Interim Financial Report for the Period 1 January - 31 March 2023
April 27 2023 - 2:27AM
Interim Financial Report for the Period 1 January - 31 March 2023
Company Announcement No. 5 – 2023 to Nasdaq
Copenhagen
27 April 2023
Interim financial report for the first
quarter of 2023
Consolidated revenue for the first quarter of
2023 was DKK 1,404.3 million against 1.251,3 million for the first
quarter of 2022. The growth of 12.2% lived up to
expectations. Growth was strongest at the beginning of the quarter,
and first-quarter sales were also in line with previous
expectations for 2023.
Compared with the first quarter of 2022, the
gross profit margin for the first quarter of 2023 increased by 0.2
percentage point.
EBITDA for the first quarter of 2023 totalled
DKK 121.9 million, corresponding to an EBITDA margin of 8.7%,
against DKK 110.8 million and 8.9% for the first quarter of
2022.
Profit before tax (EBT) for the first quarter of
2023 was DKK 83.3 million, which is DKK 2.6 million less than for
the first quarter of last year. The increase in EBITDA is offset by
higher depreciation and financing costs.
As at 31 March 2023, the Group’s total assets
amounted to DKK 3,424.0 million, which is DKK 538.1 million more
than at the same time in 2022. The increase is primarily
attributable to investments in property, plant and equipment,
increasing inventories and trade receivables.
As at 31 March 2023, the Group’s equity totalled
DKK 1,329.1 million, which is DKK 144.4 million more than at the
same time in 2022. The solvency ratio was 38.8% against 41.4% at 31
March 2022.
Cash flow from operating activities for the
first quarter of 2023 was DKK -154.0 million, which is DKK 43.8
million less than for the same period last year. The decrease is
primarily attributable to increased working capital, which is
affected by the decision to maintain higher than normal safety
stocks to ensure product availability in situations where there has
been shortage of supply. In addition, the increase is driven by the
fact that a higher proportion of revenue relates to B2B customers
with credit facilities. Investments for the first quarter of 2023
totalled DKK 31.2 million, compared with DKK 60.4 million for the
first quarter of 2022. These investments are primarily related to
store network development, including the introduction of EA ranges
in relevant AO stores.
As at 31 March 2023, net interest-bearing debt
totalled DKK 853.5 million against DKK 488.7 million at the same
time in 2022. Net interest-bearing debt was 1.7 times the Last
Twelve Months EBITDA.
Other highlights for the first three
months of 2023: During the quarter, B2B activities were
high and showed a growth of 15.9%. As expected, a minor slowdown in
activities occurred in March. Private consumers reacted fast to
cost inflation, and the decrease in demand continued from the
fourth quarter into the first quarter. The B2C sales index reached
87.9 in the first quarter.The Annual General Meeting approved the
recommended consolidated and parent company financial statements as
well as the allocation of profits, including a dividend payment of
DKK 5.25 per share of DKK 1. The new candidates, Ann Fogelgren and
Peter Gath, were elected and the Board of Directors constituted
itself with Henning Dyremose as Chairman and Erik Holm as Deputy
Chairman. The Board of Directors was authorised to acquire own B
shares equivalent to a total of 10% of the Company’s share
capital.
Expectations for the year
The first quarter of 2023 confirmed expectations
of a strong first quarter. Expectations for 2023 are unchanged and
are as follows:
Revenue of DKK 5,250-5,450 million, EBITDA in
the range of DKK 435-465 million and earnings before tax in the
range of DKK 300-330 million.
These expectations are based on the assumption
that demand will be negatively impacted by high cost inflation and
increased interest rates; factors that are expected to dampen
activities in the building and construction industry. Revenue
growth is expected to be flat in the second quarter, and negative
growth is expected in the second half of 2023. Revenue for the full
year of 2023 is expected to be at the same level as in 2022.
For further information, please
contact:
CEO Niels A.
Johansen
CFO Per Toelstang Brødrene A & O Johansen A/S Rørvang 3 DK-2620
Albertslund Denmark Telephone: +45 70 28 00 00
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