Silmäasema Oyj Financial Statements Release 1 January - 31 December 2018
Silmäasema Oyj
Stock Exchange Release
7 March 2019 at 8:00 a.m. EET
Silmäasema's profitability improved towards the end of the year; its full-year adjusted EBITDA was at the previous year's level
Silmäasema arranges today news conference and conference call for media and analysts at 10:30 am Finnish time. Details of the events can be found at the end of this release.
This is a summary Silmäasema's Financial Statements Release 2018. The complete report is attached to this release and also available at https://company.silmaasema.fi/en/
October-December 2018 in brief:
- Net sales increased by 4.9% compared to October-December 2017, amounting to EUR 32.4 million (30.9).
- Like-for-like net sales were at the previous year's level.
- The adjusted EBITDA increased by 27.0% and was EUR 3.5 million (2.8), or 10.9% of net sales (9.0%).
- The adjusted operating result increased by 43.1% to EUR 2.0 million (1.4).
- Earnings per share were EUR 0.08 (0.06).
January-December 2018 in brief:
- Net sales increased by 3.8% on 2017 and amounted to EUR 122.9 million (118.3).
- Like-for-like net sales decreased by 1.6%.
- The adjusted EBITDA was at the previous year's level, at EUR 11.8 million (11.8), or 9.6% of net sales (9.9%).
- The adjusted operating result decreased by 9.7% to EUR 5.8 million (6.5).
- Cash flow from business operations increased to EUR 13.1 million (5.0).
- The net debt to adjusted EBITDA ratio on 31 December 2018 was 2.4 (2.9).
- Earnings per share were EUR 0.23 (-0.05).
The financial statement figures for 2017 and 2018 are audited. The quarterly figures are unaudited. The figures in parenthesis refer to the comparable period in 2017, and "comparison period" refers to the comparable period in the previous year, unless otherwise mentioned.
Proposed dividend
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.10 per share be paid for the 2018 financial year.
Outlook for 2019
Silmäasema expects its full-year like-for-like net sales to be at the previous year's level and its adjusted EBITDA margin to be at the previous year's level or slightly better (2018: 9.6%), excluding the effect of the IFRS 16 standard, which was adopted at the beginning of 2019.
Key figures
| EUR thousand, unless otherwise stated | 10-12 2018 | 10-12 2017 | Change % | 1-12 2018 | 1-12 2017 | Change % |
| Net sales | 32,353 | 30,850 | 4.9 % | 122,873 | 118,322 | 3.8 % |
| Like-for-like net sales growth, % | 0.0 % | 0.4 % | -1.6 % | 3.5 % | ||
| EBITDA | 3,131 | 2,320 | 35.0 % | 11,443 | 6,894 | 66.0 % |
| Adjusted EBITDA* | 3,535 | 2,783 | 27.0 % | 11,765 | 11,760 | 0.0 % |
| - adjusted EBITDA, % | 10.9 % | 9.0 % | 9.6 % | 9.9 % | ||
| Operating result | 1,577 | 912 | 72.9 % | 5,492 | 1,589 | 245.7 % |
| Adjusted operating result* | 1,981 | 1,385 | 43.1 % | 5,844 | 6,472 | -9.7 % |
| - adjusted operating result, % | 6.1 % | 4.5 % | 4.8 % | 5.5 % | ||
| Basic earnings per share, EUR | 0.08 | 0.06 | 0.23 | -0.05 | ||
| Net debt / adjusted EBITDA | 2.4 | 2.9 | ||||
| Investments - operational | 6,716 | 6,058 | 10.9 % | |||
| Investments - acquisitions | 1,775 | 6,699 | -73.5 % | |||
| Investments - total | 8,491 | 12,757 | -33.4 % | |||
| Number of locations, Silmäasema chain | 181 | 172 | 5.2 % |
* Silmäasema presents both its adjusted EBITDA and adjusted operating result, which have been adjusted for significant extraordinary items. It is the company's view that the adjusted EBITDA best illustrates the profitability development of its business operations.
CEO Jussi Salminen:
Silmäasema continued its controlled growth in 2018. We opened eight new optical retail stores in Finland and one in Estonia, in addition to a new eye clinic in Oulu. As previously announced, we have shifted our focus from strong network growth towards improving location-specific sales and profitability, as well as network development. With regard to this focus, we are also exploring opportunities to grow and introduce new services and business models related to good eyesight.
Silmäasema's total net sales grew by 4.9% to EUR 32.4 million in the fourth quarter and by 3.8% to EUR 122.9 million in 2018. The Group's adjusted EBITDA developed very favourably during the fourth quarter of 2018, increasing by 27% year-on-year to EUR 3.5 million as a result of highly successful optical retail trade. Consequently, Silmäasema's full-year adjusted EBITDA reached the previous year's level, EUR 11.8 million.
