Interim report January–March 2019
Strong growth and solid earnings
Regulatory press release
- Net sales increased by 10% to SEK 5,013 million (4,557)
- Organic growth was 5% (1)
- The order backlog was 24% higher at SEK 13,474 million (10,825)
- EBITA increased by 11% to SEK 251 million (226)
- The EBITA margin was 5.0% (5.0)
- Profit after tax was SEK 178 million (168)
- Basic earnings per share were SEK 0.88 (0.83) and diluted earnings per share were SEK 0.88 (0.83)
- Cash flow from operating activities was SEK 414 million (58)
- Net debt amounted to SEK 2,115 million (1,841)
- Five acquisitions were completed in the quarter, adding annual sales of approximately SEK 345 million
- From 1 January 2019 IFRS 16 is being applied to the Group’s leases and all figures for 2019 include this change. This change increased EBITA by SEK 3 million, while finance costs have increased by SEK 5 million. Closing net debt has increased by SEK 980 million. Previous periods have not been restated and are reported according to IAS 17.
Bravida delivered strong growth and solid earnings for the first quarter of 2019. The order backlog is at a record level and cash flow for the last 12 months is well over our financial target. Priority objectives for Bravida are to grow in the service segment and to be a market leader in all locations where we are present. So far this year our service business continued to grow and ten acquisitions have been made, strengthening our local market position.
Good organic growth and solid earnings
Bravida is reporting organic growth for the eighth consecutive quarter. As a result of good growth in Norway, Denmark and Finland we achieved growth of 10 percent in the quarter, 5 percent of which was organic. Service sales rose by 7 percent, which is decent as service assignments are generally recurring.
Earnings performance was solid, with improvements in Sweden, Denmark and Finland. Earnings in Norway declined, which was due to write-downs on two large projects that were included in the order backlog when we acquired Oras. Final settlement for these projects will take place in the second quarter of 2019.
In Sweden we improved the EBITA margin through a higher gross profit margin owing to good cost control in our project activities. In Denmark the EBITA margin improved as a result of relatively lower administrative costs. Owing to both good organic growth and acquisitions, we are continuing to approach critical mass in Finland, which also resulted in an improved EBITA margin.
Strong cash flow
Cash conversion was 131 percent, which is significantly above our target. Cash flow from operating activities was SEK 414 million.
Acquisitions continue to strengthen Bravida
Bravida’s growth and market position in both service and installation continue to strengthen through acquisitions. So far this year Bravida has acquired ten companies, five of which were acquired after the end of the quarter. The acquisitions add annual sales of just over SEK 600 million. It’s very pleasing that we have increased the pace of acquisitions in Denmark, where we have made five acquisitions so far in 2019. The sector remains highly fragmented with significant consolidation opportunities, and we also continue to believe we will be able to develop and grow through acquisitions.
Bravida has a well-balanced level of risk as a result of being based in around 160 locations in the Nordic region and having over 55,000 customers across different segments. Our geographical diversification, our broad offering and our solid and differentiated customer base provides us with low exposure to individual markets and customers.
The order backlog is at a high level and the emphasis of the order backlog is on lots of small and medium-sized installation projects, which together with our large service operations will also contribute to stable development going forward.
Mattias Johansson, Stockholm, May 2019
For further information, please contact:
Mattias Johansson, CEO and Group President of Bravida. Tel: +46 8 695 20 00
Peter Norström, IR contact. Tel: +46 8 695 20 07
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 7 May 2019.
The report will be presented at 09:30 CET by CEO and Group President Mattias Johansson. 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 webcast:
Telephone numbers for telephone conference:
SE: +46 8 5055 83 69
UK: +44 33 3300 9261
US: +1 833 526 83 81
The report and the presentation are available on bravida.se/en/investors/.