Earnings Release • Mar 29, 2019
Earnings Release
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First quarter (1 December 2018 – 28 February 2019)
Q1
H&M
"Our ongoing transformation work has contributed to stronger collections with increased fullprice sales, lower markdowns and increased market shares. Sales developed well both in stores and online in many markets, including Sweden which grew by 11 percent, the UK by 8 percent, Poland by 15 percent, China by 16 percent and India by 42 percent in local currencies.
In the first quarter the group's sales increased by 10 percent, which in local currencies represents a sales increase of 4 percent.
During the quarter the company successfully transitioned the online platform in Germany. One of the measures to ensure a smooth, well-executed transition was to deliberately hold back on sales activities in Germany, which had a dampening effect on online sales. Adjusted for Germany's online sales, the group's total net sales increase was 6 percent in local currencies.
All markets are now on the new online platform. For our customers in the German market this means improvements such as faster and more flexible deliveries, and better integration between our physical stores and the online store.
The quarter's pre-tax profit of SEK 1,043 m was negatively affected by the drop in sales in Germany, but also by costs of around SEK 250 m associated mainly with the replacement of the online platform in Germany as well as continued costs relating to implemented and upcoming transitions to new logistics systems. This is having a negative effect on our margin in the short term but will have a positive effect in the longer term as it will result in a faster, more flexible and more efficient product flow.
We can see that our transformation work is having an effect and we will continue this work at full speed within our strategic focus areas:
Product assortment – secure the best combination of fashion, quality, price and sustainability for all the brands.
Physical stores – continued development of new concepts and optimisation of the store portfolio.
Online stores – improvements such as faster and more flexible delivery options and payments.
Continued integration of our physical stores and online stores to enhance the customer experience.
The supply chain will be even faster, more flexible and more efficient.
Initiatives within advanced data analytics and AI.
Continued investments in our tech foundation including robust scalable platforms that enable faster development of various customer apps and new technologies.
Digital expansion into new markets. This year the H&M brand is launching online in Mexico and Egypt as well as on Myntra and Jabong, the largest e-commerce marketplaces in India.
Physical stores – a net addition of around 175 for the year. Focus on growth markets for the H&M brand.
Develop new concepts and business models.
The rapid transformation of fashion retail continues and we can see that our own transformation work is taking us in the right direction, even if many challenges remain and there is still hard work to do. The progress we have made in our strategic focus areas confirms that we are on the right track. Therefore we continue moving forward at full speed and we are optimistic about the future for the H&M group."
H&M
The H&M group's transformation work is continuing with more initiatives to enhance the customer experience. The improvements span the entire product supply chain – from product development to a more inspiring store and increased customer service. Here are some examples:
H&M mobile app
members. The H&M customer loyalty programme is currently in 16 markets and will be rolled out to a further 7 markets this year, including the US, Canada and Russia in May. By the autumn H&M's customer loyalty programme will be integrated into the Chinese communications app WeChat, which has around a billion users.
COS
Net sales increased by 10 percent to SEK 51,015 m (46,181) in the first quarter. In local currencies sales increased by 4 percent. Adjusted for Germany, where online sales were affected by the online platform transition during the quarter, the group's total net sales increase was 6 percent in local currencies.
Online sales increased by 18 percent in SEK compared with the first quarter the previous year. In local currencies the increase was 10 percent. Adjusted for Germany the group's online sales increase was 34 percent in SEK and 27 percent in local currencies.
New Business increased sales by 22 percent in SEK and by 17 percent in local currencies.
| Q1 - 2019 | Q1 - 2018 | Change in % | 28 Feb - 19 | Q1 - 2019 | ||
|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | Number of | New stores | |
| net sales | net sales | currency | stores | (net) | ||
| Germany | 6,744 | 6,845 | -1 | -7 | 466 | -2 |
| USA | 6,532 | 5,699 | 15 | 2 | 575 | -3 |
| UK | 3,324 | 2,912 | 14 | 8 | 301 | -3 |
| France | 2,825 | 2,600 | 9 | 3 | 238 | 1 |
| China | 2,712 | 2,201 | 23 | 16 | 535 | 5 |
| Sweden | 2,004 | 1,801 | 11 | 11 | 176 | 1 |
| Italy | 1,874 | 1,713 | 9 | 4 | 178 | -1 |
| Spain | 1,867 | 1,661 | 12 | 7 | 170 | -2 |
| Netherlands | 1,447 | 1,369 | 6 | 0 | 142 | -2 |
| Poland | 1,327 | 1,124 | 18 | 15 | 186 | 0 |
| Others* | 20,359 | 18,256 | 12 | 6 | 1,991 | -4 |
| Total | 51,015 | 46,181 | 10 | 4 | 4,958 | -10 |
| * Of which franchises | 1,456 | 1,339 | 9 | -1 | 255 | 0 |
The difference between the sales increase in SEK and in local currencies is due to how the Swedish krona has developed against the overall basket of currencies in the group compared to the same period last year.
