Earnings Release • Jan 31, 2019
Earnings Release
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"It has been a challenging year for H&M group and the industry but after a difficult first half, there are signs the company's transformation efforts are beginning to take effect. Improved collections generated better full-price sales and lower markdowns towards the end of the year. This gave us confidence to accelerate our transformation plans in the fourth quarter with a particular focus on the upgrade of our logistics systems. Inevitably resulting in increased costs but will lead to a range of improvements for customers."
Karl-Johan Persson, CEO
H&M
Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M Group and the sector with strong signals that we are on track.
We built momentum through the year with growth of 3 percent overall and 6 percent in local currencies the fourth quarter. Importantly, performance was driven by more full-price sales and lower markdowns in the fourth quarter. While inventory levels were up year-on-year, levels and composition improved sequentially from the third to the fourth quarter. With a stronger customer offering and the ongoing improvements in buying and logistics, we expect this trend to continue. Therefore, markdowns are expected to be approximately 1 percentage point lower in the first quarter 2019 compared to the corresponding quarter last year.
While this performance is still some way off the targets that we set at the beginning of 2018, these positive signals confirm we're making progress across all our strategic focus areas: to create the best customer offering; a fast, efficient and flexible product flow; a stable, scalable tech foundation; and adding new growth though store and online expansion.
We were able to outperform a number of markets in the fourth quarter. In the UK, for example, 38 percent online growth, offset against a 1 percent decline in stores, led to total growth of 8 percent. In several markets the total growth was driven by both physical stores and online. Among these were China (+24 percent), India (+43 percent) and Russia (+27 percent). However, other markets such as the USA and Norway, were more challenging. In parallel with our global online roll-out, we are intensifying our store portfolio optimisation and we continue the integration of physical stores and digital channels.
Increased full-price sales confirm that customers appreciate our initiatives to regenerate H&M by refining the assortment and investing in the best mix of price, quality, fashion and sustainability. Improvements include a more convenient shopping experience with upgrades to our mobile applications, faster deliveries, new payment options and the continued introduction of click-and-collect and online returns in stores.
To create the best customer experience, we continue to invest in logistics and tech infrastructure. We opened three new fulfilment centres in the fourth quarter with a total of around 230,000 square metres. This means we can offer customers faster deliveries and a wider assortment while reducing the capacity constraints that slowed us down in some markets in 2018. We have also completed our online transition with investments in 2018, enabling us to successfully migrate online in Germany to the new platform earlier in January 2019. With this, all H&M online markets are now on the new platform.
Difficulties with the logistics upgrade in some of our markets earlier in 2018, led to additional costs also in the fourth quarter. Applying the lessons learned, we have now increased investments to secure upcoming transitions.
While these initiatives have a short-term impact on margin they will lead to continued improvements for our customers, driving increased profitability long-term. With the transformation now well underway, capital expenditure will reduce in 2019 compared to 2018 and we will continue to shift the balance of our investments towards digital.
Changing consumer behaviour and technological innovation will continue to transform how and when people shop. We are building a business with the flexibility to respond to this constant evolution. We have further to go, and there will continue to be challenges ahead, but the progress we have made across our transformation priorities reinforces the strength of our strategy and gives us confidence to move ahead at full speed.
& Other Stories
H&M
Net sales increased by 12 percent to SEK 56,414 m (50,407) in the fourth quarter. In local currencies sales increased by 6 percent.
Online sales increased by 24 percent in SEK compared with the fourth quarter the previous year. In local currencies the increase was 20 percent.
Net sales in the financial year 2017/2018 increased by 5 percent and amounted to SEK 210,400 m (200,004). In local currencies sales increased by 3 percent.
Online sales, which made up 14.5 percent (12.5) of the group's total sales in the full year, increased by 22 percent in SEK compared with the previous year. In local currencies the increase was 21 percent.
| Q4 - 2018 | Q4 - 2017 | Change in % | 30 Nov - 18 | Q4 - 2018 | ||
|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | Number of | New stores | |
| net sales | net sales | currency | stores | (net) | ||
| Germany | 8,713 | 7,976 | 9 | 2 | 468 | 10 |
| USA | 6,923 | 6,443 | 7 | -2 | 578 | 19 |
| UK | 3,714 | 3,214 | 16 | 8 | 304 | 10 |
| China | 2,982 | 2,264 | 32 | 24 | 530 | 8 |
| France | 2,980 | 2,768 | 8 | 0 | 237 | -3 |
| Sweden | 2,131 | 2,129 | 0 | 0 | 175 | 7 |
| Italy | 2,119 | 1,974 | 7 | 0 | 179 | 4 |
| Spain | 1,933 | 1,659 | 17 | 9 | 172 | -1 |
| Netherlands | 1,712 | 1,601 | 7 | 0 | 144 | 1 |
| Russia | 1,468 | 1,202 | 22 | 27 | 139 | 2 |
| Others* | 21,739 | 19,177 | 13 | 9 | 2,042 | 70 |
| Total | 56,414 | 50,407 | 12 | 6 | 4,968 | 127 |
| * Of which franchises | 1,465 | 1,251 | 17 | 19 | 255 | 8 |
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.
ARKET
Gross profit increased to SEK 30,592 m (27,929) in the fourth quarter, corresponding to a gross margin of 54.2 percent (55.4). For the financial year, gross profit increased to SEK 110,887 m (108,090), corresponding to a gross margin of 52.7 percent (54.0).
Markdowns in relation to sales decreased by 0.6 percentage points in the fourth quarter of 2018 compared with the corresponding quarter in 2017.
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 fourth quarter, the company decided to invest the positive dollar effect into an even stronger customer offering. Apart from this, gross margin in the quarter was mainly affected by:
For purchases made for the first quarter 2019, the market situation as regards external factors is considered to be slightly negative overall – mostly due to the fact that the US dollar has strengthened against the group's basket of currencies – compared with the corresponding purchasing period the previous year.
