Interim Management Statement: January – March 2020
This press release is a summary of Rettig Group’s interim management statement for the period from 1 January to 31 March 2020. Unless otherwise stated, the figures refer to 1 January to 31 March 2020 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS). The complete interim management statement is available here.
Rettig Group’s turnover in the first quarter of 2020 was at the same level as in the corresponding period in 2019. Purmo Group’s turnover increased while the turnover of Nordkalk decreased. Rettig Group’s EBITDA improved significantly compared to the first quarter in the previous year as a result of improved EBITDA in both Purmo Group and Nordkalk. Especially Nordkalk posted a significantly better EBITDA following the successful implementation of the performance improvement measures in 2019 and 2020 as well as the sale of excess CO2 emission rights.
Alandia’s insurance technical result improved. eQ continued the long-term trend and performed well. Terveystalo’s profitability decreased compared to the first quarter in the previous year.
The impact of the COVID-19 pandemic on Rettig Group’s portfolio companies was very limited during the first quarter of 2020. As the portfolio companies operate in several industries, the pandemic is expected to impact them differently and with different severity, thus providing Rettig Group diversification benefits. The performance improvement measures implemented in 2019-20, the strong first quarter financial performance as well as ongoing actions to mitigate the impact of COVID-19 support Rettig Group’s ability to meet the challenges caused by the pandemic.
- Group turnover in the first quarter of 2020 was at the same level as in the corresponding period in the previous year. Purmo Group’s turnover increased due to positive sales development particularly in Germany. Sales was impacted negatively by COVID-19 at the end of March in regions West and South. Nordkalk’s turnover decreased due to lower sales in the region Northern Europe.
- Group EBITDA in January-March 2020 was significantly higher than in the same period in 2019. EBITDA of both Purmo Group and Nordkalk improved. The Nordkalk EBITDA includes a capital gain from the sale of excess CO2 emission rights.
- Group EBIT increased.
- Free cash flow improved following favourable development in EBITDA and net working capital. All components of net working capital improved, with Purmo Group being the contributor to the improvement.
- Net debt* and net debt / EBITDA* decreased.
Outlook for 2020
The market disturbance caused by the COVID-19 pandemic is expected to impact Rettig Group negatively. Performance improvement in the portfolio companies will continue to be one of Rettig Group’s objectives in 2020. As a result of the COVID-19 pandemic we have increased the focus on short- to mid-term actions to safeguard financial performance.
Events after reporting period
Rettig Group signed agreements with creditors to extend or renew certain term loans available under bilateral agreements that were previously set to mature in 2020. In addition, Rettig Group signed two new bilateral loan agreements. All of the financing is for general corporate purposes and partly replaces Rettig Group’s commercial papers that mature during 2020.
Financial calendar 2020
Rettig Group will publish the January-June interim report on 19 August 2020 and the January-September interim management statement on 2 November 2020.
Matts Rosenberg, CEO, Rettig Group
Pia Dahlqvist, Head of Communications and HR, Rettig Group
Tel. +358 40 526 7813