H&M Home
Gross profit increased by 11 percent and amounted to SEK 25,526 m (23,040) in the first quarter, corresponding to a gross margin of 50.0 percent (49.9).
Markdowns in relation to sales decreased by around 1.5 percentage points in the first quarter of 2019 compared with the corresponding quarter in 2018.
The gross profit and gross margin are a result of many different factors, internal as well as external, and are mostly affected by the decisions that the H&M group takes in line with its strategy to always have the best customer offering in each individual market – based on the combination of fashion, quality, price and sustainability.
For the first quarter the external factors affecting the purchasing costs were slightly negative overall, while at same time the company continued to invest in an even stronger customer offering. In addition to this, the gross margin for the quarter was also affected by costs mainly related to the implementation of the new online platform in Germany and to secure upcoming transitions of logistics systems.
For purchases made for the second quarter 2019 the overall market situation as regards external factors is considered to gradually become more negative – mostly due to the fact that the US dollar has gradually strengthened against the group's basket of currencies – compared with the corresponding purchasing period the previous year.
H&M Take Care
In the first quarter of 2019, selling and administrative expenses increased by 12 percent in SEK and by 7 percent in local currencies compared with the corresponding period the previous year. Cost control in the group remains good. Selling and administrative expenses in comparable stores increased marginally.
The cost increase in the quarter is mainly explained by store and online expansion, but also by the group's ongoing transformation work with investments in focus areas such as AI, tech, logistics and H&M's customer loyalty programme. In addition to this, continued costs related to already completed and upcoming transitions of logistics systems have affected selling and administrative expenses.
Profit after financial items amounted to SEK 1,043 m (1,263) in the first quarter.
The group's ongoing transformation work contributed to continued positive sales development with more full-price sales, lower markdowns and increased market share in many markets. Earnings in the quarter were negatively affected by the replacement of the online platform in Germany, however, which had a substantial dampening effect on sales since sales activities in Germany were deliberately restrained to secure the transition. In addition to this, earnings were negatively affected by costs of around SEK 250 m associated mainly with replacement of the online platform in Germany as well as further costs of completed and upcoming transitions to new logistics systems.
Currency adjusted the stock-in-trade increased by 5 percent. In SEK the book value of stock-intrade increased by 14 percent to SEK 39,968 m (34,959).
The composition of the stock-in-trade, by far the majority of which consists of new spring and summer garments, has improved further since the fourth quarter and the company therefore expects markdowns in relation to sales to continue to decrease in the second quarter compared with the corresponding quarter last year.
The book value of stock-in-trade in SEK represented 32.9 percent (32.3) of total assets and 18.6 percent (17.6) of sales for the rolling 12 months, which amounted to SEK 215,234 m.
The global integration of stores and online continues. Work is continuing at full speed to roll out online globally to all existing H&M markets and to other markets as well. Today H&M online is in 47 markets. In 2019 the online expansion will continue, including into Mexico as well as into Egypt via franchise. In 2019 H&M will be launched on Myntra and Jabong, which are the largest e-commerce marketplaces in India.
H&M was very well received in Bosnia-Herzegovina at the opening of the first H&M store in Banja Luka on 21 March. New H&M store markets in 2019 will also be Belarus and via franchise Tunisia.
For the 2019 financial year around 335 new stores are planned to open, of which around 240 will be H&M stores. Around 95 of the year's store openings will be COS, & Other Stories, Monki, Weekday, ARKET and Afound stores. In 2019 three standalone H&M Home stores are planned to open. Of the new H&M stores that open in 2019, around 25 will have an H&M Home shop-inshop. The majority of the H&M store openings will be in markets outside of Europe and the US.
