Quarterly Report • Nov 12, 2020
Quarterly Report
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| Key Ratios | Jul-Sept | Jul-Sept | Jan-Sept | Jan-Sept | Oct 2019- | Jan-Dec |
|---|---|---|---|---|---|---|
| MSEK | 2020 | 2019 | 2020 | 2019 | Sept 2020 | 2019 |
| Net sales | 421 | 520 | 1,338 | 1,598 | 1,906 | 2,166 |
| EBITDA | 23 | 29 | 56 | 84 | 93 | 121 |
| EBIT | 3 | 6 | -11 | 18 | 2 | 32 |
| Earnings before tax | -6 | -6 | -39 | -16 | -34 | -10 |
| Earnings after tax | -8 | -8 | -46 | -23 | -48 | -24 |
| Earning per share, SEK | -0.04 | -0.04 | -0.22 | -0.11 | -0.22 | -0.11 |
| Cash flow after investing activities | 4 | -7 | 19 | 23 | 74 | 78 |
| Equity/asset ratio, % | 31.0% | 32.7% | 31.0% | 32.7% | 31.0% | 33.3% |
Bong is one of the leading providers of envelope products in Europe that also offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2 billion and about 1,200 employees in 13 countries. Bong has strong market positions in most of the important markets in Europe and the Group sees interesting possibilities for continued development. Bong is a public limited company and its shares are listed on Nasdaq Stockholm (Small Cap).
Despite the continued challenging economic environment as a result of the COVID-19 pandemic Bong delivered an improved Q3 2020 compared to Q2 2020. I am pleased to see that our efforts on cost savings are progressing well and even though the full effects of COVID-19 and the rate of recovery are uncertain the growth opportunities remain strong from our new e-commerce packaging range, says Bong's CEO Kai Steigleder.
The worldwide negative impact caused by the Covid-19 pandemic is a huge challenge to all European countries with long term economic consequences. The results can be seen in lower purchasing power, reduced consumer confidence and tighter financial conditions. For 2020 the global economy is now experiencing a deep recession with annual double digit GDP declines in many countries and a surge in unemployment. For 2021 a slow and gradual recovery is projected.
Bong's Light packaging segment recovered in Q3 compared to Q2 2020 with a currency adjusted increase of 0,3% after a 6,8% decline in Q2. The overall currency adjusted year to date increase amounts still to 0,4%.
Reasons for the flat development in Q3 2020 was the very difficult UK market that was economically suffering the most in Europe. In addition our Retail Gift Bags were negatively affected from store lockdowns causing economic difficulties for some retail chains. The very positive development in Paper Carrier bags (+50% in Q3) resulted from new contracts with some customers.
With the strongest quarter of the year in retail business ahead, a continued higher need for e-commerce packaging and the two new production machines starting to run in Q4 we are quite optimistic to show a recovery of our Light Packing segment in Q4.
After a drastic decline of sales in Q2 2020 we were seeing a slow but continuous recovery of the European envelope market in Q3.
Bong's own Q3 development in the envelope segment also recovered in comparison to Q2 but still not back at a normal rate in terms of sales and earnings.
The Group's currency-adjusted sales decreased by 16% compared with previous year also due to the Covid-19 effect. Bong's gross margin is on the same level as last year. Operating profit decreased to SEK - 11 million (18). The operating profit in Q3 2020 was affected negatively by restructuring cost of SEK 16 million (3) and an impairment of Goodwill of SEK 4 million (0) related to the closure of the envelope production in Estonia.
Cash flow from operating activities amounted to SEK 33 million (42). Adjusted net debt/adjusted EBITDA according to Bong's Bond loan amounts to 3.25.
The initiated restructuring in UK and in France as well as the saving efforts in all countries are all developing according to plan. The achieved savings were already helping us in Q3 but we will see the main effects in Q4 2020 and in 2021. We expect only minor restructuring costs in Q4 2020 at the moment.
I am pleased to see that our efforts on cost savings are progressing well and even though the full effects of COVID-19 and the rate of recovery are uncertain the growth opportunities remain strong from our new e-commerce packaging range.
We are convinced to be on the right track with the strategic focus on our new e-commerce packaging range and to emerge stronger from the crisis. A decision on further investments in this potential growth segment will be made in Q4.
Last but not least I am particularly thanking all our hard working and dedicated employees as well as our stakeholders and shareholders for their support in these difficult times.
Chief Executive Officer
January – September 2020
Consolidated sales for the period reached SEK 1,338 million (1,598). Exchange rate fluctuations had no impact (40) on sales compared with 2019.
Operating profit decreased to SEK -11 million (18). The Group's gross margin is on the same level compared to previous year. During the period operating profit was affected positively by a realized capital gain of SEK 7 million (1) attributable to the sale of machines. Operating profit was also affected negatively by restructuring costs of 16 (3) MSEK and write-down of goodwill of SEK 4 million attributable to the closure of operations in Estonia as well as a write-down of receivables of SEK 4 million in UK. Exchange rate fluctuations for the period had a negative impact on operating profit of SEK -1 million (1).
