Verkkokauppa.com Oyj - Interim report (unaudited) 5 August 2016, 8:00 a.m.
1 April - 30 June 2016 in brief
- Revenue 80.1 million euros (4-6/2015 80.0), growth of 0%
- Gross profit 12.3 million euros (11.4), growth of 8%
- Gross margin 15.3% of revenue (14.3%)
- Operating profit 1.0 million euros (1.5)
- Operating margin 1.3% of revenue (1.8%)
- Net profit 0.8 million euros (1.2)
- Earnings per share 0.02 euros (0.03)
| KEY RATIOS | 4-6/2016 | 4-6/2015 | Change% | 1-6/2016 | 1-6/2015 | Change% | 1-12/2015 | |
| Revenue, € thousands | 80,073 | 80,009 | 0% | 163,570 | 152,865 | 7% | 343,682 | |
| Gross profit, € thousands | 12,286 | 11,428 | 8% | 25,348 | 23,175 | 9% | 51,783 | |
| Gross margin, % of revenue | 15.3% | 14.3% | 15.5% | 15.2% | 15.1% | |||
| Comparable EBITDA, € thousands | 1,314 | 1,749 | -25% | 3,992 | 3,894 | 3% | 12,258 | |
| Comparable EBITDA, % | 1.6% | 2.2% | 2.4% | 2.5% | 3.6% | |||
| Comparable operating profit, € thousands | 1,006 | 1,454 | -31% | 3,377 | 3,336 | 1% | 11,087 | |
| Comparable operating margin, % of revenue | 1.3% | 1.8% | 2.1% | 2.2% | 3.2% | |||
| Net profit, € thousands | 810 | 1,215 | -33% | 2,237 | -1,188 | 288% | 5,354 | |
| Comparable net profit, € thousands | 810 | 1,482 | -45% | 2,716 | 2,717 | 8,814 | ||
1 January - 30 June 2016 in brief
- Revenue 164 million euros (1-6/2015: 153), growth of 7%
- Gross profit 25.3 million euros (23.2), growth of 9%
- Gross margin 15.5% of revenue (15.2%)
- Operating profit 2.8 million euros (-0.1)
- Comparable operating profit 3.4 million euros (3.3)
- Operating margin 1.7% of revenue (0.0%)
- Comparable operating margin 2.1% of revenue (2.2%)
- Net profit (loss) 2.2 million euros (-1.2)
- Comparable net profit 2.7 million euros (2.7)
- Earnings per share 0.05 euros (-0.03)
- Comparable earnings per share 0.06 euros (0.06)
BUSINESS OUTLOOK
Verkkokauppa.com Oyj's business operations are estimated to develop positively within a medium term time frame. The management believes that the company will succeed in further growing its market share in its chosen segments. The strong balance sheet enables the company to continue expanding its operations in accordance with its strategy. Nevertheless, the business outlook includes uncertainties, especially due to macroeconomic developments. The Finnish Ministry of Finance estimated on 22 June 2016 that the Finnish GDP will grow by 1.4% during 2016.
FINANCIAL GUIDANCE
In 2016 the company revenue and comparable operating profit are expected to exceed the level of 2015.
CEO SAMULI SEPPÄLÄ'S REVIEW
Verkkokauppa.com had a challenging quarter with flat sales due to reduced volumes in the volatile and low margin export and wholesale businesses. However, according to GfK's latest market data, the company continued to increase its B-to-C and B-to-B market share in most categories. The relaunch of a major competitor lead to increased price competition and had a pressure on the gross margin. Recent changes in the Finnish department store segment will most likely benefit the company in the long term.
The number of consumers using Apuraha-financing has increased and the company will continue to support as many customers as possible through consumer credit with an acceptable risk level. Development and deployment of an operational service warehouse located in Vantaa continues in preparation for the potential closing of the Bunkkeri-warehouse located in Jätkäsaari and to support the busy Q3-Q4 season.
