Hövding Sverige AB (publ) | T + (46) 40 23 68 68 |
Bergsgatan 33, SE 214 22 Malmö | Org nr. 556708 - 0303 |
HÖVDING INTERIM REPORT Q3 2020
July - September 2020
Hövding - back on firmer ground
FINANCIAL RESULTS FOR THE PERIOD
SIGNIFICANT EVENTS DURING THE PERIOD
- Number of Hövding helmets sold during the third quarter increased to 28,586 (11,199) (+155%).
- Net sales of TSEK increased to 45,312 (18,583) (+144%)
- Gross margin of 24% (27%).
- EBITDA of TSEK -6,688(-16,648). Operating profit includes an item relating to restructuring costs of 3,750 TSEK of a non-recurring nature.
- Profit after tax TSEK -8,097(-17,304)
- Profit per share SEK -0,34(-0,78)
- Cash flow from operating activities TSEK -3,096(-9,429)
Hövding Sverige AB (publ) announce result in new share issue. The subscription period for the new share issue with preferential rights for existing shareholders ended august 28th 2020. It was subscribed at 174%.
Subscription with support of preferential rights was over 97% of the offered shares. The new share issue results in cash amounting to 60,9 MSEK prior to expenses. Guarantee commitments made have as a result not been activated.
Adjustment to the company cost structure.
During the quarter implementation of reduction in the organisation and a more efficient sales and marketing approach was carried out. In total the personnel related changes amount to full year savings of approx. 7MSEK.
All changes are completed and the non-recurring cost of 3 750 TSEK is included in the quarter.
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Hövding - back on firmer ground
The number of Hövding helmets sold
during the third quarter 2020 increased by 155% compared to the same period last year.
Net sales increased by 144%.
Last year the phasing out Hövding 2.0 and the introduction of Hövding 3 and this years previous quarter partly closed down key markets make fair comparisons difficult though.
The result, except restructuring commented on below, we see as a fair indication of where we are at right now. Our three key markets represent 95% of sales and they all show potential in further growth. In the most penetrated market, Sweden, we sold 11 322 units with large shares through our key accounts in the sporting goods channel and our design channel. Denmark and Germany were marked by physical restrictions during spring but have now come back to higher levels again.
Compared to quarter two Denmark increased by 59% and Germany by 90% in sold units. We also see a trend towards more online purchase and are focusing on taking our direct share of this. Sales though our own web shop represented 7% of overall sales in the quarter.
Covid-19 have reshaped our transportation patterns in cities and urban cycling, already on the increase before, have accelerated further. The cycling industry as a whole is reporting strong growth. To what precise extent this positively effect Hövding is difficult to judge. Generally, it is obviously positive, but we should remain alert to possible imposed restriction in society that can affect our dealer's ability to reach the final consumers. In the shorter perspective it is Sweden, Denmark, and Germany we follow more closely as they represent the core of our sales currently.
We have previously announced an oversight of the company cost structure. From an organizational perspective this has now concluded and been implemented. Since start September we work more digitally with our customers and with higher efficiency in general. The quarter includes non-recurring cost of 3 750TSEK.
Moving forward it represents ca 7MSEK in saving full year with start quarter 4.
In addition to the now completed reduction in personnel we will continuously work with challenging our operational expenses.
Adjusting our cost structure while planning for reasonable growth and focus on achieving profitability is the plan communicated earlier this year. This quarter is the start of this and restructuring our personnel cost is now concluded and we look forward continuing the path started.
Fredrik Carling
CEO
Hövding Sverige AB (publ)
SALES AND RESULTS
- Net sales for the period was TSEK 45,312 (18,583).
The number of helmets sold during the period reached 28,586 (11,199). Of these,
31% (16%) were sold through wholesalers, 62% (75%) through retailers and 7% (9%) through the company website. Sales share by country shows Sweden 40% (45%), Denmark 28% (37%), Germany 27% (14%), the UK 1% (2%) and for other countries 4% (2%).
