LEI: 21380031XTLI9X5MTY92
Q1 revenue and EBITA were on par with our expectations. We reconfirm our 2018 outlook.
CEO Jens Andersen says:
"We see business development within our strategic focus areas. We continue to make good progress in aligning our concepts across countries to expand our concept sales albeit this is a resource-consuming process. Furthermore, our intensified focus on the industry segment is paying off. We are attracting new industry customers and renewing agreements. With a Total Cost of Ownership mindset we will continue to approach our customers with cross-national solutions in order to identify individual solutions for optimising their businesses."
| Financial highlights (DKK million)* | Q1 2018 | Q1 2017 | 2017 |
| Revenue | 2,828 | 2,838 | 11,105 |
| EBITA | 66 | 67 | 295 |
| Earnings before tax | 99 | 145 | 126 |
| Cash flow from operating activities | -39 | -86 | 12 |
| Financial ratios (%) | |||
| Organic growth adj. for number of working days | 4.4 | 4.5 | 6.9 |
| EBITA margin | 2.3 | 2.4 | 2.7 |
| Net working capital, period-end/revenue (LTM) | 10.3 | 9.3 | 9.7 |
| Net working capital, average/revenue (LTM)** | 10.5 | 9.6 | 10.2 |
| Gearing (NIBD/EBITDA), no. of times | 1.8 | 1.2 | 1.4 |
| Return on invested capital (ROIC) | 3.9 | 10.1 | 3.8 |
| * Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, 2017 and 2018 figures in this announcement relate to our continuing operations. ** Calculated as an average of the past four quarters' inventories, trade receivables and trade payables. | |||
Q1 2018 Revenue
Q1 2018 EBITA
2018 outlook
| EBITA, DKK million | Core business | Related business | Solar Group |
| 2017, actual, published 12.01.2018 | 309 | -45 | 264 |
| Divestment of Austrian and Belgian businesses | 31 | - | 31 |
| 2017, actual continuing operations | 340 | -45 | 295 |
| Overhead costs* | -10 | - | -10 |
| Planned improvements | 35 | 25 | 60 |
| 2018 guidance | 365 | -20 | 345 |
*The Austrian and Belgian businesses carried approx. DKK 10m in overhead
costs, which will now be placed in the continuing operations within core business.
Audio webcast and teleconference today
The presentation of Quarterly Report Q1 2018 will be conducted in English on 24 April 2018 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via a teleconference.
Teleconference call-in numbers:
DK: tel. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604
Yours faithfully,
Solar A/S
Jens Andersen
Contacts:
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
Director, Stakeholder Relations Charlotte Risskov Kræfting - tel. +45 40 34 29 08
Enclosure: Quarterly Report Q1 2018, pages 1-27.
Facts about Solar
Solar Group is a leading sourcing and services company. Our core business centres on product sourcing, value-adding services and optimisation of our customers' businesses.
Being a sourcing and services company, we focus on each individual customer. We always strive to understand our customers' unique and genuine needs in order to provide relevant, personal and value-adding services, turning our customers into winners.
Solar Group is headquartered in Denmark, generated revenue of more than DKK 11bn in 2017 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu.
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.
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