In total, approximately 160 store closures are planned within the group, which is part of the intensified store optimisation being carried out that also includes renegotiations, rebuilds and adjustment of store space to ensure that the store portfolio is the best fit for each market. The net addition of new stores will thus amount to approximately 175 for full-year 2019. In Europe more H&M stores will be closed than opened, resulting in around 50 fewer H&M stores at the end of the 2019 financial year compared with the end of 2018.
| No. of markets | Expansion | ||
|---|---|---|---|
| 28 Feb - 2019 | 2019 | ||
| Brand | Store | Online | New markets |
| H&M | 71 | 47 | Store: Bosnia-Herzegovina*, Belarus, Tunisia (franchise) Online: Mexico, Egypt (franchise) |
| COS | 41 | 21 | Store: Iceland, Lithuania Online: Norway |
| Monki | 16 | 19 | Store: Iceland Online: Norway* |
| Weekday | 10 | 18 | Store: Iceland, Luxembourg Online: Norway* |
| & Other Stories | 18 | 15 | Store: Luxembourg Online: Norway |
| ARKET | 6 | 18 | Online: Norway* |
| Afound | 1 | 1 | |
| H&M HOME | 50 | 40 | Online: Mexico |
* Opened in March 2019
ARKET
In the first quarter, excluding franchise, the group opened 26 (32) stores and closed 36 (34) stores, i.e. a net change of -10 (-2) stores. Via franchise partners 3 (6) new stores were opened and 3 (0) stores were closed. The group had 4,958 (4,743) stores as of 28 February 2019, of which 255 (225) were operated by franchise partners.
As previously communicated, Cheap Monday will be closed down in 2019. The H&M group's transformation work in response to the extensive changes within the fashion industry means that the company is prioritising and focusing on its core business. Cheap Monday's business model is based on traditional wholesale, which is a model that has faced major challenges due to the shift in the industry. The H&M group has therefore decided to close down Cheap Monday.
| New Stores (net) | Total No of stores | ||
|---|---|---|---|
| Brand | Q1 - 2019 | 28 Feb - 2019 | 28 Feb - 2018 |
| H&M | -13 | 4,420 | 4,293 |
| COS | 2 | 272 | 231 |
| Monki | 0 | 127 | 118 |
| Weekday | 0 | 38 | 33 |
| & Other Stories | -1 | 69 | 60 |
| Cheap Monday | -1 | 0 | 3 |
| ARKET | 2 | 18 | 5 |
| Afound | 1 | 6 | 0 |
| H&M HOME* | 0 | 8 | 0 |
| Total | -10 | 4,958 | 4,743 |
* Concept stores, H&M HOME is included with 365 shop-in-shop in H&M stores.
| New Stores (net) |
Total No of stores | ||
|---|---|---|---|
| Region | Q1 - 2019 | 28 Feb - 2019 | 28 Feb - 2018 |
| Europe & Africa | -14 | 3,055 | 2,988 |
| Asia & Oceania | 8 | 1,159 | 1,062 |
| North & South America | -4 | 744 | 693 |
| Total | -10 | 4,958 | 4,743 |
The H&M group's tax rate for the 2018/2019 financial year is expected to be approximately 22.0 – 23.0 percent. In the first, second and third quarters of 2019 a tax rate of 23.0 percent will be used to calculate tax expense on the result of each quarter. The outcome of the tax rate for the year depends on the results of the group's various companies and the corporate tax rates in each country.
Net sales in the period 1 March 2019 to 27 March 2019 increased by 7 percent in local currencies compared to the corresponding period the previous year.
Monki
9
As of 28 February 2019, the group had SEK 8,336 m (9,770) in loans from credit institutions with a term of up to 12 months, SEK 9,219 m (1,008) in loans from credit institutions with a term of between 12 months and three years, and SEK 2,110 m (0) in loans from credit institutions with a term of between three and five years.
In the first quarter of 2019 the H&M group carried out financing activities aimed at improving liquidity and increasing the average term. Cash and cash equivalents amounted to SEK 11,851 m (10,003) and the average term on loans to credit institutions amounted to 1.9 years (0.7). The H&M group's revolving credit facility (RCF) of EUR 700 m, which was agreed in 2017 and matures in 2024, has not yet been drawn down.
Net debt in relation to EBITDA amounted to 0.3.
The strong credit profile of the H&M group enables cost-effective financing. To increase financing flexibility and cost-effectiveness, the group continuously reviews opportunities to complement this with other sources of funding on the credit market.
The group applies International Financial Reporting Standards (IFRS) as adopted by the EU. This report has been prepared according to IAS 34 Interim Financial Reporting as well as the Swedish Annual Accounts Act.
