INTERIM REPORT APRIL 26, 2021 AT 10.00 A.M.
This is a summary of Wulff Group Plc’s Interim Report for January-September
2021. 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 by 4% and operating profit doubled
1.1.-31.3.2021 BRIEFLY
· Net sales totalled EUR 15.3 million (14.7), increased by 4.0%.
· EBITDA and comparable EBITDA were EUR 0.9 million (0.7).
· Operating profit and comparable operating profit (EBIT) amounted to EUR 0.6
million (0.3).
· Earnings and comparable earnings per share (EPS) were EUR 0.04 (0.00).
· Equity-to-assets ratio was 43.1% (38.6).
· 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.
· The outlook for the comparable operating profit remains the same; Wulff
estimates that the net sales will grow from 2020 (EUR 57.5 million) and the
comparable operating profit of will remain at a good level in 2021.
WULFF GROUP’S CEO ELINA PIENIMÄKI
I thank our customers, staff, and partners for a good start to the year! The
positively developed net sales and earnings for the first quarter reflect
confidence in Wulff and our expertise. These figures are result of sales force,
adaptability, responsiveness, and a strong confidence in our strategy A better
world – one workplace at a time. In exceptional circumstances, the world has
been made better, especially by enabling safe ways to work, and it is remarkable
that we have managed to do just that. Current hygiene, cleaning and protective
products have come to our product range and people’s everyday lives in part to
stay. At the same time, we are already looking strongly ahead at a more normal
everyday life and, in particular, how we can serve companies, communities and
entrepreneurs in the future. The changes in ways of working and for example the
increasing amount of remote work from all work done changes the need for
workplace products and services. For Wulff it is important to invest in new
product and service areas, the best customer experience in the industry, digital
development and strengthening its market position. In the future, value-based
decision-making will also have an increasing impact on the choice of both
individual products and contract partners. At Wulff, all development work and
our own operations are guided by responsibility and the company is a natural
choice for its customers as a responsible partner.
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-March 2021 net sales totalled EUR 15.3 million (14.7). Net sales
increased by 4.0% (6.4). Succeeding in sales and due to the expansion of the
product portfolio and the sales of hygiene, cleaning and protective products
nets sales increased even though, due to restrictions on traveling and
gathering, international exhibitions still are not held. The increase in net
sales resulted mainly from expertise sales both in Finland and Scandinavia.
As a result of an increase in the net sales the gross margin amounted to EUR 5.3
million (5.2) being 34.8% (35.1) of net sales in January-March 2021.
In January-March 2021 employee expenses amounted to EUR 3.3 million (3.3) being
21.3% (22.1) of net sales. Employee expenses decreased from the comparison
period when the company streamlined for example the Contract Customers segment
and its back-office operations during 2020. There were fewer employees than in
the comparison period.
Other operating expenses amounted to EUR 1.2 million (1.3) in January-March 2021
being 7.9% (9.1) of net sales. The group used fewer external services than in
the comparison period.
In January-March 2021 EBITDA and the comparable EBITDA amounted to EUR 0.9
million (0.7), 6.1% (4.4) of net sales.
The operating profit (EBIT) and the comparable operating profit (EBIT) amounted
to EUR 0.6 million (0.3), 3.7% (1.8) of net sales. The first quarters of 2021
and 2020 did not include items affecting comparability.
In January-March 2021 the financial income and expenses totalled (net) EUR -0.1
million (-0.2) including interest expenses of EUR -0.0 million (-0.0) and mainly
currency-related other financial items and bank expenses EUR -0.1 million (
-0.2). The f
financial expenses were EUR 0.1 million less than in the comparison period due
to currency exchanges.
In January-March 2021 the result before taxes was EUR 0.5 million (0.1), and the
operating result EUR 0.4 million (0.0). Earnings per share and comparable
earnings-per-share (EPS) were EUR 0.04 (0.0) in January-March 2021.
