Quarterly Report • Jan 19, 2016
Quarterly Report
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"Increased gross margin and healthy growth in core operations"
| Q 1 | Q 1 | Q 2 14/15– | Full-year | |
|---|---|---|---|---|
| SEK million | 15/16 | 14/15 | Q1 15/16 | 14/15 |
| Net sales | 2,123.6 | 2,067.5 | 7,989.5 | 7,933.5 |
| Organic sales growth (%) | 2.5 | 12.0 | - | 5.7 |
| Gross margin (%) | 14.8 | 14.2 | 14.2 | 14.1 |
| Operating profit (EBIT) | 86.8 | 68.8 | 236.0 | 218.0 |
| Adjusted EBITA | 104.8 | 96.9 | 361.3 | 353.5 |
| Adjusted EBITA margin (%) | 4.9 | 4.7 | 4.5 | 4.5 |
| Profit for the period | 76.9 | 31.5 | 170.4 | 125.0 |
| Earnings per share, before and after dilution, (SEK)* | 1.01 | 0.48 | 2.30 | 1.75 |
| Cash flow from operating activities | 199.0 | -69.5 | 327.1 | 58.6 |
| Net debt/adjusted EBITDA (multiple) | - | - | 2.3 | 2.8 |
| Return on equity (%) | - | - | 12.3 | 9.4 |
* In order to obtain comparability between the periods, the average number of shares has been recalculated based on historic figures.
Our online sales, which comprise the base of Dustin's operations, continued to perform positively and are contributing to an increasingly stronger position in the Nordic IT market. Healthy growth in the customer group SMB, combined with a more favourable product mix, as well as selective new sales to the public sector contributed to higher profitability during the quarter with an adjusted EBITA margin of 4.9 per cent.
Organic growth in the B2B segment was 3.1 per cent during the first quarter. Growth in the customer group SMB was strong and in line with our long-term financial objective. In the customer group large companies and the public sector, we were more selective with respect to new sales, which had a negative impact on growth.
Given the generally continuing weak demand in the IT market, Dustin's sales trend confirms a robust business model and sustained strong market position. The trend of more companies choosing to make their IT purchases via online channels, and requesting advanced products and services to a greater extent, is beneficial to our business.
The B2C segment is a complement to Dustin's core B2B segment and accounted for 7 per cent of the total sales during the quarter. The competitive situation remained tough and sales fell 6.2 per cent compared with the year-earlier period. The strategy of continuing to prioritise profitability before volume remains unchanged and the segment margin increased to 2.9 per cent.
During the quarter, we initiated preparatory work to integrate the Finnish operation. We will be able to further strengthen our competitiveness, with an expanded offering via the online channel, by making the central platform accessible in the Finnish market. Work to standardise deliveries in services and solutions, as well as the initiative to increase pricing efficiency, has begun to generate visible results.
Sustainability is an important area for us and the entire industry. We recently published our first sustainability report, which focuses on five priority areas: responsible purchasing, reduced climate impact, responsible use of resources, business ethics and anti-corruption as well as equality and diversity. We have set ambitious targets and as a key player in the value chain, I am convinced that our continuous sustainability work will have a positive impact on the industry, and will strengthen our position and business in the long term.
In November, we consolidated the entire Nordic financing offering to the B2B market through a partnership agreement with De Lage Landen Finans. In conjunction with this, the lease portfolio in the financing operation was divested. The partnership agreement has now provided us with a complete financing offering to all our Nordic corporate customers.
All in all, we have an attractive position that will provide us with excellent prerequisites to continue to capture market shares in our addressable market, with high profitability.
Nacka, January 2016 Georgi Ganev, CEO
Income statement items and cash flows are compared with the year-earlier periods. Balance sheet items pertain to the position at the end of the period and compared with the year-earlier periods. The quarter pertains to September-November 2015.
Net sales for the quarter increased 2.7 per cent to SEK 2,124 million (2,068), primarily attributable to higher sales in the B2B segment. Organic growth in fixed exchange rates was 2.5 per cent (12.0).
Gross profit increased by SEK 21 million, corresponding to 7.1 per cent, to SEK 315 million (294). The gross margin increased 0.6 percentage points to 14.8 per cent (14.2), mainly due to higher margins in the B2B segment in Sweden and Finland, primarily driven by an improved product mix. In Finland, the margin was positively impacted by the acquisition of Resolute, since the offering expanded in network services and security.
Operating profit amounted to SEK 87 million (69). The change compared with the year-earlier period was mainly due to the improved gross margin. In the past, operating profit included Financial Services. This operation was discontinued during the period, which is why operating profit attributable to Financial Services is reported separately. For further information pertaining to discontinued operation, please refer to chapter Divestment of lease operations and Note 3 Discontinued operations.
Adjusted EBITA increased 8.2 per cent to SEK 105 million (97) during the quarter. The adjusted EBITA margin improved to 4.9 per cent (4.7). Adjusted EBITA also includes operating profit from Financial Services. Items affecting comparability totalled a negative SEK 2 million (neg: 11) and are specified in Note 2 Items affecting comparability.
