INTERIM REPORT |
This is a summary of
The third quarter fell short of expectations - operational programme will improve profitability
1.7.-
- Net sales totalled
EUR 21.2 million (24.0), decreased by 11.6% -
EBITDA was
EUR 0.8 million (1.7) and comparable EBITDA wasEUR 1.1 million (1.7) -
Operating profit (EBIT) was
EUR 0.3 million (1.2) and comparable operating profit (EBIT) wasEUR 0.6 million (1.2) -
Earnings per share (EPS) was
EUR 0.02 (0.13) and comparable earnings per share wasEUR 0.06 (0.13) -
The financial guidance was updated from
October 16, 2023 : Wulff estimates that comparable operating profit will decrease clearly from 2022 (2022:EUR 4.0 million ). Earlier (published onFebruary 20, 2023 , last repeated onJuly 17, 2023 ), Wulff estimated that net sales (2022:EUR 102.2 million ) and comparable operating profit (2022:EUR 4.0 million ) will increase compared to 2022.
1.1-30.9.2023 BRIEFLY
- Net sales totalled
EUR 70.8 million (74.5), decreased by 4.9% -
EBITDA was
EUR 3.5 million (4.4) and comparable EBITDA wasEUR 3.8 million (4.4) -
Operating profit (EBIT) was
EUR 2.1 million (2.8) and comparable operating profit (EBIT) wasEUR 2.4 million (2.8) -
Earnings per share (EPS) was
EUR 0.19 (0.29) and comparable earnings per share wasEUR 0.23 (0.29)
Wulff's third quarter was left with our expectations, and we believe the result will grow again next year. During the third quarter, the demand for products and services was influenced by the general tightening of the economic situation. At Wulff, this has been reflected in particular in the profitability of the Group's exhibition services and print and document management services. As a solution-oriented sales company, we are adaptable and react quickly to changes in the market. Investing in sales and cost-effective activities are important elements that build competitiveness in our culture and that is why I believe we will win new customers in all our businesses. The positive profitability development is supported by the merger of
GROUP'S NET SALES AND RESULT PERFORMANCE
In January-
In January-
In January-
On
Other operating expenses amounted to
In January-
Operating profit (EBIT) amounted to
In January-
(-0.2). In the third quarter, the financial income and expenses (net) totalled
In January-
In January-
Earnings per share (EPS) were
III | III | I-III | I-III | I-IV | |
2023 | 2022 | 2023 | 2022 | 2022 | |
Net sales | 21 231 | 24 011 | 70 848 | 74 494 | 102 171 |
Change in net sales % | -11.6% | -1.0% | -4.9% | 18.6% | 13.0 % |
Gross profit | 6 068 | 7 157 | 21 315 | 22 475 | 30 986 |
Gross profit. % | 28.6% | 29.8% | 30.1% | 30.2% | 30.3 % |
EBITDA | 805 | 1 677 | 3 529 | 4 447 | 6 213 |
EBITDA margin. % | 3.8% | 7.0% | 5.0% | 6.0% | 6.1 % |
Comparable EBITDA | 1 096 | 1 677 | 3 821 | 4 447 | 6 213 |
Comparable EBITDA margin. % | 5.2% | 7.0% | 5.4% | 6.0% | 6.1 % |
Operating profit/loss | 336 | 1 166 | 2 077 | 2 770 | 3 988 |
Operating profit/loss margin. % | 1.6% | 4.9% | 2.9% | 3.7% | 3.9 % |
Comparable operating profit/loss | 628 | 1 166 | 2 369 | 2 770 | 3 988 |
Comparable operating profit/loss margin. % | 3.0% | 4.9% | 3.3% | 3.7% | 3.9 % |
Profit/Loss before taxes | 113 | 1 013 | 1 331 | 2 238 | 3 273 |
Profit/Loss before taxes margin. % | 0.5% | 4.2% | 1.9% | 3.0% | 3.2 % |
Comparable profit/Loss before taxes | 405 | 1 013 | 1 622 | 2 238 | 3 273 |
Comparable profit/Loss before taxes margin. % | 1.9% | 4.2% | 2.3% | 3.0% | 3.2 % |
Net profit/loss for the period attributable to equity holders of the parent company | 119 | 888 | 1 278 | 1 965 | 3 052 |
Net profit/loss for the period. % | 0.6% | 3.7% | 1.8% | 2.6% | 3.0 % |
Comparable net profit/loss for the period attributable to equity holders of the parent company | 410 | 888 | 1 569 | 1 965 | 3 052 |
Comparable net profit/loss for the period. % | 1.9% | 3.7% | 2.2% | 2.6% | 3.0 % |
Earnings per share. EUR (diluted = non-diluted) | 0.02 | 0.13 | 0.19 | 0.29 | 0.45 |
Comparable earnings per share. EUR (diluted = non-diluted) | 0.06 | 0.13 | 0.23 | 0.29 | 0.45 |
Return on equity (ROE). % | 0.6% | 4.4% | 6.2% | 10.0% | 15.5 % |
Return on investment (ROI). % | 1.0% | 3.2% | 5.7% | 7.6% | 11.2 % |
Equity-to-assets ratio at the end of period. % | 42.3% | 40.2% | 42.3% | 40.2% | 40.5 % |
Debt-to-equity ratio at the end of period | 67.6% | 68.7% | 67.6% | 68.7% | 60.6 % |
Equity per share at the end of period. EUR * | 3.11 | 2.94 | 3.11 | 2.94 | 3.02 |
Investments in non-current assets | 361 | 416 | 1 084 | 1 859 | 2 479 |
Investments in non-current assets. % of net sales | 1.7% | 1.7% | 1.5% | 2.5% | 2.4 % |
111 624 | 44 812 | 111 624 | 44 812 | 111 624 | |
1.6% | 0.6% | 1.6% | 0.6% | 1.6 % | |
Average number of outstanding shares | 6 796 004 | 6 862 816 | 6 796 004 | 6 859 969 | 6 852 051 |