Investing in new categories will carry on while retail continues going online. Verkkokauppa.com's revenue will continue to grow during 2016 and in the medium term, even though the general situation and demand in the retail business remains weak in Finland.
| KEY RATIOS AND PERFORMANCE INDICATORS | 4-6/2016 | 4-6/2015 | 1-6/2016 | 1-6/2015 | 1-12/2015 | |
| Revenue, € thousands | 80,073 | 80,009 | 163,570 | 152,865 | 343,682 | |
| Gross profit, € thousands | 12,286 | 11,428 | 25,348 | 23,175 | 51,783 | |
| Gross margin, % of revenue | 15.3% | 14.3% | 15.5% | 15.2% | 15.1% | |
| EBITDA, € thousands | 1,314 | 1,749 | 3,393 | 482 | 8,846 | |
| EBITDA, % | 1.6% | 2.2% | 2.1% | 0.3% | 2.6% | |
| Comparable EBITDA, € thousands | 1,314 | 1,749 | 3,992 | 3,894 | 12,258 | |
| Comparable EBITDA, % | 1.6% | 2.2% | 2.4% | 2.5% | 3.6% | |
| Operating profit, € thousands | 1,006 | 1,454 | 2,778 | -76 | 7,676 | |
| Operating margin, % of revenue | 1.3% | 1.8% | 1.7% | 0.0% | 2.2% | |
| Comparable operating profit, € thousands | 1,006 | 1,454 | 3,377 | 3,336 | 11,087 | |
| Comparable operating margin, % of revenue | 1.3% | 1.8% | 2.1% | 2.2% | 3.2% | |
| Net profit, € thousands | 810 | 1,215 | 2,237 | -1,188 | 5,354 | |
| Comparable net profit, € thousands | 810 | 1,482 | 2,716 | 2,717 | 8,814 | |
| Equity ratio, % | 44.2% | 44.6% | 44.2% | 44.6% | 45.2% | |
| Return on investment, % rolling 12 months | 34.1% | 13.9% | 34.1% | 13.9% | 20.9% | |
| Net gearing, % | -66.1% | -62.4% | -66.1% | -62.4% | -86.5% | |
| Earnings per share (EPS) revised by share split, € | 0.02 | 0.03 | 0.05 | -0.03 | 0.12 | |
| Comparable earnings per share (EPS) revised by share split, € | 0.02 | 0.04 | 0.06 | 0.06 | 0.20 | |
| Earnings per share (EPS) revised by share split (diluted), € | 0.02 | 0.03 | 0.05 | -0.03 | 0.12 | |
| Comparable earnings per share (EPS) revised by share split (diluted), € | 0.02 | 0.04 | 0.06 | 0.06 | 0.20 | |
| Number of shares at end of period | 45,065,130 | 45,065,130 | 45,065,130 | 7,510,855 | 45,065,130 | |
| Average number of shares at end of period revised by share split | 45,065,130 | 45,065,130 | 45,065,130 | 45,065,130 | 45,065,130 | |
| Number of shares at end of period revised by share split | 45,065,130 | 45,065,130 | 45,065,130 | 45,065,130 | 45,065,130 | |
| Number of personnel* at end of period | 570 | 550 | 570 | 550 | 561 | |
*The number of personnel includes both full- and part-time employees.
Verkkokauppa.com Oyj will change its reporting terminology in accordance with the guidelines issued by the European Securities and Markets Authority (ESMA) concerning Alternative Performance Measures. Verkkokauppa.com replaces the previously used term "excluding non-recurring items" with the term "comparable".
Verkkokauppa.com presents Alternative Performance Measures to reflect the underlying business performance and to enhance comparability between financial periods. Comparable performance measures exclude the income statement impact of certain non-operational items affecting comparability. Items affecting comparability are presented in the financial table section.
An item affecting comparability is an income or expense arising from non-recurring or rare events. Items affecting comparability are recognised in the profit and loss statement within the corresponding income or expense group.
