Oct 21, 2013 - Emmen
ALSO Group: income after nine months above previous year
Group net profit after the first nine months of 2013 was 6.2 percent above the previous year's value. Profit before tax (EBT) increased from 35.8 million euros to 38.8 million euros (+8.4 percent). Sales growth, consistent cost management, and improved processes were the drivers for the improved profit situation.
According to the CONTEXT market research institute, in the third quarter of 2013 the value of the IT distribution market in the regions that are relevant for ALSO fell by 3.1 percent from the previous year. While the market in Austria developed slightly positively in value terms, in Switzerland, Germany, France, and Sweden it declined somewhat, and in Finland, Denmark, and Norway it dropped sharply.
Development of the individual market segments
In the Central Europe market segment, net sales increased by 9.1 percent from the previous year to 3,561.4 million euros. Profit before tax (EBT) improved from 32.7 million euros to 40.8 million euros. At 1.1 percent, the EBT margin in the first nine months was above last year's level.
In the Northern/Eastern Europe market segment, total net sales fell by 6.7 percent compared with the prior year, to 1,119.5 million euros. The decline was mainly attributable to the high proportion of retail business. Profit before tax (EBT) fell from 6.1 million euros to -0.5 million euros. After two quarters in which EBT was lower than last year, in the third quarter of 2013 the trend could be reversed and an increase attained relative to the previous year. EBT in the third quarter improved by more than 2 million euros compared to the same quarter last year.
Outlook for 2013
Based on the very satisfactory overall business development in the first nine months of 2013, the Group expects – excluding unforeseen circumstances – to attain its profitability goals for the full year. For financial year 2013, ALSO is targeting EBITDA of 101 to 110 million euros, which – all other things being equal – should correspond to Group net profit of 40 to 46 million euros.