H&M
In the fourth quarter of 2018, selling and administrative expenses increased by 14 percent in SEK and by 8 percent in local currencies compared with the corresponding period the previous year. The increase is mainly explained by store and online expansion, along with increased investments in H&M Club. In addition, selling and administrative expenses were also affected by continued costs to resolve the issues that arose in connection with the implementation of new logistics systems in the US, France, Italy and Belgium.
For the full-year, selling and administrative expenses increased by 9 percent in SEK and by 6 percent in local currencies compared with the corresponding period last year.
Profit after financial items amounted to SEK 4,352 m (4,873) in the fourth quarter. Profit after financial items in the full-year amounted to SEK 15,639 m (20,809).
It has been a challenging year for H&M group and the industry but after a difficult first half, there are signs the company's transformation efforts are beginning to take effect. Improved collections generated better full-price sales and lower markdowns towards the end of the year. Bolstered by these positive signals, the company accelerated its transformation plans in the fourth quarter with a particular focus on the replacement of logistics systems. Along with negative year-end effects, this resulted in costs of approximately SEK 560 m in the fourth quarter but will result in a range of improvements for customers.
H&M Home
Stock-in-trade amounted to SEK 37,721 m (33,712), an increase of 12 percent in SEK compared with the same point in time last year. In local currencies the increase was 10 percent.
While inventory levels were up year-on-year, both the level and composition improved between the third and fourth quarters showing the Group is moving in the right direction. A stronger customer offering, and ongoing improvements in buying and logistics, will continue to lead to gradual improvements. Markdowns in relation to sales are expected to decrease by around 1 percentage point in the first quarter 2019 compared to the same period prior year.
The stock-in-trade amounted to 31.7 percent (31.6) of total assets and 17.9 percent (16.9) of net sales.
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. In the 2018 financial year H&M's online store opened in a further four new markets – India and, via franchise, Kuwait, Saudi Arabia and the United Arab Emirates – and also on Tmall in China. Today H&M's online store is in 47 markets. In 2019 the online expansion will continue, including into Mexico as well as into Egypt via franchise. In 2018 Afound was opened as a new brand.
Two new H&M store markets opened in 2018: Uruguay and Ukraine, where the response from customers was very positive. New H&M store markets in 2019 will be Bosnia-Herzegovina, Belarus and Tunisia via franchise.
The shift in the industry is opening up the way for improved lease terms and the H&M group has opportunity to renegotiate nearly 1,000 store leases in 2019.
For the 2019 financial year around 335 (375) 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-in-shop. The majority of the H&M store openings will be in markets outside of Europe and the US.
In total, approximately 160 (146) 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 (229) for fullyear 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.
The growth target of the H&M group to increase sales in local currencies by 10 - 15 percent per year with continued high profitability remains a long-term target.
An important part of the H&M group's transition work is enhancing the customer experience. In 2018 various improvements were made for customers throughout the supply chain: from product development to more inspiring stores, both physical stores and online, to raise the level of customer service. Here are some examples:
Continued global expansion of RFID, currently in 12 H&M markets. The global roll-out will continue to more markets in 2019.
3D technology is used in the design process for several product groups. Streamlining the process, it results in cost and time savings as well as less material being used. New technology, training and physical 3D studio have now been implemented.
| No. of markets 30 Nov - 2018 |
Expansion 2018 |
Expansion 2019 |
||
|---|---|---|---|---|
| Brand | Store | Online | New markets | New markets |
| H&M | 71 | 47 | Store: Uruguay, Ukraine Online: India, Kuwait (franchise), United Arab Emirates (franchise), Saudi Arabia (franchise) |
Store: Bosnia-Herzegovina, Belarus, Tunisia (franchise) Online: Mexico, Egypt (franchise) |
| COS | 41 | 21 | Store: Thailand (franchise), Lebanon (franchise), Saudi Arabia (franchise), Russia Online: China |
Store: Iceland, Lithuania Online: Norway |
| Monki | 16 | 19 | Store: Kuwait (franchise), Saudi Arabia (franchise) |
Store: Iceland Online: Norway |
| Weekday | 10 | 18 | Store: Finland | Store: Iceland, Luxembourg Online: Norway |
| & Other Stories | 17 | 15 | Store: Austria, Kuwait (franchise) Store: Luxembourg | Online: Norway |
| Cheap Monday | 1 | 18 | ||
| ARKET | 6 | 18 | Store: Netherlands, Sweden | Online: Norway |
| Afound | 1 | 1 | Store: Sweden Online: Sweden |
|
| H&M HOME | 50 | 40 | Store: Ukraine, Morocco (franchise), Chile, Iceland Online: Kuwait (franchise), United Arab Emirates (franchise), Saudi Arabia (franchise) |
In the financial year 2017/2018, excluding franchise, the group opened 336 (446) stores and closed 143 (89) stores, i.e. a net increase of 193 (357) new stores. Via franchise partners 39 (33) stores were opened and 3 (2) stores were closed. The group had a total of 4,968 (4,739) stores as of 30 November 2018, of which 255 (219) were operated by franchise partners.