Net financial items for the period amounted to SEK -28 million (-34).
Earnings before tax amounted to SEK -39 million (-16) and reported earnings after tax were SEK -46 million (-23).
Bong's total envelope sales amounted to SEK 1,002 million (1,262). Currency fluctuations had no significant impact on envelope sales (32) compared with the corresponding period in 2019.
Bong's total light packaging sales amounted to SEK 336 million (336). Currency fluctuations had a negative impact on light packaging sales of SEK 1 million (8) compared with the corresponding period in 2019.
Consolidated sales for the period reached SEK 421 million (520). Exchange rate fluctuations had a negative impact on sales of SEK -8 million (15) compared with 2019.
Operating profit decreased to SEK 3 million (7). The Group's gross margin is on the same level as previous year. During the period operating profit was affected positively by a realized capital gain of SEK 3 million attributable to the sale of machines and negatively by restructuring costs of SEK 10 million (1). Exchange rate fluctuations had an impact in the period of SEK -1 million (-1).
Net financial items for the period amounted to SEK -9 million (-12).
Earnings before tax amounted to SEK -6 million (-6) and reported earnings after tax were SEK -8 million (-8).
Bong's total envelope sales amounted to SEK 299 million (396). Currency fluctuations had a negative impact on envelope sales of SEK -6 million (12) compared with the corresponding period in 2019.
Bong's total light packaging sales amounted to SEK 122 million (124). Currency fluctuations had a negative impact on light packaging sales of SEK -2 million (3) compared with the corresponding period in 2019.
The cash flow after investing activities decreased to SEK 19 million (23) compared to previous year. Cash flow from operating activities before changes in working capital amounted to SEK 11 million (57). Working capital had a positive impact on the cash flow of SEK 22 million (-16). The main part, SEK 16 million, is related to postponed taxes and social fees.
Restructuring programs had negative impact on the cash flow of SEK -24 million (-5). Net investments in the period had a negative impact amounting to SEK -14 million (-18).
Cash and cash equivalents at 30 september 2020 amounted to SEK 121 million (SEK 100 million at 31 December 2019). The Group had unutilized credit facilities of SEK 13 million on the same date. Total available cash and cash equivalents thus amounted to SEK 134 million (SEK 117 million at 31 December 2019). Consolidated equity at the end of September 2020 was SEK 477 million (SEK 529 million at 31 December 2019).
Translation of the net asset value of foreign subsidiaries to Swedish Krona and changes in the fair value of pension debt and derivative instruments decreased consolidated equity by SEK -5 million. The interest bearing net loan debt amounted to SEK 484 million, whereof pension debt amounts to SEK 237 million and IFRS 16 leasing contracts amount to SEK 118 million (SEK 506 million at 31 December 2019, whereof pension debt amounts to SEK 239 million and IFRS 16 leasing contracts SEK 160 million).
The average number of employees during the period was 1,213 (1,350). The Group had 1,155 (1,304) employees at the end of September 2020. Bong has intensively worked on improving productivity and adjusting staff to meet current demand and the reduction is the result of the implemented restructuring measures.
The Parent Company's business extends to management of operating subsidiaries and certain Group management functions. Sales were SEK 2.6 million (2.4) and earnings before tax for the period were SEK -4 million (-6).
A number of different measures have been taken at Bong to mitigate the short and long term effects of the corona virus, with health and safety for employees and customers as the highest priority. We follow the development carefully and adjust our measures according to local authorities' advice and regulations, while we strive to mitigate any disruptions to the Group's operations. Bong notes that the negative financial impact during the third quarter has decreased. The development in terms of sales and earnings in our operations in UK and France has been drastically negative caused by the Covid-19 pandemic. In these countries restructuring programs has immediately been started.
The contributions received from the governments shown as Other operating income amount to 15 MSEK for the Group. Other government fee reductions have reduced the social fees with 1 MSEK. Loan with guarantee from the government amounts to 48 MSEK with a duration of one year. The Group may, at its discretion, prolong the duration of the loan between 1 and 5 years. Loan with guarantee from the government amounts to 8 MSEK with a duration of 10 years. The Group has no substantial losses on account receivables related to Covid-19.
Bong will monitor the development to assess any effects on the valuation of goodwill or on non-financial assets or financial assets. It is currently not possible to predict with sufficient reliability over what period and to what extent Bong will face further impacts in 2020 and upcoming years including write-offs due to impairments of assets and goodwill. All countries are projected to experience a deep recession in 2020 followed by a slow and gradual recovery in 2021. In this scenario it is not unlikely that Bong needs to make an impairment on its goodwill during the fourth quarter in a range of 20-60 MSEK.
No material events have occurred after the end of the period.
