Q4
VBG GROUP INTERIM REPORT JANUARY-DECEMBER2022
SALES, SEK M
1,191
OPERATING PROFIT (EBITA), SEK M
135
VBG GROUP INTERIM REPORT
JANUARY-DECEMBER 2022
1
Interim report
Fourth quarter 2022
- Consolidated sales increased by 27.3% to SEK 1,191.5 M (936.0).
- Organic growth amounted to 11.5%, adjusted for currency effects and acquired volume between the years.
- Net impact on Ringfeder Power Transmission's operating profit (EBITA) was positive SEK 18.6 M after completion of the co-location in the US.
- Consolidated operating profit (EBITA) totaled SEK 134.7 M (79.4), with an operating margin (EBITA) of 11.3% (8.5).
- Operating profit (EBITA) was negatively impacted by the failure of Mobile Climate Control's new production facility in the US to reach the normal productivity level.
-
Profit after financial items amounted to SEK 105.6 M (71.6). Earnings per share amounted to
SEK 3.62 (2.32).
Full-year 2022
- Consolidated sales increased by 26.8% to SEK 4,580.0 M (3,611.2).
- Organic growth amounted to 13.4%, adjusted for currency effects and acquired volume between the years.
- Net earnings from sale of property and relocation costs had a net positive impact on operating profit (EBITA) of SEK 13.0 M during 2022.
- Operating profit (EBITA) increased to SEK 557.5 M (484.1), with an operating margin (EBITA) of 12.2% (13.4).
- Profit after financial items increased to SEK 487.8 M (441.4).
- Earnings per share amounted to SEK 14.73 (13.48). The Board of Directors proposes an increase in the dividend to SEK 5.50 (5.00), corresponding to 37.1% (37.1) of profit after tax.
KEY FIGURES
Group, SEK M | Q4 2022 | Q4 2021 | Full-year 2022 | Full-year 2021 | ||
Net sales | 1,191.5 | 936.0 | 4,580.0 | 3,611.2 | ||
Operating profit before depreciation/amortization (EBITDA) | 162.2 | 100.8 | 663.6 | 562.4 | ||
Operating profit before amortization (EBITA) | 134.7 | 79.4 | 557.5 | 484.1 | ||
Operating profit (EBIT) | 127.0 | 72.1 | 527.2 | 456.0 | ||
Operating profit after financial items (EBT) | 105.6 | 71.6 | 487.8 | 441.4 | ||
Profit after tax | 90.6 | 58.0 | 368.3 | 337.1 | ||
Earnings per share, SEK | 3.62 | 2.32 | 14.73 | 13.48 | ||
Cash flow from operating activities | 167.2 | 37.1 | 309.1 | 187.3 | ||
ROE (cumulative), % | 11.4 | 12.2 | 11.4 | 12.2 | ||
ROCE (cumulative), % | 11.6 | 12.2 | 11.6 | 12.2 | ||
Equity/assets ratio, % | 60.8 | 59.9 | 60.8 | 59.9 | ||
Interest-bearing net debt/EBITDA | n/a | n/a | 1.09 | 0.81 | ||
Average number of employees | n/a | n/a | 1,731 | 1,600 | ||
Number of shares outstanding ('000) | 25,004 | 25,004 | 25,004 | 25,004 | ||
VBG GROUP INTERIM REPORT
JANUARY-DECEMBER 2022
2
This is the VBG Group
Creating
- safer society
VBG Group is a long-term active owner of successful industrial companies and brands. The Group's three divisions - operating in 17 countries with approximately
1,800 employees - are run on a foundation of industrial expertise, strong brands and financial stability.
Leading industrial solutions
The Group's divisions offer its customers and end users leading industrial solutions that promote a safer world. Our range of products and services is directed toward a broad base of industries and customers in which continual product development as well as efficient purchasing and delivery procedures promote a competitive, cost-efficient offering.
High level of service
VBG Group has a sharp focus on service, which permeates our entire value chain and the customer's journey as a user. Our aftermarket business represents 23% of the Group's sales. Group Management supports the divisions in their work on creating the greatest possible value for the cus- tomer, from development to aftermarket.
Strong international position and presence
Through its three divisions with the appurtenant distribution network, VBG Group has a strong international position and presence. Our growth agenda going forward is oriented on continued expansion and globalization of the Group.
Broad portfolio of brands in attractive niches
Over time, the Group's active acquisition and growth strategy has enabled a broad and competitive brand portfolio. VBG, Onspot, Edscha Trailer Systems, Mobile Climate Control and Ringfeder all have world-leading positions in their respective industrial niches. Since December 2021, the Carlyle Johnson brand has also been part of the portfolio.
