ACTIC GROUP
A healthier society through training
Q3 INTERIM REPORT
2020 JULY - SEPT
CEO - Anders Carlbark
Interim CFO - Stephan Ebberyd
COVID-19 UPDATE
ALL CLUBS OPEN SINCE 15/6
- Swedish sites open throughout Q2 and Q3, but negative impact to sales of memberships, PT revenue and increased freezing's of risk groups
- All sites in Norway open since 15th June
- German sites gradually opened during May, but baths are still operating under heavy restrictions with negative impact to sales of new memberships
HIGHLIGHTS
- Continue to prioritize and ensure sites being a safe environment for members and staff
- Quick adaptation to new situation, strong short- and long-term cost management combined with new developments, such as outdoor training offer, ensures stronger resilience to further Covid-19 uncertainty
- New membership sales challenging during first half of Q3 but step by step stronger throughout the quarter, September in line with last year
- Long term efficiency measures successfully implemented
CHALLENGES
- Slower recovery in small and medium cities compared to larger cities
- Large share of seniors in member base where we see a slower recovery
- General development of Covid-19 and specifically continued restrictions in German baths
Q3 GROUP OVERVIEW - STRONG CASHFLOW AND RESULT
MEMBER BASE AND SALES GRADUALLY RECOVERING
- Sales of new memberships recovering step by step
- Q2 -50% compared to last year,
- Q3 -14% compared to last year with September in line with last year
- Member base at the end of September -11% compared to last year, adjusted for permanently closed sites -9%
NET SALES 196,2 (-13,8%)
- Total decrease compared to last year -31,4 Mkr
COST DEVELOPMENT -48 Mkr (-30%)
- Employee costs -16,8 Mkr
- Other external costs -28,3 Mkr
- One-timecost deductions: Rental discounts of 8 Mkr and government support of 5 Mkr booked as cost reduction
EBITDA 86,4 Mkr (+19%), margin 44,1% (31,9%)
- Stronger than expected result driven by step by step recovery of sales and systematic efficiency improvements
- EBITDA Excl IFRS 16 effects: 46 Mkr (31,8 Mkr), margin 23,5% (14%)
GROUP OPERATIONAL KPI OVERVIEW
Q3 - SEGMENT OVERVIEW
NORDICS
- Net sales 173,3 Mkr (-15,6%) compared to last year
- PT Revenue down -31%
- EBITDA 84,4Mkr (LY 75,4 Mkr), EBITDA Margin 48,7% (LY 36,7%)
- EBIT 36,2Mkr (LY -228,5), EBIT Margin 20,9% (LY neg.%)
- Member base 174 326 (-12,2% compared to last year)
- Number of clubs 147 (-8 to LY)
GERMANY
- Net sales 22,9Mkr (+2,6%) compared to last year
- EBITDA 9,3Mkr (LY 3,7Mkr), EBITDA Margin 40,7% (LY 16,7%)
- EBIT 4,4Mkr (LY -30,9Mkr), EBIT Margin 19,2% (LY neg.%)
- Member base 24 187 (0% compared to last year)
- Number of clubs 26 (+1 vs. LY)
- Profitability turnaround continues but current sales effected by continued restrictions at most bath facilities
CASHFLOW AND NET DEBT
STRONG CASHFLOW
- Cashflow in Q3 of +9,0 MSEK (+24,8 MSEK vs. Q3-19)
- Focus on working capital and negotiation with landlords and 100% of rents are now monthly paid instead of quarterly prepayment
- Prepayment from members have also strengthen working capital.
- Cash flow jan-sept 64,9 MSEK, 147 MSEK better than LY
NET DEBT
- Net Debt 298 MSEK, excl IFRS 16
- Cash 151 MSEK and available, not used credit, lines of 77 MSEK
- Net Debt 101 MSEK better than Q3 2019 (excl. IFRS 16)
- Net Debt/EBITDA = 3,1 (excl. effects from IFRS 16)
KEY TAKE AWAYS AND CURRENT TRADING
STRONG RESULT AND CASHFLOW
- New levels of efficiency and improvements to training offer drives quarterly result
- Q3 result supports financial stability and enables us to increase investments in improving customer offer
SYSTEMATIC IMPROVEMENTS CONTINUE AS FOCUS
- Systematic improvement has step by step shown result throughout the whole year and we will continue to drive development of smart solutions to improve customer offer and operational efficiency.