The gross margin for the period amounts to 24% (27%). The gross margin is mainly affected by production costs at 82,6% (83%), transport and customs at 4,8% (6%) and provision for future and existing warranties at 12,6% (11%).
Our business expenses during the period reached TSEK 19,100 (21,617). Among the expenses, TSEK 8 993 (13 359) denotes external costs, and TSEK 10 107 (8 258) refers to personnel costs. During the period, operating expenses were charged with structural costs of a non-recurring nature of a total of 3,750 TSEK. These are allocated on other operating expenses with 852 TSEK and on personnel costs with 2,898 TSEK.
EBITDA for the quarter was TSEK -6,688(-16,648). Profit for the period before tax amounted to TSEK -8,097(-17,304) having been burdened by write-offs and devaluations of intangible assets at TSEK -1,014(-457) and tangible assets at TSEK -176(-148).
INVESTMENTS
No significant investments were made during the quarter.
LIQUIDITY AND FINANCING
The liquidity of the company at the end of the period amounted to TSEK 66,134 (26,687). Cash flow from the ongoing operations during the period amounted to TSEK -3,096(-9,429).
EMPLOYEES
As per 30 September 2020 the number of employees was 35 (39).
RISK FACTORS
Risk factors are described in Hövding's 2019 annual report on page 52.
CERTIFIED ADVISER
Västra Hamnen Corporate Finance AB is Hövding's Certified Adviser.
DATE OF REPORT
At the end of each new quarter, Hövding publishes a financial report. The next report is scheduled for publication on
- 22 February 2021 - Year-End report 2020
ACCOUNTING PRINCIPLES
This report is presented according to the Annual Accounts Act and BFNAR 2012:1 (K3). The accounting principles are unchanged from the previous year.
AUDITOR
This report has not been audited by the company's auditor.
CORPORATION DETAILS
Hövding Sverige AB (publ), organisation number 556708-0303, is a limited liability company located in Malmö. The company's shares are listed on Nasdaq First North Growth Market in Stockholm.
INFORMATION
Please direct any queries regarding the content of this interim report to: CEO Fredrik Carling
Ph: +46 40 236868
fredrik.carling@hovding.com
Hövding Sverige AB (publ) Bergsgatan 33
214 22 Malmö
+46 40 236868
The company board and the CEO confirm that this interim report gives a fair overview of the company operations, position, and results.
Fredrik Arp (ordf) | Helén Richenzhagen | Tony Grimaldi |
Alexander Izosimov | Maria Minskova | Peter Svanlund |
Fredrik Carling (vd) |
Hövding Sverige AB (publ) is listed on the Nasdaq First North Growth Market since 2015. Västra Hamnen Corporate Finance AB is Hövding's Certified Advisor.
E-mail:ca@vhcorp.se, tel: +46 40 200250
For further information, please contact Fredrik Carling on +46 40 23 68 68 High resolution images can be downloaded here:
www.mynewsdesk.com/se/hovding
The information herein is provided by Hövding Sverige AB (publ) in accordance with its duties of public disclosure as stipulated by the EU regulation on marketplace misuse. The information was made public by Fredrik Carling, CEO of Hövding Sverige AB (publ), on 20 October 2020 at 08.30am CET.