Financial expenses for the quarter were positive and amounted SEK 6 million (expense: 31) and financial income amounted to SEK 1 million (1). The financial expense item and other similar income statement items were impacted by a positive net currency effect of SEK 14 million (neg: 4) for the period. Financial expenses also declined following changes in the financing structure and improved terms pertaining to external financing.
The Group's effective tax rate for the quarter was 18.5 per cent, compared with 22.8 per cent in the year-earlier period. The lower tax rate for the quarter was attributable to increased tax deductions for costs in earlier periods.
Profit for the period amounted to SEK 77 million (31). Earnings per share, before and after dilution, including discontinued operations amounted to SEK 1.01 (0.48).
The lease operations were discontinued during the period. The total sales proceeds amounted to SEK 308 million, of which the amount of sales proceeds received during the period totalled SEK 278 million. The remaining portion of the sales proceeds was received after the end of the period. In conjunction with the sale, external loans of SEK 174 million were repaid, entailing a net increase in cash and cash equivalents of SEK 104 million for the period, of which approximately half was attributable to an outstanding VAT debt. The total capital gains for the divestment amounted to SEK 1 million before tax.
Net debt includes non-current and current interest-bearing liabilities, as well as earned-out liabilities less receivables from financial leasing and cash and cash equivalents. Net debt amounted to SEK 848 million (1,231). The lower net debt compared with the year-earlier period was primarily attributable to changes in the financing structure in connection with the IPO.
The net debt for the quarter was reduced by SEK 156 million, primarily due to the divestment of the lease operation, improved working capital and higher earnings in the operations.
The net debt in relation to the adjusted EBITDA was 2.3 (2.8) measured over the past 12-month period.
In total, cash and cash equivalents amounted to SEK 255 million, an increase of SEK 224 million (31) for the quarter. There was also an unutilised overdraft facility totalling SEK 270 million at the end of the period.
| SEK million | November 30, 2015 |
November 30, 2014 |
August 31, 2015 |
|---|---|---|---|
| Non-current liabilities (excluding shareholder loans) |
1,038.3 | 1,152.9 | 1,056.9 |
| Current liabilities | - | 107.9 | 40.9 |
| Liabilities for financial leasing (short-term and long-term) |
- | 158.6 | 179.7 |
| Acquisition-related liabilities | 64.7 | 63.4 | 66.4 |
| Cash and cash equivalents | -255.2 | -31.3 | -77.8 |
| Receivables for financial leasing (short-term and long term) |
-0.2 | -220.7 | -262.7 |
| Net debt | 847.7 | 1,230.7 | 1,003.4 |
Cash flow recognised for the period amounted to SEK 179 million (neg: 103).
Cash flow from operating activities amounted to SEK 199 million (neg: 70), which was due to a decline of SEK 146 million (neg: 109) in working capital as a result of higher current liabilities mainly attributable to the VAT debt that arose in connection with the transfer of the lease operations. The change in working capital during the year-earlier period was negatively impacted by a low working capital at the beginning of the quarter.
Cash flow from investing activities amounted to SEK 203 million (neg: 33) and pertained to investments in tangible and intangible assets of a negative SEK 13 million (neg: 4), of which a negative SEK 7 million (neg: 2) refers to development costs for the IT platform ahead of the upcoming launch in Finland. Furthermore, investments in the Dustin pricing platform continued during the quarter. Cash flow from investing activities was also affected by the acquisition of operations of a negative SEK 24 million (neg: 26), the divestment of operations of SEK 225 million (-), and cash flow from lease operations totalling SEK 15 million (neg: 4). Acquisition of operations pertained to the acquisition of the subsidiary Commsec, and divestment of operations pertained to the purchase consideration received for the divestment of the lease operations. Cash flow from lease operations pertained to the period before the transfer of the lease operations.
Cash flow from financing activities amounted to a negative SEK 222 million (neg: 1), mainly attributable to the repayment of loans in connection with the sale of the lease operations.
Net working capital amounted to SEK 45 million (129) at the end of the period. The change was partly attributable to higher other current liabilities mainly related to the VAT debt that arose in connection with the transfer of the lease operations. The lower accounts receivable and accounts payable, compared with the year-earlier period, are attributable to high receivables and debt at the end of the comparative period due to challenges relating to the implementation of the new IT platform during the first quarter last year.
| November | November | August 31, | |
|---|---|---|---|
| SEK million | 30, 2015 | 30, 2014 | 2015 |
| Inventories | 261.0 | 268.9 | 241.1 |
| Accounts receivable | 938.8 | 1,007.3 | 800.4 |
| Tax assets, other current receivables, as well as pre paid expenses and accrued income |
192.8 | 174.3 | 148.5 |
| Accounts payable | -993.5 | -1,108.3 | -735.0 |
| Tax liabilities, other current liabilities as well as accru ed expenses and deferred income |
-353.7 | -213.2 | -296.8 |
| Working capital | 45.4 | 129.0 | 158.3 |
The average number of full-time employees was 938 (940).
In connection with the signing of a partnership agreement with De Lage Landen Finans AB (DLL), Dustin's lease portfolio was divested to DLL. The sales value of the lease portfolio corresponded to the carrying amount.