The accounting principles and calculation methods applied in this report are unchanged from those used in the preparation of the annual report and consolidated financial statements for 2018 which are described in Note 1 – Accounting principles, other than the application of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers, which are being applied with effect from 1 December 2018. IFRS 9 and 15 and their effects on H&M are commented on below. A description of the H&M group's accounting principles as a result of the introduction of IFRS 9 and 15 can be found in the H&M group's annual report for 2018.
H & M Hennes & Mauritz AB's financial instruments consist of accounts receivable, other receivables, cash and cash equivalents, accounts payable, accrued trade payables, interestbearing securities and currency derivatives. Currency derivatives are measured at fair value based on input data corresponding to level 2 of IFRS 13. As of 28 February 2019, forward contracts with a positive market value amount to SEK 437 m (332), which is reported under other current receivables. Forward contracts with a negative market value amount to SEK 1,137 m (977), which is reported under other current liabilities. Other financial assets and liabilities have short terms. It is therefore judged that the fair values of these financial instruments are approximately equal to their book values.
The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities, which essentially involves applying IFRS. In accordance with RFR 2, the parent company does not apply IAS 39 to the measurement of financial instruments; nor does it capitalise development expenditure.
For definitions see the annual report and consolidated accounts for 2018.
IFRS 9 requires financial assets to be classified in three different measurement categories: amortised cost, fair value through other comprehensive income or fair value through profit or loss. The asset is classified upon initial recognition, based on the characteristics of the asset and the company's business model. In the case of financial liabilities, there are no significant changes compared to IAS 39.
With effect from 1 December 2018 H&M is applying hedge accounting in accordance with IFRS 9. All the hedging relationships that existed upon transition to IFRS 9 qualified for continued hedge accounting, with no transitional effect. The group has not restated the comparative year, which is reported according to IAS 39. Finally, new principles have been introduced regarding impairment of financial assets using a model based on expected losses. One of the aims of the new model is that provision for credit losses will be made at an earlier stage. For H&M, the measurement of doubtful receivables is not affected by the transition to any significant degree. Overall, the introduction of IFRS 9 has not had any significant effect on the consolidated accounts.
IFRS 15 contains an overall model for reporting revenue arising from contracts with customers. Everything starts with an agreement between two parties concerning the sale of a good or service. Initially a customer agreement is to be identified, which generates an asset (rights, a promise that compensation will be received) and a liability (commitments, a promise to deliver goods/services) for the seller. Under the model the company then reports a revenue item and thereby demonstrates that the company is meeting a commitment to deliver promised goods or services to the customer, which in H&M's case mainly takes place at the same time. The revenue consists of the amount that the company expects to receive as payment for the goods or services delivered. To assess how the introduction of IFRS 15 impacts the group, a preliminary study of the company's revenue streams was conducted. The preliminary study shows that the group's income statement is not significantly affected by the introduction of IFRS 15. The only exception is that the group reports provisions for expected returns gross. The group has elected to use a prospective method of transition and consequently comparative figures have not been restated.
A number of new standards, revisions and interpretations of existing standards have been published but have not yet entered into force for the H&M group. Of these, only the standards below are expected to have any effect on the consolidated financial statements.
A number of factors may affect the H&M group's result and business. Many of these can be dealt with through internal routines, while certain others are affected more by external influences. There are risks and uncertainties for the H&M group related to the major shift within the industry, fashion, weather conditions, macroeconomic and geopolitical changes, sustainability issues, foreign currency, cyber-attacks, tax and different regulations but also in connection with expansion into new markets, the launch of new concepts and how the brand is managed.
For a more detailed description of risks and uncertainties, refer to the administration report and to note 2 in the annual report and consolidated accounts for 2018.
| 7 May 2019 | Annual general meeting |
|---|---|
| 17 June 2019 | Sales development in second quarter, 1 Mar 2019 – 31 May 2019 |
| 27 June 2019 | Six-month report, 1 Dec 2018 – 31 May 2019 |
| 16 September 2019 | Sales development in third quarter, 1 Jun 2019 – 31 Aug 2019 |
| 3 October 2019 | Nine-month report, 1 Dec 2018 – 31 Aug 2019 |
This three-month report has not been audited by the company's auditors.