- Continued big focus on development and investments in digital and outdoor training will enable future growth and strengthen resilience to potential new upcoming situations related to Covid-19
Q4 SALES AND COST
- Operational priority is to uphold a safe training environment and drive sales of new memberships
- Net sales are expected to be lower than last year and we estimate Q4 net sales to decrease with 10-15% compared to same period last year with EBITDA at same level as Q4 2019.
Q&A
THANK YOU
APPENDIX
NET SALES & EBIT BRIDGE
NETSALES BRIDGE | EBIT - BRIDGE |
P&L
Jul-sep | Jul-sep | Jan-sep | Jan-sep | Rolling | Jan-dec | |
SEK thousand | 2020 | 2019 | 2020 | 2019 | 12m | 2019 |
N etsales | 196 175 | 227 579 | 582 327 | 718 311 | 816 259 | 952 243 |
O theroperating revenues | 6 469 | 8 726 | 21737 | 25 355 | 30 661 | 34 278 |
Totalrevenues | 202 644 | 236 305 | 604 064 | 743 666 | 846 920 | 986 522 |
G oods forresale | -740 | -2 837 | -3 037 | -7 667 | -5 501 | -10 131 |
O therexternalcosts | -50 045 | -78 319 | -183 860 | -254 668 | -255 260 | -326 068 |
Personnelcosts | -65 346 | -82 145 | -214 049 | -281769 | -314 685 | -382 405 |
D epreciation and im pairm entoffixed assets | -53 223 | -338 621 | -160 817 | -452 640 | -228 881 | -520 704 |
O theroperating expenses | -67 | -466 | -632 | -996 | -732 | -1095 |
EBIT | 33 223 | -266 084 | 41 670 | -254 073 | 41 861 | -253 882 |
Financialincom e | 96 | 25 | 2 004 | 83 | 2 934 | 1013 |
Financialexpenses | -10 065 | -12 546 | -34 596 | -36 626 | -45 720 | -47 750 |
Profit/loss before tax | 23 255 | -278 605 | 9 078 | -290 615 | -926 | -300 619 |
Tax | -3 031 | -1617 | -7 774 | 59 | -11754 | -3 922 |
N et profit/loss for the period | 20 224 | -280 222 | 1 304 | -290 556 | -12 680 | -304 540 |
BALANCE SHEET
CASHFLOW STATEMENT
SEK thousand | 2020 -09-30 | 2019-09-30 | 2019-12-31 |
A ssets | |||
Intangible fixed assets | 566 973 | 601967 | 587 790 |
Tangible fixed assets | 268 939 | 285 802 | 285 512 |
Right-of-use assets | 739 553 | 877 462 | 818 133 |
D eferred tax assets | 2 693 | 6 935 | 2 693 |
Totalfixed assets | 1 578 158 | 1 772 165 | 1 694 129 |
O thercurrentassets | 65 774 | 82 403 | 94 841 |
Cash and cash equivalents | 150 630 | 48 842 | 85 573 |
Totalcurrent assets | 216 404 | 131 245 | 180 414 |
Totalassets | 1 794 562 | 1 903 410 | 1 874 543 |
Equity and liabilities | |||
Totalequity | 271 557 | 297 945 | 281 032 |
Equity attributable to Parent Com pany shareholders | 271 557 | 297 945 | 281 032 |
N on-currentinterest-bearing liabilities -loans | 433 793 | 433 001 | 433 200 |
N on-currentinterest-bearing liabilities -leasing | 647 886 | 763 426 | 708 043 |
D eferred tax liabilities | 20 561 | 21719 | 19 565 |
Totalnon-current liabilities | 1 102 239 | 1 218 145 | 1 160 808 |
Currentinterest-bearing liabilities -loans | 15 000 | 15 000 | 15 000 |
Currentinterest-bearing liabilities -leasing | 133 361 | 150 273 | 151930 |
O thercurrentliabilities | 272 405 | 222 047 | 265 772 |
Totalcurrent liabilities | 420 766 | 387 320 | 432 703 |
Totalliabilities | 1 523 005 | 1 605 465 | 1 593 511 |
Totalequity and liabilities | 1 794 562 | 1 903 410 | 1 874 543 |
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