In October, Dustin Concept Store opened at Sveavägen 44 in Stockholm, which is primarily targeted to our corporate customers. Dustin's entire offering is gathered under one roof and the focus is on advisory services and support to identify the right combination of products and solutions.
The Swedish company, Commsec, which supplies network and security solutions, was acquired during the period and consolidated in the Group from October 1, 2015. The company reported sales of approximately SEK 33 million during the 2014/2015 financial year. In connection with the acquisition, goodwill of SEK 19 million arose.
During the period, the merger of the Finnish companies was finalised, whereby the subsidiary Resolute ISMS Oy merged with the Parent Company Businessforum Oy.
No significant events were identified.
Dustin is impacted by seasonal variations. Each quarter is fully comparable between the years. Sales volumes are normally higher in November and March and lower during the summer period when sales and marketing activities are reduced. Similar seasonal variations occur in all geographical markets.
Dustin Group AB (Corp. Reg. No. 556703-3062), which is domiciled in Stockholm, Sweden, only conducts holding operations. Net sales amounted to SEK 0.1 million (0.1). Profit for the quarter amounted to SEK 5 million (loss: 23).
The financial statements of the Dustin Group has been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. The financial statements of the Parent Company, Dustin Group AB, have been prepared in accordance with the Swedish Annual Accounts Act, and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. This report has been prepared in accordance with IFRS applying IAS 34 Interim Financial Reporting and the Annual Accounts Act. The accounting policies are consistent with those presented in the Group's annual report for the 2014/15 financial year.
In connection with the listing during the preceding financial year, a number of transactions were implemented that changed the number of shares outstanding. Accordingly, the number of shares was restated for earlier periods in order to enable a comparison between the periods.
A rounding-off difference may occur in this report.
During the period, the operation previously reported as Financial Services was divested through business transfer to an external party. This entailed that the operation is now defined as a discontinued operation in accordance with IFRS 5. As a result, this part of the operation has been reported on a separated line in the income statement for the current and comparable periods. The line for discontinued operation is specified in Note 3.
This report has been prepared in SEK million, unless otherwise indicated. Previously published reports were prepared in SEK 000s, unless otherwise indicated.
Dustin has established a framework for risk management in order to regularly and consistent identify, analyse, assess and report business and financial risks, and to mitigate such risks when appropriate. The results of this risk management process are described in the Group's Annual Report.
The Group has no non-current or current liabilities to related parties. In the preceding year, the non-current and current liabilities to related parties amounted to SEK 210 million and the accumulated debt-free interest amounted to SEK 246 million. Financial expenses to related parties amounted to SEK 11 million during the year-earlier period. The change is attributable to the settlement of all liabilities to former shareholders in connection with the IPO. In other respects, no significant related-party transactions occurred.
The Dustin share has been listed on Nasdaq Stockholm since February 13, 2015 and is included in the Mid Cap segment. The share price was SEK 59.00 per share at November 30, 2015, which corresponds to a total market capitalisation of SEK 4,494 million and an increase of 18,0 per cent in the share price since the first day of trading.
At the end of the period, the company had a total of 6,062 shareholders. The company's three largest shareholders were Altor Fund II GP Limited (20.03 per cent), Axmedia AB (20.0 per cent) and the Fourth Swedish National Pension Fund (9.89 per cent) as of November 30, 2015.
Dustin's shareholder register with the largest shareholders is presented on the company's website.
Dustin's operations are divided into two business areas: B2B and B2C. Within B2B, customers are served through both the online platform and relationship-based sales. Dustin's sales model has been adapted to meet customer needs and potential as efficiently as possible. Although B2B is Dustin's core segment, there are several advantages to also serving private customers, such as similar product range, limited additional costs, as well as new insight into trends and pricing. In the B2C segment, customers are only served through the online platform.
| B2B | Q 2 14/15– |
|||||
|---|---|---|---|---|---|---|
| SEK million | Q 1 15/16 |
Q 1 14/15 |
Chan ges % |
Q 1 15/16 |
Helår 14/15 |
Chan ges % |
| Net sales | 1980.1 | 1914.6 | 3.4 | 7392.4 | 7326.9 | 0.9 |
| Segment results |
171.1 | 159.7 | 7.1 | 600.4 | 589.0 | 1.9 |
| Segment margin, % |
8.6 | 8.3 | 0.3 | 8.1 | 8.0 | 0.1 |
Net sales for the first quarter increased 3.4 per cent to SEK 1,980 million (1,915). Organic growth in constant currency was 3.1 per cent. Growth was primarily due to a strong trend in the customer group SMB in both relationship-based sales and the portion that is served through the online platform. In the customer group large companies and the public sector, more selective new sales had a negative impact on growth.
Segment results for the first quarter increased by SEK 11 million to SEK 171 million (160). The increase was a combination of the positive sales trend and a positive gross margin trend, mainly driven by fewer volume transactions in Sweden and a positive product mix trend attributable to Resolute in Finland.