As previously communicated, Cheap Monday will be closed down in 2019. The H&M group's transition 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 2018 (net) Total No of stores |
||||
|---|---|---|---|---|
| Brand | Q4 | Full year | 30 Nov - 2018 | 30 Nov - 2017 |
| H&M | 80 | 145 | 4,433 | 4,288 |
| COS | 15 | 39 | 270 | 231 |
| Monki | 8 | 8 | 127 | 119 |
| Weekday | 4 | 5 | 38 | 33 |
| & Other Stories | 7 | 10 | 70 | 60 |
| Cheap Monday | 0 | -2 | 1 | 3 |
| ARKET | 4 | 11 | 16 | 5 |
| Afound | 2 | 5 | 5 | 0 |
| H&M HOME* | 7 | 8 | 8 | 0 |
| Total | 127 | 229 | 4,968 | 4,739 |
Monki
* Concept stores, H&M HOME is included with 345 shop-in-shop in H&M stores
New Stores 2018 (net) Total No of stores
| Region | Q4 | Full year | 30 Nov - 2018 | 30 Nov - 2017 |
|---|---|---|---|---|
| Europe & Africa | 61 | 61 | 3,069 | 3,008 |
| Asia & Oceania | 36 | 105 | 1,151 | 1,046 |
| North & South America | 30 | 63 | 748 | 685 |
| Total | 127 | 229 | 4,968 | 4,739 |
The US tax reform (Tax Cuts & Jobs Act) was enacted in December 2017. For H&M this meant that deferred tax liabilities and deferred tax assets assignable to H&M's US subsidiary were remeasured during the first quarter 2018. Based on the decision to reduce Swedish corporate tax rate, the group has also remeasured the deferred tax liabilities and deferred tax assets of the Swedish companies. The group had one-off positive tax income of SEK 518 m in the financial year as a result of these remeasurements. Cash flow was not affected by these one-off effects.
The H&M group's tax rate for the 2017/2018 financial year was 22.4 (22.2) percent excluding the one-off effects described above. 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.
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 average number of employees in the group, converted into full-time positions, was 123,283 (120,191), of which 10,839 (10,100) are employed in Sweden.
Net sales in the period 1 December 2018 to 28 January 2019 increased by 4 percent in local currencies compared to the corresponding period the previous year.
Improved collections with more full-price sales mean that markdowns in relation to sales are expected to decrease by around 1 percentage point in the first quarter compared to the same quarter the previous year.
As of 30 November 2018, the group had SEK 9,153 m (9,745) in loans from credit institutions with a term of up to 12 months as well as SEK 10,170 m (0) in loans from credit institutions with a term of up to 36 months.
Loans from credit institutions within the Nordic countries amounted to SEK 17,886 m (9,320), with an average interest rate of 0.45 percent. Loans from credit institutions in Euro countries amounted to SEK 1,034 m (0), with an average interest rate of 0.00 percent. Loans in the rest of the world amounted to SEK 403 (425) with an average interest rate of 8.64 percent. The group's strategy is to mainly centralise funding, which is then distributed within the group via loans to subsidiaries. In some of H&M's sales markets local rules and currency restrictions make it more favourable for the group to use local funding.
In 2018 the H&M group carried out financing activities aimed at improving liquidity and increasing the average term. Cash and cash equivalents increased to SEK 11,590 m (9,718) and the average term on loans to credit institutions increased to 1.6 years (0.7). The H&M group's five-year revolving credit facility (RCF) of EUR 700 m, which was agreed in 2017, has not yet been drawn down.
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 H&M group advocates a conservative leverage ratio, aiming for a strong capital structure with strong liquidity and financial flexibility. It is essential that, as in the past, expansion and investments can proceed with continued freedom of action.
The capital structure is defined as net debt in relation to EBITDA. Over time, this should not exceed 1.0 x EBITDA. Net debt / EBITDA was 0.3 (0.0) as of 30 November 2018.
The board of directors' intention is to provide shareholders with a continued good dividend yield while ensuring that, as in the past, expansion and investments can proceed with a continued strong financial profile and freedom of action. Based on this, the board of directors has agreed a dividend policy stating that the total dividend should exceed 50 percent of profit after tax, yet taking into consideration the capital structure target. The dividend will be paid in two instalments – one in the spring and one in the autumn.
The board of directors has decided to propose an unchanged dividend of SEK 9.75 per share (9.75) to the annual general meeting on 7 May 2019, corresponding to 127.5 percent (99.7) of the group's profit after tax.
The record date proposed for the first payment of SEK 4.90 is 9 May 2019. This would then be paid out on 14 May 2019. The record date proposed for the second dividend payment of SEK 4.85 is 12 November 2019. This would then be paid out on 15 November 2019.
The board of directors is of the opinion that the proposed dividend is justifiable since it is based on the fact that the underlying business is showing gradual improvements, investments (capex) will reduce in 2019 and the company remains in a strong financial position. The dividend proposal takes into consideration the financial position and continued freedom of action of the group and the parent company, the capital structure target and the requirements that the nature and extent of the business, its risks and expansion and development plans impose on the group's and the parent company's equity and liquidity.
The 2019 annual general meeting will be held at 15:00 CET on Tuesday 7 May 2019 in the Erling Persson Hall, Aula Medica, Karolinska Institutet, Solna.
The annual report and the corporate governance report are expected to be published on 2 April 2019 on about.hm.com and will be sent out by post to shareholders that have so requested. The documents will also be available at the company's head office.
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 2017 which are described in Note 1 – Accounting principles.
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 30 November 2018, forward contracts with a positive market value amount to SEK 372 m (497), which is reported under other current receivables. Forward contracts with a negative market value amount to SEK 238 m (903), 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 2017.
Effective from this report the H&M group will no longer report sales including VAT. In future interim reports and sales development press releases, therefore, only sales excluding VAT – i.e. net sales – will be reported as a measure of sales. Net sales will be stated in absolute figures along with the percentage change in SEK and percentage change in local currencies.
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.
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.
IFRS 9 requires additional disclosures concerning risk management and the effects of hedge accounting. H&M will apply hedge accounting according to IFRS 9 from 1 December 2018. 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 reservations 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 is not expected to have any significant effect on the consolidated accounts.
IFRS 15 contains an overall model for reporting revenue arising from contracts with customers. The idea is that 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. To assess how the introduction of IFRS 15 will impact the group, a preliminary study of the company's revenue streams was conducted. The preliminary study shows that the group's income statement will not be significantly affected by the introduction of IFRS 15. The only exception is that the group will report provisions for expected returns gross. The group has elected to use a prospective method of transition and consequently comparative figures have not been restated.
