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    ALLIGO B   SE0009922305

ALLIGO AB (PUBL)

(ALLIGO B)
  Report
Delayed Nasdaq Stockholm  -  11:29 2022-10-04 am EDT
78.30 SEK   +1.16%
10/03Invitation to presentation of Alligo's Interim Report for the third quarter 2022
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08/31Alligo : Corporate Governance Report
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08/22Alligo Acquires Norwegian Retailer LVH
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Alligo : Momentum Group Interim Report Q2 2022 WebRapportpuff Q2 Eng

07/14/2022 | 02:14am EDT

Momentum Group AB (publ)

Interim Report

1 Jan - 30 Jun 2022

022

Summary

Momentum Group / Interim Report 1 Jan-30 Jun 2022    2

Business situation remains stable and positive earnings trend

Content

Summary

President's statement

Group financial development

Components business area

Services business area

Financial position

Business combinations

Other

Board of Directors

Consolidated financial statements Parent Company financial statements

The second quarter of the year was characterised by continued favourable demand in both business areas, a shortage of components, acquisitions and a focus on organic improvement measures. The Group reported organic sales growth which, combined with good cost control and well-managed price increases from suppliers, led to an increase in EBITA of 23 per cent compared with the second quarter last year.

Second quarter 2022

  • Revenue increased by 13 per cent to SEK 446 million (396), of which 8 per cent was for comparable units.
  • Operating profit rose by 17 per cent to SEK 49 million (42), corresponding to an operating margin of 11.0 per cent (10.6). Profit included expenses affecting comparability of SEK -2 million attributable to the separate listing process.
  • EBITA increased by 23 per cent to SEK 54 million (44), corresponding to an EBITA margin of 12.1 per cent (11.1).
  • Profit for the quarter increased by 23 per cent to SEK 37 million (30), corresponding to earnings per share of SEK 0.70 (0.60).
  • Acquisition of HNC Group, a leading player in solutions for industrial automation in Denmark.
  • Decision to implement a share buyback program sup- ported by the authorisation granted by the Annual General Meeting. As of 30 June, 1,000,000 Class B shares had been bought back.

January-June 2022

Revenue increased by 13 per cent to SEK 845 million

(746), of which 9 per cent was for comparable units.

Operating profit rose by 12 per cent to SEK 86 million

(77), corresponding to an operating margin of 10.2 per

cent (10.3). Profit included expenses affecting compa-

rability of SEK -6 million attributable to the separate

listing process.

EBITA increased by 21 per cent to SEK 98 million (81),

corresponding to an EBITA margin of 11.6 per cent (10.9).

Notes

Performance measures About Momentum Group

Download PDF for print 

Q2

Jan-Jun

R12 Jun

2022

2021

2022

2021

2022

2021

Revenue

446

396

13%

845

746

13%

1,590

1,298

22%

Operating profit

49

42

17%

86

77

12%

164

141

16%

of which: Items affecting comparability

-2

-

-6

-

-12

-

of which: Amortisation of intangible assets

-3

-2

-6

-4

-12

-6

in connection with acquisitions

EBITA

54

44

23%

98

81

21%

188

147

28%

Net profit

37

30

23%

65

57

14%

125

106

18%

Earnings per share before and after dilution, SEK

0.70

0.60

17%

1.25

1.15

9%

2.40

2.10

14%

Operating margin

11.0%

10.6%

10.2%

10.3%

10.3%

10.9%

EBITA margin

12.1%

11.1%

11.6%

10.9%

11.8%

11.3%

Return on working capital (EBITA/WC)

62%

58%

Equity/assets ratio

44%

35%

A quarterly presentation will be available on the company's website, momentum.group, where CEO Ulf Lilius and CFO Niklas Enmark present the report and provide an update on operations.

Profit for the period increased by 14 per cent to SEK 65

million (57), corresponding to earnings per share of

SEK 1.25 (1.15).

The return on working capital (EBITA/WC) was 62 per

cent (58).

The equity/assets ratio was 44 per cent (35) at the end

of the period.

Momentum Group was distributed from Alligo AB and

listed on Nasdaq Stockholm's main list on 31 March.

Events after the end of the period

  • Acquisition of Mytolerans, which offers products and services in measurement technology for Swedish in- dustry.

