INTERIM REPORT April 27, 2020 at 9.00 A.M.
This is a summary of Wulff Group Plc’s Interim Report for January – March 2020.
Wulff Group’s Interim Report as a whole is attached as a PDF file to this stock
exchange release and it is also available on the company’s website www.wulff.fi.
Netsales increased and profitability grew further
1.1.-31.3.2020 BRIEFLY
· Net sales totalled EUR 14.7 million (13.8), increased by 6.4%.
· EBITDA and comparable EBITDA were EUR 0.7 million (0.6).
· Operating profit and comparable operating profit (EBIT) amounted to EUR 0.3
million (0.2).
· Earnings and comparable earnings per share (EPS) were EUR 0.00 (0.01).
· Equity-to-assets ratio was 38.6% (39.7).
· Kari Juutilainen, Lauri Sipponen, Jussi Vienola, and Kristina Vienola were
elected as members to the Board of Directors. Kari Juutilainen was elected as
the Chairman of the Board by the Board of Directors.
· Wulff adjusted the outlook for the comparable operating profit during the
financial period; Wulff estimates that the comparable operating profit 2020 will
decrease from year 2019.
WULFF GROUP’S CEO ELINA PIENIMÄKI
Wulff’s first quarter’s net sales growth was positive 6%. The growth was mainly
built on succeeding in new customer acquisition, daily sales and serving
customers. Of our strategic projects, sales were positively impacted by Wulff
Lab - especially new, environmentally friendly and sustainable products and
services - as well as Wulff Digital, in which our open online store
wulffinkulma.fi, is developed.
Wullf’s profitability also improved positively before the coronavirus pandemic.
The corona situation affects the global economy and Wulff’s operations providing
us both challenges and opportunities. Most significantly it has impacted our
fair trade services. International exhibitions have either been postoned or
cancelled. The downturn caused by Corona virus has not yet had a major impact in
the office supply sales in the first quater, however, the demand will inevitably
fall in some of the products. We managed to react to current situation
immediately by procuring new products to our selection to meet the current
demand. We believe that the hygiene and protection products will remain as a
part of our product portfolio.
Wulff is a remarkable player in its field and can acquire products in its
product portfolio quickly and with competitive prices from both home country and
abroad. The company’s administration, management and operations work closely
together, decision are made fast and those are implemented in daily actions
quickly. The coronavirus situation, adapting to it and great commercial success
have shown the sigificance of our top class sales competence and having
multichannels in our operations.
People’s health and security are most important during the exceptional
circumstances. The best we can do as a company is to operate as normally as
possible – taking in consideration the authorities’ regulations and adjusting
our actions. The continuance of the business operations is in the benefit of the
whole society. While the future is challenging to predict at the moment and we
may face unexpected situations in our operating enviroment, thanks to our strong
strategy, long lasting customer and partner relationships and Wulff’s attitude
and commitment, I believe that 2020 will be a year of growth and development for
us.
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-March 2020 net sales totalled EUR 14.7 million (13.8). Net sales
increased by 6.4% (-2.9) in January-March. The increase in net sales resulted
from contract sales both in Finland and Scandinavia.
In January-March 2020 gross margin amounted to EUR 5.2 million (4.9) being 35.1%
(35.7) in January-March. The increase in gross margin resulted from contract
sales both in Finland and Scandinavia.
In January-March 2020 employee expenses amounted to EUR 3.3 million (3.2)
compared to net sales, 22.1% (22.8).
Due to the exceptional conditions and especially restrictions in traveling and
gathering resulting from the coronavirus, international fair events from the
beginning of the year. have been postponed to the fall of 2020 or even the
following year. A part of the fair events were fully cancelled. The company
which provides trade fair services have adjusted their operations according to
the current situation.
Other operating expenses amounted to EUR 1.3 million (1.3) in January-March 2020
being 9.1% (9.2) of net sales.
In January-March 2020 EBITDA and the comparable EBITDA amounted to EUR 0.7
million (0.6), 4.4% (4.0) of net sales.
The operating profit (EBIT) and the comparable operating profit (EBIT) amounted
to EUR 0.3 million (0.2), 1.8% (1.4) of net sales. The first quarters of 2020
and 2019 did not include items affecting comparability.
The depreciations of the properties were EUR -0.1 million (-0.0) in the
reporting period. The depreciations within the reporting period grew from
acquiring premises in Kilo, Espoo on April 15, 2019.
In January-March 2020 the financial income and expenses totalled (net) EUR -0.2
million (-0.1) including interest expenses of EUR -0.0 million (-0.0) and mainly
currency-related other financial items and bank expenses EUR -0.2 million (
-0.0).
In January-March 2020 the result before taxes was EUR 0.1 million (0.1), and the
operating result EUR 0.0 million (0.1). Earnings per share and comparable
earnings-per-share (EPS) were EUR 0.00 (0.01) in January-March 2020.
