Interim Report January-September 2020
The third quarter:
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Order intake was MSEK 1,664 (2,038), a decline of -18.4% adjusted to -15.1% for currency effects of MSEK -69
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Net sales were MSEK 1,700 (2,066), a decline of -17.7% adjusted to -14.7% for currency effects of MSEK -62
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Adjusted operating profit was MSEK 144.1 (255.1), a decrease of 43.5% with an adjusted operating margin of 8.5 (12.3)%
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Operating profit was MSEK 66.8 (255.1), a decrease of 73.8% with an operating margin of 3.9 (12.3)%
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Earnings after tax were MSEK 4.9 (181.1)
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Earnings per share were SEK 0.00 (1.02)
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Cash flow from operating activities was MSEK 388.8 (400.4)
Comments from CEO Bodil Sonesson:
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Together with the local management teams we continue our focus in navigating our way through the Covid-19 challenge.
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Group colleagues have responded well to the challenges of Covid-19 and we are making good progress on the implementation of the strategic alignment process, which means we will emerge stronger from the pandemic.
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From this process we have identified opportunities for collaboration and growth in focussed markets, segments and business areas and have initiated early steps in these strategic developments.
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The third quarter was ahead of expectations for net sales and adjusted operating profit.
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Organic order intake was -15,1% in the quarter compared to -24,0% in Q2.
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Order intake does, however, remain a concern but the quarter on quarter positive trend is encouraging. Continued cost reductions and cash generation activities deliver a solid platform to improve results and reduce net debt in the coming months.
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In the Group we are increasing our focus on sustainability. Our new mission statement clearly shows our ambitions. A leading example is the launch of Whitecroft Vitality, a circularity platform for lighting within the Whitecroft brand where the first accredited cradle to cradle product was recently launched.