Business risks for the Bong Group are primarily related to market development and various types of financial risks. There has not been any change to significant risks and uncertain positions since Bong's annual report for 2019 was released except for the Covid-19 pandemic. For further information, please refer to Bong's annual report and website bong.com.
This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Application was consistent with the accounting principles outlined in the 2019 annual report and the interim report should be read along with those principles.
Kai Steigleder Chief Executive Officer
Additional information Kai Steigleder, CEO- & Carsten Grimmer, CFO for Bong AB. Tel +46 44-20 70 00 (switchboard)
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Malmö, 12 november 2020
PricewaterhouseCoopers AB
Lars Nilsson Patrik Larsson Authorized Public Accountant
Auditor in Charge Authorized Public Accountant
We have reviewed the condensed interim financial information (inte rim report) of Bong AB as of 30 September 2020 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial informa tion in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Stan dard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review proce dures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
| Jul–Sept | Jul–Sept | Jan–Sept | Jan–Sept | Oct 2019- | Jan–Dec | ||
|---|---|---|---|---|---|---|---|
| MSEK | Note | 2020 3 month |
2019 3 month |
2020 9 month |
2019 9 month |
Sept 2020 12 month |
2019 12 month |
| Revenue | 1 | 420.9 | 519.8 | 1,338.0 | 1,597.9 | 1,905.9 | 2,165.8 |
| Cost of goods sold | -348.2 | -432.4 | -1,119.6 | -1,329.7 | -1,591.8 | -1,801.8 | |
| Gross profit | 72.7 | 87.4 | 218.4 | 268.2 | 314.1 | 364.0 | |
| Selling expenses | -37.4 | -47.0 | -131.0 | -145.6 | -177.8 | -192.5 | |
| Administrative expenses | -23.6 | -33.3 | -88.71) | -101.5 | -116.01) | -128.7 | |
| Other operating income and expenses | -8.72) | -0.63) | -10.04) | -3.15) | -18.06) | -11.17) | |
| Operating profit | 3.0 | 6.5 | -11.3 | 18.0 | 2.3 | 31.7 | |
| Net financial items | -9.4 | -12.3 | -27.9 | -34.1 | -35.8 | -41.9 | |
| Result before tax | -6.4 | -5.8 | -39.2 | -16.1 | -33.5 | -10.2 | |
| Income tax | -1.4 | -2.5 | -7.0 | -6.8 | -14.1 | -13.9 | |
| Net result 1) Including non-recurring items of SEK -4 million Whereof restructuring costs: 2) SEK -10 million, 3) SEK -1 million, 4) SEK -16 million, 5) SEK -4 million, 6) SEK -25 million, 7) SEK -12 million |
-7.8 | -8.3 | -46.2 | -22.9 | -47.6 | -24.1 | |
| Total comprehensive income attributable to: | |||||||
| Share holders in Parent Company | -7.5 | -8.3 | -45.8 | -22.8 | -46.9 | -23.6 | |
| Non-controlling interests | -0.3 | 0.0 | -0.4 | -0.1 | -0.7 | -0.5 | |
| Earnings per share | -0.04 | -0.04 | -0.22 | -0.11 | -0.22 | -0.11 | |
| Earnings per share, excluding non recurring items | - | - | -0.20 | - | -0.20 | -0.22 | |
| Average number of shares | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 | |
| STATEMENT OF COMPREHENSIVE INCOME MSEK |
Jul–Sept 2020 |
Jul–Sept 2019 |
Jan–Sept 2020 |
Jan–Sept 2019 |
Oct 2019- Sept 2020 |
Jan–dec 2019 |
|
| Net result for the year | -7.8 | -8.3 | -46.2 | -22.9 | -47.6 | -24.1 | |
| Other comprehensive income Items that will not be reclassified to profit or loss: |
|||||||
| Actuarial loss on post employment benefit obligations | -7.7 | -14.0 | -2.1 | -28.9 | 2.2 | -24.6 | |
| -7.7 | -14.0 | -2.1 | -28.9 | 2.2 | -24.6 | ||
| Items that may be reclassified subsequently to profit or loss: | |||||||
| Cash flow hedges Impact of extended equity |
2 | -0.2 -1.5 |
0.0 -1.9 |
-0.2 -0.6 |
