Summary of Interim report January-June 2018
- Net sales were 313.6 MSEK (302.7), an increase of 3.6% from the equivalent quarter in 2017.
- Operating income reduced to 22.0 MSEK (26.2), an operating margin of 7.0% (8.7%). There were one off costs of 4.3 MSEK (0) during the quarter.
- Operating income before one off costs increased slightly to 26.3 MSEK (26.2).
- Earnings per share were 1.26 SEK (1.48).
- Cash flow after investments was 18.1 MSEK (25.4).
- Net sales were 593.6 MSEK (594.2), a reduction of 0.1% from the equivalent period in 2017. Operating income reduced to 38.8 MSEK (58.2). an operating margin of 6.5% (9.8). There were one off costs of 4.3 MSEK (3.9) during the period.
- Earnings per share were 2.24 kr (3.55).
- Cash flow after investments was 17.9 Mkr (8.7).
SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER
- The group has initiated an efficiency programme and reduced the number of employees by 32. The annual saving amounts to circa 20 MSEK from 2019.
- The annual general meeting was held in Mora on 15 May. The shareholders approved all proposals from the board and nomination committee.
Statement from the CEO
Reorganisation initiated and completed
When we closed the first half of the year we were virtually back to the previous year’s sales thanks to a second quarter with organic growth. We are not satisfied because we have not yet achieved our stated goals but we are moving in the right direction. At the same time, I am proud that we have managed to achieve good sales growth while we carried out the reorganisation which our reduction programme required. We achieved steady sales growth both within and out with the Nordic region and I am optimistic that we can continue to move in the right direction in our international markets.
Our operating income for the quarter is in line with the previous year after adjustments for one off costs. The first quarter was impacted by some manufacturing disruptions which the organization has handled well and we now see clear improvements through our well structured internal efforts. This is an important signal that we are moving forward well.
We have had a very positive response to many of the products we have launched during the spring – both internally and from customers and other partners. There is a lot of interest in our connected mixers and we have launched more consumer orientated products, e.g. through the brand Mora Armatur. The launch of the outdoor shower ”Mora Armatur by Inredningsrör” was made online, directly to consumers, and was exceptionally well timed with the warm summer.
As I stated we have focused on our efficiency programme which we announced during the spring. It has taken a lot of time and effort to implement and the objective was to create a more efficient business with reduced annual costs of circa 20 MSEK. We have reduced the number of employees by 32 and are continuing to look at how to optimise and develop the organisation. The reorganisation has been the most significant activity during the quarter and has gone relatively smoothly. We feel well equipped looking forward.
We have generally received positive signals from our customers about the market. My view is that the market is good in most of the regions where we operate. There are some grey clouds around with the general debate about the Swedish property market, and therefore building industry, but we have not noted an impact yet. We live in a world with tough competition, not least in our home market. We are convinced that a quality focused business like ours will be strong regardless of the economic climate.
I want to finish by commenting on the fantastic, warm summer in 2018. The summer also affected many people through drought, fires and water shortages. FM Mattsson Mora
Group plays an important role by developing a sustainable, energy efficient assortment of products.We have worked for a long time to ensure that our products have clear customer benefits, including reduced water usage, and we see examples of this from our customers on a daily basis! We will continue to take this responsibility.
For further information contact
Fredrik Skarp, Group CEO. Telephone +46 (0)250-596405.
Martin Gallacher, Group CFO. Telephone +46 (0)250-596225.
This information is information that FM Mattsson Mora Group AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted through the agency of the CEO for publication on 23 August at 8:00 a.m. CET.
FM Mattsson Mora Group conducts the sale, manufacture and product development of water taps under the strong, well-established brands of FM Mattsson, Mora Armatur and Damixa. The Nordic region is the Group’s principal market. The Group generated sales of more than SEK 1.1 billion in 2017 and has approximately 500 employees. The company’s Class B share has been listed on Nasdaq Stockholm since 10 April 2017.