Press release
The report is available on the company's website: www.sdiptech.se
GOOD DEMAND, STRENGTHENED MARGINS AND EXTRA STRONG ACQUISITION PIPELINE
FIRST QUARTER 2022
- Net sales increased by 19% to
SEK 783.7 million (658.3). In total for the Group, organic sales growth was 13.3%, including a currency effect of 5.1%. - Operating profit EBITA* increased by 25% to
SEK 144.9 million (116.1), corresponding to an EBITA* margin of 18.5% (17.6). Organic EBITA* growth for the Group was 4.0%, including a currency effect of 5,2%. - Operating profit, EBIT, increased by 34% and amounted to
SEK 121.9 million (90.7). - Profit after tax for the Group amounted to
SEK 76.1 million (64.2) during the period, of which 76.1 million (62.7) was attributable to the Parent Company’s shareholders. - Cash flow from operating activities amounted to
SEK 114.5 million (39.4), corresponding to a cash conversion of 73% (67). - Earnings per ordinary share (average number), less minority interests and dividends on preference shares, amounted to
SEK 2.04 (1.74). After dilution, earnings per ordinary share amounted toSEK 2.03 (1.72). - On 31 January,
Sdiptech acquired all shares in Agrosistemi Srl. The acquisition is the Group’s first business unit inItaly . - On 25 March,
Sdiptech acquired 91% of the shares inTemperature Electronics Ltd andTEL UK Ltd. The acquisition is the Group’s tenth business unit inUK . - On
March 8 , management subscribed for 216,100 newly issued class B Sdiptech shares, which constituted the exercise of the long-term incentive program with warrants of series 2018/2022. The issue entails that the company has receivedSEK 14.5 million in equity. The total outstanding number of class B shares after the issue amounts to 33,580,027. - The business area Water & Energy changes name to Resource Efficiency as of
January 2022 . This is due to adding bioeconomy and waste management to the previous areas of water and sanitation as well as power and energy.
EVENTS AFTER REPORTING DATE
- No significant events are noted
COMMENTS BY THE CEO
The demand for Sdiptech’s products remains good and the organic sales growth, excluding currency effects, was 8.2 percent in the quarter. Our view of a continued strengthening of margins during 2022 is unchanged, even though purchasing costs increased more than expected during the quarter. Sdiptech’s acquisition pipeline is stronger than normal, which gives us the opportunity to reach this year´s acquisition target ahead of time.
THE QUARTER
The start of 2022 will always be associated with the Russian invasion of
Demand from our customers remains strong and the Group reported organic sales growth of +8.2 percent, excluding currency effects. This was despite the fact that we are experiencing some delays of deliveries due to material shortages. Our products meet critical needs within infrastructure, which ensures solid demand independent of the economic situation.
The increase in costs for components, raw material and logistics was extraordinary in the quarter and exceeded our own price increases. For this reason, margins in comparable units have temporarily decreased somewhat and organic EBITA* growth amounted to -1.2 percent, excluding currency effects. Our pricing-related work will continue with the goal of achieving full compensation for increased costs, as we have done before.
The Group’s profitability continues to increase and the EBITA* margin amounted to 18.5 percent (17.6). The strengthened margin came from our ordinary acquisition activities as well as divestments during the past year, fully aligned with our focus on a Group consisting of niched companies with profitable and strong market positions
ACQUISITIONS
In late
During the quarter, 91 percent of the shares in
OUTLOOK
Our order intake continues to be good, even though material shortages can result in delays of deliveries and revenues. On
In the longer term, we feel comfortable about being able to fully compensate for increased costs and our assessment is, unchanged, that the Group’s profitability should be established at a level of around 20 percent in EBITA* margin.
We have established in the new markets
By way of conclusion, I want to express a big thank you to all our dedicated employees for your commitment and strong efforts.
President and CEO
For further information, please contact:
Bengt Lejdström, CFO, +46 702 74 22 00, bengt.lejdstrom@sdiptech.com
Sdiptech’s common shares of series B are traded on Nasdaq Stockholm under the short name SDIP B with ISIN code SE0003756758. Sdiptech’s preferred shares are traded under the short name SDIP PREF with ISIN code SE0006758348. Further information is available on the company's website: www.sdiptech.se
Attachment
Sdiptech interim report Q1 2022
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