0.1 -5.3 |
-0.2 0.3 |
0.1 -4.5 |
| Exchange rate differences | 3.8 | 10.1 | -2.6 | 33.4 | -14.7 | 21.3 | |
| Income tax relating to components of other comprehensive income | 1.9 | 4.2 | 0.5 | 8.6 | -1.0 | 7.1 | |
| 4.0 | 12.4 | -2.9 | 36.8 | -15.8 | 24.0 | ||
| Other comprehensive income for the period. net of tax | -3.7 | -1.6 | -5.0 | 7.9 | -13.6 | -0.6 | |
| Total comprehensive income | -11.5 | -9.9 | -51.2 | -15.0 | -61.2 | -24.7 | |
| Total comprehensive income attributable to: | |||||||
| Share holders in Parent Company | -11.2 | -9.9 | -50.8 | -14.9 | -60.5 | -24.2 | |
| Non-controlling interests | -0.3 | 0.0 | -0.4 | -0.1 | -0.7 | -0.5 | |
| 30 Sept | 30 Sept | 31 Dec | ||
|---|---|---|---|---|
| MSEK | Note | 2020 | 2019 | 2019 |
| Assets | ||||
| Intangible assets | 3,4 | 529.1 | 547.2 | 538.5 |
| Tangible assets | 272.5 | 329.3 | 314.8 | |
| Financial assets | 5 | 109.4 | 124.4 | 114.6 |
| Inventories | 202.9 | 222.1 | 200.4 | |
| Current receivables | 6 | 302.8 | 360.8 | 317.6 |
| Cash and cash equivalents | 7 | 120.7 | 63.4 | 99.7 |
| Total assets | 1,537.4 | 1,647.2 | 1,585.6 | |
| Equity and liabilities | ||||
| Equity | 477.2 | 538.4 | 528.7 | |
| Non-current liabilities | 8 | 583.7 | 595.1 | 576.1 |
| Current liabilities | 9 | 476.5 | 513.7 | 480.8 |
| Total equity and liabilities | 1,537.4 | 1,647.2 | 1,585.6 |
| CHANGES IN EQUITY | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | Note | Jan-Sept 2020 |
Jan-Sept 2019 |
Jan-Dec 2019 |
|||||
| Opening balance for the period | 528.7 | 569.6 | 569.6 | ||||||
| Change in accounting pricipales- IFRS 16 Lease | - | -16.2 | -16.2 | ||||||
| Bond loan / Convertible loan | - | - | - | ||||||
| Non-controlling interests | -0.3 | 0.0 | - | ||||||
| Total comprehensive income | -51.2 | -15.0 | -24.7 | ||||||
| Closing balance for the period | 477.2 | 538.4 | 528.7 |
| Jul-Sept 2020 |
Jul-Sept 2019 |
Jan-Sept 2020 |
Jan-Sept 2019 |
Oct 2019- Sept 2020 |
Jan-Dec 2019 |
||
|---|---|---|---|---|---|---|---|
| MSEK | Note | 3 month | 3 month | 9 month | 9 month | 12 month | 12 month |
| Operating activities | |||||||
| Operating profit/loss | 3.0 | 6.3 | -11.4 | 18.1 | 2.2 | 31.7 | |
| Depreciation, amortisation, and impairment losses | 19.6 | 22.3 | 67.8 | 66.2 | 90.4 | 88.8 | |
| Interest received | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | |
| Interest paid | -3.3 | -8.4 | -17.6 | -23.5 | -24.0 | -29.9 | |
| Financial expenses | -0.5 | -2.7 | -0.8 | -5.2 | 0.2 | -4.4 | |
| Tax paid | -0.9 | -0.6 | -1.0 | 7.0 | -3.5 | 4.5 | |
| Other items not affecting liquidity | -6.9 | 0.8 | -26.5 | -5.2 | -25.8 | -4.3 | |
| Cash flow from operating activities before changes in | |||||||
| working capital | 11.0 | 17.7 | 10.5 | 57.4 | 39.6 | 86.5 | |
| Changes in working capital | |||||||
| Inventories | -4.1 | -0.6 | -4.0 | -19.5 | 15.4 | -0.1 | |
| Current receivables | -23.3 | -34.2 | -1.8 | 29.6 | 47.4 | 78.7 | |
| Current operating liabilities | 31.4 | 20.9 | 28.1 | -25.9 | -10.7 | -64.6 | |
| Cash flow from operating activities | 15.0 | 3.8 | 32.8 | 41.6 | 91.7 | 100.5 | |
| Cash flow from investing activities | |||||||
| Aquisition of intangible and tangible assets incl. | |||||||
| advanced payments to suppliers | -11.2 | -11.5 | -19.6 | -20.5 | -24.0 | -24.9 | |
| Disposal of intangible and tangible assets | 0.2 | 0.3 | 5.7 | 2.1 | 5.8 | 2.2 | |
| Cash flow from investing activities | -11.0 | -11.2 | -13.9 | -18.4 | -18.2 | -22.7 | |
| Cash flow after investing activities | 4.0 | -7.4 | 18.9 | 23.2 | 73.5 | 77.8 | |
| Cash flow from financing activities | |||||||