Content

Summary

President's statement Group financial development Components business area

President's statement

Momentum Group / Interim Report 1 Jan-30 Jun 2022    3

Continued focus on acquisitions creates development opportunities for the future

Demand during the quarter was favourable, despite a turbulent operating environment. Our companies have continuously succeeded in managing rising raw material prices and shipping costs as well as component shortages through price adjustments and being creative when it comes to delivery routes and suppliers. Overall, this meant that revenue for the second quarter increased 13 per cent year-on- year, of which 8 per cent for comparable units, with EBITA growth of 23 per cent.

Services business area

Financial position

Business combinations

Other

Board of Directors

Consolidated financial statements Parent Company financial statements Notes

Performance measures

About Momentum Group

Download PDF for print 

This favourable volume and earnings growth is a result of well-established customer and supplier relation- ships, with our companies experiencing a high level of customer activity since restrictions were eased.

However, uncertainty has increased as a result of the geopolitical situation and the war in Ukraine. We do not have, and have not had, any direct business with Russia or Ukraine, but the indirect effects of the crisis and what will happen in the future are difficult to predict.

Continued focus on the right acquisitions

In both of our business areas, we are continuing to evaluate attractive acquisition opportunities that can further strengthen our position.

During the quarter, we closed the acquisition of HNC Group, a well-established company with strong customer relationships with Danish industry and dedi- cated, talented employees. The acquisition has enabled us to broaden the Group's geographic presence and gain access to a strong offering in highly familiar product verticals. We therefore anticipate many opportunities for further development, growth and acquisitions in industrial components in the Danish market.

Development of existing operations

During the quarter, the subsidiary Momentum Industrial decided to establish a new unit in Kiruna, Sweden, with sales, technical expertise and local warehousing.

Demand for our products and services from industrial customers in the region has increased significantly in recent years. The unit in Kiruna will open in the first quarter of 2023 with the aim of increasing local availability and service for both existing and new customers. The establishment in Kiruna will be the second this year after Mo i Rana in Norway and brings Momentum Industrial's total number of district offices to 33.

"In both of our business

areas, we are continuing to

evaluate attractive acquisition opportunities that can further strengthen our position."

ULF LILIUS

Acquisitions and development of existing operations constitute an important part of Momentum Group's growth strategy, and we have a well-established process for acquiring and welcoming new companies to

our Group. The fact that the people at the acquired companies want to remain as owners and develop with us is proof of this, and this is also one of the reasons why we repurchased shares during the quarter - to enable future acquisitions of businesses and operations to be paid for using treasury shares.

Stockholm, July 2022

Ulf Lilius

President & CEO

Group financial development

Sales performance

Momentum Group / Interim Report 1 Jan-30 Jun 2022    4

Content

Summary

President's statement

Group financial development Components business area Services business area Financial position Business combinations Other

Board of Directors

Consolidated financial statements Parent Company financial statements Notes

Comments on the market

General demand was favourable during the second quarter. The Group experienced a favourable sales trend and demand for the companies' products and services. The turbulence characterising the external environment including sharp price increases, a deteriorating security situation marked by war in Ukraine and interest-rate increases have not yet had any tangible impact on customer behaviour. The shortage of components that characterised the year has stabilised, but is still causing long delivery times. However, the com- panies' customers have been understanding of the situation and we are nevertheless maintaining high delivery capacity. The Group has successfully offset price increases from suppliers.

The continued global impact of COVID-19, the security situation and the possibility of an economic

downturn are expected to impact the market going forward. The Group is therefore implementing ongoing measures in its operations to adapt them to the prevailing demand situation. As in the past, the Group's decentralised structure, with decisions made close to customers and suppliers, has proven to be a major strength in this regard.

The current situation has not led to any changes in material assessments compared with those applied in the prospectus for admission to trading of the com- pany's Class B shares published in March 2022.

Performance in the second quarter of 2022

The sales trend was positive during the second quarter for both business areas. The operations worked proac- tively to secure the best possible delivery capacity and offset increases in purchase prices and shipping costs.

During the second quarter, revenue increased 13 per cent compared with the year-earlier period and amounted to SEK 446 million (396). Growth in comparable units was about 8 per cent. HNC Group was acquired during the quarter, and closing took place on 1 June 2022. The quarter included one trading day less than the corresponding quarter in the preceding year.

Performance in the January-June 2022 period

Revenue rose 13 per cent to SEK 845 million (746). The increase in revenue for comparable units was approximately 9 per cent. Exchange-rate translation effects had an impact of SEK 1 million on revenue. The reporting period contained the same number of trading days as the year-earlier period.