Stockholm, 28 March 2019 Board of Directors
In conjunction with the release of the three-month report on 29 March 2019, a telephone conference for the financial market and media will be held in English at 09:00 CET hosted by CEO Karl-Johan Persson, CFO Jyrki Tervonen and Head of IR Nils Vinge.
For login details please register at:
http://emea.directeventreg.com/registration/6756665
For interview requests with CEO Karl-Johan Persson and Head of IR Nils Vinge please contact:
Kristina Stenvinkel, Communications Director Phone +46 8 796 39 08 Email: [email protected]
| Nils Vinge, Head of IR | +46 8 796 52 50 |
|---|---|
| Karl-Johan Persson, CEO | +46 8 796 55 00 (switchboard) |
| Jyrki Tervonen, CFO | +46 8 796 55 00 (switchboard) |
H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, fax: +46-8-24 80 78, e-mail: [email protected]
Registered office: Stockholm, Reg. No. 556042-7220
Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (596/2014/EU). The information was submitted for publication by the abovementioned persons at 08:00 (CET) on 29 March 2019. This interim report and other information about the H&M group, is available at about.hm.com.
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M's business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, Cheap Monday, & Other Stories, H&M HOME and ARKET as well as Afound. The H&M group has 47 online markets and more than 4,900 stores in 72 markets including franchise markets. In 2018, net sales were SEK 210 billion. The number of employees amounts to more than 177,000. For further information, visit about.hm.com.
| Q1 | Q1 | 1 Dec 2017- | |
|---|---|---|---|
| 2019 | 2018 | 30 Nov 2018 | |
| Net sales | 51,015 | 46,181 | 210,400 |
| Cost of goods sold | -25,489 | -23,141 | -99,513 |
| GROSS PROFIT | 25,526 | 23,040 | 110,887 |
| Gross margin, % | 50.0 | 49.9 | 52.7 |
| Selling expenses | -22,423 | -19,976 | -87,512 |
| Administrative expenses | -2,098 | -1,856 | -7,882 |
| OPERATING PROFIT | 1,005 | 1,208 | 15,493 |
| Operating margin, % | 2.0 | 2.6 | 7.4 |
| Net financial items | 38 | 55 | 146 |
| PROFIT AFTER FINANCIAL ITEMS | 1,043 | 1,263 | 15,639 |
| Tax | -240 | 109 | -2,987 |
| PROFIT FOR THE PERIOD | 803 | 1,372* | 12,652 |
* Profit after tax in Q1 2018 was affected by a one-off positive tax income of SEK 399 m as a result of the US tax reform (Tax Cuts & Jobs Act).
All profit for the year is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| Earnings per share, SEK** | 0.49 | 0.83 | 7.64 |
|---|---|---|---|
| Number of shares, thousands** | 1,655,072 | 1,655,072 | 1,655,072 |
| Depreciation, total | 2,677 | 2,279 | 9,671 |
| of which cost of goods sold | 171 | 151 | 558 |
| of which selling expenses | 2,355 | 1,984 | 8,566 |
| of which administrative expenses | 151 | 144 | 547 |
** Before and after dilution.
| Q1 2019 |
Q1 2018 |
1 Dec 2017- 30 Nov 2018 |
|
|---|---|---|---|
| PROFIT FOR THE PERIOD | 803 | 1,372 | 12,652 |
| Other comprehensive income | |||
| Items that are or may be reclassified to profit or loss | |||
| Translation differences | 1,272 | 606 | 1,895 |
| Change in hedging reserves | -752 | 38 | 535 |
| Tax attributable to change in hedging reserves | 173 | -9 | -123 |
| Items that will not be reclassified to profit or loss | |||
| Remeasurement of defined benefit pension plans | - | - | 14 |
| Tax related to the above remeasurement | - | - | -3 |
| OTHER COMPREHENSIVE INCOME | 693 | 635 | 2,318 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 1,496 | 2,007 | 14,970 |
All comprehensive income is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| ASSETS | 28 Feb - 2019 | 28 Feb - 2018 | 30 Nov 2018 |
|---|---|---|---|
| Fixed assets | |||
| Intangible fixed assets | 10,059 | 7,482 | 9,618 |
| Property, plant and equipment | 42,757 | 39,570 | 42,439 |
| Financial fixed assets | 485 | 257 | 478 |
| Other fixed assets | 4,330 | 3,378 | 4,679 |
| 57,631 | 50,687 | 57,214 | |
| Current assets | |||
| Stock-in-trade | 39,968 | 34,959 | 37,721 |
| Current receivables | 12,076 | 12,646 | 12,265 |
| Cash and cash equivalents | 11,851 | 10,003 | 11,590 |
| 63,895 | 57,608 | 61,576 | |
| TOTAL ASSETS | 121,526 | 108,295 | 118,790 |
| EQUITY AND LIABILITIES | |||
| Equity | 60,042 | 61,720 | 58,546 |
| Long-term liabilities* | 16,572 | 6,713 | 16,025 |
| Current liabilities** | 44,912 | 39,862 | 44,219 |
| TOTAL EQUITY AND LIABILITIES | 121,526 | 108,295 | 118,790 |
* Interest-bearing long-term liabilities amounts to SEK 12,090 m (1,818).