The group has begun its evaluation of the new standard and expects it to result in recognition of significant assets and liabilities associated with the group's leases for premises. Since the standard will be applied for the first time in the 2019/2020 financial year, the judgement has been made that it is not yet possible to assess and calculate its effects on the figures with any certainty.
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 2017.
| Calendar | |
|---|---|
| 15 March 2019 | Sales development in first quarter, 1 Dec 2018 – 28 Feb 2019 |
| 29 March 2019 | Three-month report, 1 Dec 2018 – 28 Feb 2019 |
| 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 full-year report has not been audited by the company's auditors.
In conjunction with the release of the full-year report on 31 January a press conference will be held at 9:30 CET when CEO Karl-Johan Persson and Head of IR Nils Vinge will participate. The press conference will be held in Swedish for the financial market and media at H&M's head office in Stockholm, Ljusgården, Mäster Samuelsgatan 49, 3:rd floor.
A telephone conference for the financial market and media will be held in English at 14:00 CET hosted by CEO Karl-Johan Persson, CFO Jyrki Tervonen and Head of IR Nils Vinge. The presentation material will be available at about.hm.com/investors.
Participants for the telephone conference are kindly asked to register at:
http://emea.directeventreg.com/registration/3594072
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, e-mail: [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 31 January 2019. This full-year report and other information about H&M, 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 71 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.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |
| Net sales | 56,414 | 50,407 | 210,400 | 200,004 |
| Cost of goods sold | -25,822 | -22,478 | -99,513 | -91,914 |
| GROSS PROFIT | 30,592 | 27,929 | 110,887 | 108,090 |
| Gross margin, % | 54.2 | 55.4 | 52.7 | 54.0 |
| Selling expenses | -24,249 | -21,194 | -87,512 | -80,427 |
| Administrative expenses | -2,041 | -1,914 | -7,882 | -7,094 |
| OPERATING PROFIT | 4,302 | 4,821 | 15,493 | 20,569 |
| Operating margin, % | 7.6 | 9.6 | 7.4 | 10.3 |
| Interest income (incl finance lease) | 95 | 75 | 292 | 281 |
| Interest expense and similar items (incl finance lease) | -45 | -23 | -146 | -41 |
| PROFIT AFTER FINANCIAL ITEMS | 4,352 | 4,873 | 15,639 | 20,809 |
| Tax | -809 | -880 | -2,987 | -4,625 |
| PROFIT FOR THE PERIOD | 3,543 | 3,993 | 12,652 | 16,184 |
All profit for the year is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| Earnings per share, SEK* | 2.14 | 2.41 | 7.64 | 9.78 |
|---|---|---|---|---|
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Depreciation, total | 2,590 | 2,164 | 9,671 | 8,488 |
| of which cost of goods sold | 138 | 185 | 558 | 736 |
| of which selling expenses | 2,323 | 1,828 | 8,566 | 7,175 |
| of which administrative expenses | 129 | 151 | 547 | 577 |
* Before and after dilution.
| Q4 2018 |
Q4 2017 |
Full year 2018 |
Full year 2017 |
|
|---|---|---|---|---|
| PROFIT FOR THE PERIOD | 3,543 | 3,993 | 12,652 | 16,184 |
| Other comprehensive income | ||||
| Items that are or may be reclassified to profit or loss | ||||
| Translation differences | -479 | 2,085 | 1,895 | -1,496 |
| Change in hedging reserves | ||||
| Change in the value of derivatives | 522 | -2,409 | 483 | -1,341 |
| Reclassified to profit or loss | 52 | 1,162 | 52 | 1,162 |
| Tax attributable to change in hedging reserves | -132 | 295 | -123 | 39 |
| Items that will not be reclassified to profit or loss | ||||
| Remeasurement of defined benefit pension plans | 14 | 78 | 14 | 78 |
| Tax related to the above remeasurement | -3 | -19 | -3 | -19 |
| OTHER COMPREHENSIVE INCOME | -26 | 1,192 | 2,318 | -1,577 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3,517 | 5,185 | 14,970 | 14,607 |
All comprehensive income is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| ASSETS | 30 Nov - 2018 | 30 Nov - 2017 |
|---|---|---|
| FIXED ASSETS | ||
| Intangible fixed assets | ||
| Brands | - | 18 |
| Customer relations | - | 8 |
| Leasehold and similar rights | 508 | 592 |
| Capitalised expenditures | 9,046 | 6,361 |
| Goodwill | 64 | 64 |
| 9,618 | 7,043 | |
| Tangible fixed assets | ||
| Buildings and land | 831 | 824 |
| Equipment, tools, fixture and fittings | 41,608 | 38,994 |
| 42,439 | 39,818 | |
| Financial fixed assets | ||
| Other shares and participatiing rights | 478 | 233 |
| Other fixed assets | ||
| Long-term receivables | 885 | 806 |
| Deferred tax receivables | 3,794 | 2,916 |
| 4,679 | 3,722 | |
| TOTAL FIXED ASSETS | 57,214 | 50,816 |
| CURRENT ASSETS | ||
| Stock-in-trade | 37,721 | 33,712 |
| Current receivables | ||
| Accounts receivable | 6,329 | 5,297 |
| Tax receivables | 1,448 | 2,375 |
| Other receivables | 1,607 | 1,874 |
| Prepaid expenses | 2,881 | 2,770 |
| 12,265 | 12,316 | |
| Cash and cash equivalents | 11,590 | 9,718 |
| TOTAL CURRENT ASSETS | 61,576 | 55,746 |
| TOTAL ASSETS | 118,790 | 106,562 |
| EQUITY AND LIABILITIES | 30 Nov - 2018 | 30 Nov - 2017 |
|---|---|---|
| EQUITY | ||
| Share capital | 207 | 207 |
| Reserves | 3,322 | 1,015 |
| Retained earnings | 55,017 | 58,491 |
| TOTAL EQUITY | 58,546 | 59,713 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Provisions for pensions* | 445 | 445 |
| Deferred tax liabilities | 5,088 | 5,331 |
| Liabilities to credit institutions* | 10,170 | - |
| Other interest-bearing liabilities* | 322 | 350 |
| 16,025 | 6,126 | |
| Current liabilities | ||
| Accounts payable | 6,800 | 7,215 |
| Tax liabilities | 1,163 | 918 |
| Liabilities to credit institutions** | 9,153 | 9,745 |
| Interest-bearing liabilities** | 136 | 125 |
| Other liabilities | 3,800 | 3,672 |
| Accrued expenses and prepaid income | 23,167 | 19,048 |
| 44,219 | 40,723 | |
| TOTAL LIABILITIES | 60,244 | 46,849 |
| TOTAL EQUITY AND LIABILITIES | 118,790 | 106,562 |
* Interest-bearing long-term liabilities amounts to SEK 10,937 m (795).
