The interim report summarizes the company's Q3 2011 results. Key points include:
- Organic growth was flat at 0% compared to -1% in Q3 2010. EBIT margin declined to 4.1% from 4.7% due to restructuring costs and lower volumes outside Nordic regions.
- The Nordic region saw 10% organic growth and increased profitability. However, the UK and Continental Europe regions experienced lower volumes and sales mix issues impacting margins.
- Restructuring costs totaled SEK 113m for the quarter. Excluding these, EBIT declined to SEK 126m from SEK 153m in Q3 2010.
- Net debt
12. Continental Europe region Q3
Decreasing sales in France and
in Poggenpohl
2010 2011
Ongoing refurbishing program Jul-Sep Jul-Sep
in Hygena
Net sales
Lower volumes and sales mix SEK m
875 811
burdened gross margin
Gross margin 41.5% 38.2%
EBIT SEK m 6 -18
EBIT margin 0.7% -2.2%
Excluding restructuring costs
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16. Financial position
Operating cash flow
Reduced prepayments 2010 2011
SEK m
Jan-Sep Jan-Sep
Higher inventory and Change in working
174 -279
accounts receivables and capital
increased restructuring cost
Operating cash flow 544 136
Substantial decrease of
working capital last year
2010 2011
Net debt SEK m
30 Sep 30 Sep
Reduced by repayments Net debt 1,615 1 ,466
- of which pensions 601 573
Net debt/equity 45% 40%
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