During the quarter, the operating profit for the lease operations, Dustin Financial Services, amounted to SEK 2 million (3). The lease operations were divested during the quarter and the segment results include a capital gain totalling SEK 1 million (-) from the divestment. The segment margin for the quarter was 8.6 per cent (8.3).
| B2C | Q 2 14/15– |
|||||
|---|---|---|---|---|---|---|
| SEK million | Q 1 15/16 |
Q 1 14/15 |
Chan ges % |
Q 1 15/16 |
Helår 14/15 |
Chan ges % |
| Nettoom sättning |
143,4 | 153,0 | -6,2 | 597,0 | 606,6 | -1,6 |
| Segments resultat |
4,1 | 1,4 | 201,6 | 21,6 | 18,9 | 14,6 |
| Segments marginal, % |
2,9 | 0,9 | 2,0 | 3,6 | 3,1 | 0,5 |
Net sales declined 6.2 per cent in the first quarter to SEK 143 million (153). Organic growth in constant currency was a negative 4.8 per cent, due to a continued tough competitive market. The strategy on profitability over volume remains unchanged.
The segment results in the first quarter increased SEK 3 million to SEK 4 million (1) and were positively impacted by the decline in selling expenses and negatively impacted by a slightly lower gross margin. The segment margin for the quarter was 2.9 per cent (0.9).
The central functions are key to Dustin's ability to deliver its offerings more efficiently in all markets. In recent years, the Group made significant investments in the central functions to realise economies of scale and manage the integration of acquired operations.
Costs associated with the central functions, excluding items affecting comparability, in relation to sales amounted to 3.3 per cent (3.1) for the quarter.
For additional financial data pertaining to the segment, refer to Note 1 Segments and Segment information by the quarter on page 16.
The undersigned certifies that this interim report gives a true and fair presentation of the Parent Company's and the Group's operations, financial position and profits and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.
Stockholm, January 19, 2016
Georgi Ganev, CEO In accordance with authorisation by the Board of Directors
This report is unaudited
| SEK million | Note | Q 1 15/16 |
Q1 14/15 |
Q2 14/15- Q1 15/16 |
Full-year 14/15 |
|---|---|---|---|---|---|
| Continuing operations: | |||||
| Net sales | 1 | 2,123.6 | 2,067.5 | 7,989.5 | 7,933.5 |
| Cost of goods and services sold | -1,808.8 | -1,773.7 | -6,852.0 | -6,816.9 | |
| Gross profit | 314.8 | 293.9 | 1 137.4 | 1 116.5 | |
| Selling and admin expenses | -227.2 | -212.1 | -839.6 | -824.5 | |
| Items affecting comparability | 2 | -1.6 | -10.9 | -59.4 | -68.7 |
| Other operating income | 1.8 | 0.6 | 17.4 | 16.3 | |
| Other operating expenses | -0.9 | -2.7 | -19.9 | -21.6 | |
| Operating profit | 1 | 86.8 | 68.8 | 236.0 | 218.0 |
| Financial income and other similar profit/loss items | 0.5 | 0.7 | 1.9 | 2.1 | |
| Financial expenses and other similar profit/loss items | 5.7 | -31.3 | -32.2 | -69.2 | |
| Profit after financial items | 93.0 | 38.2 | 205.8 | 150.9 | |
| Tax attributable to continuing operations | -17.2 | -8.7 | -41.1 | -32.6 | |
| Profit for the period from continuing operations | 75.8 | 29.4 | 164.7 | 118.3 | |
| Discontinued operations: | |||||
| Profit for the period from discontinued operations | 3 | 1.1 | 2.0 | 5.7 | 6.6 |
| Profit for the period | 76.9 | 31.5 | 170.4 | 125.0 | |
| Other comprehensive income (all items that will | |||||
| be transferred to the income statement) | |||||
| Translation differences | -20.0 | -3.2 | -20.3 | -3.5 | |
| Cash-flow hedging | -1.0 | -0.3 | -1.7 | -1.0 | |
| Tax | 0.2 | 0.1 | 0.4 | 0.2 | |
| Other comprehensive income | -20.8 | -3.4 | -21.7 | -4.3 | |
| Comprehensive income for the period is attributable in its | |||||
| entirety to the shareholders of the Parent Company | 56.2 | 28.1 | 148.7 | 120.7 | |
| Comprehensive income for the period attributable to | |||||
| Parent Company shareholders arose from: | |||||
| Continuing operations | 55.1 | 26.1 | 143.1 | 114.0 | |
| Discontinued operations | 1.1 | 2.0 | 5.7 | 6.6 | |
| Total comprehensive income | 56.2 | 28.1 | 148.7 | 120.7 | |