** Interest-bearing current liabilities amounts to SEK 9,289 m (9,870).
All shareholders' equity is attributable to the shareholders of the parent company, H & M Hennes & Mauritz AB.
| Total | |||||
|---|---|---|---|---|---|
| Share | Translation | Hedging | Retained | shareholders' | |
| capital | effects | reserves | earnings | equity | |
| Shareholder's equity, 1 December 2017 | 207 | 1,353 | -338 | 58,491 | 59,713 |
| Profit for the year | - | - | - | 12,652 | 12,652 |
| Other comprehensive income | |||||
| Translation differences | - | 1,895 | - | - | 1,895 |
| Change in hedging reserves | |||||
| Value change derivative | - | - | 483 | - | 483 |
| Transfer to income statement | - | - | 52 | - | 52 |
| Tax attributable to hedging reserves | - | - | -123 | - | -123 |
| Revaluations relating to defined benefit pension | |||||
| plans | - | - | - | 14 | 14 |
| Tax attributable to the above revaluation | - | - | - | -3 | -3 |
| Other comprehensive income | - | 1,895 | 412 | 11 | 2,318 |
| Total comprehensive income | - | 1,895 | 412 | 12,663 | 14,970 |
| Dividend | - | - | - | -16,137 | -16,137 |
| Shareholder's equity, 30 November 2018 | 207 | 3,248 | 74 | 55,017 | 58,546 |
| Total | |||||
|---|---|---|---|---|---|
| Share | Translation | Hedging | Retained | shareholders' | |
| capital | effects | reserves | earnings | equity | |
| Shareholder's equity, 1 December 2016 | 207 | 2,849 | -198 | 58,378 | 61,236 |
| Adjustment of opening balance* | - | - | - | 7 | 7 |
| Adjusted shareholders' equity, 1 Dec 2016 | 207 | 2,849 | -198 | 58,385 | 61,243 |
| Profit for the year | - | - | - | 16,184 | 16,184 |
| Other comprehensive income | |||||
| Translation differences | - | -1,496 | - | - | -1,496 |
| Change in hedging reserves | |||||
| Value change derivative | - | - | -1,341 | - | -1,341 |
| Transfer to income statement | - | - | 1,162 | - | 1,162 |
| Tax attributable to hedging reserves | - | - | 39 | - | 39 |
| Revaluation of defined benefit pension plans | - | - | - | 78 | 78 |
| Tax attributable to the above revaluation | - | - | - | -19 | -19 |
| Other comprehensive income | - | -1,496 | -140 | 59 | -1,577 |
| Total comprehensive income | - | -1,496 | -140 | 16,243 | 14,607 |
| Dividend | - | - | - | -16,137 | -16,137 |
| Shareholder's equity, 30 November 2017 | 207 | 1,353 | -338 | 58,491 | 59,713 |
* Effective from the 2017 financial year, the way that certain defined-contribution pension plans are recognised has changed in two of the Swedish companies.
The effect in relation to previous years is reported as an adjustment of the opening balance of equity.
| Full year 2018 | Full year 2017 | |
|---|---|---|
| Current operations | ||
| Profit after financial items* | 15,639 | 20,809 |
| - Provisions for pensions | 0 | 9 |
| - Depreciation | 9,671 | 8,488 |
| - Tax paid | -3,098 | -6,051 |
| - Other | 39 | -20 |
| Cash flow from current operations before changes in working capital | 22,251 | 23,235 |
| Cash flow from changes in working capital | ||
| Current receivables | -587 | -1,115 |
| Stock-in-trade | -3,489 | -2,414 |
| Current liabilities | 3,112 | 1,881 |
| CASH FLOW FROM CURRENT OPERATIONS | 21,287 | 21,587 |
| Investing activities | ||
| Investment in leasehold and similar rights | -64 | -102 |
| Investments in other intangible assets | -3,207 | -2,058 |
| Investment in buildings and land | -5 | -27 |
| Investment in fixed assets | -9,552 | -10,284 |
| Other investments | -324 | -25 |
| CASH FLOW FROM INVESTING ACTIVITIES | -13,152 | -12,496 |
| Financial activities | ||
| Short-term loans | -592 | 7,677 |
| New loans | 10,170 | - |
| Amortisation finance lease | -126 | -57 |
| Dividend | -16,137 | -16,137 |
| CASH FLOW FROM FINANCIAL ACTIVITIES | -6,685 | -8,517 |
| CASH FLOW FOR THE YEAR | 1,450 | 574 |
| Cash and cash equivalents at beginning of the financial year | 9,718 | 9,446 |
| Cash flow for the year | 1,450 | 574 |
| Exchange rate effect | 422 | -302 |
| Cash and cash equivalents at end of the financial year** | 11,590 | 9,718 |
* Interest paid for the group amounts to SEK 107 m (40).