Income statement
July - September | January - September | Full Year | |||
(Values in TSEK) | 2020 | 2019 | 2020 | 2019 | 2019 |
Net sales | 45 312 | 18 583 | 99 758 | 66 452 | 112 919 |
Other operating income | 1 728 | 13 | 1 068 | 52 | 286 |
Total operating income | 47 040 | 18 596 | 100 826 | 66 504 | 113 205 |
Raw materials and consumables | -34 628 | -13 627 | -77 975 | -47 212 | -83 476 |
Other external costs | -8 141 | -13 312 | -26 077 | -39 348 | -42 801 |
Personnel costs | -10 107 | -8 258 | -28 664 | -25 592 | -35 256 |
Depreciation/amortization | -1 190 | -605 | -3 580 | -1 674 | -2 654 |
Other operating expenses | -852 | -47 | -960 | -270 | 0 |
Total operating costs | -54 918 | -35 849 | -137 256 | -114 096 | -164 187 |
Operating profit (loss) | -7 878 | -17 252 | -36 430 | -47 591 | -50 982 |
Other interest income and similar profit (loss) | |||||
items | 1 | 2 | 12 | 36 | 109 |
Interest expense and similar profit (loss) items | -220 | -54 | -442 | -55 | -55 |
Total financial items | -219 | -52 | -430 | -19 | 54 |
Profit (loss) after financial items | -8 097 | -17 304 | -36 860 | -47 610 | -50 928 |
Tax on profit | 0 | 0 | 0 | 0 | 0 |
Net profit (loss)
Earnings per share before and after dilution *) Earnings per share
Number of shares, average Number of shares per closing date
-8 097 | -17 304 | -36 860 | -47 610 | -50 928 |
-0,34 | -0,78 | -1,58 | -2,14 | -2,29 |
24 104 622 | 22 281 105 | 23 265 295 | 22 281 105 | 22 281 105 |
27 523 717 | 22 281 105 | 27 523 717 | 22 281 105 | 22 281 105 |
*) There are warrants that can result in dilution, but since the result for the period is negative no dilution effect occurs (see definition of earnings per share after dilution).
Balance Sheet
(Values in TSEK) | 2020-09-302019-09-302019-12-31 |
Fixed assets
Intangible assets
Financial assets
Tangible assets
Total Fixed assets
Current assets Inventories Account receivable Tax assets Other receivables
Prepaid expenses and accrued income Cash and bank balances
Total Current assets
13 465 | 5 156 | 15 499 |
52 | 52 | 52 |
1 971 | 2 660 | 2 474 |
15 488 | 7 868 | 18 025 |
27 792 | 16 389 | 20 848 |
16 029 | 11 127 | 18 019 |
768 | 666 | 775 |
595 | 549 | 159 |
506 | 330 | 585 |
66 134 | 26 687 | 20 353 |
111 824 | 55 748 | 60 739 |
Total Assets | 127 312 | 63 616 | 78 764 |
Share capital | 13 762 | 22 281 | 22 281 |
Development fund | 10 684 | 3 045 | 13 725 |
Accumulated profit or loss | 68 533 | 36 961 | 26 281 |
Net profit | -36 860 | -47 610 | -50 928 |
Total Equity | 56 119 | 14 677 | 11 359 |
Other provisions | 8 481 | 9 720 | 10 457 |
Total Provisions | 8 481 | 9 720 | 10 457 |
Accounts payable | 45 839 | 33 207 | 49 606 |
Other liabilities | 6 250 | 696 | 1 477 |
Accrued expenses and deferred income | 10 623 | 5 316 | 5 865 |
Total current liabilities | 62 712 | 39 219 | 56 948 |
Total Equity and libilities | 127 312 | 63 616 | 78 764 |
Cash flow statement
July - September | January - September | Full Year | |||
(Values in TSEK) | 2020 | 2019 | 2 020 | 2 019 | 2 019 |
Cash flow from operating activities before interest and | |||||
income tax paid | -7 907 | -18 481 | -35 249 | -48 535 | -50 246 |
Increase/ decrease inventories | 1 442 | -14 339 | -6 944 | -10 377 | -14 836 |
Increase/ decrease receivables | -3 202 | 2 473 | 1 633 | 3 298 | -3 459 |
Increase/ decrease accounts payable | 1 591 | 21 893 | -3 767 | 18 205 | 34 605 |
Increase/ decrease other current liabilities | 4 980 | -975 | 9 531 | -199 | 1 131 |
Cash flow from operating activities | -3 096 | -9 429 | -34 796 | -37 608 | -32 805 |
Aquisition of intangible assets | 0 | 0 | -1 007 | 0 | -11 137 |