| Earnings per share, including discontinued operations (SEK) | 1.01 | 0.48 | 2.30 | 1.75 | |
| Earnings per share after dilution including discontinued | |||||
| operations (SEK) | 1.01 | 0.48 | 2.30 | 1.75 | |
| Earnings per share, excluding discontinued operations (SEK) | 1.00 | 0.45 | 2.22 | 1.65 | |
| Earnings per share after dilution excluding discontinued operations (SEK) |
1.00 | 0.45 | 2.22 | 1.65 |
| SEK million | Note | Nov 30, 2015 | Nov 30, 2014 | Aug 31, 2015 |
|---|---|---|---|---|
| Assets | ||||
| Goodwill | 1,775.4 | 1,654.8 | 1,771.6 | |
| Other intangible assets attributable to acquisitions | 401.3 | 443.5 | 407.4 | |
| Other intangible assets | 4 | 100.2 | 93.4 | 98.2 |
| Tangible assets | 4 | 19.8 | 22.0 | 21.1 |
| Deferred tax assets | 15.1 | 14.2 | 11.2 | |
| Receivables pertaining to financial leasing | 0.2 | 167.7 | 199.7 | |
| Other non-current assets | 3.9 | 4.0 | 3.8 | |
| Total fixed assets | 2,315.7 | 2,399.6 | 2,513.0 | |
| Inventories | 261.0 | 268.9 | 241.1 | |
| Accounts receivable | 938.8 | 1,007.3 | 800.4 | |
| Tax assets | 22.2 | 26.6 | 29.7 | |
| Other receivables | 40.6 | 4.0 | 6.2 | |
| Receivables pertaining to financial leasing | - | 53.0 | 63.1 | |
| Prepaid expenses and accrued income | 130.0 | 143.7 | 112.6 | |
| Cash and cash equivalents | 255.2 | 31.3 | 77.8 | |
| Total current assets | 1,647.8 | 1,534.8 | 1,330.9 | |
| Total assets | 3,963.5 | 3,934.4 | 3,843.9 | |
| Equity and liabilities | ||||
| Equity attributable to Parent Company shareholders | 1,379.9 | 771.1 | 1,323.7 | |
| Total equity | 1,379.9 | 771.1 | 1,323.7 | |
| Subordinated shareholder loans | - | 207.3 | - | |
| Deferred tax and other long-term provisions | 119.8 | 139.9 | 131.8 | |
| Liabilities to credit institutions | 1,038.3 | 1,232.2 | 1,146.7 | |
| Acquisition-related liabilities | 25.9 | - | 26.6 | |
| Total long-term liabilities | 1,184.0 | 1,579.4 | 1,305.1 | |
| Liabilities to credit institutions | - | 187.2 | 130.7 | |
| Accounts payable | 993.5 | 1,108.3 | 735.0 | |
| Tax liabilities | 6.6 | - | 22.0 | |
| Derivative instruments | 5 | 13.6 | 11.9 | 12.6 |
| Other current liabilities | 126.0 | 23.6 | 48.0 | |
| Acquisition-related liabilities | 38.8 | 63.4 | 39.9 | |
| Accrued expenses and deferred income | 221.1 | 189.6 | 226.9 | |
| Total current liabilities | 1,399.6 | 1,583.9 | 1,215.0 | |
| Total equity and liabilities | 3,963.5 | 3,934.4 | 3,843.9 |
| SEK million | Nov 30, 2015 | Nov 30, 2014 | Aug 31, 2015 |
|---|---|---|---|
| Opening balance | 1,323.7 | 743.0 | 743.0 |
| Profit for the period | 76.9 | 31.5 | 125.0 |
| Other comprehensive income | |||
| Translation differences | -20.0 | -3.2 | -3.5 |
| Cash flow hedging changes in fair value | -1.0 | -0.3 | -1.0 |
| Tax | 0.2 | 0.1 | 0.2 |
| Total other comprehensive income | -20.8 | -3.4 | -4.3 |
| Total comprehensive income | 56.2 | 28.1 | 120.7 |
| Subscription with the support of warrants | - | - | 216.9 |
| New share issue | - | - | 243.2 |
| Total transactions with shareholders | - | - | 460.0 |
| Closing balance* | 1,379.9 | 771.1 | 1,323.7 |
*In its entirety attributable to the shareholders of the Parent Company.
November 30, 2015: 76,173,115 shares issued August 31, 2015: 76,173,115 shares issued November 30, 2014: 161,601,214 shares issued
| Q 1 | Q 1 | Full-year | ||
|---|---|---|---|---|
| SEK million | Note | 15/16 | 14/15 | 14/15 |
| Operating activities | ||||
| Cash flow from operating activities before changes in working capital | 52.7 | 39.3 | 196.7 | |
| Changes in working capital | 146.2 | -108.7 | -138.0 | |
| Cash flow from operating activities | 199.0 | -69.5 | 58.6 | |
| Investing activities | ||||
| Acquisition of tangible and intangible assets, net | 4 | -13.5 | -3.9 | -27.4 |
| Cash flow from acquisition of subsidiaries | -23.6 | -25.9 | -138.6 | |
| Cash flow from divestment of subsidiaries | 224.8 | - | - | |
| Cash flow from leasing activities, financial services | 14.9 | -3.5 | -45.2 | |
| Cash flow from investing activities | 202.7 | -33.3 | -211.2 | |
| Financing activities | ||||
| Cash flow from changes in external financing, net | -40.9 | -11.6 | -45.8 | |
