First quarter 2020
· Order intake rose 17% to
· Net sales rose 14% to
· Operating profit before amortisation of intangible non-current assets attributable to acquisitions (EBITA) rose 15% to
· Profit for the quarter rose 11% to
· Cash flow from operating activities amounted to
CEO's message
Strong growth and stable earnings, but a great deal of uncertainty going forward.
First quarter
Overall, demand during the first quarter was strong even though there were significant variations across product types, segments and markets. Order intake rose 17%, of which 7% was organic. Performance of the Flow Technology business area was particularly favourable, with a rise in the order intake for companies with customers in the medical technology, pharmaceutical, marine and process industry segments. Order intake exceeded invoicing by 9% and was
Sales rose 14%, of which 3% was organic. Half of the eight business areas had organic growth, the strongest of which occurred in the Flow Technology and Benelux business areas. For the Benelux business area, the strong growth was primarily attributable to valves for power generation. The weakest performance was reported from companies in the Measurement &
Most of our companies reported higher profitability and four of our eight business areas reported an improved operating margin compared to the same quarter last year. The Group's EBITA increased by 15% to
During the first quarter, the overall impact of the covid-19 pandemic was limited. There was a significant increase in demand for a few of the companies in the medical technology segment. Besides that, the build-up of inventory at some of the industrial customers had a positive impact on companies in these segments. Many of our companies were negatively impacted by the countrywide lockdowns that occurred at the end of March, along with many major customers closing their production facilities, for example within the automotive and engineering industries. In conjunction with this, there was a radical decline in demand for some companies. In the
The Group's financial position is strong and it improved even further after the end of the quarter when
Acquisitions
The rate of acquisitions was high during the first quarter. In total, six acquisitions were made.
Despite the uncertain market situation, we are continuing to pursue our acquisition discussions. The processes have, however, slowed down as a result. Our intention is to make additional acquisitions during the coming quarters and we have discussions underway with several interesting companies.
Outlook
There is significant variation in the market situation for our companies and a great deal of uncertainty exists concerning the outlook for the next few quarters. At the start of the second quarter, order intake and sales were significantly lower. Even though demand for many of our companies continues to develop positively, our assessment is that the overall organic growth during the next quarter will be negative.
All of our companies that are experiencing a decline in order intake are working with various types of cost reduction measures and many have even temporarily laid off employees. All of the production units are operating, except for one in
A definite strength in such difficult times as these is our decentralised business model with entrepreneurial MDs who are given the authority to make independent, quick business decisions that are adapted to the prevailing challenges and opportunities. I am proud of how quickly our companies have acted to adapt their organisations, while maintaining focus on continuing to make deliveries and provide service to their customers.
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About
- High-tech products for recurring needs
- Growth through a structured and tried-and tested acquisition strategy
- A decentralised organisation characterised by an entrepreneurial spirit
The Group is organised into eight Business Areas: Benelux, DACH,
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