| Change in credit facilities | 5.0 | 5.6 | 0.0 | 5.5 | -5.6 | -0.1 | |
| Change in other long-term debt | 8.4 | 0.0 | 42.0 | -0.2 | 41.8 | -0.4 | |
| IFRS-16 lease payment | -12.6 | -13.0 | -39.2 | -38.2 | -52.3 | -51.3 | |
| Cash flow from financing activities | 0.8 | -7.4 | 2.8 | -32.9 | -16.1 | -51.8 | |
| Cash flow for the period | 4.8 | -14.8 | 21.7 | -9.7 | 57.4 | 26.0 | |
| Cash and cash equivalents at beginning of period | 115.5 | 78.6 | 99.7 | 72.4 | 63.4 | 72.4 | |
| Exchange rate difference in cash and cash equivalents | 0.4 | -0.4 | -0.7 | 0.7 | -0.1 | 1.3 | |
| Cash and cash equivalents at end of period | 120.7 | 63.4 | 120.7 | 63.4 | 120.7 | 99.7 |
| Jul-Sept 2020 | Jul-Sept 2019 | Jan-Sept 2020 | Jan-Sept 2019 | Oct 2019-Sept 2020 | Jan-Dec 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | Envelope | Light Packaging | Envelope | Light packaging | Envelope | Light packaging | Envelope | Light packaging | Envelope | Light packaging | Envelope | Light packaging |
| Sweden | 24 | 14 | 30 | 13 | 86 | 37 | 109 | 37 | 127 | 56 | 151 | 56 |
| Nordic and Baltics | 28 | 9 | 33 | 13 | 97 | 26 | 115 | 33 | 134 | 42 | 152 | 49 |
| Central Europe | 115 | 42 | 141 | 47 | 383 | 120 | 440 | 117 | 532 | 174 | 590 | 172 |
| South Europe | 65 | 35 | 98 | 22 | 227 | 90 | 303 | 71 | 322 | 126 | 398 | 108 |
| UK | 49 | 15 | 73 | 19 | 163 | 44 | 234 | 56 | 235 | 64 | 306 | 77 |
| Other | 18 | 7 | 21 | 10 | 46 | 19 | 61 | 22 | 65 | 29 | 79 | 28 |
| Total | 299 | 122 | 396 | 124 | 1 002 | 336 | 1 262 | 336 | 1 415 | 491 | 1 676 | 490 |
| Assets | 2020-09-30 | 2019-09-30 | 2019-12-31 |
|---|---|---|---|
| Sweden | 160 | 178 | 174 |
| Nordic and Baltics | 50 | 60 | 57 |
| Central Europe | 235 | 264 | 253 |
| South Europe | 237 | 236 | 230 |
| UK | 120 | 138 | 138 |
| Other | 0 | 0 | 1 |
| Total | 802 | 876 | 853 |
The table below shows the Group's financial assets and liabilities in the form of derivatives measured at fair value. All financial derivatives measured at fair value are in Category 2. These include interest rate swaps and foreign exchange contracts and the valuation is based on the forward interest rates derived from observable yield curves.
| 2020-09-30 | Assets | Liabilities |
|---|---|---|
| Interest rate swaps - cash flow hedges | 0.0 | 0.0 |
| Currency forwards - cash flow hedges | 0.3 | 0.6 |
| Currency forwards - held for trading | 0.0 | 0.0 |
| Total | 0.3 | 0.6 |
| 2019-09-30 | Assets | Liabilities |
| Interest rate swaps - cash flow hedges | 0.0 | 0.0 |
| Currency forwards - cash flow hedges | 0.0 | 0.0 |
| Currency forwards - held for trading | 0.0 | 0.0 |
| Total | 0.0 | 0.0 |
| 2019-12-31 | Assets | Liabilities |
| Interest rate swaps - cash flow hedges | 0.0 | 0.0 |
| Currency forwards - cash flow hedges | 0.0 | 0.1 |
| Currency forwards - held for trading | 0.0 | 0.0 |
| Total * For the above contracts. the following amounts are found in the hedge reserve under |
0.0 | 0.1 |
Total comprehensive income; interest rate swaps - cash flow hedges SEK 0 million. currency forwards - cash flow hedges SEK 0 million.
| Fair value of the following financial assets and liabilities is estimated to be equal to |
|---|
| book value: |
| - Trade receivables and other receivables |
| - Other current receivables |
| - Cash and cash equivalents |
| - Long-term and short-term loans |
| - Trade payables and other liabilities |
| - Other financial assets and liabilities |
| Information about netting of financial assets and liabilities |
The Group does not apply net recognition for any of its other significant assets and liabilities and has no netting agreements with financial counterparties.