| Cash flow from issues | - | - | 367.0 | |
| Cash flow from repayment of capitalised interest | - | - | -255.6 | |
| Cash flow from leasing activities, financial services | -181.4 | 11.0 | 31.9 | |
| Cash flow from financing activities | -222.3 | -0.5 | 97.6 | |
| Cash flow for the period | 179.4 | -103.3 | -55.0 | |
| Cash and cash equivalents at beginning of period | 77.8 | 133.6 | 133.6 | |
| Cash flow for the period | 179.4 | -103.3 | -55.0 | |
| Exchange-rate differences in cash and cash equivalents | -2.0 | 1.0 | -0.8 | |
| Cash and cash equivalents at the close of the period | 255.2 | 31.3 | 77.8 |
| Q 1 | Q 1 | Q 2 14/15– | Full-year | |
|---|---|---|---|---|
| SEK million | 15/16 | 14/15 | Q 1 15/16 | 14/15 |
| Net sales | ||||
| B2B | 1,980.1 | 1,914.6 | 7,392.4 | 7,326.9 |
| B2C | 143.4 | 153.0 | 597.0 | 606.6 |
| Total | 2,123.6 | 2,067.5 | 7,989.5 | 7,933.5 |
| Segment results | ||||
| B2B | 171.1 | 159.7 | 600.4 | 589.0 |
| B2B, segment margin (%) | 8.6 | 8.3 | 8.1 | 8.0 |
| B2C | 4.1 | 1.4 | 21.6 | 18.9 |
| B2C, segment margin (%) | 2.9 | 0.9 | 3.6 | 3.1 |
| Central functions | -70.4 | -64.2 | -260.7 | -254.4 |
| Costs for central functions, excluding items affecting comparability | ||||
| in relation to net sales (%) | -3.3 | -3.1 | -3.4 | -3.2 |
| Adjusted EBITA | 104.8 | 96.9 | 361.3 | 353.5 |
| Reconciliation with operating income | ||||
| Items affecting comparability | -1.6 | -10.9 | -59.4 | -68.7 |
| Amortisation and impairment of intangible assets | -14.7 | -14.7 | -58.5 | -58.4 |
| Less: Operating profit attributable to discontinued operations inclu | ||||
| ded in segment results for B2B | -1.7 | -2.6 | -7.6 | -8.5 |
| Operating profit, Group | 86.8 | 68.8 | 236.0 | 218.0 |
| Q 1 | Q 1 | Q2 14/15- | Full-year | |
|---|---|---|---|---|
| SEK million | 15/16 | 14/15 | Q 1 15/16 | 14/15 |
| Within operating profit | ||||
| Acquisition and divestment related expenses | -1.6 | - | -5.2 | -3.6 |
| Costs for integrated IT platform | - | - | -32.0 | -32.0 |
| IPO-related expenses | - | -10.9 | -22.1 | -33.0 |
| Total | -1.6 | -10.9 | -59.4 | -68.7 |
The assets and liabilities attributable to the Financial Services operation have been recognised as discontinued operations. Dustin has decided to consolidate its financial offering to the B2B market in all Nordic countries through a partnership agreement with De Lage Landen Finans AB (DLL).
| Q 1 | Q 1 | Q 2 14/15- | Full-year | |
|---|---|---|---|---|
| SEK million | 15/16 | 14/15 | Q 1 15/16 | 14/15 |
| Financial services | ||||
| Interest income | 5.6 | 4.5 | 20.7 | 19.6 |
| Interest expense | -0.4 | -1.1 | -2.9 | -3.6 |
| Net interest income | 5.2 | 3.4 | 17.8 | 16.0 |
| Selling and admin expenses | -4.8 | -0.8 | -11.5 | -7.5 |
| Operating profit, financial services | 0.3 | 2.6 | 6.2 | 8.5 |
| Capital gains from the divestment of operations | 1.3 | - | 1.3 | - |
| Income tax | -0.6 | -0.6 | -1.9 | -1.9 |
| Profit for the period from discontinued operations | 1.1 | 2.0 | 5.7 | 6.6 |
| Q 1 | Q 1 | Full-year | |
|---|---|---|---|
| SEK million | 15/16 | 14/15 | 14/15 |
| Investments | |||
| Capitalised expenditure for IT development attributable to integrated IT platform | -6.3 | -1.8 | -16.6 |
| Other investments in tangible and intangible non-current assets | -7.2 | -2.1 | -10.9 |
| Total | -13.5 | -3.9 | -27.5 |
Any differences between investments in the specification above and in the cash flow statement, relates to the sale of tangible fixed assets..
Liabilities to former shareholders were settled in conjunction with the new bank financing raised during the second quarter of 2015. Current financing is entirely external, on market terms and at floating interest rate.
Derivative instruments are designated as hedging instruments for external bank loans. The Group applies hedge accounting for derivatives pertaining to floating interest rates for external loans. The fair value is measured under level 2 according to the definition in IFRS 13. The valuation level is unchanged compared with August 31, 2015. The fair value of the derivative instrument debt amounted to SEK 14 million (12) as at November 30, 2015.
