HANZA interim report January - June 2020: A challenging period

STOCKHOLM, July 28, 2020 /PRNewswire/ -- Manufacturing strategist HANZA Holding AB (publ), listed on NASDAQ Stockholm, today publishes its interim report for January - June 2020. The company describes how the covid-19 outbreak has had a significant negative impact on the business through a rapid sales decline of approx. 10%. The company has therefore implemented an action program that charged the result with SEK 27.5 million during the second quarter. At the same time, HANZA notes that the pandemic has created new opportunities due to an increased need to revise supply chains. This is in line with HANZA's offer of complete and regional manufacturing close to the customer.

SECOND QUARTER (April 1  - June 30)

• Net sales amounted to SEK 559.0 million (506.6)
• Operating profit before amortizations of intangible fixed assets (EBITA) amounted to SEK -12.6 million (19.3). Excluding the action program, EBITA amounts to SEK 14.9 million. EBIT amounted to SEK -16.1 million (17.1).
• Profit after tax amounted to SEK -19.6 million (8.1), which corresponds to SEK -0.58 per share  (0.26).
• Cash flow from operating activities amounted to SEK 26.7 million (47.4).

FIRST SIX MONTHS (January 1  - June 30)

• Net sales amounted to SEK 1,158.1 million (1,004.3).
• Operating profit before amortizations of intangible fixed assets (EBITA) amounted to SEK 7.8 million (38.8). Excluding the action program, EBITA amounts to SEK 35.3 million. EBIT amounted to SEK 0.7 million (34.4).
• Profit after tax amounted to SEK -13.2 million (17.2), which corresponds to SEK -0.39 per share  (0.56).
• Cash flow from operating activities amounted to SEK 94.3 million (84.0).

CEO Erik Stenfors comments on the report:

"The pandemic had a significant negative impact on sales and earnings during the second quarter of the year. Excluding costs for the action program, EBITDA during the second quarter amounted to approximately SEK 36 million (38)."

"The spring also impacted HANZA's opportunities in the long term - though in a positive direction. Product manufacturing through geographically scattered contract manufacturers has clear negative cost and environmental aspects. Covid-19 has also exposed the vulnerability in global supplier networks, which has led many product-owning companies to reconsider their manufacturing strategies. This creates new business opportunities for HANZA through our unique offer which includes changing and streamlining supply chains. During the spring, the amount of customer dialogues increased significantly."

For further information please contact:

Erik Stenfors, CEO, Tel: +46-709 50 80 70, e-mail: [email protected]
Lars Åkerblom, CFO, Tel: +46-707 94 98 78, e-mail: [email protected]

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https://news.cision.com/hanza-holding-ab/r/hanza-interim-report-january---june-2020--a-challenging-period,c3160799

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