Improved margin in a difficult market
Fourth quarter
- Net sales amounted to
SEK 2,273 million (2,613), down 13 percent. Organic growth amounted to negative 21 percent. -
Total order intake was unchanged, while the order backlog increased to
SEK 1,937 million (1,583) as ofDecember 31 . -
Operating EBITA amounted to
SEK 290 million (315) and the operating EBITA margin increased to 12.7 percent (12.1). -
Earnings per share amounted to
SEK 3.20 (4.11). - Net debt amounted to a multiple of 0.9 in relation to operating EBITDA (0.6 excluding IFRS 16).
Fredrik Meuller was appointed the new President and CEO and will be taking office onApril 10, 2024 . CFOPeter Welin is the acting President and CEO from the beginning of the year.
January-
- Net sales amounted to
SEK 8,970 million (9,547), down 6 percent. Organic growth amounted to negative 14 percent. -
Operating EBITA amounted to
SEK 1,027 million (1,090) and the operating EBITA margin was 11.4 percent, unchanged compared with the preceding year. -
Cash flow from operating activities strengthened to
SEK,153 million (1,071). - Return on operating capital amounted to 15.4 percent (18.3).
-
Earnings per share amounted to
SEK 11.72 (13.74). -
The Board of Directors proposes a dividend of
SEK 6.50 (6.50).
CEO comments:
After more than 25 years in the company, I am writing my first CEO's comments, and I can state that the the rapid decline in volume witnessed in the market in 2023 is extraordinary and something I have never seen before. The slowdown, which is primarily associated with new build in
During the last quarter of the year, net sales were down 13 percent (negative 21 percent organically) to
As regards financial targets, our return on operating capital decreased to 15.4 percent, although it is still above the target of 15 percent. In the key ratios for sustainability work, unit-related figures are being challenged by lower production volumes. The key ratios for health, safety and sick leave improved in the quarter. It is gratifying to note that the 75 percent target for employee satisfaction was achieved in the Group's annual employee survey,
Business Area Scandinavia operated in a continued weak market over the quarter, resulting in sales decreasing by 21 percent. The profitability trend was stable with a gradual improvement in the gross margin. The operating EBITA margin was largely unchanged at 15.0 percent (14.8), compared with the corresponding quarter last year.
Business Area Eastern Europe shows significantly increased profitability, resulting in an operating EBITA margin of 14.5 percent (11.0), driven by the full impact of price increases and the continued favorable cost control and adjustment of plant costs.
The volumes were under great pressure, however, which is illustrated by a 34 percent decline in sales over the quarter. It is primarily the new build market in
Business area e-Commerce operates in a highly competitive market. Sales and order intake were unchanged in the quarter, while the margin decreased to 5.0 percent (8.6).
Business Area Western Europe was also positively impacted during the fourth quarter by the recently acquired
Outlook
In the short term, we are anticipating a market that will remain challenging with low activity in relation to new build and
consumers, and which, in addition to the general market situation, is being affected by the unusually cold and snowy winter. There are positive signs, however, namely that interest rates appear to have peaked and inflation is dropping back. Our task is to maintain good cost control and be flexible in our planning, at the same time as driving the initiatives that will develop the business.
The outlook in the slightly longer term remains positive, and the green transition is promoting growth. There is a great deal of interest in energy efficiency, both among consumers and politicians.
MALMÖ,
This information is such that
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https://news.cision.com/inwido/r/year-end-report-january---december-2023,c3906917
https://mb.cision.com/Main/883/3906917/2589562.pdf
https://news.cision.com/inwido/i/strandhus-alborg-danmark,c3256561
https://news.cision.com/inwido/i/peter-welin-inwidoab-sq,c3256565
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