Received interest for the group amounts to SEK 292 m (260).
| SEK m SEK m SEK Local No. of stores New Closed stores stores currency Sweden 2,131 2,129 0 0 8 175 1 Norway 1,205 1,186 2 -4 130 2 Denmark 1,315 1,222 8 1 113 11 4 UK 3,714 3,214 16 8 304 14 4 Switzerland 1,348 1,254 7 -2 100 3 1 Germany 8,713 7,976 9 2 468 16 6 Netherlands 1,712 1,601 7 0 144 2 1 Belgium 970 896 8 96 1 1 Austria 1,336 1,256 6 -1 88 2 Luxembourg 108 101 7 0 10 579 549 -2 Finland 5 67 4 1 France 2,980 2,768 8 0 237 2 5 USA 6,923 6,443 7 -2 578 23 4 Spain 1,933 1,659 17 9 172 2 3 Poland 1,365 1,152 18 13 186 5 1 Czech Republic 452 366 23 14 52 Portugal 306 254 20 12 32 1 2,119 1,974 0 179 2 Italy 7 6 Canada 1,325 1,114 19 13 94 1 Slovenia 133 120 11 4 12 295 251 18 10 24 Ireland Hungary 460 382 20 16 47 1 Slovakia 210 167 26 17 25 1 Greece 470 416 13 5 35 China 2,982 2,264 32 24 530 13 5 Hong Kong 368 342 8 -3 26 2 Japan 1,302 1,159 12 2 91 4 Russia 1,468 1,202 22 27 139 2 South Korea 514 445 16 6 46 2 Turkey 732 773 -5 31 68 1 1 536 21 Romania 651 15 56 1 1 Croatia 208 191 9 0 16 2 1 Singapore 191 197 -3 -11 12 1 Bulgaria 181 160 13 6 21 1 Latvia 93 82 13 6 8 Malaysia 279 237 18 -1 47 1 Mexico 821 549 50 44 45 2 Chile 396 360 10 8 13 5 Lithuania 91 78 17 7 9 Serbia 127 111 14 6 13 92 87 12 Estonia 6 -1 1 Australia 584 556 5 3 44 7 Philippines 238 218 9 4 34 Taiwan 151 160 -6 -13 12 Peru 187 146 28 16 11 2 Macau 30 29 3 -8 2 India 389 276 41 43 39 5 South Africa 189 180 2 23 5 4 Puerto Rico 27 11 145 109 2 Cyprus 22 21 5 -3 1 96 35 36 New Zealand 71 4 Kazakhstan 50 50 0 2 3 Colombia 105 80 31 29 4 Iceland 50 65 -23 -20 3 1 Vietnam 93 63 48 45 6 2 Georgia 30 7 329 339 2 Ukraine 46 2 1 Uruguay 64 1 1 Franchise 1,465 1,251 17 19 255 11 3 Total 56,414 50,407 1 2 6 4,968 174 47 |
Market | Q4 - 2018 | Q4 - 2017 | Change in % | 30 Nov - 18 | Q4 - 2018 | |
|---|---|---|---|---|---|---|---|
| Market | 2018 | 2017 | Change in % | 30 Nov - 18 | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK m | SEK m | SEK | Local | No. of stores | New | Closed | |
| currency | stores | stores | |||||
| Sweden | 8,404 | 8,236 | 2 | 2 | 175 | 12 | 9 |
| Norway | 4,964 | 4,900 | 1 | -1 | 130 | 2 | |
| Denmark | 5,045 | 4,639 | 9 | 3 | 113 | 14 | 11 |
| UK | 13,760 | 12,622 | 9 | 5 | 304 | 25 | 13 |
| Switzerland | 5,145 | 5,471 | -6 | -7 | 100 | 4 | 4 |
| Germany | 32,367 | 30,959 | 5 | -1 | 468 | 22 | 17 |
| Netherlands | 6,465 | 6,191 | 4 | -1 | 144 | 10 | 11 |
| Belgium | 3,815 | 3,726 | 2 | -3 | 96 | 4 | 5 |
| Austria | 4,901 | 4,666 | 5 | -1 | 88 | 2 | |
| Luxembourg | 406 | 408 | 0 | -6 | 10 | ||
| Finland | 2,412 | 2,295 | 5 | 0 | 67 | 6 | 3 |
| France | 11,311 | 11,383 | -1 | -6 | 237 | 9 | 12 |
| USA | 24,798 | 26,330 | -6 | -6 | 578 | 54 | 12 |
| Spain | 7,373 | 6,816 | 8 | 2 | 172 | 4 | 7 |
| Poland | 5,285 | 4,402 | 20 | 13 | 186 | 12 | 1 |
| 1,610 | 1,341 | 20 | 10 | 52 | 3 | 1 | |
| Czech Republic | 10 | 3 | 32 | 1 | 1 | ||
| Portugal | 1,179 | 1,075 | |||||
| Italy | 7,630 | 7,525 | 1 | -4 | 179 | 10 | 6 |
| Canada | 4,569 | 4,291 | 6 | 5 | 94 | 5 | 2 |
| Slovenia | 488 | 452 | 8 | 2 | 12 | 1 | |
| Ireland | 1,104 | 961 | 15 | 8 | 24 | ||
| Hungary | 1,646 | 1,402 | 17 | 14 | 47 | 2 | |
| Slovakia | 750 | 616 | 22 | 15 | 25 | 3 | |
| Greece | 1,718 | 1,576 | 9 | 3 | 35 | ||
