Recovery in the service business generated growth in the quarter
- Net sales increased by 3% to
SEK 5,570 million (5,382) -
The order backlog was
SEK 14,908 million (14,952) -
EBITA rose by 3% to
SEK 327 million (317) - The EBITA margin was 5.9% (5.9)
-
Profit after tax was
SEK 246 million (238) -
Cash flow from operating activities was
SEK 317 million (728) -
Net debt amounted to
SEK -1,600 million (-1,185) -
Five acquisitions were completed in the quarter, adding annual sales of approximately
SEK 349 million -
Basic and diluted earnings per share were
SEK 1.23 (1.17)
CEO statement
Organic growth in
Net sales and EBITA margin
Given strong comparative figures and a continued negative impact from the pandemic, mainly in
Net sales increased by 3 percent in the quarter. Sales within service increased in all countries, while installation project volumes decreased in
The service business grew by 13 percent, contributing to organic growth of almost half a percentage point. We are reporting organic growth in all countries apart from
The lower production rate in the installation business was due to the weaker order intake in 2020. Some delays in project planning and start-up by customers also contributed to lower activity. The order backlog for installation projects grew by
The EBITA margin, which was unchanged at 5.9 percent, improved in
Cash flow
Operating cash flow decreased in the quarter. Last year cash flow reached a historic high, which was due to very low levels of working capital. This year we see a normalisation in the working capital in the first two quarters compared with last year, which is leading to lower cash flow from operating activities. Working capital in relation to net sales remains at a good level of -6.8 percent.
We also have some large outstanding receivables in
Acquisitions
So far in 2021, we have completed 10 acquisitions, including one in July, with total annual sales of around
As previously announced, we have signed a letter of intent to acquire the
Our assessment is that acquisition opportunities generally remain very good.
Sustainability
Our increased focus on sustainable services has resulted in the launch of GreenHub and Bravida Charge. GreenHub is a fossil-free service concept that we offer our customers in nine cities across the Nordic region. March saw the introduction of Bravida Charge, a complete solution for electric car charging and payment management. Demand is good and the first deliveries were made in the second quarter.
Our own climate footprint has the highest focus and as part of that, our fleet will consist of at least 30 percent fossil-free vehicles by 2025. More than 160 electric vehicles have been ordered so far this year.
Outlook
We are seeing a clear recovery in the service business and demand has normalised in the quarter, following a considerable decline in 2020 due to the pandemic. Demand for installations improved in the spring. The installation business is seeing growing demand for new-builds and the refurbishment of residential, industrial and warehouse buildings, as well as the remodelling and upgrading of office space.
As everyone is aware and as previously announced, raw material prices are rising sharply and there is a risk of material shortages in some areas.
The market outlook improved during the quarter and demand for sustainable low-carbon solutions will contribute to a growing market.
For further information, please contact:
Tel: +46 8 695 20 00
Åsa Neving, CFO Tel: + 46 8 695 22 87
IR Contact: peter.norstrom@bravida.se
The report will be presented at
Link to webcast
https://tv.streamfabriken.com/bravida-q2-2021
Telephone conference dial-in number
SE: +46850558356 (Local call)
US: +1 6319131422 (Local call PIN: 22491044#)
This disclosure contains information that
https://news.cision.com/bravida-holding-ab/r/interim-report-april-june-2021,c3385742
https://mb.cision.com/Main/8835/3385742/1445704.pdf
https://news.cision.com/bravida-holding-ab/i/bravida-4585,c2936735
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