Purchase of property, plant and equipment | -48 | -2 130 | -36 | -2 322 | -2 322 |
Cash flow from investing activities | -48 | -2 130 | -1 043 | -2 322 | -13 459 |
New share issues after issue expenses | 58 351 | 0 | 81 620 | 0 | 0 |
Share warrant | 0 | 0 | 0 | 153 | 153 |
Cash flow from financing activities | 58 351 | 0 | 81 620 | 153 | 153 |
Cash flow for the period | 55 207 | -11 559 | 45 781 | -39 777 | -46 111 |
Cash and cash equivalents at the beginning of the year/ | |||||
period | 10 927 | 38 246 | 20 353 | 66 464 | 66 464 |
Cash and cash equivalents at the end of the year/ | |||||
period | 66 134 | 26 687 | 66 134 | 26 687 | 20 353 |
Changes in equity
January - September | Full Year | ||
(Values in TSEK) | 2020 | 2019 | 2019 |
Equity at the beginning of the period | 11 359 | 62 134 | 62 134 |
New share issue | 85 848 | 0 | 0 |
Issue expense 2020 March | -1 634 | 0 | 0 |
Issue expense 2020 September | -2 594 | 0 | 0 |
Share warrant | 0 | 153 | 153 |
Profit (loss) | -36 860 | -47 610 | -50 928 |
Equity at the end of the period | 56 119 | 14 677 | 11 359 |
Key ratio
July - September | January - September | Full Year | |||
2020 | 2019 | 2020 | 2019 | 2 019 | |
Net sales | 45 312 | 18 583 | 99 758 | 66 452 | 112 919 |
Gross margin | 10 684 | 4 956 | 21 783 | 19 240 | 29 443 |
EBITDA | -6 688 | -16 648 | -32 850 | -45 918 | -48 328 |
Operating profit/loss (EBIT) | -7 878 | -17 252 | -36 430 | -47 591 | -50 982 |
Balance sheet total | 127 312 | 63 616 | 127 312 | 63 616 | 78 764 |
Cash equivalents | 66 134 | 26 687 | 66 134 | 26 687 | 20 353 |
Interest-bearing net debt | N/A | N/A | N/A | N/A | N/A |
Net sales growth (%) | 144% | N/A | 50% | N/A | 22% |
Gross margin (%) | 24% | 27% | 22% | 29% | 26% |
EBITDA margin (%) | -15% | -90% | -33% | -69% | -43% |
Operating margin (%) | -14% | -90% | -33% | -69% | -45% |
Equity ratio (%) | 44% | 23% | 44% | 23% | 14% |
Debt equity ratio | N/A | N/A | N/A | N/A | N/A |
Number of employees at the end of the | |||||
period | 35 | 39 | 35 | 39 | 41 |
Definitions
Net sales growth (%) Gross margin Gross margin (%) Operating profit/loss (EBIT) Operating margin (%)
EBITDA EBITDA-margin (%) Equity ratio (%) Debt equity ratio Interest bearing net debt
Earnings per share before dilution Earnings per share after dilution
change in Net sales in relation to the corresponding period last year Net sales reduced by Cost of goods sold
Gross profit as a percentage of Net sales
Profit (loss) before interest and taxes
Operating profit as a percentage of total operating income
Operating profit (loss) (EBIT) before interest, taxes, depreciation and amortization EBITDA as a percentage of net sales
Equity at the end of the period as a percentage of Total Assets at the end of the period Interest bearing liabilities divided by Equity
Interest bearing liabilities reduced by Cash and cash equivalents Net profit divided by the average number of shares
Net profit divided by the average number of shares, where the average number of shares increased by the number of shares that entail dilution effects.
Options and share warrants have a dilution effect when they would lead to an issue of ordinary shares at a price that is lower than the average price of ordinary shares during the period. Furthermore, ordinary shares only give rise to dilution effects in the event of a conversion of them leads to a lower profit or higher loss per share.
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Disclaimer
Hovding Sverige (publ) AB published this content on 20 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2020 08:04:07 UTC