REVENUE AND PROFITABILITY DEVELOPMENT
April-June 2016
In April-June, Verkkokauppa.com Oyj's revenue grew by 0% year on year. Revenue grew by 0.1 million euros, totalling 80.1 million euros (80.0). Revenue increased particularly in computers, computer peripherals, televisions, sport and nutrition -product group and major (MDA) domestic appliances.
According to GfK, the demand for consumer electronics increased by 3.2% during April-June in Finland.
As in the previous quarter and in the comparison period, a part of the sales increase was due to large wholesale volumes to customers who export the goods, as well as B2B sales. This part of sales decreased year on year. The volume of these sales is typically difficult to estimate and their profitability is low. However, these sales contribute to the company's purchasing volumes and thus improve the company's position in relation to its suppliers.
Personnel costs increased in April-June by 13.1% to 6.3 million euros (5.6). Increased personnel costs are mainly related to new expanded opening hours.
During the second quarter, other expenses increased by 0.6 million euros to 4.7 million euros (4.1).
Operating profit in April-June 2016 was 1.0 million euros (1.5) and net profit 0.8 million euros (1.2).
Earnings per share were 0.02 euros (0.03).
January-June 2016
In January-June, Verkkokauppa.com Oyj's revenue grew by 7.0% year on year. Revenue grew by 10.7 million euros, totalling 164 million euros (153). Revenue increased particularly in computers, televisions, major (MDA) domestic appliances, computer peripherals and watches.
According to GfK, the demand for consumer electronics decreased by 0.5% during January-June in Finland.
Personnel costs increased by 17.8% to 13.0 million euros (11.0). Personnel costs include a 0.6 million euros holiday pay compensation affecting comparability, which resulted from the company's internal audit identifying technical errors in the company's holiday pay accounting. Comparable personnel costs grew by 12.4% to 12.4 million euros (11.0). The number of personnel grew at a slower rate than revenue.
During the reporting period other expenses decreased, totalling 9.0 million euros (11.7). Comparable other expenses grew by 8.8% and were 9.0 million euros (8.3). Other expenses in the comparison period affecting comparability included a compensation of 3.4 million euros paid to Teosto.
Operating profit (loss) in January-June 2016 was 2.8 million euros (-0.1) and net profit (loss) 2.2 million euros (-1.2).
Comparable operating profit in January-June 2016 was 3.4 million euros (3.3) and net profit 2.7 million euros (2.7).
Earnings per share were 0.05 euros (-0.03).
The comparison period included items affecting comparability of 4.3 million euros related to a legal dispute lost against Teosto ry regarding levies for private copying. Of these items affecting comparability, 3.4 million euros is included in other expenses and the interest of 0.9 million euros in financing expenses.
Comparable earnings per share were 0.06 euros (0.06)
FINANCE AND INVESTMENTS
Operating cash flow was -2.9 million euros (-8.1) in January-June 2016. In the reporting period, the improvement of the operating cash flow mainly resulted from the positive development of operations. In addition, the comparability in the cash flow of the comparison period was affected by items related to the Teosto legal dispute.
Ordinary seasonal fluctuations are reflected in cash and cash equivalents, cash flow and accounts payable, which usually reach the highest point at year-end and the lowest point at the end of the second quarter. Verkkokauppa.com has utilized the maximum amount of cash discounts.
During the reporting period the company invested in the development of new ERP features, which resulted in the activation of 0.3 million euros in the IT department's salary expenses and external technology consulting fees. The company also invested in ordinary store equipment and furniture. The net capital expenditures were 0.5 million euros (0.6) in January-June 2016.
The comparison period included financing expenses totalling 0.9 million euros of penalty interest affecting comparability relating to the Teosto legal dispute.
On 30 June 2016, Verkkokauppa.com had a revolving credit facility of 15 million euros, which had not been utilized.
