Interim report January-September 2023
Press release published: October 31, 2023 at 8:00 am
- Net sales were 449.2 MSEK (422.7), an increase of 6.3% compared to the equivalent period in 2022. Organic growth was -0.4% for the period.
- EBITA was 53.3 MSEK (49.6), an EBITA margin of 11.9% (11.7). The period was affected by one-off costs of 0.3 MSEK regarding an efficiency program in Sweden. The Group has received a subsidy of 7.6 MSEK as compensation for high electricity costs. The previous year was affected by a cost reduction of 1.1 MSEK regarding a repayment from Fora.
- Earnings per share were 0.85 SEK (0.69).
- Cash flow after investing activities was 56.0 MSEK (41.9).
- Net sales were 1,489.0 MSEK (1,465.7), an increase of 1.6% compared to the equivalent period in 2022. Organic growth was -3.3%.
- EBITA was 196.3 MSEK (234.6), an EBITA margin of 13.2% (16.0).
- The period was affected by one-off costs of 3.2 MSEK regarding an efficiency program in Sweden. The Group has received a subsidy of 7.6 MSEK as compensation for high electricity costs. The previous year was affected by a cost reduction of 7.7 MSEK regarding a repayment from Fora.
- Earnings per share were 3.03 SEK (3.70).
- Cash flow after investing activities was 92.4 MSEK (21.8).
STATEMENT FROM THE CEO
Important launches and challenging economic conditions
Sales in the third quarter developed steadily and amounted to 449 MSEK, which is just over 6% higher than the corresponding quarter in 2022. The EBITA margin is also stable for the quarter and amounted to 11.9% compared to 11.7% in the corresponding quarter of 2022. The quarter was characterized by a continued challenging economic situation in all our markets, which affected both sales and margin. During the quarter, we can also see that cash flow was strong, largely thanks to our efforts to reduce inventory levels.
Sales continued to be affected by external factors that we encountered throughout the year. Inflation, interest rates and general uncertainty are having a negative impact on demand, especially in new construction and the, more consumer-related, renovation market. We believe that the professional renovation market for bathrooms and kitchens shows a slightly higher level of activity. We can also see that our sales outside the Nordic region are more affected due to the relatively high exposure to the more private renovation market. The Swedish currency means an advantage for us in the Swedish market compared to competitors with manufacturing in other countries. In the long term, we see a continued high underlying need for both new and renovated properties with a need for attractive and energy-saving products, an area where we are well positioned. In the short term, however, we are fully prepared for a continued challenging economic and market situation.
Profitability during the quarter was negatively affected by a lower production rate at the factory in Mora, as well as higher selling costs due to investments with the aim of developing our market positions. It should also be noted that profitability in the quarter was positively affected by the fact that the parent company has received a subsidy of SEK 7.6 MSEK as compensation for high electricity costs. Overall, we emphasize the importance of maintaining a clear focus on cost efficiency at all levels of the organisation. We are also continuing to reduce our inventory, which in parts of the organisation is too high in relation to current sales.
In all our brands and local sales organisations, we continue to work very closely with our customers to be a preferred partner. We feel that customers have a great deal of confidence and interest in the quality, service and product advantages we offer, which should be characterised by attractive sustainable design. During the quarter, we launched our most sustainable series ever, FM Mattsson 9000XE, which has received a lot of positive feedback initially and meets the high demands of our professional customers in Sweden and Norway. In October, we will follow up with another product launch, Damixa Core, which also provides many sustainable benefits for customers. With these launches, we are further advancing our market positions in the Nordic professional market. Finally, we would also like to highlight two great awards that we have received. Our Norwegian organisation was named Supplier of the Year by our customer VVS-Eksperten and Aqualla was awarded the prestigious award "Best Shower Brand 2023" by the British industry player BKU. These are significant and satisfying awards that strengthen us in our quest to be our customers' first choice!