Strengthened profit and stabilized order intake
Third quarter 2023
Net sales amounted to SEK 2,339 million (2,386), down 2 percent. Organic growth amounted to a negative 13 percent.
Total order intake increased by 3 percent, while the order backlog had increased to SEK 2,428 million (2,420) as of September 30 .
Operating EBITA rose to SEK 308 million (297) and the operating EBITA margin rose to 13.2 percent (12.5).
Earnings per share amounted to SEK 3.25 (3.88).
Net debt amounted to a multiple of 1.1 in relation to operating EBITDA (0.8 excluding IFRS 16).
In July, Sidey Group in Scotland was acquired.
Fredrik Meuller appointed new President and CEO.
Net sales amounted to
Total order intake increased by 3 percent, while the order backlog had increased to
Operating EBITA rose to
Earnings per share amounted to
Net debt amounted to a multiple of 1.1 in relation to operating EBITDA (0.8 excluding IFRS 16).
In July,
January-
- Net sales amounted to
SEK 6,697 million (6,934), down 3 percent. Organic growth amounted to a negative 12 percent. -
Operating EBITA amounted to
SEK 737 million (775) and the operating EBITA margin amounted to 11.0 percent (11.2). -
Earnings per share amounted to
SEK 8.52 (9.62). - Return on operating capital amounted to 16.2 percent (17.9).
CEO comments:
It is with satisfaction we summarize the third quarter of 2023. We have managed to deliver the best third quarter profit to date, improving margins, stabilizing order intake and continuied to generate good cash flow under the prevailing market conditions, which I am satisfied with. Having implemented our largest acquisition to date, I am also pleased with our continued stable balance sheet. On the whole, I believe that these observations show
Investments in new construction have remained restrained, which we have noted mainly in
As far as our internal sustainability work is concerned, the unit-related KPIs are affected negatively by lower production volumes, while the continued improvement work results in the absolute figures showing a positive trend. A lot of work is also being put into preparing the organization and the business units for the Corporate Sustainability Reporting Directive, CSRD, which we will report for the 2024 financial year.
Clear improvements in three out of four business areas
Business Area Scandinavia operated in a continued weak market over the quarter, resulting in sales declining by 16 percent. The profitability trend is stable with a gradual improvement in the gross margin. We believe that the energy efficiency improvement subsidy which took effect in
Business Area Eastern Europe shows greatly increased profitability, resulting in an operating EBITA margin of 12.7 percent (9.0), driven by the full impact of price increases and the continued favorable adjustment of factory costs. The volumes are under pressure, however, which is illustrated by a 15 percent decline in sales over the quarter. It is primarily the new construction market in
Business Area e-Commerce operates in a weak market with consumers currently being cautious and it is therefore particularly pleasing that sales rose by 15 percent and that operating EBITA increased by 38 percent over the quarter. To maintain growth and recover margins, ongoing market investments are being made in both new and existing markets. The newly started operations in
Business Area Western Europe has been positively affected by the acquisition of
Future prospects
The third quarter was characterized by continued limited investment in new construction and a cautious consumer market. We know from experience, however, that tougher times provide scope for new opportunities. Our stable profitability, good cash flow and low debt allow us to remain focused on finding new opportunities to advance our positions, particularly through value generating acquisitions.
Higher interest rates and inflation in
MALMÖ,
President and CEO
This information is such that
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https://news.cision.com/inwido/r/interim-report--january-september-2023,c3859098
https://mb.cision.com/Main/883/3859098/2380445.pdf
https://news.cision.com/inwido/i/strandhus-alborg-danmark,c3228337
https://news.cision.com/inwido/i/henrik-hjalmarsson--inwido-ab,c3228338
https://news.cision.com/inwido/i/henrik-hjalmarsson-och-peter-welin,c3228339
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