Number of total issued shares at the end of period | 6 907 628 | 6 907 628 | 6 907 628 | 6 907 628 | 6 907 628 |
Personnel on average during the period | 260 | 286 | 269 | 287 | 286 |
Personnel at the end of period | 245 | 284 | 245 | 284 | 280 |
* 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 general economic and market development and the employment rate have a significant impact on the demand for workplace products and services. Global inflation trends have an impact on Wulff's operations. The rate of increase in prices accelerated during the comparison period and gradually broadened since then. During the review period, the development of costs related to energy commodities and logistics has moderated, as have the least processed products. The development of global and local economies is affected by rising prices and monetary policy decisions aimed at taming inflation. These also affect Wulff's operations. In addition, megatrends in the global economy, for example responsibility, digitalization, the sharing economy and the aging of the population, affect the market change. The development of a product and service selection in line with changing markets and needs involves both risks and opportunities. Usual business risks include the successful implementation of Wulff's strategy, for example the integration of operations related to a company acquisition, as well as operational risks arising from the personnel, logistics and IT environment. Tight competition in the workplace product and service industry can affect business profitability. Changes in exchange rates affect the group's net profit and balance sheet.
SUBSEQUENT EVENTS
The financial guidance was updated from
MARKET SITUATION AND FUTURE OUTLOOK
Among the global megatrends, Wulff's operating environment is positively affected by the increase in the share of knowledge work in all work performed. The development of the demographic structure is currently reducing the number of people actively working, although at the same time working careers are getting longer, e.g. as the average retirement age rises. The integration of technology into products and services is an opportunity for Wulff. Digitization already brings new ways for the multi-channel company to reach and serve customers and increase the productivity of its own operations. The most significant of the megatrends in terms of Wulff's operation and future is responsible operation and the green transition: is the environment treated as a resource or is the goal to improve the state of the environment. Future success will be strongly built on these themes, and their importance will increase in the decision-making of companies and consumers. Wulff has chosen responsibility and especially positive climate actions, increasing equality and decent work and economic growth (UN Sustainable Development Goals 2030) as important elements of his strategy.
The demand for products and services is essentially influenced by the general development of the economy and the market, as well as the employment rate. The market for workplace products and services has developed steadily in the Nordic countries. Wulff estimates that the overall market for workplace products and services remains relatively stable even when rapid changes occur in work environments. The demand for hygiene, cleaning, and protective products seems to have stabilized at a higher level than before the pandemic, as they are perceived as important occupational health and safety products. Work performed in multiple locations has increased and increased the number of workstations and the demand for products needed at workstations. The demand for IT supplies, printing products and traditional office supplies continues to develop post-pandemic. This is affected by the return to jobs and the increased number of new jobs. The group's turnover and operating profit are affected by the ongoing recovery of the capacity of the international exhibition service industry from the pandemic period.
The ongoing geopolitical crisis,
Wulff has systematically renewed its business organizations for Finnish workplace products and services. After the acquisition of
Wulff's goal is to grow profitably, and it is constantly ready to be a more active player in business arrangements than its competitors.
FINANCIAL GUIDANCE
The tightening of the general economic situation has affected the group's operations. Wulff expects comparable operating profit to decrease clearly compared to 2022 (2022:
In Espoo on
BOARD OF DIRECTORS
Further information:
CEO
tel. +358 40 647 1444
e-mail: elina.rahkonen@wulff.fi
DISTRIBUTION
Key media
www.wulff.fi/en
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