JØTUL HOLDINGS SA - INTERIM REPORT Q3 - 30. SEPTEMBER 2020

YTD Q3 2020, the Jotul Group reached a consolidated profit of MNOK -123 (Q3 2019: MNOK -46.3). The operating result totaled MNOK -72.9. YTD Q3 2020 (Q3 2019: MNOK 0). The 2020 total comprehensive loss for YTD Q3 was MNOK -105.6 (Q3 2019: MNOK -47.9).

Sales for the period declined by 7.9% to MNOK 583.7 YTD Q3 2020 (Q3 2019 MNOK 633.8), mainly driven from output capacity from the new production facility in Poland and impact of COVID-19 in the first 6 months of the financial year. The impact of the Corona pandemic is less than initially anticipated and the third quarters showed a strong recovery in terms of order intake, up from MNOK 234 in Q3 2019 to MNOK 299 in Q3 2020. Total order book as per Q3 2020 was MNOK 138 (Q3 2019: MNOK 55). The decline in sales from the European markets is related to production capacity at the new Polish plant. The decline in sales from the North America market is related the furlough scheme implemented in May/June and the stronger than expected demand in the market to meet production output.

In several of our main markets the pandemic initially impacted demand and productions as well as lack of delivery from several suppliers, due to COVID-19 close down. However, we have seen as strong re-bounce in the markets, particularly in Q3, both the Scandinavian and European markets, but also in the North American market.

In light of the outbreak, we have implemented comprehensive mitigation actions. In addition to furloughs for employees affected by reduced activity, we have strengthened our management processes to monitor our working capital. We have currently no furlough schemes implemented in any of the operations. Where there are government restrictions in place for office work, home office has been made available. Jotul Holdings SA Financial report for the period from 1 January to 30 September 2020 15

The plant in Poland is currently operating below anticipated output capacity, which is related to the planed knowledge transfer being subdued to the COVID-19 outbreak as well as other operational related issues. It is essential to return on the expected production plans to meet the target for year-end. We estimate a landing on total sales or around MNOK 900, a decline of 6% compared to 2019.

EBITDA (Earnings before interests, taxes, depreciation, and amortizations: Operating Result less Depreciations) was MNOK -10.6 in the first nine months of 2020 (Q3 2019: MNOK 61.8). This contains effect of non-recurring items of MNOK 38.1 YTD Q3 (Q3 2019: MNOK 29.8). Adjusted EBITDA (net of non-recurring items) was MNOK 27.5 YTD Q3 2020 (Q3 2019: MNOK 91.6). In Q3 of 2020 non-recurring cost of MNOK 8.1 are primarily related to the relocation project and transfer of production and assembly from Norway and Denmark to the new operations in Poland.

The Group’s capital investments in Q3 2020 amounted to MNOK 12.3 compared to MNOK 17.4 in Q3 2019. The increase is related to investments in the new factory in Poland. Jotul France acquired Aico France end of June 2019, and this entity had its first full-quarter effect on group financials in Q3 2019. The company contributed with MNOK 9.4 to net revenue and MNOK 1.0 to EBITDA in the first nine months of 2020.

As of Q3 2020, the Group had an average of 489 full-time employees (Q3 2019: an average of 538 full-time employees).  

For further information, please contact:
Nils Agnar Brunborg, CEO
Telephone: +47 906 05 578
Email: Nils.Brunborg@jotul.no

The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CEST on 27 November 2020. 

Attachment

• Interim Report Q3 YTD 2020 - Jøtul Group_English