Performance measures About Momentum Group

Download PDF for print 

Growth in comparable units

Sales performance

vs Q2 2021

Q2

Jan-Jun

%

2022

2022

+8%

Comparable units in local currency

7.8%

9.4%

Currency effects

0.3%

0.1%

Number of trading days

-1.5%

0.0%

Acquisitions

6.1%

3.8%

Total change

12.7%

13.3%

Group financial development

Momentum Group / Interim Report 1 Jan-30 Jun 2022    5

Earnings performance

Content

Summary

President's statement

Group financial development Components business area Services business area Financial position Business combinations Other

Board of Directors

Consolidated financial statements Parent Company financial statements Notes

Performance measures

Second quarter 2022

Operating profit rose by 17 per cent to SEK 49 million (42), corresponding to an operating margin of 11.0 per cent (10.6). Operating profit included expenses affecting comparability of SEK -2 million (-) related to the separate listing, which mainly pertained to final advisory and review costs.

Operating profit was charged with amortisation of intangible non-current assets of SEK -3 million (-2) arising in conjunction with acquisitions and with depreciation of right-of-use assets and tangible non-current assets of SEK -13 million (-11). No exchange-rate translation effects impacted operating profit (0).

EBITA increased by 23 per cent to SEK 54 million (44), corresponding to an EBITA margin of 12.1 per cent (11.1).

Profit after financial items totalled SEK 46 million (39) and profit after tax amounted to SEK 37 million (30), which corresponds to earnings per share of SEK 0.70 (0.60) for the quarter.

January-June 2022 period

Operating profit rose by 12 per cent to SEK 86 million (77), corresponding to an operating margin of 10.2 per cent (10.3). Operating profit included expenses affecting comparability of SEK -6 million (-) related to the separate listing. The listing project was concluded during the second quarter and costs totalled SEK -12 million for 2021- 2022.

Operating profit was charged with amortisation of intangible non-current assets of SEK -6 million (-4) arising in conjunction with acquisitions and with depreciation of right-of-use assets and tangible non-current assets of SEK -25 million (-20). No exchange-rate translation effects impacted operating profit (0).

EBITA increased by 21 per cent to SEK 98 million (81), corresponding to an EBITA margin of 11.6 per cent (10.9).

Profit after financial items totalled SEK 82 million (73) and profit after tax amounted to SEK 65 million (57), which corresponds to earnings per share of SEK 1.25 (1.15) for the reporting period.

500

1,800

450

1,600

400

1,400

350

1,200

300

1,000

250

800

200

600

150

400

100

50

200

0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2021

2022

Revenue per quarter

Revenue R12

About Momentum Group

Download PDF for print 

Q2

Jan-Jun

R12 Jun

MSEK

2022

2021

2022

2021

2022

2021

Revenue

446

396

13%

845

746

13%

1,590

1,298

22%

of which: Components

358

321

12%

680

620

10%

1,269

1,144

11%

of which: Services

93

78

19%

175

132

33%

338

164

106%

of which: Group-wide and eliminations

-5

-3

-10

-6

-17

-10

Operating profit

49

42

17%

86

77

12%

164

141

16%

EBITA

54

44

23%

98

81

21%

188

147

28%

of which: Components

50

47

6%

92

86

7%

177

163

9%

of which: Services

9

3

200%

16

7

129%

34

12

183%

of which: Group-wide and eliminations

-5

-6

-10

-12

-23

-28

Operating margin

11.0%

10.6%

10.2%

10.3%

10.3%

10.9%

EBITA margin

12.1%

11.1%

11.6%

10.9%

11.8%

11.3%

60

200

50

150

40

30

100

20

50

10

0

0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2021

2022

EBITA per quarter

EBIT per quarter

EBITA R12

EBIT R12

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Alligo AB published this content on 14 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2022 06:13:03 UTC.


ę Publicnow 2022
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Financials
Sales 2022 8 888 M 818 M 818 M
Net income 2022 452 M 41,6 M 41,6 M
Net Debt 2022 2 294 M 211 M 211 M
P/E ratio 2022 8,66x
Yield 2022 4,15%
Capitalization 3 953 M 364 M 364 M
EV / Sales 2022 0,70x
EV / Sales 2023 0,64x
Nbr of Employees 2 314
Free-Float 41,9%
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Number of Analysts 2
Last Close Price 78,30 SEK
Average target price 147,50 SEK
Spread / Average Target 88,4%
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Ulf Lilius President & Chief Executive Officer
Irene Christina Wisenborn Bellander Chief Financial Officer & Executive Vice President
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