FINANCIAL TARGETS
The company strives to grow faster than its operating market and targets an annual revenue growth of over 10 per cent in the medium term. The company's objective is to improve its EBITDA margin in the medium term when compared to the level of 2013. The company strives to secure a sufficient equity ratio to finance the growth of its business and aims to maintain an equity ratio of over 25 per cent taking into consideration the nature and seasonality of the company's business.
SHARES AND SHARE TRADING
The total number of shares in the company was 45,065,130 on 30 June 2016.
Over the reporting period 1,599,973 shares were exchanged on the NASDAQ OMX First North Finland market, representing 3.6% of all shares in the company. The highest share price was 8.20 euros and the lowest 6.40 euros. The average price in share trading was 7.09 euros. The total of the share trading was 11.3 million euros. The closing price was 6.96 euros, and the market value of all shares was 314 million euros at the end of the period.
The company does not own any of its own shares.
PERSONNEL, THE BOARD AND ADMINISTRATION
During the reporting period, the number of employees increased by 41, and the total number of employees was 570 (550) at the end of June 2016. The number of employees includes both full- and part-time employees.
The election of the Board of Directors is explained below in the section on Annual General Meeting 2016.
RISKS AND UNCERTAINTIES
Verkkokauppa.com Oyj's risks and uncertainties reflect the market and general economic trends, for example, demand for consumer electronics, wholesale trade business, the business environment and competition. The company's business operations are also influenced by risks and uncertainties relating to, for example, business strategy, investments, procurement and logistics, information technology, and other operative aspects of the business. The aforementioned risks and uncertainties may affect the company's operations, financial position and performance both positively and negatively. Risks and uncertainties have been presented in more detail in the Annual Report for year 2015.
LITIGATION
Verkkokauppa.com received a permission to appeal to the Supreme Court regarding the use of the domain name veneilijanverkkokauppa.com on 3 September 2014. The Supreme Court gave its decision on 11 March 2016 regarding the veneilijanverkkokauppa.com trademark issue. The Court of Appeals judgement was overruled and Oy Waltic Ab was denied the use of the veneilijanverkkokauppa.com trademark. Oy Waltic Ab was also obliged to pay 10,000 euros with penalty interest and a total of approximately 60,000 euros in Verkkokauppa.com's legal costs on different court instances.
ANNUAL GENERAL MEETING 2016
The Annual General Meeting was held in Helsinki on 15 March 2016. The financial statements for the year 2015 were approved and the Board Members and the CEO were discharged from liability with respect to financial year 2015. It was decided to pay a dividend of 0.15 euros per share, totalling 6,759,769.50 euros.
At the Annual General Meeting held on 15 March 2016 the following board members were re-elected: Christoffer Häggblom, Mikael Hagman, Minna Kurunsaari, Kai Seikku, Antti Tiitola, Henrik Weckström and Samuli Seppälä. The board elected Christoffer Häggblom as the Chairman of the Board. Samuli Seppälä is the company's Chief Executive Officer.
The Authorized Public Accountant PricewaterhouseCoopers Oy was elected as the auditor, with Authorized Public Accountant Ylva Eriksson acting as the Principal Auditor.
OTHER EVENTS DURING THE REPORTING PERIOD
Corporate sales and export director Matti Harjunen left Verkkokauppa.com on 11 January 2016. Antti Tiitola resigned from the Board of Directors as of 2 May 2016.
SUBSEQUENT EVENTS
There are no subsequent events that differ from usual business events, after the reporting period.
PRESS CONFERENCES
A press conference for analysts, investors and media will be held in Finnish at the Jätkäsaari premises in Helsinki at Tyynenmerenkatu 11, 6th floor, at 10:00 a.m. (EET) on Friday, 5 August 2016, in which Verkkokauppa.com Oyj's CEO Samuli Seppälä will present the developments in the reporting period.
