Interim report January–March 2017
- Net sales increased by 20% to SEK 4,115 million (3,427)
- Organic growth was 12% (-3)
- The order backlog increased by 26% to SEK 9,000 million (7,135)
- Operating profit increased by 19% to SEK 209 million (175)
- The operating margin was 5.1% (5.1)
- Profit after tax was SEK 151 million (123)
- Cash flow from operating activities was SEK 381 million (13)
- Net debt amounted to SEK 2,058 million (2,416)
- Earnings per share were SEK 0.75 (0.61)
“Strong organic growth and strong cash flow”
Organic growth supported by more working days in the quarter
Net sales in the quarter increased by 20 percent, of which 12 percent was organic growth. Net sales increased in all countries, with positive organic growth in Sweden, Norway and Denmark. In Finland, net sales increased through the acquisition of Asentaja Group in December 2016, but organic growth was negative owing to project selection in previously acquired businesses.
We are delighted to have achieved positive organic growth on a monthly basis since November 2016, i.e for the past five months. Organic growth was strong in March, partly due to Easter 2016 falling in March.
Improved order levels in all countries
Our order backlog, which only contains installation projects, continued to increase and it is continuing to generate growth. In the first quarter, the order backlog increased by SEK 356 million, reaching a new record level of SEK 9,000 million.
Strong cash flow in line with our financial targets
Cash flow for the first quarter was strong. 12-month cash conversion improved from 60 percent to 98 percent in the first quarter, which is in line with our financial targets.
New division creates new potential
We have significant untapped market potential in our areas of security, sprinklers, cooling, technical management services and power. We have therefore reviewed operations in these areas and created a new nationwide division in Sweden. By increasing our focus, we will create better conditions for both growth and profitability.
Continuing to strengthen our market position through acquisitions
Over the past four months we have acquired a number of sizeable businesses, two in Norway, one in Finland and one in Denmark, which will strengthen our market position and capabilities. Sales in the acquired businesses total just under SEK 1,700 million. These recent acquisitions were funded through Bravida’s strong operating cash flow.
Acquisition of Oras provides market-leading position
Bravida is bolstering its position in Norway within heating, plumbing and HVAC through the acquisition of Oras, which was announced in April. Growth in the Norwegian heating, plumbing and HVAC market has long been part of our strategic growth plan. Oras has annual sales of SEK 1,200 million, increasing Bravida Norway’s sales by around 35 percent. Oras’ underlying business is stable, but it has delivered weak earnings for the past few years owing to high costs and losses on some individual projects. The acquisition will generate clear cost and purchasing synergies.
The acquisition makes Bravida the market-leading end-to-end provider of technical installation and service on the Norwegian market. We received approval from the Norwegian Competition Authority on May 2, closing took place on May 8. Integration will require significant involvement by management and our highest priority in 2017 is to make the business profitable.
Mattias Johansson, Stockholm, May 2017
For further information, please contact:
Mattias Johansson, CEO and Group President of Bravida. Tel: +46 8 695 20 00
Nils-Johan Andersson, CFO of Bravida. Tel: +46 70 668 50 75
This information is information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 10 May 2017.
The report will be presented at 09:00 CET by CEO and Group President Mattias Johansson and CFO Nils-Johan Andersson. The presentation will be held in English and can be followed on the web or over the phone. There will be room for questions.
Link to the webcast:
Telephone numbers for telephone conference:
The report and the presentation are available on bravida.se/en/investors/.