| Q 1 | Q 1 | Q 2 14/15- | Full-year | |
|---|---|---|---|---|
| SEK million | 15/16 | 14/15 | Q 1 15/16 | 14/15 |
| Net sales | 0.1 | 0.1 | 0.4 | 0.4 |
| Operating expenses | ||||
| Selling and administrative expenses | -1.4 | -4.2 | -24.0 | -26.8 |
| Other operating expenses | 0.0 | - | 0.0 | 0.0 |
| Operating loss | -1.3 | -4.1 | -23.6 | -26.4 |
| Financial income and other similar profit/loss items | 0.0 | - | 1.0 | 1.0 |
| Financial expenses and other similar profit/loss items | 8.2 | -23.9 | -29.4 | -61.5 |
| Profit/loss after financial items | 6.9 | -28.1 | -52.0 | -86.9 |
| Appropriations | - | - | 95.3 | 95.3 |
| Tax on profit for the year | -1.5 | 5.3 | -8.7 | -1.9 |
| Profit/loss for the year | 5.4 | -22.8 | 34.6 | 6.5 |
| Other comprehensive income | - | - | - | - |
| Comprehensive income/loss for the year is attributable in its entirety to | ||||
| the shareholders of the Parent Company | 5.4 | -22.8 | 34.6 | 6.5 |
| November | November | August | |
|---|---|---|---|
| SEK million | 30, 2015 | 30, 2014 | 31, 2015 |
| Non-current assets | 1,221.7 | 1,223.6 | 1,221.7 |
| Current assets | 493.3 | 158.3 | 546.2 |
| Total assets | 1,715.0 | 1,381.9 | 1,767.9 |
| Equity | 670.7 | 176.5 | 665.3 |
| Untaxed reserves | - | 7.8 | - |
| Non-current liabilities | 1,040.0 | 1,111.1 | 1,056.9 |
| Current liabilities | - | 82.6 | 40.9 |
| Other current liabilities | 4.3 | 4.5 | 4.8 |
| Total equity and liabilities | 1,715.0 | 1,381.9 | 1,767.9 |
| Q 1 15/16 |
Q 1 14/15 |
Q 2 14/15– Q 1 15/16 |
Full-year 14/15 |
|
|---|---|---|---|---|
| Segment | ||||
| Net sales, B2B (SEK million) | 1,980.1 | 1,914.6 | 7,392.4 | 7,326.9 |
| Net sales, B2C (SEK million) | 143.4 | 153.0 | 597.0 | 606.6 |
| Total net sales | 2,123.6 | 2,067.5 | 7,989.5 | 7,933.5 |
| B2B, Segment results (SEK million) | 171.1 | 159.7 | 600.4 | 589.0 |
| B2B, segment margin (%) | 8.6 | 8.3 | 8.1 | 8.0 |
| B2C, Segment results (SEK million) | 4.1 | 1.4 | 21.6 | 18.9 |
| B2C, segment margin (%) | 2.9 | 0.9 | 3.6 | 3.1 |
| Central functions (SEK million) | -70.4 | -64.2 | -260.7 | -254.4 |
| Costs for central functions, excluding items affecting comparability in | ||||
| relation to net sales (%) | -3.3 | -3.1 | -3.4 | -3.2 |
| Adjusted EBITA | 104.8 | 96.9 | 361.3 | 353.5 |
| Financial | ||||
| Organic sales growth (%) | 2.5 | 12.0 | - | 5.7 |
| Gross margin (%) | 14.8 | 14.2 | 14.2 | 14.1 |
| Adjusted EBITDA (SEK million) | 107.7 | 99.6 | 372.1 | 364.1 |
| Adjusted EBITA (SEK million) | 104.8 | 96.9 | 361.3 | 353.5 |
| Adjusted EBITA margin (%) | 4.9 | 4.7 | 4.5 | 4.5 |
| Net working capital (SEK million) | 45.4 | 129.0 | 45.4 | 158.3 |
| Capital employed (SEK million) | 184.3 | 262.6 | 184.3 | 293.2 |
| Net debt (SEK million) | 847.7 | 1,230.7 | 847.7 | 1,003.4 |
| Net debt/adjusted EBITDA (multiple) | - | - | 2.3 | 2.8 |
| Operating cash flow (SEK million) | 251.9 | -11.2 | 480.2 | 217.2 |
| Return on equity (%) | - | - | 12.3 | 9.4 |
| Equity/assets ratio (%) | - | - | 34.8 | 34.4 |
| The share* | ||||
| Earnings per share, before and after dilution, (SEK) | 1.01 | 0.48 | 2.30 | 1.75 |
| Equity per share (SEK) | 18.12 | 11.67 | 18.12 | 18.50 |
| Equity per share after dilution (SEK) | 18.12 | 11.67 | 18.12 | 18.50 |
| Cash flow from operating activities per share before dilution (SEK) | 2.61 | -1.05 | 4.42 | 0.82 |
| Cash flow from operating activities per share after dilution (SEK) | 2.61 | -1.05 | 4.42 | 0.82 |
| Average number of shares | 76,173,115 | 66,095,090 | 76,173,115 | 71,545,731 |
| Average number of shares after dilution | 76,173,115 | 66,095,090 | 76,173,115 | 71,552,025 |
*In order to obtain comparability between the periods, the average number of shares has been recalculated based on historic figures.