A press conference in English will be held by LiveStream webcast on Friday, 5 August 2016 at 11:00 a.m. (EET). Questions can be sent beforehand or during the presentation via e-mail to investors@verkkokauppa.com .
Presentation materials for both events are available at www.verkkokauppa.com in the section Sijoittajat > Esitykset. For both press conferences, a LiveStream is available at www.verklive.com .
COMPANY RELEASES IN 2016
Verkkokauppa.com Oyj will publish its quarterly reports as follows:
- Interim report January - September (Q3) on Friday, 21 October 2016
Helsinki, Finland, 5 August 2016
Verkkokauppa.com Oyj
Board of Directors
More information:
Samuli Seppälä, CEO e-mail samuli.seppala@verkkokauppa.com Telephone +358 10 309 5555
Jussi Tallgren, CFO e-mail jussi.tallgren@verkkokauppa.com Telephone +358 10 309 5555
Certified Adviser Nordea Bank Finland Plc Telephone +358 9 5300 6785
Distribution:
NASDAQ OMX Helsinki Key media www.verkkokauppa.com
FINANCIAL INFORMATION
The financial statements release has been prepared in accordance with Finnish Accounting Standards and local legislation, and in compliance with the accounting principles in the financial statements of 31 December 2015. The company applies the new Accounting Act, effective from 1 January 2016, in the preparation of this interim report. The new Accounting Act has had no significant impact on the accounting principles; therefore, figures for the comparison periods have not been adjusted. The quarterly report has not been audited. The financial statements are audited at year-end.
Numbers presented in the quarterly report have been rounded and therefore columns or rows do not necessarily add up to the total amounts presented.
INCOME STATEMENT
| € thousands | 4-6/2016 | 4-6/2015 | Change% | 1-6/2016 | 1-6/2015 | Change% | 1-12/2015 | ||
| REVENUE | 80,073 | 80,009 | 0.1% | 163,570 | 152,865 | 7.0% | 343,682 | ||
| Other income | 35 | 22 | 54.1% | 58 | 41 | 43.6% | 96 | ||
| Cost of goods and services | -67,787 | -68,581 | -1.2% | -138,221 | -129,690 | 6.6% | -291,899 | ||
| Personnel expenses | -6,348 | -5,611 | 13.1% | -12,987 | -11,023 | 17.8% | -22,402 | ||
| Depreciation and amortization | -309 | -296 | 4.5% | -615 | -558 | 10.2% | -1,171 | ||
| Other operating expenses | -4,658 | -4,090 | 13.9% | -9,027 | -11,711 | -22.9% | -20,630 | ||
| OPERATING PROFIT | 1,006 | 1,454 | -30.8% | 2,778 | -76 | 7,676 | |||
| Financial income and expenses | 5 | 19 | -71.5% | 16 | -853 | -101.9% | -882 | ||
| PROFIT BEFORE APPROPRIATIONS AND TAXES | 1,011 | 1,473 | -31.4% | 2,794 | -929 | 6,794 | |||
| Appropriations | 0 | 0 | 0 | 0 | -82 | ||||
| Income taxes | -201 | -259 | -22.4% | -557 | -259 | 115.6% | -1,358 | ||
| NET PROFIT | 810 | 1,215 | -33.3% | 2,237 | -1,188 | -288.4% | 5,354 | ||
BALANCE SHEET
| € thousands | 30.6.2016 | 30.6.2015 | 31.12.2015 | |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Intangible assets total | 1,203 | 1,109 | 1,179 | |
| Tangible assets total | 1,685 | 1,987 | 1,788 | |
| Investments total | 251 | 50 | 251 | |
| NON-CURRENT ASSETS TOTAL | 3,140 | 3,146 | 3,218 | |
| CURRENT ASSETS | ||||
| Inventories | 40,984 | 34,925 | 38,742 | |
| Receivables | ||||
| Non-current receivables | 111 | 111 | 111 | |