| Note 3 - Intangible assets | 2020-09-30 | 2019-09-30 | 2019-12-31 |
|---|---|---|---|
| Goodwill | 525.4 | 537.2 | 529.9 |
| Other intangible assets | 3.7 | 10.0 | 8.6 |
| Total | 529.1 | 547.2 | 538.5 |
| Note 4 - Goodwill | 2020-09-30 | 2019-09-30 | 2019-12-31 |
| Opening costs | 529.9 | 518.4 | 518.4 |
| Purchase/acqusition | - | - | - |
| Write-down | -3.7 | - | - |
| Exchange rate differences | -0.8 | 18.8 | 11.5 |
| Closing costs | 525.4 | 537.2 | 529.9 |
| Note 5 - Financial assets | 2020-09-30 | 2019-09-30 | 2019-12-31 |
|---|---|---|---|
| Deferred tax | 108.1 | 122.0 | 113.4 |
| Other financial assets | 1.3 | 2.4 | 1.2 |
| Total | 109.4 | 124.4 | 114.6 |
| Note 6 - Current assets | 2020-09-30 | 2019-09-30 | 2019-12-31 |
|---|---|---|---|
| Receivables | 203.2 | 242.2 | 223.2 |
| Other current assets | 99.6 | 118.6 | 94.4 |
| Total | 302.8 | 360.8 | 317.6 |
| Note 7 - Cash and cash equivalent | 2020-09-30 | 2019-09-30 | 2019-12-31 |
| Cash/Bank | 120.6 | 63.4 | 99.6 |
| Cash/Bank escrow account | 0.1 | 0.0 | 0.1 |
| Total | 120.7 | 63.4 | 99.7 |
| Note 8 - Non-current liabilities | 2020-09-30 | 2019-09-30 | 2019-12-31 |
| Interest-bearing loans | 249.1 | 205.9 | 206.4 |
| Leasing contracts - IFRS 16 | 79.7 | 113.9 | 106.2 |
| Pension debt | 237.2 | 246.3 | 239.4 |
| Deferred tax | 8.0 | 13.5 | 10.1 |
| Other liabilities | 9.7 | 15.5 | 14.0 |
| Total | 583.7 | 595.1 | 576.1 |
The Bond loan 2018 is booked to amortised cost which means that the nominal value of the loan SEK 210 million has been reduced for related accrued expenses which will adjust the booked value of the loan at each end of the reporting period till the due date of the loan year 2021 when the booked value will be the same as the nominal value. Repurchase of Bonds was made during the period to the nominal value of SEK 13 million and another SEK 5 million in October 2020.
| Note 9 - Current liabilities | 2020-09-30 | 2019-09-30 | 2019-12-31 |
|---|---|---|---|
| Interest-bearing loans | - | 5.7 | - |
| Leasing contracts - IFRS 16 | 38.6 | 55.9 | 54.1 |
| Payables | 156.8 | 186.6 | 182.1 |
| Other liabilities | 281.1 | 265.5 | 244.6 |
| Total | 476.5 | 513.7 | 480.8 |
| Adjusted interest bearing net loan debt | 2020-09-30 | 2019-12-31 |
|---|---|---|
| Interest bearing loans, non-current liabilities | 566.0 | 551.9 |
| Interest bearing loans, current liabilities | 38.6 | 54.1 |
| Cash and cash equivalent | -120.7 | -99.7 |
| Net Debt | 483.9 | 506.3 |
| Pension debt | -237.2 | -239.4 |
| Leasing contracts - IFRS 16 | -118.3 | -160.3 |
| Adjusted net debt | 128.4 | 106.6 |
| Adjusted EBITDA 12 month rolling | 2020-09-30 | 2019-12-31 |
| Profit | -47.6 | -24.1 |
| Financial charges | 34.3 | 39.5 |
| Tax | 14.1 | 13.9 |
| Depreciations | 90.4 | 88.8 |
| Restructuring cost | 5.8 | 7.5 |
| Transaction cost | 1.5 | 2.4 |
| Minority result | 0.7 | 0.5 |
| IFRS 16, lease payments | -59.5 | -59.0 |
| Adjusted EBITDA | 39.5 | 69.5 |
| Adjusted interest bearing net loan debt/Adjusted EBITDA | 3.25 | 1.54 |
| MSEK | 3/2020 | 2/2020 | 1/2020 | 4/2019 | 3/2019 | 2/2019 | 1/2019 | 4/2018 | 3/2018 | 2/2018 | 1/2018 | 4/2017 | 3/2017 | 2/2017 | 1/2017 | 4/2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Revenue | 420.9 | 398.8 | 518.3 | 567.9 | 519.8 | 507.1 | 571.0 | 603.2 | 536.0 | 543.0 | 538.1 | 578.0 | 491.4 | 480.7 | 545.2 | 579.0 |
| Operating expenses | -417.9 | -418.5 | -513.0 | -554.2 | -513.3 | -510.6 | -555.7 | -689.5 | -524.3 | -533.2 | -526.1 | -560.9 | -489.4 | -473.3 | -526.5 | -564.2 |
| Operating profit | 3.0 | -19.7 | 5.3 | 13.7 | 6.5 | -3.5 | 15.3 | -86.3 | 11.7 | 9.8 | 12.0 | 17.1 | 2.0 | 7.4 | 18.7 | 14.8 |
| Net financial items | -9.4 | -10.2 | -8.4 | -7.8 | -12.3 | -11.2 | -10,6 | -11.6 | -10.4 | -22.6 | -10.9 | -10.7 | -10.3 | -11.6 | -11.5 | -14.6 |
| Profit before tax | -6.4 | -29.9 | -3.1 | 5.9 | -5.8 | -14.7 | 4,7 | -97.9 | 1.3 | -12.8 | 1.1 | 6.4 | -8.3 | -4.2 | 7.2 | 0.2 |
| KEY RATIOS | Jan-Sept | Jan-Sept | Oct 2019- | Jan-Dec | |
|---|---|---|---|---|---|
| Note | 2020 | 2019 | Sept 2020 | 2019 | |
| Operating margin, % | -0.8 | 1.1 | 0.1 | 1.5 | |
| Return on equity, %* | - | - | neg | neg | |
| Return on capital employed, %* 1 ) |
0.53 | 3.25 | 0.53 | 3.25 | |
| Equity/assets ratio, %* | 31.0 | 32.7 | 31.0 | 33.3 | |
