Interim Report – 3 months 1 April-30 June 2019

• Revenue increased by 2 percent to MSEK 1,576 (1,543).
• EBITA increased to MSEK 75 (74), corresponding to an EBITA margin of 4.8 percent (4.8).
• Operating profit amounted to MSEK 70 (70), corresponding to an operating margin of 4.4 percent (4.5).
• Profit after financial items totalled MSEK 66 (69).
• Net profit amounted to MSEK 51 (54).
• Earnings per share for the most recent 12-month period totalled SEK 8.10, compared with SEK 8.20 for the 2018/19 financial year.
• Cash flow from operating activities for the most recent 12-month period amounted to MSEK 280.
• The return on equity for the most recent 12-month period was 18 percent (18) and the return on working capital (P/WC) was 25 percent (25).
• The operational net loan liability amounted to MSEK 314 (324) and the equity/assets ratio was 38 percent at the end of the reporting period.
• Momentum Industrial’s acquisition of 70 percent of the shares in ETAB Industri­automation AB in early May 2019 strengthens Momentum Industrial’s position as a leading supplier of solutions in the areas of pneumatics and hydraulics to Swedish industry.
• Momentum Group acquired 70 percent of the shares in Company Line Förvaltning AB in late June 2019. Company Line is one of the largest resellers of workwear and profile clothing in northern Sweden, with professional stores in Luleå and Kiruna. Company Line generates annual revenue of approximately MSEK 75 and has 25 employees.
• Momentum Group’s 2019 Annual General Meeting will be held on 29 August 2019. The notice for the Annual General Meeting will be published on 22 July 2019, including a proposed agenda and the motions presented by the Election Committee and the Board of Directors for resolution.

PRESIDENT’S STATEMENT

A stable beginning to 2019/20
The first three months of the 2019/20 financial year was marked by continued stable sales trends for most of our businesses. However, the Group’s revenue was affected by the fact that Easter fell in April this year, which entailed two fewer trading days (compared with the preceding year). Adjusted for fewer trading days and not including our acquired units, revenue for the Momentum Group was in total essentially unchanged in local currency.

EBITA for the quarter was positively affected by stronger contribution ratios, primarily within TOOLS Sweden and Momentum Industrial. The transformation work in TOOLS Sweden for increased profitability with improved sales promotion and changes in purchases, for example, had a positive effect on profits. The restructuring of the logistics function in Norway continues and is planned to be fully implemented by the end of the calendar year. At the same time, this work incurred extra costs of approximately MSEK 6 in Norway during the quarter. The acquisition of the assets and liabilities of Lindström Group’s personal protective equipment (PPE) business during the spring presents new business opportunities for TOOLS Finland. Momentum Industrial reported continued positive sales and profit trends within all of its product and service areas.

Acquisitions create opportunities for the future
In early May, 70 percent of the shares in ETAB Industriautomation AB were acquired, which strengthens Momentum Industrial’s position as a leading supplier of solutions in the areas of pneumatics and hydrau­lics to Swedish industry. In addition, 70 percent of the shares in Company Line, one of the largest resellers of workwear and profile clothing in northern Sweden, were acquired in late June. Acquisitions of niche companies such as these and Lindström Group’s PPE business in Finland strengthen both our offering and the Group’s profitability, and we are continuously evaluating additional acquisition opportunities.

Important going forward
We continue to prioritise our proximity to customers and sales, which resulted in the extension of existing customer agreements and new agreements entered into in all of our primary markets during the quarter. As part of our decentralised profit responsibility, we will continue to implement measures pertaining to contribution ratios, costs and inventories wherever necessary to ensure earnings growth for the financial year.

Stockholm, July 2019

Ulf Lilius
President & CEO

Contact information
Ulf Lilius, President & CEO, Tel: +46 10 454 54 70
Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32

The information in this report is such that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8:00 a.m. CET on 17 July 2019.
   This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

Momentum Group is a leading reseller of industrial consumables and components, service and maintenance to professional end users in the industrial and construction sectors in the Nordic region. The Group has annual revenue of approximately SEK 6 billion and some 1,700 employees. Momentum Group AB (publ) has been listed on Nasdaq Stockholm since June 2017. Read more at www.momentum.group.