 37 37 30 67
translati
on diff
Fair value 28 28 28
changes
on
available-
for-sale
investment
s
--------------------------------------------------------------------------------
Comprehens 37 202 239 35 274
ive income
*
Dividends 0 -40 -40
paid
Treasury 11 -11 0 0
share
disposal
Share- 1 1 1
based
payments
Changes in 0 -127 -127
ownership
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -272 -79 6 052 16 237 1 067 17 303
March 31,
2012
Equity on 2 650 7 662 223 -283 -116 5 860 15 996 1 198 17 195
Jan 1,
2012
Net profit 717 717 173 890
/ loss
for the
period
Other
comprehen
s.
income*:
Change in 144 144 37 181
translati
on diff
Fair value -22 -22 -22
changes
on available-
for-sale
investment
s
--------------------------------------------------------------------------------
Comprehens 144 695 839 210 1 049
ive income
*
Dividends -457 -457 -77 -534
paid
Treasury 11 -11 0 0
share
disposal
Share- 5 5 5
based
payments
Changes in 0 -48 -48
ownership
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -272 28 6 093 16 384 1 283 17 667
Dec 31,
2012
Equity on 2 650 7 662 223 -272 28 6 093 16 384 1 283 17 667
Jan 1,
2013
Net profit 29 29 19 48
/ loss
for the
period
Other
comprehen
s.
income*:
Change in 81 81 19 100
translati
on diff
Fair value -15 -15 -15
changes
on
available-
for-sale
investment
s
--------------------------------------------------------------------------------
Comprehens 81 15 96 37 133
ive income
*
Dividends 0 -21 -21
paid
Share- 1 1 1
based
payments
Changes in 0 -49 -49
ownership
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -272 110 6 109 16 482 1 251 17 733
March 31,
2013
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT INFORMATION I I I-IV
EUR 1000 2013 2012 2012
-------------------------------------------------------------------
Net sales by operating segments
Contract Customers Division 19 487 19 573 76 250
Direct Sales Division 3 253 3 747 14 023
Group Services 202 293 1 079
Intersegment eliminations -201 -286 -1 114
===================================================================
TOTAL NET SALES 22 742 23 326 90 238
Operating profit/loss by operating segments
Contract Customers Division 466 504 2 041
Direct Sales Division -87 -94 -38
Group Services and non-allocated items -259 -194 -872
===================================================================
TOTAL OPERATING PROFIT/LOSS 120 216 1 132
KEY FIGURES I I I-IV
EUR 1000 2013 2012 2012
--------------------------------------------------------------------------------
Net sales 22 742 23 326 90 238
Change in net sales, % -2,5 % -7,6 % -9,0 %
EBITDA 407 476 2 269
EBITDA margin, % 1,8 % 2,0 % 2,5 %
Operating profit/loss 120 216 1 132
Operating profit/loss margin, % 0,5 % 0,9 % 1,3 %
Profit/Loss before taxes 64 223 990
Profit/Loss before taxes margin, % 0,3 % 1,0 % 1,1 %
Net profit/loss for the period attributable to equity 29 174 717
holders of the parent company
Net profit/loss for the period, % 0,1 % 0,7 % 0,8 %
Earnings per share, EUR (diluted = non-diluted) 0,00 0,03 0,11
Return on equity (ROE), % 0,27 % 1,04 % 5,11 %
Return on investment (ROI), % 0,42 % 1,11 % 4,67 %
Equity-to-assets ratio at the end of period, % 44,2 % 42,7 % 44,3 %
Debt-to-equity ratio at the end of period 40,4 % 43,6 % 27,6 %
Equity per share at the end of period, EUR * 2,53 2,49 2,51
Investments in non-current assets 465 311 972
Investments in non-current assets, % of net sales 2,0 % 1,3 % 1,1 %
Treasury shares held by the Group at the end of 85 000 85 000 85 000
period
Treasury shares, % of total share capital and votes 1,3 % 1,3 % 1,3 %
Number of total issued shares at the end of period 6607628 6607628 6607628
Personnel on average during the period 326 352 343
Personnel at the end of period 325 345 326
* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares
QUARTERLY KEY FIGURES I IV III II I
EUR 1000 2013 2012 2012 2012 2012
--------------------------------------------------------------------------------
Net sales 22 742 25 105 19 768 22 039 23 326
EBITDA 407 959 470 364 476
Operating profit/loss 120 637 174 106 216
Profit/Loss before taxes 64 525 184 58 223
Net profit/loss for the period 29 369 150 25 174
attributable to the equity holders of
the parent company
Earnings per share, EUR (diluted = 0,00 0,06 0,02 0,00 0,03
non-diluted)
RELATED PARTY TRANSACTIONS I I I-IV
EUR 1000 2013 2012 2012
-------------------------------------------------------------------------------
Sales to related parties 61 54 203
Purchases from related parties 50 5 80
Current non-interest-bearing receivables from related parties 21
Non-current interest-bearing receivables from related parties 78 33
Current non-interest-bearing liabilities to related parties 12
COMMITMENTS March 31 March 31 Dec 31
EUR 1000 2013 2012 2012
-------------------------------------------------------------------------------
Mortgages and guarantees on own behalf
Business mortgage for the Group's loan liabilities 7 550 7 550 7 550
Real estate pledge for the Group's loan liabilities 900 900 900
Subsidiary shares pledged as security 4 018 3 284 4 018
for group companies' liabilities
Other listed shares pledged as security 167 253 187
for group companies' liabilities
Current receivables pledged as security 266 263 272
for group companies' liabilities
Pledges and guarantees given for the 228 226 232
group companies' off-balance sheet
commitments
Guarantees given on behalf of third parties 98 161 114
Minimum future operating lease payments 5 847 5 844 6 033
Accounting principles applied in the condensed consolidated financial statements
These condensed consolidated financial statements are unaudited. This report
has been prepared in accordance with IAS 34 following the valuation and
accounting methods guided by IFRS principles. The accounting principles used in
the preparation of this report are consistent with those described in the
previous year's Financial Statement taking into account also the possible new,
revised and amended standards and interpretations. Income tax is the amount
corresponding to the actual effective rate based on year-to-date actual tax
calculation.
The IFRS principles require the management to make estimates and assumptions
when preparing financial statements. Although these estimates and assumptions
are based on the management's best knowledge of today, the final outcome may
differ from the estimated values presented in the financial statements.
A part of the Group's loan agreements include covenants, according to which the
equity ratio shall be 35 percentages at minimum and the interest-bearing
debt/EBITDA ratio shall be 3.5 at maximum in the end of each financial year. On
December 31, 2012 the covenants were reached successfully. The equity ratio of
44.3 % exceeded the required level and the interest-bearing debt/EBITDA ratio
was below 3.5 in accordance with the covenants.
The Group has no knowledge of any significant events after the end of the
financial period that would have had a material impact on this report in any
other way that has been already discussed in the review by the Board of
Directors.
In Vantaa on May 7, 2013
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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