Stable returns in spite of headwinds from input price inflation and job sites delays
Third quarter of 2021
- Consolidated net sales increased by 10 percent to
SEK 1,003 m (916), of which organic growth amounted to 1 percent, acquisitions with 9 percent and currency had a negative impact of -1 percent - Net sales in Product & Solutions amounted to
SEK 746 m (694) and in Installation Services toSEK 281 m (249) - Gross profit increased to
SEK 298 m (283),
Gross margin decreased to 29.8% (30.9%) - EBITDA increased to
SEK 176 m (164),
EBITDA margin decreased to 17.5% (17.9%) - Operating profit (EBIT) increased to
SEK 140 m (133),
EBIT margin decreased to 14.0% (14.6%) - ROCE increased to 17.1 percent (15.6)
- Cash flow from operating activities amounted to
SEK 101 m (250) - Earnings per share before and after dilution were
SEK 3.58 (4.10) andSEK 3.56 (4.07), respectively
January-
- Consolidated net sales increased by 9 percent to
SEK 2,774 m (2,534), of which organic growth amounted to 4 percent, acquisitions with 8 percent and currency had a negative impact of -2 percent - Net sales in Product & Solutions amounted to
SEK 2,159 m (1,986) and in Installation Services toSEK 680 m (628) - Gross profit increased to
SEK 809 m (722),
Gross margin increased to 29.2% (28.5%) - EBITDA increased to
SEK 418 m (361),
EBITDA margin increased to 15.1% (14.3%) - Operating profit (EBIT) increased to
SEK 323 m (272),
EBIT margin increased to 11.6% (10.7%) - Cash flow from operating activities amounted to
SEK 127 m (279) - Earnings per share before and after dilution were
SEK 8.89 (8.28) andSEK 8.83 (8.21), respectively
Message from the CEO
Stable returns in spite of headwinds from input price inflation and job sites delays
Consolidated net sales in the third quarter increased by 10 percent compared to the previous year, from
EBIT for the third quarter amounted to
Dramatic increases in input prices have had a negative effect on both business segments. In Products & Solutions we are in the process of absorbing these through a series of sales price increases, allbeit with a time lag of several weeks. In Installation Services, we expect a degree of margin compression to remain in the foreseeable future.
We have acquired the Finnish company Ripatti during the quarter, bringing the total number of acquisitions this year to 7.
The net sales organic growth of 1 percent (2) in the third quarter are explained by good sales in the Products & Solutions operating segment, which organically grew 4 percent (7) while the Installation Services operating segment decreased organically by -8 percent (-2).
In the Products & Solutions operating segment, the Bitumen-based waterproofing business showed double-digit growth in
The Taasinge group, our prefabricated wooden elements business, had a strong double-digit growth compared to the previous year. The profit improvement program has resulted in a turn-around within the
The sales development for our green urban environment businesses, sold under the brands Veg Tech and
In the Installation Services operating segment, where sales are mainly generated in
Our Danish franchisees continue to experience a stable and strong market and during the third quarter had an EBIT contribution somewhat below last year and an order book well exceeding the level of last year.
During the quarter we have closed the acquisitions of
We continue to focus on organic growth, profitability, sustainability, and selective acquisitions. Our balance sheet is strong, and we continue to have the capacity to carry out acquisitions. We have a strategic focus to promote sustainable building solutions and enhance our service and product portfolio.
Helsingborg,
President and CEO
Conference call
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