Puuilo Plc: Activity review February-October 2021: Strong growth in net sales and good development of profitability

16.12.2021 8:30:00 AM ET | Puuilo Oyj | Interim report (T1 and T3)

PUUILO PLC, ACTIVITY REPORT, DECEMBER 16, 2021 at 8:30 am ET

Highlights for August-October 2021

• Turnover increased by 14.8% (+ 33.6%) and is € 69.7 million (60.7)
• Like-for-like sales up 2.5% (+ 19.0%)
• Net sales of online stores increased by 28.9% (+ 89.0%)
• Gross profit was € 26.0 million (22.1) and the gross margin was 37.3% (36.5%)
• Adjusted EBITA was € 13.1 million (11.2), which corresponds to an adjusted EBITA margin of 18.8% (18.4%)
• EBIT was € 12.8 million (10.8) which corresponds to 18.3% of turnover (17.7%)
• Free operating cash flow was 2.6 million euros (4.0)
• Earnings per share were € 0.12 (0.09)
• Earnings per share excluding listing costs was € 0.12 (0.09)
• 1 new store was opened during the third quarter (no new store)

Highlights for February-October 2021

• Net sales increased by 12.6% (+ 42.4%) and were 207.8 million euros (184.6)
• Like-for-like sales up 2.5% (+ 25.9%)
• Net sales of online stores increased by 32.0% (+ 126.0%)
• Gross profit was 77.0 million euros (67.6) and the gross margin was 37.0% (36.6%)
• Adjusted EBITA was 38.6 million euros (34.7), which corresponds to an adjusted EBITA margin of 18.6% (18.8%)
• EBIT was 34.9 million euros (33.4) which corresponds to 16.8% of turnover (18.1%)
• Free operating cash flow was € 18.0 million (30.3)
• Earnings per share were € 0.31 (0.29)
• Earnings per share excluding listing costs was € 0.34 (0.29)
• 4 new stores were opened during the reference period (2 new stores)

Figures are in millions of euros unless otherwise indicated and have been rounded. Therefore, the sum of the individual digits may differ from the total shown. Puuilo’s fiscal year begins on February 1 and ends on January 31 of the following year. Figures in brackets refer to the corresponding period of the previous year, unless otherwise indicated. The information contained in this report is unaudited.

Key figures

* Operating profit before amortization of the Puuilo brand The profit per share has been calculated for all the periods presented taking into account the free issue of shares (split) carried out during the reporting period.

Puuilo’s long-term objectives and market outlook for fiscal year 2021

There has been no change in the long-term financial goals or growth expectations of Puuilo, announced as part of the listing.

Puuilo’s long-term objectives for the fiscal years 2021-2025:

• Growth: higher net sales 400 million euros by the end of fiscal year 2025 with annual organic growth of over 10%.
• Profitability: EBITA margin adjusted between 17 and 19% of net sales.
• Dividend policy: Puuilo aims to distribute at least 80% of the net profit for each financial year in the form of dividends, depending on the capital structure, financial situation, general economic and business conditions and future prospects of the company. company.
• Leverage: Net debt to adjusted EBITDA less than 2.0x.

The uncertainty caused by COVID-19 continues. In a pandemic situation, sudden and unpredictable changes can occur.

CEO Juha saarela review

Puuilo’s net sales and adjusted operating profit (EBITA) again showed strong growth. The last reporting period could be described as commercially successful and developed according to our plans. The third quarter was in line with our own expectations and our net sales increased by 14.8% (+ 33.6%). This is a solid result for the company given the exceptional financial figures for the corresponding period last year.

Adjusted EBITA reached 18.8% of net sales in the third quarter. The development of profitability was good. Thanks to the determined implementation of the strategy, we were able to improve our gross margin. The most important factors affecting the margin increase were the higher share of private label products, the negotiations of commercial purchasing terms, as well as the implementation of accounts payable automation. We continued to obtain convincing results in controlling operational costs. We managed to deliver good results despite a strong comparative period. Our performance is in line with our long-term financial objectives.

In the third quarter, we opened a new store in Laajalahti, Espoo, a neighboring town Helsinki. The store has been well received by customers. The store opening was the fourth this fiscal year and was more successful than expected. I am happy to report that we set a new sales record on opening day. This result was achieved despite the fact that our marketing efforts on opening day were not as extensive as usual, due to COVID-19. This, of course, not only reinforces our opinion that our growth strategy is working, but it also shows great regional potential in the Helsinki Metropolitan area. The new stores opened during this fiscal year are located in Vaasa, Imatra, Rauma and Espoo Laajalahti. All new stores are profitable and the determined implementation of our growth strategy continues. We have so far announced three new store openings for the next fiscal year, which will be located in Sastamala, Lieto and Tornio.

Our operating environment is still affected by disruptions related to COVID-19, including in global supply chains. The course of the pandemic has been unpredictable. In Finland, where the restrictions imposed have been relatively tight, hopes of a slowdown in the spread of the pandemic in early fall have vanished like a wood briquette in the fireplace. However, we believe that despite the continuing pandemic, our business performance will remain strong. Our strong third quarter supports it. We were able to increase same-store net sales and gross margin compared to the comparative period last year, when we were still selling large volumes of face masks, disinfectants and other equipment. personal protection, for example. As a result of sales growth within our core product offering, we were able to provide stronger financial figures than during the comparative period. In other words, the demand for gutter brushes and tarpaulins, for example, continues to grow well. We have also carefully prepared for the next year by placing orders for imported goods well in advance to ensure the availability of goods.

On the strength of this strong activity report, I wish all our shareholders, our customers and all our employees a pleasant period of celebration.

Significant events subsequent to the closing

Markus Kaatranen has been appointed Director of Sales and a member of the management team of Puuilo Plc on 23 November 2021. Kaatranen will take up his duties no later than March 1, 2022. Current member of the management team of Puuilo Chain Manager Tom long will leave the Puuilo management team at the latest February 28, 2022.

Conference call and webcast

The report will be presented to analysts, investors and the media on the date of publication in English on 10:00 a.m.ET (9:00 am CET) and in Finnish to 11:30 am ET (10:30 am CET).

The conference call in English can be followed live on https://puuilo.videosync.fi/2021-12-16-puuilo-business-review.Participate by calling the number according to your location a few minutes before the start of the event.

The Finnish webcast will start at 11:30 am ET at https://puuilo.videosync.fi/2021-q3-tulos.

Recordings of both events will be available later the same day on Puuilo’s investor website at https://www.investors.puuilo.fi/en.

UK: +44 333 300 0804

United States: +1 631 913 1422

IF: +358 9 817 103 10

SE: +46 8 566 426 51

Verification code: 57802649 #

For more information, please contact:

Juha saarela, CEO, mobile phone: +358 50 409 7641

City Ranta, CFO, mobile phone: +358 40 555 4995

Attachments

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