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No. 17 2018 Quarterly Report Q3 2018

17 2018    ·    1. November, 2018

LEI: 21380031XTLI9X5MTY92

Q3 revenue and EBITA were slightly below expectations due to the development in Solar Sverige and Solar Norge. We change our guidance due to a slower than expected recovery in both Solar Sverige and Solar Norge.

CEO Jens Andersen says:
"We are still challenged by the development in Solar Sverige due to former structural changes in the sales organisation. Consequently, we implemented a new structure in the Swedish sales organisation in the third quarter. We believe that we now have the right structure in place but it will take some time before the effect is reflected in the results. Also in Solar Norge, we have seen negative organic growth mainly due loss of a contract. Despite good progress, we have not yet managed to compensate entirely for this. On a more positive note, we continue to see good development within our three strategic focus areas." 

Financial highlights
(DKK million)*
Q3 2018 Q3 2017 Q1-Q3 2018 Q1-Q3
Revenue 2,546 2,604 8,118 8,126
EBITA 90 93 208 210
Earnings before tax 67 69 172 216
Cash flow from operating activities -23 -4 -101 -270
Financial ratios (%)        
Organic growth adj. for number of working days -0.3 8.8 2.0 6.7
EBITA margin 3.5 3.6 2.6 2.6
Net working capital, period-end/revenue (LTM) 11.8 11.6 11.8 11.6
Gearing (NIBD/EBITDA), no. of times 2.1 1.9 2.1 1.9

* Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, 2017 and 2018 figures in this announcement relate to our continuing operations.

Q3 2018 revenue

  • Adjusted organic growth amounted to -0.3% against 8.8% in Q3 2017. Related business saw adjusted organic growth of 23.7%, while adjusted organic growth in core business amounted to -1.4%.

Q3 2018 EBITA

  • Compared to Q3 2017, EBITA from core business was down to DKK 99m from DKK 103m. This was slightly below expectations mainly due to the development in Solar Sverige.
  • EBITA for related business amounted to DKK -9m against DKK -10m in Q3 2017.


2018 outlook

  • Our total revenue guidance is now approx. DKK 11.1bn, corresponding to an organic growth of 2%, and the total EBITA guidance is approx. DKK 315m versus our previous revenue guidance of approx. DKK 11.4bn and EBITA guidance of approx. DKK 345m. See details in the tables.
  • For core business, we change our revenue guidance from approx. DKK 10.8bn to approx. DKK 10.5bn and our EBITA guidance from approx. DKK 375m to approx. DKK 345m.
  • The recovery in Solar Sverige has turned out to be slower than originally assumed, which together with the development in Solar Norge will contribute to a negative effect on revenue of approx. DKK 0.2bn.
  • Lowered revenue expectations combined with an expected negative impact from geographical and customer mix have a negative impact of approx. DKK 40m on EBITA.
  • We have managed to accelerate our cost containment programme delivering additional savings of approx. DKK 15m.


Revenue, DKK million

Core business Related business Solar Group
Guidance 09.08.2018 10,800 600 11,400
Expected growth reduction -200 - -200
Exchange rate adjustments -100 - -100
Guidance 01.11.2018 10,500 600 11,100

EBITA, DKK million

Core business Related business Solar Group
Guidance 09.08.2018 375 -30 345
Expected growth reduction and change of mix -40 - -40
Cost containment programme 15 - 15
Exchange rate adjustments -5 - -5
Guidance 01.11.2018 345 -30 315

Audio webcast and teleconference today
The presentation of Quarterly Report Q3 2018 will be conducted in English on 1 November 2018 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. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604

Yours faithfully,
Solar A/S

Jens Andersen

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

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

Director, Stakeholder Relations Charlotte Risskov Kræfting -
tel. +45 40 34 29 08

Enclosure: Quarterly Report Q3 2018, pages 1-33.

Facts about Solar
Solar Group is a leading sourcing and services company. Our core business centres on product sourcing, value-adding services and optimisation of our customers' businesses.

Being a sourcing and services company, we focus on each individual customer. We always strive to understand our customers' unique and genuine needs in order to provide relevant, personal and value-adding services, turning our customers into winners.

Solar Group is headquartered in Denmark, generated revenue of more than DKK 11bn in 2017 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.