Interim Management Statement: January-September 2018

  • Group turnover for the first three quarters of 2018 was below the corresponding period last year due to lower sales in Rettig ICC. Sales prices in Rettig ICC were generally on expected levels while sales volumes in certain key markets were lower than last year.
  • Group EBITDA in the first three quarters of the year declined mainly due to higher costs in both Rettig ICC and Nordkalk as well as lower turnover in Rettig ICC.
  • Group EBIT and net profit from continuing operations were lower in the first three quarters of the year compared to last year due to the lower EBITDA and due to lower results from the associated companies Alandia and NorFraKalk. EBIT in 2017 included a capital gain of EUR 16 million (EUR 14 million after tax) from Rettig ICC’s sale and lease back arrangement with Warehouses De Pauw (WDP) regarding real estate in Zonhoven, Belgium.
  • Group free cash flow in the first three quarters of 2018 included the additional investments in the shares of Terveystalo and eQ. The underlying operational cash flow was lower than last year mainly due to lower turnover and increased working capital within Rettig ICC.
  • Net debt at the end of September 2018 increased compared to last year mainly due to the additional investments in Terveystalo and eQ as well as lower operational cash flow.

Unless otherwise stated, the figures refer to 1 January-30 September 2018 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS).

Key events since 1 July 2018

Anders Dahlblom, Managing Director of Paroc Group Oy, was appointed as member of the Board of Nordkalk.

Thomas Ekström was appointed Chief Financial Officer and a member of the management team of Rettig Group.

Changes to certain responsibility areas in Rettig Group’s management team were announced:

  • Matts Rosenberg was appointed Head of Core Investments and Deputy CEO
  • Roger Lönnberg was appointed Head of Financial Investments
  • Pia Dahlqvist was appointed Head of Communications and HR

Following Rettig ICC’s reorganisation under a new Finnish legal entity, Rettig ICC Ltd (Rettig ICC Oy Ab), the company’s headquarters and domicile are now located in Helsinki, Finland.

Revised outlook for 2018

The outlook for 2018 is revised. We do not expect the favorable economic conditions to help drive profitability in 2018, as stated in our previous outlook. As a result, in the fourth quarter of 2018 and beyond, we will focus on improving the cost competitiveness and growth prospects of our businesses in order to support EBITDA and cash flow generation going forward.

Financial calendar 2019

Rettig Group will publish its annual report for 2018, including its full year financial result, on 28 February 2019. The January-March Interim Management Statement will be published on 29 April 2019, January-June interim report on 26 August 2019 and January-September Interim Management Statement on 1 November 2019.

Further information

Tomas von Rettig, President and CEO, Rettig Group

Pia Dahlqvist, Head of Communications and HR, Rettig Group
Tel. +358 (0)40 5267813
E-mail: pia.dahlqvist@rettig.fi