Interim Management Statement: January-September 2020
This press release is a summary of Rettig Group’s interim management statement for the period from 1 January to 30 September 2020. Unless otherwise stated, the figures refer to 1 January to 30 September 2020 and the corresponding period last year. All figures are unaudited and according to IFRS. The complete interim management statement is available on https://www.rettig.fi/en/reports-and-presentations/.
Rettig Group’s EBITDA increased significantly year-on-year during January-September 2020 thanks to strong performance in both Purmo Group and Nordkalk. Swift cost-cutting measures in both Purmo Group and Nordkalk as a response to the COVID-19 pandemic, successfully implemented structural profitability improvement actions since 2019 especially in Nordkalk, and lower raw material costs in Purmo Group contributed to the improvement. The negative impact of COVID-19 levelled off during the third quarter. Nevertheless, market conditions continue to be uncertain and the outlook for 2020 remains unchanged.
- Rettig Group’s turnover declined in January-September 2020 due to weaker demand in the second quarter, which was affected by the COVID-19 pandemic. Purmo Group’s third quarter turnover returned to almost last year’s level following the significant decline in the second quarter. The COVID-19 pandemic had limited impact on Nordkalk’s turnover.
- EBITDA of Rettig Group improved significantly year-on-year in January-September to EUR 116 million (1-9/2019: 87), of which Purmo Group’s EBITDA was EUR 61 million (48) and Nordkalk’s EBITDA was EUR 59 million (44).
- Rettig Group’s strong financial performance was supported by swift cost-cutting measures in Purmo Group and Nordkalk in response to the COVID-19 pandemic, successfully implemented structural profitability improvement actions since 2019, especially in Nordkalk, and by declining raw material costs in Purmo Group. The sale of Nordkalk’s excess CO2 emission rights during the first quarter also supported the EBITDA improvement.
- Rettig Group’s EBIT increased in line with the improved EBITDA.
- Free cash flow improved as a result of the significant EBITDA improvement as well as lower net working capital and capital expenditure compared to the same period last year.
- Net debt and net debt / EBITDA (including adjustments defined in the senior loan terms and conditions) declined significantly due to increased free cash flow and EBITDA.
Outlook for 2020
The recovery from the COVID-19 pandemic and the level of demand going forward is subject to uncertainty. Performance improvement in the portfolio companies continues to be the key objective for Rettig Group. We continue to focus on short- to medium-term actions to improve financial performance, while safeguarding the health and safety of employees.
Events after the reporting period
RG Partners Oy obtained in October all necessary regulatory approvals for the completion of its acquisition of shares in Aktia Bank Plc from the Society of Swedish Literature in Finland. The acquisition was announced in March 2020 and it will be completed by 6 November 2020. Following the transaction, RG Partners Oy will own 7,078,115 shares in Aktia Bank Plc, which corresponds to 10.18 % of Aktia Bank Plc’s shares and voting rights.
Financial calendar 2021
Rettig Group will publish its annual report for 2020, including its full year financial result, on 2 March 2021. The January-March Interim Management Statement will be published on 3 May 2021, January-June interim report on 20 August 2021 and January-September Interim Management Statement on 1 November 2021.
Matts Rosenberg, CEO, Rettig Group
Tel. +358 40 745 5276