| China | 10,743 | 9,484 | 13 | 10 | 530 | 38 | 14 |
| Hong Kong | 1,502 | 1,663 | -10 | -9 | 26 | 1 | 3 |
| Japan | 4,573 | 4,469 | 2 | 1 | 91 | 11 | 2 |
| Russia | 5,737 | 4,915 | 17 | 23 | 139 | 5 | |
| South Korea | 1,957 | 1,807 | 8 | 4 | 46 | 5 | |
| Turkey | 2,852 | 2,962 | -4 | 22 | 68 | 2 | 4 |
| Romania | 2,299 | 1,979 | 16 | 12 | 56 | 1 | 1 |
| Croatia | 719 | 685 | 5 | -1 | 16 | 2 | 1 |
| Singapore | 801 | 899 | -11 | -14 | 12 | 1 | 2 |
| Bulgaria | 635 | 581 | 9 | 4 | 21 | 1 | |
| Latvia | 356 | 326 | 9 | 3 | 8 | ||
| Malaysia | 1,177 | 1,109 | 6 | -4 | 47 | 3 | |
| Mexico | 2,854 | 1,988 | 44 | 45 | 45 | 8 | |
| Chile | 1,488 | 1,250 | 19 | 17 | 13 | 5 | |
| Lithuania | 351 | 324 | 8 | 2 | 9 | ||
| Serbia | 423 | 363 | 17 | 7 | 13 | 1 | |
| Estonia | 381 | 350 | 9 | 3 | 12 | 2 | |
| Australia | 2,283 | 2,383 | -4 | -3 | 44 | 12 | |
| Philippines | 1,007 | 926 | 9 | 13 | 34 | 2 | |
| Taiwan | 627 | 742 | -15 | -17 | 12 | ||
| Peru | 763 | 725 | 5 | 6 | 11 | 3 | |
| Macau | 120 | 135 | -11 | -9 | 2 | ||
| India | 1,408 | 1,092 | 29 | 36 | 39 | 12 | |
| South Africa | 842 | 780 | 8 | 7 | 23 | 6 | |
| Puerto Rico | 80 | 91 | -12 | -12 | 2 | ||
| Cyprus | 79 | 80 | -1 | -7 | 1 | ||
| New Zealand | 284 | 183 | 55 | 59 | 4 | 1 | |
| Kazakhstan | 203 | 158 | 28 | 35 | 3 | ||
| Colombia | 405 | 188 | 115 | 114 | 4 | 1 | |
| Iceland | 192 | 76 | 153 | 152 | 3 | 1 | |
| Vietnam | 271 | 63 | 330 | 335 | 6 | 4 | |
| Georgia | 102 | 7 | 1,357 | 1,381 | 2 | 1 | |
| Ukraine | 57 | 2 | 2 | ||||
| Uruguay | 64 | 1 | 1 | ||||
| Franchise | 5,620 | 4,938 | 14 | 14 | 255 | 39 | 3 |
| Total | 210,400 | 200,004 | 5 | 3 | 4,968 | 375 | 146 |
| 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|
| Net sales, SEK m | 151,419 | 180,861 | 192,267 | 200,004 | 210,400 |
| Change net sales from previous year in SEK, % | 18 | 19 | 6 | 4 | 5 |
| Change net sales previous year in local currencies, % | 14 | 11 | 7 | 3 | 3 |
| Operating profit, SEK m | 25,583 | 26,942 | 23,823 | 20,569 | 15,493 |
| Operating margin, % | 16.9 | 14.9 | 12.4 | 10.3 | 7.4 |
| Depreciations for the year, SEK m | 5,045 | 6,399 | 7,605 | 8,488 | 9,671 |
| Profit after financial items, SEK m | 25,895 | 27,242 | 24,039 | 20,809 | 15,639 |
| Profit after tax, SEK m | 19,976 | 20,898 | 18,636 | 16,184 | 12,652 |
| Cash and cash equivalents and short-term investments, SEK m | 16,693 | 12,950 | 9,446 | 9,718 | 11,590 |
| Stock-in-trade, SEK m | 19,403 | 24,833 | 31,732 | 33,712 | 37,721 |
| Equity, SEK m | 51,556 | 58,049 | 61,236 | 59,713 | 58,546 |
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Earnings per share, SEK* | 12.07 | 12.63 | 11.26 | 9.78 | 7.64 |
| Equity per share, SEK* | 31.15 | 35.07 | 37.00 | 36.08 | 35.37 |
| Cash flow from current operations | |||||
| per share, SEK* | 14.60 | 14.54 | 14.36 | 13.04 | 12.86 |
| Dividend per share, SEK | 9.75 | 9.75 | 9.75 | 9.75 | 9.75** |
| Return on equity, % | 41.3 | 38.1 | 31.2 | 26.8 | 21.4 |
| Return on capital employed, % | 53.1 | 49.3 | 39.2 | 31.0 | 21.2 |
| Share of risk-bearing capital, % | 72.5 | 72.7 | 67.1 | 61.0 | 53.6 |
| Equity/assets ratio, % | 68.2 | 67.6 | 62.1 | 56.0 | 49.3 |
| Total number of stores | 3,511 | 3,924 | 4,351 | 4,739 | 4,968 |
| Average number of employees | 93,351 | 104,634 | 114,586 | 120,191 | 123,283 |
* Before and after dilution.