| Current receivables | 7,745 | 9,345 | 8,484 | |
| Trade receivables | 4,930 | 3,837 | 5,037 | |
| Other receivables | 720 | 757 | 601 | |
| Receivables carried forward | 2,095 | 4,752 | 2,847 | |
| Cash and cash equivalents | 20,531 | 19,825 | 30,770 | |
| CURRENT ASSETS TOTAL | 69,372 | 64,206 | 78,108 | |
| TOTAL ASSETS | 72,511 | 67,352 | 81,325 | |
| LIABILITIES | ||||
| EQUITY | ||||
| Shareholders' capital | ||||
| Share capital | 100 | 100 | 100 | |
| Other funds | ||||
| Invested non-restricted equity fund | 25,493 | 25,493 | 25,493 | |
| Retained earnings | 3,239 | 4,645 | 4,645 | |
| Profit (loss) for the period | 2,237 | -1,188 | 5,354 | |
| EQUITY TOTAL | 31,069 | 29,050 | 35,591 | |
| Depreciation reserve | 82 | 0 | 82 | |
| Provisions | 810 | 760 | 810 | |
| LIABILITIES | ||||
| Non-current liabilities | 0 | 659 | 0 | |
| Interest-bearing debt | 0 | 659 | 0 | |
| Current liabilities total | 40,551 | 36,883 | 44,842 | |
| Interest-bearing debt | 0 | 879 | 0 | |
| Advances received | 2,102 | 1,903 | 2,501 | |
| Accounts payables | 23,834 | 24,143 | 27,736 | |
| Other liabilities | 4,226 | 3,180 | 4,450 | |
| Accrued expenses | 10,389 | 6,777 | 10,156 | |
| LIABILITIES TOTAL | 40,551 | 37,542 | 44,842 | |
| TOTAL LIABILITIES | 72,511 | 67,352 | 81,325 | |
| CASH FLOW | ||||
| € thousands | 1-6/2016 | 1-6/2015 | 2015 | |
| Cash flow from operating activities | ||||
| Profit before appropriations and taxes | 2,794 | -929 | 6,794 | |
| Depreciation and amortization | 615 | 558 | 1,171 | |
| Change in provisions | 0 | 45 | 95 | |
| Interest paid and received | -16 | 853 | 882 | |
| Non-current receivables, increase (-), decrease (+) | 0 | 2 | 2 | |
| Current receivables, increase (-), decrease (+) | 739 | -1,314 | -490 | |
| Inventory increase (-), decrease (+) | -2,242 | -4,067 | -7,884 | |
| Non-interest-bearing debt, increase (+), decrease (-) | -3,895 | -1,723 | 6,492 | |
| NET CASH FROM OPERATING ACTIVITIES BEFORE FINANCING AND TAXES | -2,005 | -6,576 | 7,061 | |
| Interest paid and other operational financial expenses | -17 | -995 | -1,050 | |
| Interest received from operations | 34 | 142 | 168 | |
| Taxes paid | -953 | -644 | -1,084 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | -2,941 | -8,072 | 5,096 | |
| Investments | ||||
| Intangible and tangible investments | -537 | -591 | -1,075 | |
| Other investments | 0 | 0 | -201 | |
| NET CASH FLOW FROM INVESTMENTS | -537 | -591 | -1,276 | |
| Cash flows from financing activities | ||||
| Current interest-bearing debt, increase (+), decrease (-) | 0 | -440 | -879 | |
| Non-current interest-bearing debt, increase (+), decrease (-) | 0 | 0 | -1,099 | |
| Dividends paid | -6,760 | -6,384 | -6,384 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | -6,760 | -6,824 | -8,362 | |
| NET INCREASE (+) / DECREASE (-) IN CASH AND CASH EQUIVALENTS | -10,238 | -15,487 | -4,543 | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 30,770 | 35,312 | 35,312 | |
| CASH AND CASH EQUIVALENTS AT THE PERIOD END | 20,531 | 19,825 | 30,770 | |
STATEMENT OF EQUITY CHANGES
| €, thousands | Share capital | Invested unrestricted equity fund | Retained earnings | Profit (loss) for the period | Total |