KEY FIGURES
I I I-IV
EUR 1000 2020 2019 2019
Net sales 14 730 13 844 56 344
Change in net sales, % 6.4% -2.9% 0.8%
Gross profit 5 176 4 946 19 825
Gross profit, % 35.1% 35.7% 35.2%
EBITDA 655 556 3 067
EBITDA margin, % 4.4% 4.0% 5.4%
Operating profit/loss 270 191 1 570
Operating profit/loss margin, % 1.8% 1.4% 2.8%
Profit/Loss before taxes 56 134 1 194
Profit/Loss before taxes margin, % 0.4% 1.0% 2.1%
Net profit/loss for the period 21 99 1 039
attributable to equityholders of the
parent company
Net profit/loss for the period, % 0.1% 0.7% 1.8%
Earnings per share, EUR (diluted = non 0.00 0.01 0.15
-diluted)
Return on equity (ROE), % 0.4% 0.9% 8.5%
Return on investment (ROI), % 0.5% 1.0% 7.9%
Equity-to-assets ratio at the end of 38.6% 39.7% 39.2%
period, %
Debt-to-equity ratio at the end of period 77.7% 65.2% 66.2%
Equity per share at the end of period, 1.75 1.72 1.76
EUR *
Investments in non-current assets 214 3 727 7 359
Investments in non-current assets, % of 1.5% 26.9% 13.1%
net sales
Treasury shares held by the Group at the 79 000 79 000 79 000
end ofperiod
Treasury shares, % of total share capital 1.1% 1.1% 1.1%
and votes
Average number of outstanding shares 6 828 628 6 828 628 6 828 628
Number of total issued shares at the end 6 907 628 6 907 628 6 907 628
of period
Personnel on average during the period 199 197 198
Personnel at the end of period 197 200 200
* 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 and the industry’s tight competition. Business operations are also
affected by normal business risks such as the success of the Group’s strategy
and operative risks stemming from the personnel, logistics and IT environments.
Approximately 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
balance sheet. Risks relating to fair service business have increased due to
international epidemic, which restricts traveling. Wulff anticipates rapid
changes in demand also in work product sales due to coronavirus.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
MARKET SITUATION AND FUTURE OUTLOOK
The spread of the coronavirus and measures to prevent the spread of the virus
are affecting the world economy. The exceptional circumstances have increased
risks and reduced predictability.
The demand for our contract sales’ design and project management Wulff Entre’s
fair services has diminished due to corona situation. Fair events have been
postponed and cancelled. This will decrease Wulff group’s comparable operating
profit in 2020. At the same time the situation offers sales opportunities to
Wulff: its more than 100 000 customers in the Nordic countries will need
workplace products for their use also during the crisis.
Wulff is the most significant Nordic player in its field. Its aim is to lead the
way, renew the field and be at the forefront of change. Wulff believes that the
role of values and sustainability will come to have an increasingly important
part in sourcing decisions and companies’ business partner selections in the
future. With its new strategy, Wulff will build its competitiveness and make
sure that it can offer customers what they want: solutions for making the
everyday work life smoother and the world better one workplace at a time. The
market traditionally understood as the office environment changes and develops
rapidly. Competition is tough in the traditional market and the new market has a
lot of opportunities. Wulff believes that the future is bright due to the
strong, constantly developing new strategy, its active customer and partner
networks, and its professional, committed personnel. The Group has an ongoing
readiness to carry out new strategic acquisitions and as a listed company, Wulff
is in a good position to be a more active player than its competitors.
Wulff estimates that the comparable operating profit of 2020 will decrease from
2019 caused by the exceptional situation resulting from the coronavirus. In the
industry, it is typical that the result and cash flow are generated in the last
quarter. Thanks to the strong strategy, long lasting customer and partner
relationships, and Wulff’s attitude and commitment in Wulff we believe that we
will get through the corona crisis and build profitable growth in the near
future. Economical success is possible to build, as long as people’s health and
security is taken care of first.
WULFF GROUP PLC’S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2020:
Half-Year Report January-June 2020 Monday July 27, 2020
Interim Report January-September 2020 Monday October 26, 2020
In Espoo on April 27, 2020
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Elina Pienimäki
tel. +358 40 647 1444
e-mail: elina.pienimaki@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff.fi/en/
A better world – one workplace at a time. Wulff’s goal is a perfect workday! We
enable better working environments and create workplaces, wherever you are. More
comfortable, healthier, safer, more enjoyable, more active and more diverse? How
do you want to better you workday and working environment? Wulff has the
solution. We offer our customers office supplies, facility management products,
catering solutions, IT supplies, ergonomics, first aid, air purifiers, and
innovative products for worksites. Customers can also acquire international
exhibition services from Wulff. In addition to Finland, Wulff operates in
Sweden, Norway, and Denmark. Check out our products and services at
wulff.fi/en/.