18.7.2024 09:30:00 EEST | Wulff-Yhtiöt Oyj | Half Year financial report
HALF-YEAR FINANCIAL REPORT | JULY 18, 2024 AT 9.30 A.M.
This is a summary of Wulff Group Plc's Half-Year Financial Report January-June 2024. The complete report is attached to this stock exchange release as a pdf-file. The report is also available at the website www.wulff.fi
APRIL-JUNE 2024 BRIEFLY
- Net sales totalled EUR 25.5 million (24.4), increasing by 4.6%
- EBITDA was EUR 1.7 million (1.3), and comparable EBITDA was EUR 1.7 million (1.3)
- Operating profit (EBIT) was EUR 1.2 million (0.8), and comparable operating profit (EBIT) was EUR 1.2 million (0.8)
- Earnings per share (EPS) was EUR 0.15 (0.09) and comparable earnings per share (EPS) was EUR 0.15 (0.09)
- The equity ratio was 39.4% (42.1)
JANUARY-JUNE 2024 BRIEFLY
- Net sales totalled EUR 48.8 million (49.6), decreasing by 1.7%
- EBITDA was EUR 2.6 million (2.7), and comparable EBITDA was EUR 2.8 million (2.7)
- Operating profit (EBIT) was EUR 1.6 million (1.7), and comparable operating profit (EBIT) was EUR 1.7 million (1.7)
- Earnings per share (EPS) was EUR 0.18 (0.17) and comparable earnings per share (EPS) was EUR 0.20 (0.17)
FINANCIAL GUIDANCE 2024 (UNCHANGED)
Wulff estimates that net sales will increase, and that the comparable operating profit will remain at a good level in 2024.
The guidance is based on management's assessment of the market and business situation in Finland and Scandinavia. In particular, service businesses are expected to grow from 2023. Key uncertainties affecting the outlook are the development of inflation and interest rates as well as geopolitical crises and tensions.
KEY FIGURES
EUR 1 000 | Q2 2024 | Q2 2023 | Q1-Q2 2024 | Q1-Q2 2023 | Q1-Q4 2023 |
Net sales | 25 474 | 24 365 | 48 753 | 49 617 | 93 782 |
Change in net sales, % | 4.6% | -2.0% | -1.7% | -1.7% | -8.2% |
EBITDA | 1 733 | 1 308 | 2 622 | 2 725 | 5 110 |
EBITDA margin, % | 6.8% | 5.4% | 5.4% | 5.5% | 5.4% |
Comparable EBITDA | 1 718 | 1 308 | 2 783 | 2 725 | 5 470 |
Comparable EBITDA margin, % | 6.7% | 5.4% | 5.7% | 5.5% | 5.8% |
Operating profit/loss | 1 171 | 832 | 1 561 | 1 741 | 3 170 |
Operating profit/loss margin, % | 4.6% | 3.4% | 3.2% | 3.5% | 3.4% |
Comparable operating profit/loss | 1 155 | 832 | 1 722 | 1 741 | 3 530 |
Comparable operating profit/loss margin, % | 4.5% | 3.4% | 3.5% | 3.5% | 3.8% |
Comparable profit/loss before taxes | 1 041 | 541 | 1 292 | 1 218 | 2 492 |
Comparable profit/loss before taxes margin, % | 4.1% | 2.2% | 2.7% | 2.5% | 2.7% |
Net profit/loss for the period attributable to equity holders of the parent company | 1 024 | 598 | 1 225 | 1 159 | 2 087 |
Net profit/loss for the period, % | 4.0% | 2.5% | 2.5% | 2.3% | 2.2% |
Comparable net profit/loss for the period attributable to equity | 1 008 | 598 | 1 385 | 1 159 | 2 446 |
Comparable net profit/loss for the period, % | 4.0% | 2.5% | 2.8% | 2.3% | 2.6% |
Earnings per share, EUR (diluted = non-diluted) | 0.15 | 0.09 | 0.18 | 0.17 | 0.31 |
Comparable earnings per share, EUR (diluted = non-diluted) | 0.15 | 0.09 | 0.20 | 0.17 | 0.36 |
Cash flow from operating activities | -463 | 1 728 | -1 202 | 323 | 4 560 |
Return on equity (ROE), % | 4.3% | 2.8% | 4.6% | 5.5% | 9.9% |
Return on investment (ROI), % | 3.7% | 2.3% | 4.6% | 4.7% | 9.0% |
Equity-to-assets ratio at the end of period, % | 39.4% | 42.1% | 39.4% | 42.1% | 45.5% |
Debt-to-equity ratio at the end of period | 80.5% | 65.6% | 80.5% | 65.6% | 52.5% |
Investments in non-current assets | 391 | 271 | 885 | 723 | 1 649 |
Personnel on average during the period | 272 | 269 | 267 | 273 | 262 |
WULFF GROUP PLC'S CEO ELINA RAHKONEN
I am delighted with the increase in net sales in the second quarter and the improvement in profitability. The Worklife Services Segment's net sales for April-June and the first half of the year increased significantly and met our expectations in terms of staff leasing as well as financial management services. The background of the positive development of the service business's profitability is especially the success of the start-up of the new staffing business. The profitability of financial administration services is at a good level and the development is stable.
The profitability of the Products for Work Environments Segment also improved in the second quarter thanks to the organizational reforms implemented earlier in Finland. During the spring, we introduced a unified contract sales online store, enabling our customers to have an even wider product selection. We continue to improve operational efficiency in our logistics chain.
After the expected January-June, we have a good starting point to continue focusing on our priorities of improving profitability and growing the service business.
