“As expected, second quarter results have been substantially affected by the ongoing COVID-19 situation. We have adapted well to the uncertainties by aligning output with demand and managing costs, while keeping our staff safe and continuing to deliver for our customers. We have maintained double-digit profitability and seen some markets gradually improve”.
- CEO Jens Birgersson
Highlights
- H1 2020 sales reached EUR 1,232 million, a decrease of 7.4 percent in local currencies including an impact of 0.6 percent from the Parafon acquisition in Sweden.
- In Q2 2020, sales reached EUR 583 million, a decrease of 15.0 percent in local currencies including an impact of 0.7 percent from the Parafon acquisition. The decrease in reported figures was 16.1 percent.
- EBIT in H1 2020 ended at EUR 138 million, a decrease of 22.7 percent. At 11.2 percent, EBIT margin was down 2.2 percentage points from last year.
- EBIT in Q2 2020 totalled EUR 58 million equal to 10.0 percent EBIT margin. While still double-digit, this was 3.2 percentage points lower, adjusted for one-off legal gain last year.
- Investments excluding acquisitions in the first half of 2020 reached EUR 176 million, up EUR 4 million compared to last year, primarily due to ongoing expansions in Germany and the United States, and offset by a grant received in China.
- Annualised return on invested capital ended at 17.7 percent compared to 21.6 percent last year, a decrease of 3.9 percentage points due to lower earnings and higher invested capital.
- The COVID-19 pandemic had a significant impact on sales in Q2, as April and May were down approx. 20 percent, with especially Southern and Central Europe severely impacted. In June, most markets showed signs of recovery.
Outlook 2020
- Mid-single digit sales decline in local currencies.
- EBIT margin is expected around 12 percent.
- Investment level is expected around EUR 400 million excluding acquisitions.