During the fourth quarter of 2018, the strong development of net sales and EBITDA was mainly driven by a good level of commercial success in optical retail, in addition to the positive effect of favourable development of purchase prices on the sales margin. The new eye clinic opened in Oulu in February is off to a strong start, with good net sales development during the year. The full-year adjusted EBITDA was burdened by expenses related to opening new units, in addition to net sales developing more slowly than expected during the first half of the year, particularly for new stores.
Despite the good development during the second half of the year, we cannot be satisfied with our like-for-like net sales decreasing by 1.6% in 2018. The Optical Retail segment's like-for-like net sales decreased year-on-year in January-September, but its full-year like-for-like net sales were at the previous year's level, thanks to strong development in October-December. In the Eye Clinics segment, procedure volumes for units opened before 2018 were lower than in the previous year, and the segment's like-for-like net sales decreased as well. At the annual level, the number of cataract surgeries increased slightly, but the number of refractive surgeries and other procedures decreased year-on-year. We have analysed the factors explaining the weak development of our procedure volumes. To increase our volumes and strengthen our market share, we will actively develop our customer acquisition process and operating model in 2019, to name just two examples. Over the longer term, the market for optical retail and eye clinic services will grow because of the ageing population and increasing demand for health and well-being services. This will also increase demand for Silmäasema's services.
In 2019, we will focus on improving profitability and efficiency and developing new target groups and business models. Our strategic focuses for 2019 include improving our operating conditions, developing network and improving our profitability.
During the review period, we started looking into measures that will enable us to accelerate productivity and profitability improvement in 2019-2020. A study on detailed measures is in progress, and we expect the first measures to have a visible effect on our result towards the end of 2019. We have also continued planning the information system renewals related to Silmäasema's development programme. Our information system acquisition process started at the beginning of 2019.
Silmäasema is a Finnish expert in good eyesight. We are the largest private eye healthcare provider and the second largest chain of optical stores in Finland. We work to be the best partner for consumers and companies, as well as contributing to the development of our sector as a whole. I am inspired by this opportunity to manage Silmäasema as it responds to eye care needs in a customer-focused, innovative and profitable manner.
The Board of Directors' proposal for the distribution of profits
On 31 December 2018, the parent company's distributable funds totalled EUR 42,580,664.52, including the profit for the period, which is EUR 1,483,443.92.
The Board of Directors proposes to the Annual General Meeting, on 10 April 2019, that a dividend of EUR 0.10 per share be paid on the basis of the balance sheet to be adopted for the financial year 1 January - 31 December 2018. The Board of Directors proposes that a total of EUR 1,424,880.50 of the distributable funds be distributed as dividend and that remaining EUR 41,155,784.02 be left in equity.
Annual General Meeting
Silmäasema's Annual General Meeting will be held at the Finlandia Hall in Helsinki on 10 April 2019 at 1 p.m. The Board of Directors will convene the meeting by means of a separate stock exchange release.
Audiocast and conference call for investment analysts and press
A briefing for investment analysts and the media will be arranged on Thursday 7 March 2019 at 10:30 a.m. EET through a live audiocast combined with a conference call. The briefing will be hosted by CEO Jussi Salminen and CFO Anu Kankkunen.
Link to the audiocast is: https://silmaasema.videosync.fi/2018-financial-statement-release
Conference call numbers:
Finland +358 9 817 103 10
United Kingdom +44 333 300 0804
United States +1 631 9131 422
Sweden +46 856 642 651
The participants joining the news conference will be asked to provide the following PIN code: 77721586#
Recording of the audiocast and conference call as well as Finnish audiocast presentations will be later available on the company's website.
Silmäasema's Financial Reporting in 2019
Full financial statements
and Board's report 2019 Week beginning 18 March 2019 (week 12)
Annual General Meeting 10 April 2019
Interim Report January - March 17 May 2019
Half Year Financial Report 16 August 2019
Interim Report January - September 8 November 2019
SILMÄASEMA OYJ
Board of Directors
Additional information
CEO Jussi Salminen, tel. +358 40 834 5818, jussi.m.salminen(a)silmaasema.fi
CFO Anu Kankkunen, tel. +358 50 669 69, anu.kankkunen(a)silmaasema.fi
Acting Head of Communications and Investor Relations Mikko Merisaari, tel. +358 50 521 4055, mikko.merisaari(a)silmaasema.fi
Silmäasema is a Finnish company, which offers all products and services for optical retail and eye healthcare nationwide. Silmäasema is the largest private eye clinic provider offering eye surgeries and the second largest optical retail chain in Finland. The Silmäasema chain has over 150 stores and 14 eye clinics in Finland as well as ten stores in Estonia. The Silmäasema chain employs over 700 eye healthcare professionals. Silmäasema's Group net sales were EUR 122,9 million in 2018 and adjusted EBITDA was EUR 11.8 million.
