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Solar A/S: Quarterly Report Q3 2020

Announcement 3 2020    ·    4. November, 2020

Solar delivered an EBITA increase of more than 25% in Q3, leading to an increased EBITA guidance of DKK 435m and supporting our target of minimum 4% core EBITA margin.

CEO Jens Andersen says:

“I want to thank our passionate and skilled employees, who continue to perform at a very high level even in times of uncertainty. They have helped to deliver 8 consecutive quarters of year over year growth in EBITA. 

We confirm our 2020 EBITA guidance of DKK 435m and revenue guidance of DKK 11,300m. We owe this to our gross profit margin initiatives, efficiency gains and cost containment.” 

Key financial messages

  • Gross profit margin increased in 4 consecutive quarters.
  • One-off income relating to an extraordinary price increase positively affected gross profit by approx. DKK 10m.
  • 2020 guidance: Revenue of DKK 11,300m and EBITA of DKK 435m.
Financial highlights
(DKK million)*
Q3 2020 Q3 2019 Q1-Q3 2020 Q1-Q3
Revenue 2,618 2,777 8,408 8,602
EBITA 132 105 310 245
Cash flow from operating activities 142 144 381 -5
Financial ratios (%)        
Organic growth adj. for number of working days -4.8 6.3 -0.8 5.8
EBITA margin 5.0 3.8 3.7 2.8
Net working capital, period-end/revenue (LTM) 11.9 12.6 11.9 12.6
Gearing (NIBD/EBITDA), no. of times 1.2 2.2 1.2 2.2
* Due to the divestment of our Norwegian training business, STI, in Q1 2019, 2019 and 2020 figures in this announcement relate to our continuing operations.

Q3 2020 Revenue

  • Adjusted organic growth amounted to -4.8% (6.3%), partly due to a decline in demand caused by COVID-19 and partly due to product pruning.

Q3 2020 EBITA

  • We succeeded in increasing EBITA by DKK 27m due to improved gross profit margin, efficiency gains and cost containment.
  • EBITA from core business was up at DKK 135m (DKK 111m) corresponding to an EBITA margin of 5.4% (4.2%).
  • As expected, Solar Nederland’s financial performance was affected by roll-out costs for SAP eWM of approx. DKK 3m.

BIMobject divestment

We divested our shareholding in BIMobject on 8 October 2020 for a total cash consideration of DKK 237m. The profit from the transaction amounts to approx. DKK 23m, which will be recognised in the income statement as “Impairment on associates” in Solar’s Q4 report. In H1 2017, the shares were acquired at DKK 172m.

2020 outlook

We confirm our guidance presented on 21 October 2020.

Guidance 2020 overview DKK million Guidance
Core business, revenue 10,750
Core business, EBITA 435
Related business, revenue 550
Related business, EBITA 0
Solar Group, revenue 11,300
Solar Group, EBITA 435

See detailed information on guidance assumptions on pages 11-12 in Quarterly Report Q3 2020.

Audio webcast and teleconference today
The presentation of Quarterly Report Q3 2020 will be made in English on 4 November 2020 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at Participation will be possible via a teleconference.

Teleconference call-in numbers:

DK: tel. +45 781 501 07
UK: tel. +44 333 300 9274
US: tel. +1 833 526 8398

CEO Jens Andersen - tel. +45 79 30 02 01

CFO Michael H. Jeppesen - tel. +45 79 30 02 62

CCO Hugo Dorph - tel. +45 28 72 00 80

IR Director Dennis Callesen - tel. +45 29 92 18 11

Enclosure: Quarterly Report Q3 2020, pages 1-31.

Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.

We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best in class solutions to ensure sustainable use of resources.

Solar Group is headquartered in Denmark, generated revenue of approx. DKK 11.7bn in 2019 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit

This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.



Dennis CallesenInvestor Relations Director