| Q 1 15/16 |
Q 4 14/15 |
Q 3 14/15 |
Q 2 14/15 |
Q 1 14/15 |
Q 4 13/14 |
Q 3 13/14 |
Q 2 13/14 |
Q 1 13/14 |
|
|---|---|---|---|---|---|---|---|---|---|
| Net sales (SEK million) | 2,123.6 | 1,758.7 | 1,918.8 | 2,188.4 | 2,067.5 | 1,637.3 | 1,902.5 | 2,007.2 | 1,823.9 |
| Organic sales growth (%) | 2.5 | 5.6 | -1.1 | 7.0 | 12.0 | 16.3 | 25.2 | 15.4 | 23.0 |
| Gross margin (%) | 14.8 | 14.2 | 14.2 | 13.8 | 14.2 | 14.6 | 13.6 | 14.6 | 14.7 |
| Adjusted EBITA (SEK million) | 104.8 | 67.3 | 81.8 | 107.5 | 96.9 | 70.3 | 79.7 | 106.5 | 97.0 |
| Adjusted EBITA margin (%) | 4.9 | 3.8 | 4.3 | 4.9 | 4.7 | 4.3 | 4.2 | 5.3 | 5.3 |
| B2B segment | |||||||||
| Net sales (SEK million) | 1,980.1 | 1,620.5 | 1,779.4 | 2,012.4 | 1,914.6 | 1,457.3 | 1,728.4 | 1,784.1 | 1,648.0 |
| Segment results (SEK million) | 171.1 | 117.5 | 141.6 | 170.2 | 159.7 | 116.3 | 135.6 | 155.0 | 146.6 |
| Segment margin (%) | 8.6 | 7.3 | 8.0 | 8.5 | 8.3 | 8.0 | 7.8 | 8.7 | 8.9 |
| B2C segment | |||||||||
| Net sales (SEK million) | 143.4 | 138.2 | 139.4 | 176.0 | 153.0 | 180.0 | 174.0 | 223.1 | 175.9 |
| Segment results (SEK million) | 4.1 | 4.8 | 6.2 | 6.5 | 1.4 | 8.4 | 9.6 | 12.5 | 7.7 |
| Segment margin (%) | 2.9 | 3.4 | 4.5 | 3.7 | 0.9 | 4.7 | 5.5 | 5.6 | 4.4 |
| Central functions | |||||||||
| Central functions (SEK million) | -70.4 | -55.0 | -66.0 | -69.2 | -64.2 | -54.1 | -65.5 | -61.1 | -57.2 |
Return on equity: Net profit for the
year as a percentage of equity at the close of the period.
B2B: Pertains to all sales to companies and organisations.
B2C: Pertains to all sales to consumers.
Gross margin: Gross profit as a percentage of net sales.
Central functions: Includes all nonallocated central expenses, including depreciation/amortisation.
Equity per share: Equity at the close of the period as a percentage of the number of shares at the close of the period.
Adjusted EBITA: EBIT according to the income statement and operating profit for Financial Services, which are recognised under discontinued operations, before items affecting comparability, and amortisation and impairment of intangible assets.
Adjusted EBITDA: Operating profit before depreciation/amortisation and impairment and items affecting comparability.
Cash flow from operating activities: Cash flow from operating activities, after changes in working capital.
Cash flow from operating activities per share: Cash flow from operating activities as a percentage of the average number of shares outstanding.
Cash generating: Operating cash flow as a percentage of adjusted EBITDA.
Net working capital: Total current assets less cash and cash equivalents, current financial lease assets and current non-interest-bearing liabilities.
Net debt: Non-current and current interest-bearing bank liabilities, acquisition-related liabilities less cash and cash equivalents and receivables from financial leasing.
Organic growth: Change in net sales for comparable units adjusted for currency effects.
Operating cash flow: Adjusted EBIT-DA less maintenance investments and cash flow from changes in working capital.
Earnings per share: Net profit in SEK as a percentage of the average number of shares.
Equity/assets ratio: Equity at the close of the period as a percentage of total assets at the close of the period.
Segment results: The segment's operating profit excluding amortisation/depreciation and items affecting comparability.
Capital employed: Working capital plus total non-current assets, excluding goodwill and other surplus values and receivables pertaining to financial leasing (interest-bearing).
January 19, 2016 2014/2015 Annual General Meeting
Interim report for the period December 1, 2015 - February 29, 2016, Q2
Interim report for the period March 1, 2016 - May 31, 2016, Q3
Year-end report for the period September 1, 2015 - August 31, 2016
Dustin is one of the leading Nordic resellers of IT products with associated services to companies, the public sector and private individuals. With its core business in ecommerce, Dustin functions as a bridge between the manufacturer's wide-ranging offerings and customer requirements in which Dustin's employees support customers in finding the appropriate solution for them. Dustin is a one-stop-shop that offering some 200,000 products with associated services, functions and solutions. Operations are conducted in Sweden, Denmark, Norway and Finland. The Group has approximately 900 employees. Sales during the 2014/15 financial year amounted to approximately SEK 7.9 billion. About 90 per cent of Dustin's income derives from the corporate market with a focus on SMBs. Dustin Group has been listed on Nasdaq Stockholm since 2015 and has its head office in Nacka in Stockholm.
Johan Karlsson, CFO [email protected] +46 (0)708 67 79 97
Niklas Alm, IR Manager [email protected] +46 (0)708 24 40 88
Fredrik Sätterström, IR [email protected] +46 (0)705 10 10 22
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