Fourth quarter
- Order intake decreased to 478.0 MSEK (602.8).
- Net sales amounted to 589.7 MSEK (588.6).
- EBIT was 61.5 MSEK (62.7).
- EBIT margin was 10.4 percent (10.7).
- Profit after tax decreased to 34.1 MSEK (51.1).
-
Earnings per share decreased to
1.18 SEK (1.77). - Free cash flow increased to 109 MSEK (57).
-
The Westermo business entity decided to establish itself in
India with a focus on growth in rail and energy. -
The
Beijer Electronics business entity completed strategy review; a decision on a new strategy is expected in the first quarter of 2024.
Full year
- Order intake decreased to 2,307.0 MSEK (2,552.0).
- Net sales increased by 16 percent to 2,470.6 MSEK (2,128.4).
- EBIT rose to 321.7 MSEK (201.1).
- EBIT margin increased to 13.0 percent (9.4).
- Profit after tax increased to 200.4 MSEK (146.4).
- Free cash flow increased to 118 MSEK (35).
-
Earnings per share improved to
6.93 SEK (5.07). -
The Board proposes a doubled dividend of
1.00 SEK (0.50) per share for 2023.
On
COMMENTS FROM CEO JENNY SJÖDAHL
"With the fourth quarter of 2023 behind us, we can sum up a new record year for the group in terms of sales, earnings and cash flow. A lot has happened during the year, where the key events were the appointment of a new CEO for the
Ependion's fourth quarter of 2023 landed on par with the corresponding period last year, which was in line with our expectation. The more mixed pattern in the development of our business that we saw already the second and third quarters also affected the past period. After some recordbreaking quarters, we are now seeing a period of weaker demand development, which reflects the uncertainty in the world economy. However, we still feel very confident that Ependion is on the right track, not least considering all the forward-looking activities in the business entities that have characterized both the period and the year.
The Group's order intake decreased to 478 MSEK for the period and both business entities recorded a lower order booking rate. For the full year, order intake amounted to 2,307 MSEK and Ependion had an order backlog of 1,247 MSEK at the end of the year. For Westermo, order intake decreased to 277 MSEK in the quarter, which is mainly due to adjustments to the large order volumes for the rail segment that were booked during the second quarter, but also to a generally weaker demand in other segments. The order backlog decreased, but still amounted to 936 MSEK at the end of the period. For
Ependion's sales for the period amounted to 590 MSEK, which is on par with the corresponding period last year. For the full year, sales increased to a new record level of 2,471 MSEK. Westermo's invoicing increased to 362 MSEK for the fourth quarter, driven by continued high delivery rates within all focus segments. During the period, the decision was made to establish a legal unit for sales and production in
The Group's EBIT for the fourth quarter landed at 61 MSEK -- marginally lower than for the corresponding period last year -- with an EBIT margin of 10.4 percent. We are of course not satisfied with this somewhat weaker level of profitability. For the full year, Ependion increased its EBIT to a new record level of 322 MSEK, corresponding to an EBIT margin of 13.0 percent. This means that we are taking a big step in the direction of reaching the financial profitability goal, while at the same time continuing the work of sharpening the business to take further steps.
For Westermo, EBIT increased to 56 MSEK and the EBIT margin to 15.4 percent. The business entity was temporarily negatively affected by a less favorable mix in invoicing during the period, at the same time significant investments have been made to strengthen the supply chain. For
Both business entities continue to maintain a high pace in product development work. In Westermo's case, it is about continuing to strengthen the product portfolios within both railways and energy, but also about enabling a more developed service business.
As a result of reduced capital tied up, free cash flow developed positively to 109 MSEK for the period, and the group thereby strengthens its financial position.
During the year, our sustainability work has accelerated, and the sustainability aspect has been integrated as a natural part of our business strategies and processes. While we have been preparing to meet new reporting requirements, great focus has also been on training employees and creating forums to drive initiatives that contribute to a lower climate footprint. The core of our business, robust and efficient products with a long lifespan and low energy consumption, has a clear advantage when sustainability becomes an increasingly important decision criterion for customers.
Looking at 2024, the external factors are still uncertain and geopolitical and economic developments can go both in a more positive and in a more negative direction. Our Comments from CEO
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https://news.cision.com/ependion-ab/r/financial-statement-2023-subdued-demand-ends-record-year,c3915465
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