** Interest-bearing current liabilities amounts to SEK 8,472 m (9,898).
| 28 Feb - 2019 | 28 Feb - 2018 | 30 Nov 2018 | |
|---|---|---|---|
| Shareholders' equity at the beginning of the period | 58,546 | 59,713 | 59,713 |
| Total comprehensive income for the period | 1,496 | 2,007 | 14,970 |
| Dividend | - | - | -16,137 |
| Shareholders' equity at the end of the period | 60,042 | 61,720 | 58,546 |
| Q1 - 2019 | Q1 - 2018 | |
|---|---|---|
| Current operations | ||
| Profit after financial items* | ||
| 1,043 | 1,263 | |
| - Provisions for pensions | 12 | 11 |
| - Depreciation | 2,677 | 2,279 |
| - Tax paid | -514 | 257 |
| - Other | 8 | -6 |
| Cash flow from current operations before changes in working capital | 3,226 | 3,804 |
| Cash flow from changes in working capital | ||
| Current receivables | 879 | -807 |
| Stock-in-trade | -1,745 | -1,037 |
| Current liabilities | -528 | -653 |
| CASH FLOW FROM CURRENT OPERATIONS | 1,832 | 1,307 |
| Investing activities | ||
| Investment in intangible fixed assets | -715 | -615 |
| Investment in tangible fixed assets | -1,663 | -1,493 |
| Other investments | -19 | -101 |
| CASH FLOW FROM INVESTING ACTIVITIES | -2,397 | -2,209 |
| Financial activities | ||
| Change in interest-bearing liabilities | 306 | 1,003 |
| CASH FLOW FROM FINANCIAL ACTIVITIES | 306 | 1,003 |
| CASH FLOW FOR THE PERIOD | -259 | 101 |
| Cash and cash equivalents at beginning of the financial year | 11,590 | 9,718 |
| Cash flow for the period | -259 | 101 |
| Exchange rate effect | 520 | 184 |
| Cash and cash equivalents at end of the period** | 11,851 | 10,003 |
* Interest paid for the group amounts to SEK 44 m (15).
** Cash and cash equivalents and short-term investments at the end of the period amounted to SEK 11,851 m (10,003).
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Net sales, SEK m | 40,276 | 43,691 | 46,985 | 46,181 | 51,015 |
| Change net sales from previous year in SEK, % | 25 | 8 | 8 | -2 | 10 |
| Change net sales previous year in local currencies, % | 15 | 9 | 4 | 0 | 4 |
| Operating profit, SEK m | 4,637 | 3,270 | 3,159 | 1,208 | 1,005 |
| Operating margin, % | 11.5 | 7.5 | 6.7 | 2.6 | 2.0 |
| Depreciations for the period, SEK m | 1,556 | 1,819 | 2,106 | 2,279 | 2,677 |
| Profit after financial items, SEK m | 4,723 | 3,327 | 3,212 | 1,263 | 1,043 |
| Profit after tax, SEK m | 3,613 | 2,545 | 2,457 | 1,372 | 803 |
| Cash and cash equivalents and short-term investments, SEK m | 20,026 | 14,571 | 8,437 | 10,003 | 11,851 |
| Stock-in-trade, SEK m | 20,266 | 25,153 | 32,692 | 34,959 | 39,968 |
| Equity, SEK m | 56,933 | 59,401 | 63,395 | 61,720 | 60,042 |
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Earnings per share, SEK* | 2.18 | 1.54 | 1.48 | 0.83 | 0.49 |
| Equity per share, SEK* | 34.40 | 35.89 | 38.30 | 37.29 | 36.28 |
| Cash flow from current operations | |||||
| per share, SEK* | 2.98 | 2.61 | 1.43 | 0.79 | 1.11 |
| Share of risk-bearing capital, % | 73.0 | 72.1 | 69.9 | 61.5 | 53.1 |
| Equity/assets ratio, % | 68.9 | 67.2 | 64.8 | 57.0 | 49.4 |
| Total number of stores | 3,551 | 3,970 | 4,393 | 4,743 | 4,958 |
| Rolling twelve months | |||||
| Earnings per share, SEK* | 12.65 | 11.98 | 11.21 | 9.12 | 7.30 |
| Return on equity, % | 40.1 | 34.1 | 30.2 | 24.1 | 19.8 |
| Return on capital employed, % | 51.5 | 44.1 | 38.2 | 27.2 | 20.3 |
* Before and after dilution.