KEY FIGURES
I I I-IV
EUR 1000 2021 2020 2020
Net sales 15 314 14 730 57 541
Change in net sales, % 4.0% 6.4% 2.1%
Gross profit 5 327 5 176 20 748
Gross profit, % 34.8% 35.1% 36.1%
EBITDA 929 655 5 204
EBITDA margin, % 6.1% 4.4% 9.0%
Operating profit/loss 559 270 3 541
Operating profit/loss margin, % 3.7% 1.8% 6.2%
Profit/Loss before taxes 476 56 3 101
Profit/Loss before taxes margin, % 3.1% 0.4% 5.4%
Net profit/loss for the period 263 21 2 174
attributable to equityholders of the
parent company
Net profit/loss for the period, % 1.7% 0.1% 3.8%
Earnings per share, EUR (diluted = non 0.04 0.00 0.32
-diluted)
Return on equity (ROE), % 2.7% 0.4% 19.1%
Return on investment (ROI), % 2.2% 0.5% 15.2%
Equity-to-assets ratio at the end of 43.1% 38.6% 41.9%
period, %
Debt-to-equity ratio at the end of period 59.1% 77.7% 57.3%
Equity per share at the end of period, 2.04 1.75 2.00
EUR *
Investments in non-current assets 228 214 719
Investments in non-current assets, % of 1.5% 1.5% 1.2%
net sales
Treasury shares held by the Group at the 137 260 79 000 144 260
end ofperiod
Treasury shares, % of total share capital 2.0% 1.1% 2.1%
and votes
Average number of outstanding shares 6 766 246 6 828 628 6 791 043
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 177 199 189
Personnel at the end of period 179 197 176
* 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
General economic and market developments as well as the employment rate have a
significant impact on the demand for workplace products and services. The
general uncertainty in the global economy also impacts Wulff's operations. The
effects of the Coronavirus pandemic, its preparedness and the constraints
associated with virus management have a broad impact on the needs of both the
global and local economy and customers. In addition, megatrends in the global
economy, such as digitalization and responsibility, are affecting market change.
There are both risks, and opportunities involved in developing a range of
products and services in line with changing markets and needs. Typical business
risks include the successful implementation of Wulff's strategy and operational
risks arising from the personnel, logistics and IT environment. Intense
competition in the workplace products and services industry can affect the
profitability of the business. Changes in exchange rates affect the Group's net
result and balance sheet, as approximately half of the Wulff Group's net sales
come from non-euro countries.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
MARKET SITUATION AND FUTURE OUTLOOK
Megatrends play a role in Wulff’s operations. The company's operating
environment is positively affected by the growing share of information work in
all work performed. On the other hand, demographic developments are actively
reducing the number of people in employment at present. The integration of
technology into products and services is an opportunity for Wulff.
Digitalisation brings new ways for an already multi-channel company to reach and
serve customers and streamline its own operations. Of the megatrends, the most
significant for Wulff's operations and future is responsible operations and, in
particular, consideration for the environment: whether it treats the environment
as a resource or whether the goal is to improve the state of the environment.
Future success is strongly built on these themes and their growing importance in
business and consumer decision-making. Wulff has chosen responsibility and
especially positive climate action and increasing equality as important elements
of his strategy.
Demand for products is significantly affected by general economic and market
developments as well as the employment rate. In recent years, the market for
workplace products and services in the Nordic countries has remained stable.
Teleworking has increased and increased the number of workstations and the
demand for products needed in workstations. Wulff estimates that a significant
portion of the growth in the workstation product market will be in the b-to-b
market. The Coronavirus pandemic increased demand for hygiene, protection, and
cleaning products. Wulff estimates that the overall market for workplace
products and services will remain stable in 2021: although the Coronavirus
pandemic has had a negative impact on the general economy and employment, the
company expects demand for hygiene, cleaning, security, and IT supplies to
continue to stay strong, as at the same time demand for printing solutions and
office supplies grows when people return to workplaces as vaccine coverage
develops.
Consolidation of the market for workplace products and services is expected to
continue, and Wulff is well placed to be a more competitive player in M&A.
Demand for Wulff Entre's services, which provides planning and project
management for international exhibitions, has declined due to the Coronavirus
pandemic, which will weaken Wulff's net sales and operating profit in 2021.
Changes in the operating environment weaken the predictability of the whole
year. Wulff estimates that the net sales will grow from 2020 (EUR 57.5 million)
and the comparable operating profit will remain at a good level in 2021. Wulff's
medium-term financial targets remain unchanged. Wulff targets in the medium-term
an average annual growth of 5-10% of the net sales, a growing comparable
operating profit per cent and an increasing dividend per share.
WULFF GROUP PLC’S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2021:
Half-Year Report January-June 2021 Monday July 26, 2021
Interim Report January-September 2021 Monday October 25, 2021
In Espoo on April 26, 2021
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 hygiene- and protective products, air
purifiers, office supplies, facility management products, catering solutions, IT
supplies, ergonomics, first aid, 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 (http://www.wulff.fi/en).