We have a good business strategy, the core of which is the continuous improvement of the customer experience, the development of digital services, responsibility, and acquisitions. We implement our strategy purposefully, we have grown our accounting and financial management services since the beginning of the year with two acquisitions. Along with responsible products, I believe that especially the share of services in Wulff's net sales will grow significantly in the future.
We are committed to our guidance, and we expect our net sales to grow and the comparable operating profit to remain at a good level. The changes implemented at the beginning of the year to combine functions and systems enable more cost-effective work than before, as well as investing in sales and responsibility, which is important for Wulff.
GROUP'S NET SALES AND RESULT PERFORMANCE
In April-June 2024 net sales increased by 4.6% (-2.0) from the previous year and totalled EUR 25.5 million (24.4). In January-June 2024 net sales decreased by 1.7% (1.7) and totalled EUR 48.8 million (49.6).
Worklife Services Segment's net sales increased by 150.1% in April-June and 97.8% in January-June especially due to the new staff leasing business' strong start to the year and the growth of Wulff's accounting and financial management services business. The acquisitions of accounting companies implemented in February and June increased the net sales in January-June by EUR 0.7 million.
Products for Work Environments Segment's net sales decreased by 5.0% in April-June and by 7.5% in January-June, excluding the Scandinavian Expertise Sales sold in autumn 2023 from the comparison. Net sales decreased both in Finland and in Scandinavia.
The gross margin amounted to EUR 7.9 million (7.5) being 31.1% (30.8) of net sales in April-June 2024 and EUR 15.0 million (15.2) being 30.8% (30.7) of net sales in Januray-June 2024. There were no disturbances in the availability of products during the reporting period.
In April-June 2024 employee benefit expenses amounted to EUR 4.4 million (4.5) being 17.2% (18.3) of net sales. In January-June 2024 employee benefit expenses amounted to EUR 8.7 million (9.0) being 17.8% (18.2) of net sales. The decrease in personnel costs during the reporting period is related to the organizational reforms implemented both in early spring and earlier. Wulff's change negotiations during the reporting period resulted in a one-time expense of EUR 0.2 million, which has been removed from the comparable result.
Other operating expenses amounted to EUR 1.9 million (1.8) in the second quarter of 2024 being 7.3% (7.4) of net sales. In January-June other operating expenses amounted to EUR 3.8 million (3.6) being 7.7% (7.2) of net sales. The change in other operating expenses in relation to net sales comes from the growth in the Worklife Services Segment.
In April-June 2024 EBITDA amounted EUR 1.7 million (1.3), or 6.8% (5.4) of net sales and comparable EBITDA amounted to EUR 1.7 million (1.3), or 6.7% (5.4) of net sales. In January-June EBITDA amounted EUR 2.6 million (2.7), or 5.4% (5.5) of net sales and comparable EBITDA amounted to EUR 2.8 million (2.7), or 5.7% (5.5) of net sales.
Operating profit (EBIT) amounted to EUR 1.2 million (0.8), or 4.6% (3.4) of net sales in April-June 2024 and comparable operating profit amounted to EUR 1.2 million (0.8), or 4.5% (3.4) of net sales. Operating profit (EBIT) amounted to EUR 1.6 milllion (1.7), or 3.2% (3.5) of net sales in January-June 2024 and comparable operating profit amounted to EUR 1.7 milllion (1.7), or 3.5% (3.5) of net sales.
In the second quarter financial income and expenses totalled (net) EUR -0.1 million (-0.3). In January-June 2024, the financial income and expenses totalled (net) EUR -0.4 million (-0.5), including interest expenses of EUR -0.5 million (-0.4), and mainly currency-related other financial items (net) totalled EUR 0.1 million (-0.1).
In April-June 2024 the result before taxes was EUR 1.1 million (0.5), and the comparable result before taxes was EUR 1.0 million (0.5). In January-June 2024 the result before taxes was EUR 1.1 million (1.2), and the comparable result before taxes was EUR 1.3 million (1.2).
In the second quarter of 2024 net profit attributable to equity holders of the parent company was EUR 1.0 million (0.6) and comparable net profit was EUR 1.0 million (0.6). The net profit attributable to equity holders of the parent company was EUR 1.2 million (1.2) and comparable net profit was EUR 1.4 million (1.2) in January-June.
Earnings per share (EPS) were EUR 0.15 (0.09) and comparable earnings per share (EPS) were 0.15 (0.09) in the second quarter of 2024. Earnings per share (EPS) were EUR 0.18 (0.17) and comparable earnings per share (EPS) were 0.20 (0.17) in January-June 2024.
SUBSEQUENT EVENTS
The Group has not had any significant subsequent events.
WULFF GROUP PLC'S FINANCIAL REPORTING
Wulff Group Plc will release the following financial reports in 2024:
Interim Report January-September 2024 Monday October 21, 2024
In Espoo on July 18, 2024
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Elina Rahkonen
tel. +358 40 647 1444
e-mail: elina.rahkonen@wulff.fi
DISTRIBUTION
Nasdaq Helsinki Oy
Key media
www.wulff.fi/en
A better world - one workplace at a time. A perfect working day with worklife services and products for work environment - responsibly with Wulff. Here you can find today's workplace products: e.g. cafe supplies, real estate and cleaning maintenance products, office and IT supplies, ergonomics, first aid, hygiene, protection and safety products, air purification, and innovative products for construction sites. Our selection also includes high-quality Canon printing and document management services as well as financial management services. Our customers also purchase international exhibition services and solutions for remote meetings from us. It is important for us to constantly develop our product range to be more and more sustainable and our customer experience to be the best in the field. Staff leasing is one of our newest service additions. In addition to Finland, Wulff Group operates in Sweden, Norway, and Denmark.