For definitions of key figures see the annual report
| Q1 - 2019 | Q1 - 2018 | |
|---|---|---|
| Asia and Oceania | ||
| External net sales | 8,351 | 7,112 |
| Operating profit | 235 | -120 |
| Operating margin, % | 2.8 | -1.7 |
| Europe and Africa* | ||
| External net sales | 33,162 | 31,041 |
| Operating profit | -1,081 | -2,035 |
| Operating margin, % | -3.3 | -6.6 |
| North and South America | ||
| External net sales | 9,502 | 8,028 |
| Operating profit | 50 | -272 |
| Operating margin, % | 0.5 | -3.4 |
| Group Functions | ||
| Net sales to other segments | 19,846 | 16,400 |
| Operating profit | 1,801 | 3,635 |
| Eliminations | ||
| Net sales to other segments | -19,846 | -16,400 |
| Total | ||
| External net sales | 51,015 | 46,181 |
| Operating profit | 1,005 | 1,208 |
| Operating margin, % | 2.0 | 2.6 |
* South Africa
| Q1 | Q1 | 1 Dec 2017- | |
|---|---|---|---|
| 2019 | 2018 | 30 Nov 2018 | |
| External net sales | 7 | 5 | 22 |
| Internal net sales* | 1,040 | 999 | 4,262 |
| GROSS PROFIT | 1,047 | 1,004 | 4,284 |
| Administrative expenses | -40 | -42 | -156 |
| OPERATING PROFIT | 1,007 | 962 | 4,128 |
| Net financial items** | -21 | 76 | 13,846 |
| PROFIT AFTER FINANCIAL ITEMS | 986 | 1,038 | 17,974 |
| Year-end appropriations | - | - | -1,164 |
| Tax | -216 | -217 | -673 |
| PROFIT FOR THE PERIOD | 770 | 821 | 16,137 |
* Internal sales in the quarter consists of royalty of SEK 1,035 m (997) and other SEK 5 m (2) received from group companies.
** Dividend income from subsidiaries in the quarter consists of SEK 2 m (50) .
| Q1 | Q1 | 1 Dec 2017- | |
|---|---|---|---|
| 2019 | 2018 | 30 Nov 2018 | |
| PROFIT FOR THE PERIOD | 770 | 821 | 16,137 |
| Other comprehensive income | |||
| Items that have not been and will not be reclassified to profit or loss | |||
| Remeasurement of defined benefit pension plans | - | - | -9 |
| Tax related to the above remeasurement | - | - | 2 |
| OTHER COMPREHENSIVE INCOME | - | - | -7 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 770 | 821 | 16,130 |
| 28 Feb - 2019 | 28 Feb - 2018 | 30 Nov 2018 | |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Property, plant and equipment | 272 | 349 | 289 |
| Other fixed assets | 1,593 | 1,654 | 1,621 |
| 1,865 | 2,003 | 1,910 | |
| Current assets | |||
| Current receivables | 35,614 | 20,154 | 30,233 |
| Cash and cash equivalents | 66 | 235 | 93 |
| 35,680 | 20,389 | 30,326 | |
| TOTAL ASSETS | 37,545 | 22,392 | 32,236 |
| EQUITY AND LIABILITIES | |||
| Equity | 17,240 | 17,299 | 16,471 |
| Untaxed reserves | 96 | 417 | 96 |
| Long-term liabilities* | 11,363 | 182 | 9,294 |
| Current liabilities** | 8,846 | 4,494 | 6,375 |
| TOTAL EQUITY AND LIABILITIES | 37,545 | 22,392 | 32,236 |
* All long-term liabilities are interest-bearing.
** Interest-bearing current liabilities amounts to SEK 6,870 m (4,000).
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