Interim Report 3 months – 1 January-31 March 2022
FIRST QUARTER (1 JAN-31 MAR 2022)
- Net sales increased by 16 percent to SEK 1,773 million (1,523), of which currency-adjusted sales rose by 12 percent.
- Operating profit before depreciation and amortisation (EBITDA) excluding non-recurring items of SEK -11 million (-14) amounted to SEK 175 million (179). 1)
- Operating profit amounted to SEK 92 million (102) and the operating margin was 5.2 percent (6.7). Operating profit was charged with non-recurring items of SEK -21 million (-14). 1)
- Profit after financial items totalled SEK 87 million (69).
- Profit after tax amounted to SEK 61 million (50).
- Earnings per share totalled SEK 0.25 (0.38). 2)
- Cash flow from operating activities amounted to SEK -59 million (102).
- The equity/assets ratio at the end of the quarter was 46 percent (43).
- Net debt excluding lease liabilities amounted to SEK 718 million (222).
1) Non-recurring items mainly consist of costs relating to transformation work under ITAB’s One ITAB strategy.
2) In connection with ITAB’s recapitalisation in 2021, the number of shares increased by 115,716,762 to a total of 218,100,192 shares.
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
- The acquisition of Checkmark, one of the leading suppliers of retail technology solutions such as checkouts in the Nordic region, further strengthens ITAB’s market position.
- Due to the invasion of Ukraine, a decision was made to discontinue ITAB’s current operations in Russia. These operations correspond to approximately 2.5 percent of the Group’s annual sales.
- In connection with the annual financial statements for 2021, the Board adopted new financial targets focused on sustainable growth, increased profitability, and capital efficiency.
President’s comments –
RESULTS IN LINE WITH THE PREVIOUS YEAR IN A CHALLENGING ENVIRONMENT
We noted healthy demand and results in line with the previous year for the first quarter of 2022, despite challenges in the operating environment that have led to shortages of critical components and rising prices for input goods. During the quarter, we further strengthened our market position in retail technology solutions such as checkouts with the acquisition of Checkmark in Finland. Due to the Russian regime’s invasion of Ukraine, we decided at the beginning of March to discontinue the Group’s current operations in Russia.
Demand was healthy during the first quarter and the Group reported organic growth of approximately 11 percent. This was a result of price increases and healthy underlying demand in several of our geographic markets and customer groups. Profit was impacted positively by the increase in sales while supply disruptions combined with high inflation had a negative impact on the gross margin. Comprehensive lockdowns in China due to the COVID-19 pandemic lead to problems with the supply of goods and impacted earnings negatively. Over the past few quarters, we have continuously adjusted our prices and taken other cost-saving measures in the operations to offset the negative effects on profit. At present, the cost increases are very rapid and less predictable than previously, and we continue to adjust our prices accordingly but are still not in balance with this. Adjusted for non-recurring items, profit after financial items increased by 30 percent, concludes President & CEO Andréas Elgaard.
For the full President’s comments, refer to the interim report.
Jönköping, 10 May 2022
ITAB Shop Concept AB (publ)
Conference call on 10 May 2022 at 10:30 a.m. CEST
ITAB arranges a conference call today, 10 May 2022 at 10:30 a.m. CEST, in which Andréas Elgaard, President & CEO, and Ulrika Bergmo Sköld, CFO, present the interim report for the first quarter of 2022 and answer any subsequent questions. Weblink and telephone numbers are available at https://financialhearings.com/event/43989.
The information in this report is such that ITAB Shop Concept AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU No. 596/2014). The information was submitted for publication, through the agency of the contact persons set out below, at 7:00 a.m. CEST on 10 May 2022.
This report is in all respects a translation of the Swedish original interim report. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.
Telephone: +46-732 32 16 35
Mats Karlqvist, Head of Investor Relations
Telephone: +46-70 660 31 32
ITAB Shop Concept AB (publ), Box 9054, SE-550 09 Jönköping, Sweden
AT ITAB we help customers turn consumer brand experience into physical reality with our know-how, solutions, and ecosystem of partners. We co-create with our customers, efficient retail solutions that deliver convenient and inspiring consumer experiences. The offer includes consultative design services, custom-made interiors, checkout systems, consumer guidance solutions, professional lighting systems and interactive digital solutions for the physical store. ITAB has annual sales of approximately SEK 6.5 billion and approximately 2,900 employees. ITAB’s share is listed on Nasdaq Stockholm.