Relais Group Plc, Stock Exchange Release 13 May 2025, 9:00 a.m. EEST
This release is a summary of Relais Group's Interim Report January-March 2025.
The full release is attached to this release and is available on our website at
https://relais.fi/en/investors/.
JANUARY-MARCH 2025 IN BRIEF
· Net sales EUR 82.8 million (January-March 2024: 82.8), change +0%
· Comparable EBITA EUR 9.2 (9.7) million, change -5%
· Comparable EBITA margin 11.1 (11.7) %
· Earnings per share, basic EUR 0.32 (0.21)
· Net cash flow from operations EUR 2.7 (4.6) million
2025 OUTLOOK AND LONG-TERM FINANCIAL TARGET
Relais Group does not provide a numeric guidance for the financial year 2025.
The company has a long-term financial target published on 2 March 2023,
according to which it aims to reach a proforma comparable EBITA of EUR 50
million by the end of the year 2025.
KEY FIGURES
(EUR 1,000 unless 1-3/2025 1-3/2024 Change 12 Change 1-12/
stated otherwise) months 2024
rolling
Net sales 82,798 82,756 +0% 322,649 +0% 322,606
Gross profit 41,094 38,192 +8% 154,121 +2% 151,219
Gross margin 49.6% 46.2% 47.8% 46.9%
EBITDA 12,999 13,501 -4% 51,361 -1% 51,863
Comparable EBITDA 13,229 13,515 -2% 52,303 -1% 52,490
EBITA 8,953 9,672 -7% 35,407 -2% 36,126
EBITA margin 10.8% 11.7% 11.0% 11.2%
Comparable EBITA 9,182 9,686 -5% 36,249 -1% 36,753
Comparable EBITA 11.1% 11.7% 11.2% 11.4%
margin
Operating profit 8,147 8,962 -9% 32,168 -2% 32,983
Profit for the 5,857 3,884 +51% 20,506 +11% 18,533
period
Earnings per 0.32 0.21 +51% 1.13 +11% 1.02
share, basic
Cash flow from 2,661 4,637 -43% 32,860 -6% 34,837
operations
Net working 75,927 68,757 +10% 68,208
capital
Net working 4.5 4.4 4.8
capital
turnover
Interest-bearing 146,717 144,586 +1% 141,283
net debt
Net Debt to 2.86 3.15 -9% 2.72
EBITDA, LTM
Equity ratio 35.2% 34.5% 35.6%
Return on net 49.1% 45.2% 53.4%
working capital
Return on equity 19.1% 14.0% 16.2%
Return on capital 21.0% 16.7% 13.2%
employed
The change percentages in the tables have been calculated on exact figures
before the amounts were rounded to millions of euros.
CEO ARNI EKHOLM COMMENTS THE FIRST QUARTER OF 2025
Ready for the Next Level
“Despite the exceptionally strong comparison quarter, boosted by the extremely
cold weather in 2024 we managed to reach the same net sales level as last year.
The gross profit rose simultaneously mainly due to the growing influence of the
repair and maintenance business in the Group's total sales. The comparable EBITA
declined with 5% from the last year's record high level, which was expected due
to the negative effect that the warm winter had on the sales of certain product
groups in the highly profitable technical wholesale business area.
Geographical Segment Overview
The Scandinavian markets were less affected by the warm winter conditions than
the Finnish and Baltic markets. The Scandinavian segment reached a net sales
growth of 5% (organic: +1%), whilst Finland and Baltics faced a sales decline of
-6% (organic: -11%). On a group level the net sales were in line with last
year's first quarter (organic: -4%), supported by the effect of the acquisitions
made towards the end of last year.
Business Area Overview
In the Technical Wholesale and Products Business Area the sales of our
Scandinavian units were generally in line with last year, with only a minor
decline in the sales of spare parts for heavy commercial vehicles in Sweden.
This was offset by the strong performance of our Norwegian workshop equipment
business. The Finnish and Baltic units were negatively affected by the warm
winter when compared to the extremely cold first quarter of 2024. Our Finnish
and Baltic wholesale companies have a higher share of product groups, e.g.
batteries, starters and alternators and certain electrical components and
equipment, where the demand is correlated with extreme temperatures, both low
and high. In the Lighting product group Strands continued their strong
performance, driven by export sales. Our online business in Finland had also a
positive start to the year.
The Commercial Vehicle Repair and Maintenance Business Area had a strong start
of the year reaching a sales growth of 12% (organic: -1%). The acquisitions of M
Ahlqvist in Finland and Team Verkstad in Sweden made a strong contribution to
the Group's total sales in this business area. Both companies have fully met the
expectations which we had when we acquired them, and there is still good synergy
potential left for both in the future.