Long-term financial strength
With a solid base of stable, long-term owners, VBG Group's ownership model together with strong earnings performance has enabled the Group's financial stability with a high equity/ assets ratio. Our strong financial position creates conditions for acquisitions and investments, even during periods with low levels of business activity.
Considerable experience and industrial expertise
VBG Group's business concept is built on acquisitions, long- term ownership and strategic governance of industrial companies in business-to-business commerce. The solid industrial competence that has been built up since the Group was founded in 1951 is an advantage in our acquisition process as well as in the strategic governance and operational development of our divisions.
AREAS OF OPERATION
People
Every day, our customers transport thousands of peo- ple, for example, on the way to and from work or school. The automatic tire chains and climate control systems we provide let them do so safely in traffic, with a pleasant cli- mate.
Goods
Our solutions for trucks, trailers and trains include products such as drawbars, underrun protection and sliding roofs that allow our customers to transport their goods safely, efficiently and sustainably on a daily basis.
Off-road
Our solutions for off-road,
forestry and defense vehicles promote a safer work environment for the users of these vehicles. Our climate control systems improve the environment for drivers and promote new solutions that support electrification of the industry.
Industrial
Our friction springs promote a safe infrastructure in society, in everything from elevators to dampers that protect buildings against natural catastrophes. Additionally, we offer couplings for mechanical power transmission in freight man- agement, the mining industry and energy production as well as the food, packaging and automotive industries.
VBG GROUP INTERIM REPORT
JANUARY-DECEMBER 2022
3
VBG GROUP fourth quarter
GLOBAL PRESENCE | 32 | 1,773 | 17 |
WHOLLY OWNED | EMPLOYEES | COUNTRIES | |
COMPANIES |
Importers/Agents
Own companies
Truck & Trailer Equipment
Mobile Climate Control
Ringfeder Power Transmission
OUR DIVISIONS
TRUCK & TRAILER EQUIPMENT
Sales | Operating profit (EBITA) | Operating margin (EBITA) Average no. of employees |
SEK 443 M SEK 92 M | 21% | 384 |
MOBILE CLIMATE CONTROL | ||
Sales | Operating profit (EBITA) | Operating margin (EBITA) Average no. of employees |
SEK 559 M SEK 12 M | 2% | 965 |
RINGFEDER POWER TRANSMISSION | ||
Sales | Operating profit (EBITA) | Operating margin (EBITA) Average no. of employees |
SEK 189 M SEK 40 M 21% | 373 |
VBG GROUP INTERIM REPORT
JANUARY-DECEMBER 2022
4
Strong quarter concludes a record-setting year
VBG Group's net sales for full-year 2022 rose to SEK 4,580 M (3,611) and operating profit increased to SEK 558 M (484). These results are a historical best for the Group. The operating margin amounted to 12.2% (13.4).
These results were achieved despite the geopolitical situation and a macroeconomic headwind, particularly in Europe, with rising inflation and interest rates as well as an energy crisis. I regard this as proof of our strength.
Strong fourth quarter
The growth of the previous quarters continued in the fourth quarter of 2022, and net sales increased 27% to SEK 1,191 M. This meant an all-time high in single-quarter sales for the Group. Currency effects were a positive factor in growth, but the underlying growth - 11.5% - was good, driven largely by implemented price increases. Profitability also strengthened continually in the latter half of the year, reaching an operating profit of SEK 135 M (79) in the fourth quarter.
Despite energy and materials costs remaining high, the operating margin strengthened during the year and reached 11.3% (8.5) in the fourth quarter. A high level of capacity utilization in large parts of the operation, and price adjustments that were implemented, contributed to this strengthening. The bus operations in Mobile Climate Control had an adverse effect on profitability.
Cash flow strengthened in the fourth quarter, which provides us with a good platform for future organic and structural growth.
Historic quarter
Sales in Truck & Trailer Equipment were the best ever for a single quarter, and the results are the strongest historically for both a fourth quarter and a full year. This is proof that we have a solid business model with product offerings that create value for drivers, haulers and body builders.
Demand for our solutions remained extremely strong during the fourth quarter, and the operating margin strengthened to 20.9% (15.7). Owing to our strong brands, we were able to implement price increases and strengthen our profitability. A high level of operational capacity utilization also made a positive contribution.
All key figures are pointing in the right direction
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VBG Group AB published this content on 02 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2023 15:21:01 UTC.