| SHARE CAPITAL 1.1.2016 | 100 | 25,493 | 9,999 | 0 | 35,591 |
| Dividends | 0 | 0 | -6,760 | 0 | -6,760 |
| Profit (loss) of the period | 0 | 0 | 0 | 2,237 | 2,237 |
| SHARE CAPITAL 30.6.2016 | 100 | 25,493 | 3,239 | 2,237 | 31,069 |
| SHARE CAPITAL 1.1.2015 | 100 | 25,493 | 11,029 | 0 | 36,622 |
| Dividends | 0 | 0 | -6,384 | 0 | -6,384 |
| Profit (loss) of the period | 0 | 0 | 0 | -1,188 | -1,188 |
| SHARE CAPITAL 30.6.2015 | 100 | 25,493 | 4,645 | -1,188 | 29,050 |
| SHARE CAPITAL 1.1.2015 | 100 | 25,493 | 11,029 | 0 | 36,622 |
| Dividends | 0 | 0 | -6,384 | 0 | -6,384 |
| Profit (loss) of the period | 0 | 0 | 0 | 5,354 | 5,354 |
| SHARE CAPITAL 31.12.2015 | 100 | 25,493 | 4,645 | 5,354 | 35,591 |
| ITEMS AFFECTING COMPARABILITY | ||||||
| €, thousands | 4-6/2016 | 1-3/2016 | 1-6/2016 | 4-6/2015 | 1-3/2015 | 1-6/2015 |
| Items affecting comparability in operating profit | 0 | -599 | -599 | 0 | -3,412 | -3,412 |
| Items affecting comparability in financial items | 0 | 0 | 0 | 0 | -913 | -913 |
| Items affecting comparability in taxes | 0 | 120 | 120 | -267 | 865 | 598 |
| Items affecting comparability, total | 0 | -479 | -479 | -267 | -3,460 | -3,727 |
Items affecting comparability in year 2015 relate to a legal dispute lost against Teosto ry. Items affecting comparability in year 2016 relate to a holiday pay compensation.
CALCULATION PRINCIPLES FOR THE COMPANY'S KEY RATIOS
1) Fixed costs = Personnel expenses + other operating expenses 2) Fixed costs, % = (Personnel expenses + other operating expenses) / Revenue x 100 3) Gross profit = Revenue - Cost of goods and services 4) Gross margin, % = (Revenue - Cost of goods and services) / Revenue x 100 5) EBITDA = Operating profit before depreciation 6) EBITDA, % = Operating profit before depreciation / Revenue x 100 7) Operating margin, % = Operating result / Revenue x 100 8) Comparable operating margin, % = Comparable operating result / Revenue x 100 9) Equity ratio = (Equity + depreciation difference x (1 - tax rate)) / (Total sum of the balance sheet - advances received) x 100 10) Return on capital employed (ROCE), rolling 12 months, % = (Net profit + financial expenses + taxes) / (Average equity + interest-bearing debt) x 100 11) Net gearing, % = (Interest-bearing debt - cash and cash equivalents - interest-bearing receivables) / Equity x 100 12) Earnings per share = Profit for the financial period / Monthly average number of shares adjusted by share issues 13) Comparable earnings per share = Comparable profit for the financial period / Monthly average number of shares adjusted by share issues 14) Earnings per share (diluted) = Profit for the financial period / Monthly average number of shares adjusted by share issues + number of shares according to subscription rights 15) Comparable earnings per share (diluted) = Comparable profit for the financial period / Monthly average number of shares adjusted by share issues + number of shares according to subscription rights 16) Average number of shares at end of the period revised by share split = Monthly average number of shares at the end of the period revised by share split 17) Number of employees at the end of the period = Average number of employees on the last week of the period
HUG#2033449
