2010 06-23 q3 2009/2010 results
TRANSCRIPT
Håkan Westin, CFO
Christian W. Jansson CEO
Agenda
• Q3 2009/2010
• Q1-Q3 2009/2010
• Market situation
• Conclusions
• Questions
Highlights• Strong start in Q3
• Cold spring
• Strong gross margin
• Stable profit despite weak sales
Stores May 2010• 344 stores
• 25 new stores so far this year
• 49 new stores under contract
95
153 56
39
Prague
Warsaw
Stockholm
HelsinkiOslo
1
Financial highlights, Q3March - May 2010
• Net sales MSEK 1 221 (1 206), an increase of 1,2 percent
• Operating profit MSEK 112 (109), an increase of 2,8 percent
• Gross margin 64,6 (60,4) percent and operating margin 9,2 (9,0) percent
Income statement, Q3March - May 2010
6265Net profit-24-23Tax expense8688Profit before tax
-23-24Financial expense00Financial income
109112Operating profit-32-38Administrative expenses
-587-639Selling expenses728789Gross profit
-478-432Cost of goods sold1 2061 221Net Sales
2008/092009/10MSEK
Sales, Q3March - May 2010
1,21 221Net sales Q3 2009/10
-2,3Currency effect
-1,8Like For Like
5,3New stores net
1 206Net sales Q3 2008/09%MSEK
Financial highlights, Q1-Q3Sept 2009 - May 2010
• Net sales MSEK 3 821 (3 640), an increase of 5,0 percent
• Operating profit MSEK 395 (350), anincrease of 12,8 percent
• Gross margin 62,5 (61,0) percent and operating margin 10,3 (9,6) percent
Income statement, Q1-Q3Sept 2009 - May 2010
209277Net profit-81-54Tax expense290331Profit before tax-61-65Financial expense
11Financial income350395Operating profit
-104-109Administrative expenses-1 766-1 884Selling expenses2 2202 388Gross profit
-1 420-1 433Cost of goods sold3 6403 821Net Sales
2008/092009/10MSEK
Cash flow, Q1-Q3Sept 2009 - May 2010
124-59Change bank overdraft facility
-18-5Cash flow for the period
-338-94Dividend / Redemption of shares
196148Cash flow after investments-208-137Cash flow from investment activities
404285Cash flow from continuingoperations
8-97Changes in working capital
396382Cash flow from continuingoperations before changes in working capital
2008/092009/10MSEK
Sales, Q1-Q3Sept 2009 - May 2010
5,03 821Net sales Q1-Q3 2009/10
-0,2Currency effect
-0,9Like For Like
6,1New stores net
3 640Net sales Q1-Q3 2008/09%MSEK
Sales breakdown, Q1-Q3Sept 2009 - May 2010
Localcurrency
Changein SEK2008/092009/10MSEK
23,7%18,8%207246Poland
5,0%3 6403 821Total---5Czech Republic
5,4%0,8%487491Finland
3,7%6,0%9941 054Norway
3,7%3,7%1 9522 025 Sweden
Present market situation
• General economy is improving
• Future development of the economy is uncertain
• Still high level of unemployment
• Increasing sourcing costs is a concern
• Private consumption should continue well
Five year summary – Sales growth
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
04/05 05/06 06/07 07/08 08/09 09/10 LTM
Five year summary – Gross margin
56,0%
57,0%
58,0%
59,0%
60,0%
61,0%
62,0%
63,0%
04/05 05/06 06/07 07/08 08/09 09/10 LTM
Five year summary – Operating marginexcl. one-offs
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
04/05 05/06 06/07 07/08 08/09 09/10 LTM
Five year summary –Return on capital/employed
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
04/05 05/06 06/07 07/08 08/09 09/10 LTM
Our road ahead
• Maintain strong gross margin
• Continued expansion of stores
• More focus on increased sales in existing stores
• Establish KappAhl on furthermarkets
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