| Net debt/equity ratio times* | 0.77 | 0.73 | 0.77 | 0.65 | |
| Net loan debt/EBITDA* | - | - | 3.95 | 2.87 | |
| Adjusted interest bearing net loan | |||||
| debt/adjusted EBITDA* | 10 | - | - | 3.25 | 1.54 |
| Capital employed, MSEK* | 963.5 | 996.3 | 963.5 | 974.5 | |
| Interest-bearing net loan debt, MSEK* | 483.9 | 564.3 | 483.9 | 506.3 | |
| 1) Return on capital employed | |||||
| Earnings after financial revenues | - | - | 5.8 | 31.9 | |
| Average capital employed | - | - | 979.9 | 982.9 |
For the key figures above, are those marked * considered to be APM (Alternative Performance Measures) and not follow IFRS. They are judged however by management to be important to show shareholders the Group's underlying performance, profitability and financial position. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. For definitions see page 13.
| DATA PER SHARE | Jan-Sept 2020 |
Jan-Sept 2019 |
Oct 2019- Sept 2020 |
Jan-Dec 2019 |
|---|---|---|---|---|
| Earnings per share, SEK | -0.22 | -0.11 | -0.22 | -0.11 |
| Earnings per share, excluding non | ||||
| recurring items, SEK | -0.20 | - | -0.20 | -0.11 |
| Basic equity per share, SEK Diluted equity per share, SEK |
2.64 2.26 |
2.67 2.55 |
2.64 2.26 |
2.50 2.50 |
| Number of shares outstanding at end | 211.205.058 | 211.205.058 | 211.205.058 | 211.205.058 |
| of period | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 |
| Average number of shares | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 |
| Key ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|
| Net sales, MSEK | 2,166 | 2,220 | 2,095 | 2,135 | 2,345 |
| Operating profit/loss, MSEK | 32 | -52 | 45 | 9 | -5 |
| Extraordinary items, financial net. MSEK | - | -11 | - | 430 | - |
| Profit/loss after tax, MSEK | -24 | -148 | -9 | 297 | -64 |
| Cash flow after investing activities, MSEK | 78 | -65 | 40 | 30 | -75 |
| Operating margin, % | 1.5 | -2.3 | 2.2 | 0.4 | -0.2 |
| Capital turnover rate, times | 1.4 | 1.4 | 1.3 | 1.3 | 1.2 |
| Return on equity, % | neg | neg | neg | neg | neg |
| Average capital employed, MSEK | 983 | 1,042 | 1,095 | 1,159 | 1,343 |
| Return on capital employed, % | 3.2 | neg | 0.2 | 1.8 | neg |
| Equity ratio, % | 33 | 38 | 43 | 43 | 16 |
| Net loan debt, MSEK | 506 | 349 | 294 | 315 | 837 |
| Net loan debt/equity, times | 0.91 | 0.61 | 0.42 | 0.45 | 2.64 |
| Net debt/EBITDA, times | 4.2 | 5.0 | 3.2 | 5.2 | 11.9 |
| Average number of employees | 1,334 | 1,446 | 1,459 | 1,556 | 1,763 |
| Number of shares | |||||
| Basic number of shares outstanding at end of period | 211,205,058 | 211,205,058 | 211,205,058 | 211,205,058 | 156,659,604 |
| Diluted number of shares outstanding at end of period | 211,205,058 | 211,205,308 | 251,205,058 | 251,205,058 | 183,932,331 |
| Average basic number of shares | 211,205,058 | 211,205,058 | 211,205,058 | 207,417,179 | 156,659,604 |
| Average diluted number of shares | 211,205,058 | 211,205,058 | 251,205,058 | 246,533,341 | 183,932,331 |
| Earnings per share | |||||
| Before dilution, SEK | -0.11 | -0.71 | -0.06 | 1.42 | -0.41 |
| After dilution, SEK | -0.11 | -0.71 | -0.06 | 1.42 | -0.41 |
| Earnings per share. before dilution, excluding non-recurring items | -0.11 | -0.22 | -0.06 | -0.64 | - |
| Earnings per share. after dilution, excluding non-recurring items | -0.11 | -0.22 | -0.06 | -0.64 | - |
| Equity per share | |||||
| Before dilution, SEK | 2.50 | 2.70 | 3.30 | 3.30 | 2.02 |
| After dilution, SEK | 2.50 | 2.70 | 3.30 | 3.30 | 1.95 |
| Cash flow from operating activities per share | |||||
| Before dilution, SEK | 0.48 | -0.28 | 0.25 | 0.26 | -0.95 |
| After dilution, SEK | 0.48 | -0.28 | 0.25 | 0.26 | -0.81 |
| Other data per share | |||||
| Dividend, SEK 1) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Quoted market price on the balance sheet date, SEK | 0.7 | 1.0 | 1.0 | 0.9 | 1.3 |
| P/E-ratio, times | neg | neg | neg | 0.6 | neg |
| Adjusted P/E-ratio, times | neg | neg | neg | neg | - |
| Price/Equity before dilution, % | 29 | 35 | 29 | 27 | 62 |
| Price/Equity after dilution, % | 29 | 35 | 29 | 27 | 65 |
1) Proposal by the board For definitions see page 13
This Report includes financial key data and ratios based on concepts defined in International Financial Reporting Standards (IFRS), Alternative Performance Measurements and company-specific ratios. Definitions are found below.