** Proposed by the Board of Directors.
For definitions of key figures see the annual report
| 2018 | 2017 | |
|---|---|---|
| Asia and Oceania | ||
| External net sales | 31,902 | 29,557 |
| Operating profit | 735 | 1,143 |
| Operating margin, % | 2.3 | 3.9 |
| Assets excluding tax receivables and internal receivables Liabilities excluding tax liabilities and internal liabilities |
16,102 2,400 |
14,490 1,487 |
| Investments | 1,047 | 1,651 |
| Depreciation | 1,667 | 1,455 |
| Europe and Africa* | ||
| External net sales | 143,480 | 135,567 |
| Operating profit | 4,787 | 4,066 |
| Operating margin, % | 3.3 | 3.0 |
| Assets excluding tax receivables and internal receivables | 47,571 | 45,894 |
| Liabilities excluding tax liabilities and internal liabilities | 15,952 | 13,553 |
| Investments | 4,378 | 4,824 |
| Depreciation | 4,528 | 4,118 |
| North and South America | ||
| External net sales | 35,018 | 34,880 |
| Operating profit | 946 | 794 |
| Operating margin, % | 2.7 | 2.3 |
| Assets excluding tax receivables and internal receivables | 19,863 | 18,959 |
| Liabilities excluding tax liabilities and internal liabilities | 7,909 | 6,785 |
| Investments | 2,915 | 3,258 |
| Depreciation | 2,437 | 2,120 |
| Group Functions | ||
| Net sales to other segments | 67,795 | 72,901 |
| Operating profit | 9,025 | 14,566 |
| Operating margin, % | 13.3 | 20.0 |
| Assets excluding tax receivables and internal receivables | 30,012 | 21,928 |
| Liabilities excluding tax liabilities and internal liabilities | 27,732 | 18,775 |
| Investments | 4,557 | 3,017 |
| Depreciation | 1,039 | 795 |
| Eliminations | ||
| -67,795 | -72,901 | |
| Net sales to other segments | ||
| Total | ||
| External net sales | 210,400 | 200,004 |
| Operating profit | 15,493 | 20,569 |
| Operating margin, % | 7.4 | 10.3 |
| Assets excluding tax receivables and internal receivables | 113,548 | 101,271 |
| Liabilities excluding tax liabilities and internal liabilities | 53,993 | 40,600 |
| Investments | 12,897 | 12,750 |
| Depreciation | 9,671 | 8,488 |
*South Africa
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |
| External net sales | 6 | 4 | 22 | 13 |
| Internal net sales* | 1,177 | 1,064 | 4,262 | 4,069 |
| GROSS PROFIT | 1,183 | 1,068 | 4,284 | 4,082 |
| Administrative expenses | -32 | -24 | -156 | -158 |
| OPERATING PROFIT | 1,151 | 1,044 | 4,128 | 3,924 |
| Dividend from subsidiaries | 10,076 | 9,945 | 13,793 | 13,004 |
| Interest income and similar items** | -12 | 2 | 97 | 18 |
| Interest expense and similar items*** | -25 | 38 | -44 | -91 |
| PROFIT AFTER FINANCIAL ITEMS | 11,190 | 11,029 | 17,974 | 16,855 |
| Year-end appropriations | -1,164 | -328 | -1,164 | -328 |
| Tax | 2 | -164 | -673 | -773 |
| PROFIT FOR THE PERIOD | 10,028 | 10,537 | 16,137 | 15,754 |
* Internal sales in the quarter consists of royalty of SEK 1,091 m (1,030) and other SEK 86 m (34) received from group companies and for the full-year of royalty of SEK 4,169 m (3,962) and other SEK 93 m (107).
** Interest income and similar items in the quarter consists of SEK 14 m (2) in interest income and SEK -26 m (0) in translation effects from group companies and in the full-year of SEK 19 m (18) in interest income and SEK 78 m (0) in translation effects from group *** Interest expense and similar items in the quarter consists of SEK -25 m (-5) in interest expense and SEK 0 m (43) in translation effects from group companies and in the full-year of SEK -44 m (-11) in interest expense and SEK 0 m (-80) in translation effects from group companies.
| Q4 2018 |
Q4 2017 |
Full year 2018 |
Full year 2017 |
|
|---|---|---|---|---|
| PROFIT FOR THE PERIOD | 10,028 | 10,537 | 16,137 | 15,754 |
| Other comprehensive income | ||||
| Items that have not been and will not be reclassified to profit or loss | ||||
| Remeasurement of defined benefit pension plans | -9 | -1 | -9 | -1 |
| Tax related to the above remeasurement | 2 | 0 | 2 | 0 |
| OTHER COMPREHENSIVE INCOME | -7 | -1 | -7 | -1 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 10,021 | 10,536 | 16,130 | 15,753 |
| 30 Nov - 2018 | 30 Nov - 2017 | |
|---|---|---|
| ASSETS | ||
| FIXED ASSETS | ||
| Tangible fixed assets | ||
| Buildings and land | 146 | 148 |
| 143 | 219 | |
| Equipment, tools, fixture and fittings | 289 | 367 |
| Other fixed assets | ||
| Shares and participation rights | 588 | 588 |
| Receivables from subsidiaries | 842 | 849 |
| Long-term receivables | 115 | 111 |
| Deferred tax receivables | 76 | 79 |
| 1,621 | 1,627 | |
| TOTAL FIXED ASSETS | 1,910 | 1,994 |
| CURRENT ASSETS | ||
| Current receivables | ||
| Accounts receivable | 6 | 4 |
| Receivables from subsidiaries | 30,104 | 19,287 |
| Other receivables | 2 | 8 |
| Prepaid expenses | 121 | 13 |
| 30,233 | 19,312 | |
| Cash and cash equivalents | 93 | 133 |
| TOTAL CURRENT ASSETS | 30,326 | 19,445 |
| TOTAL ASSETS | 32,236 | 21,439 |
| 30 Nov - 2018 | 30 Nov - 2017 | |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| EQUITY | ||
| Restricted equity | ||
| Share capital | 207 | 207 |
| Restricted reserves | 88 | 88 |
| 295 | 295 | |
| Non-restricted equity | ||
| Retained earnings | 46 | 430 |
| Profit for the year | 16,130 | 15,753 |
| 16,176 | 16,183 | |
| TOTAL EQUITY | 16,471 | 16,478 |
| UNTAXED RESERVES | 96 | 417 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Provisions for pensions* | 181 | 182 |
| Liabilities to credit institutions* | 9,113 | - |
| 9,294 | 182 | |
| Short-term liabilities | ||
| Accounts payable | 1 | 3 |
| Tax liabilities | 21 | 41 |
| Liabilities to credit institutions* | 6,000 | 4,000 |
| Other liabilities | 200 | 176 |
| Accrued expenses and prepaid income | 153 | 142 |
| 6,375 | 4,362 | |
| TOTAL LIABILITIES | 15,669 | 4,544 |
| TOTAL EQUITY AND LIABILITIES | 32,236 | 21,439 |
* Only provisions for pensions and liabilities to credit institutions are interest-bearing.
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