Acquisitions
As a competence-based compounder, we are working very hard to ensure we
constantly have a strong pipeline of
promising companies to acquire. During Quarter One we continued our efforts and
were extremely happy to be able to announce two major deals in April. The
acquisition of Matro Group in Belgium, announced on 7 April, considerably
expands our footprint in the European truck accessories market. The
transformative acquisition of Team Verksted and Lastvagnsdelar in Norway,
announced on 29 April, makes us the biggest operator of independent commercial
vehicle workshop chains in the Nordic Region. Both acquisitions are expected to
be closed during the second quarter. I am more than glad to warmly welcome the
professional teams of Matro, Team Verksted and Lastvagnsdelar to join the Relais
family. Combined with these new family members the Relais Group will have over
1,600 professionals in nine countries and have a turnover of over EUR 400
million.
Financing
On 28 March, we announced the signing of a EUR 140 million long-term financing
agreement with our main bank. The new financing agreement has a maturity of
three years, with two one-year extension options, and it consists of a EUR 110
million multi-currency term loan, a revolving credit facility of EUR 10 million,
and an uncommitted term loan facility of EUR 20 million. The new facilities will
be used for refinancing the existing debt, financing of acquisitions as well as
for general corporate purposes. We feel that with the strong support of our main
bank, including the additional bridge loan granted to finance the Team Verksted
deal, we are well positioned to continue the implementation of our growth
strategy.
Changes in the Management Team
We also made some changes in the Management Team during the first quarter. On 18
March, we announced that we had decided to assign specific responsibility areas
to certain Management Team members. With the introduction of these new
responsibility areas, we aim to speed up the decision-making process and the
implementation of the Group's strategy and M&A activities across both of Relais
Group's geographical segments. Johan Carlos, Managing Director of Strands Group,
is now in addition to his current tasks responsible for the development of our
Products business, including the strategic brand development across all business
areas. Juan Garcia, Regional Managing Director of Scandinavia, is now in
addition to his current tasks be responsible for the development of our
Technical Wholesale business area. And Jan Popov, the Managing Director of
Raskone, is now in addition to his current tasks responsible for the development
of our Commercial Vehicle Repair and Maintenance business area. I am confident
that with these changes we have a great potential to further support and
accelerate the profitable growth of Relais Group.
Sustainability and Good Governance
In March, we published our Sustainability Report prepared in accordance with the
European Sustainability Reporting Standards (ESRS) and the Finnish Accounting
Act as part of the Report of the Board of Directors. During the first quarter,
we continued our planned development measures related to sustainability. Our
ongoing efforts included, among other things, the roadmap work for emission
reduction targets and measures and a resilience analysis. We expect to complete
the roadmap during the first half of the year.
Outlook for 2025
Our long-term target is to reach a comparable proforma EBITA run rate of EUR 50
million by the end of 2025. This target includes the full year effect of
acquisitions made this year. Upon closing the announced Matro and Team Verksted/
Lastvagnsdelar deals, we will add approximately EUR 9 million more to Relais'
EBITA on an annual basis. As a result of this, Relais becomes a group of
companies employing over 1,600 professionals in nine countries, having around
EUR 400 million net sales annually. And we are not stopping there. We are
constantly working on various interesting acquisition cases and aim to produce
even more deals. In addition, our super professional teams are working very hard
to boost our organic growth and to realize the untapped synergy potential that
we have identified within the Group. We are ready for the next level.
Finally, I want to express my sincerest thanks to all our almost 1,300
professionals for your passion and dedication during the first quarter of this
year."
EVENTS AFTER THE REVIEW PERIOD
· Resolutions of the Annual General Meeting
· Acquisition of a majority in Matro Group
· Acquisition of Team Verksted Holding AS
FINANCIAL CALENDAR FOR 2025
Relais Group Plc will publish the following financial reports during 2025:
· Half-Year Financial Report January-June 2025,
on Thursday, 14 August 2025
· Interim Report January-September 2025,
on Wednesday, 22 October 2025
The reports will be published at approximately 9:00 a.m. Finnish time on the
above dates.
INVITATION TO THE WEBCAST
Relais Group's CEO Arni Ekholm and CFO Thomas Ekström will present the result to
the media, investors and analysts at a webcast on Tuesday, 13 May 2025, at 10:00
a.m. EEST. The webcast can be followed at
https://relais.events.inderes.com/q1-2025
Presentation material and video will be available on the company's website at
https://relais.fi/en/after the event.
Relais Group Plc
Board of Directors
Further information:
Arni Ekholm, CEO
Phone: +358 40 760 3323
E-mail: arni.ekholm@relais.fi
Distribution:
Nasdaq Helsinki
Key Media
www.relais.fi
Relais Group
Relais Group is a leading consolidator and acquisition platform on the vehicle
aftermarket in the Nordic and Baltic countries. We have a sector focus in
vehicle life cycle enhancement and related services. We also serve as a growth
platform for the companies we own.
We are a profitable company seeking strong growth. We carry out targeted
acquisitions in line with our growth strategy and want to be an active player in
the consolidation of the aftermarket in our area of operation. Our acquisitions
are targeted at companies having a good strategic fit with our group companies.
Our net sales in 2024 was EUR 322.6 (2023: 284.3) million. During 2024, we
completed two acquisitions. We employ approximately 1,300 professionals in six
different countries. The Relais Group share is listed on the Main Market of
Nasdaq Helsinki with the stock symbol RELAIS.
www.relais.fi