For historical values: http://www.bong.com/en/investors/reports/historical-values
Profit after tax, excluding items affecting comparability, divided by the average number of shares before and after dilution.
ADJUSTED P/E RATIO, TIMES Share price divided by adjusted earnings per share before and after dilution.
Capital employed at the beginning of year plus capital employed at year-end divided by two.
Shareholders' equity at beginning of year plus equity at year-end divided by two.
Total assets at beginning of the year plus total assets at year-end divided by two.
Equity plus interest-bearing liabilities.
Net sales by average total assets. Capital turnover is a measure of how effectively the Group uses its assets.
Profit after tax, divided by the average number of shares, before and after dilution.
Operating income before depreciation and amortization.
Shareholders' equity divided by total assets. This ratio is a measure of the Group's financial strength.
Items of infrequent nature with significant effects, which are relevant for understanding the financial performance when comparing the current period with previous periods. Such items may include but are not limited to results from divestments of property, charges attributable to close-down or restructuring of major units or activities, significant write-downs of tangible and intangible assets and other major non-recurring costs or income.
Interest-bearing liabilities and provisions less liquid funds and interest-bearing receivables.
Net debt divided by EBITDA. Net debt/EBITDA is a measure of the Group's financial strength.
Net debt divided by equity. This ratio is a measure of the Group's financial strength.
Operating profit divided by net sales. Operating margin is a measure of profitability. It measures how much of revenues remains after operating expenses.
Share price divided by earnings per share.
Earnings after financial income divided by average capital employed. For 2016 the extraordinary net financial item has been excluded. This measure of profitability shows the return of the Group's total balance sheet, less non interest-bearing debt. It is a measure independent of indebtedness. It complements the measure return on equity.
Earnings after tax divided by average equity. For 2016 the extraordinary net financial item has been excluded. This measure measures the return on shareholders' funds for the year and is useful in comparisons of other investments with the same risk profile.
Price per share divided by equity per share.
| INCOME STATEMENT IN SUMMARY | Jan–Sept | Jan–Sept |
|---|---|---|
| MSEK | 2020 | 2019 |
| Revenue | 2.6 | 2.5 |
| Gross profit | 2.6 | 2.5 |
| Administrative expenses | -8.7 | -11.7 |
| Operating profit/loss | -6.1 | -9.2 |
| Net financial items | 1.8 | 3.2 |
| Result | -4.3 | -6.0 |
| Income tax | 0 | 0 |
| Net result | -4.3 | -6.0 |
| STATEMENT OF COMPREHENSIVE INCOME MSEK |
Jan–Sept 2020 |
Jan–Sept 2019 |
|---|---|---|
| Net Result for the year | -4.3 | -6.0 |
| Other comprehensive income | ||
| Net financial items reported directly in consolidated equity: | ||
| Cash flow hedges | - | - |
| Income tax relating to components of other comprehensive income | - | - |
| Net result, Other comprehensive income | - | - |
| Total comprehensive income | -4.3 | -6.0 |
| BALANCE SHEET IN SUMMARY | 30 Sept | 31 Dec |
|---|---|---|
| MSEK | 2020 | 2019 |
| Assets | ||
| Financial assets | 847.6 | 847.6 |
| Current receivables | 2.0 | 1.8 |
| Cash and cash equivalents | 0.1 | 0.1 |
| Total Assets | 849.7 | 849.5 |
| Equity and liabilities | ||
| Equity | 414.3 | 418.5 |
| Non-current liabilities | 194.4 | 205.8 |
| Current liabilities | 241.0 | 225.2 |
| Total equity and liabilities | 849.7 | 849.5 |
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