Edition:
United Kingdom

Clas Ohlson Q3 Underlying Oper Profit Up At 363 Million


Wednesday, 13 Mar 2019 

March 13 (Reuters) - Clas Ohlson AB ::CLAS OHLSON NINE-MONTH REPORT 2018/19.GROWTH IN Q3 BETTER THAN MARKET, BUT LOWER THAN INTERNAL TARGET - AFFECTS PROFITABILITY FOR CURRENT YEAR.Q3 SALES SEK 2.92 BILLION VERSUS SEK 2.75 BILLION YEAR AGO.Q3 OPERATING PROFIT, INCLUDING NON-RECURRING COSTS, COSTS LINKED TO CO100+ ACTION PROGRAMME AND CLOSURE OF STORE NETWORK IN UK AND GERMANY TOTALLED 105 MSEK (349).Q3 UNDERLYING OPERATING PROFIT AMOUNTED TO 363 MSEK (359).OPERATING MARGIN FOR FULL-YEAR 2018/2019 IS EXPECTED TO BE APPROXIMATELY 3%* AND UNDERLYING OPERATING MARGIN APPROXIMATELY 5%.FOR FIRST TIME IN MANY YEARS, MARKET DID NOT GROW DURING CHRISTMAS TRADING THIS YEAR IN SWEDEN, NORWAY OR FINLAND.IN TERMS OF SALES AND EARNINGS, Q3 IS MOST IMPORTANT FOR US.GROWTH IN Q3 BETTER THAN MARKET, BUT LOWER THAN INTERNAL TARGET - AFFECTS PROFITABILITY FOR CURRENT YEAR.CLAS OHLSON - OPERATING MARGIN FOR FULL-YEAR 2018/2019 IS EXPECTED TO BE APPROXIMATELY 3%* AND UNDERLYING OPERATING MARGIN APPROXIMATELY 5%.ORGANIC GROWTH WAS 4 PER CENT FOR QUARTER AND ORGANIC GROWTH FOR NINE-MONTH PERIOD WAS IN LINE WITH TARGET OF 5 PER CENT.SALES IN QUARTER DID NOT REACH OUR INTERNAL TARGET AND THAT AFFECTS PROFITABILITY FOR CURRENT YEAR.CLOSURE OF STORE NETWORK IN UK AND GERMANY PROCEEDING TO PLAN.DISCONTINUATION COST HAS NOW BEEN BOOKED TO 210 MSEK AND IS CHARGED TO EARNINGS FOR QUARTER.ANTICIPATED POSITIVE EARNINGS EFFECT OF APPROXIMATELY 75 MSEK PER YEAR WILL HAVE FULL IMPACT AFTER Q2 OF 2019/20.