High growth and substantially improved profitability
January -
- Total revenue during the quarter amounted to
SEK 886 (669) million, which is an increase of 32.5 percent*. - Organic growth was 6.7 percent. Adjusted for currency effects, organic growth was 5.1 percent.
-
EBITA amounted to
SEK 61 (15) million. It corresponds to an increase of 318 (-) percent. -
EBITA margin amounted to
SEK 6.9 (2.2) percent. It corresponds to an increase of 4.7 percentage points. With these results, the financial target of an EBITA margin that is at least 8 percent has been met, based on the most recent 12-month period. -
Cash flow from operating activities amounted to
SEK 78 (37) million. -
Basic earnings per share were
SEK 0.27 (-0.14). -
Diluted earnings per share were
SEK 0.27 (-0.13)
* 30.6 percent, not including currency effects.
CEO
The Group got off to a good start this year. Sales are increasing sharply, as well as earnings, which is driven by improvements in our existing companies along with the performance of new, profitable companies that have joined the Group. One important part of the Group's efforts involves putting the right prerequisites in place for our companies and entrepreneurs to succeed. I am proud to report that our strategy is bearing fruit.
High growth with improved margin
We are continuing to grow strongly and total revenue increased by 32.5 percent to
Basic earnings per share were
Our improved profitability in the first quarter means that we now have an EBITA margin over the last 12 months of 8.2 (5.5) percent and have thus achieved our financial target of an EBITA margin that is at least 8.0 percent. The gearing ratio (measured as net liabilities/EBITDA pro-forma RTM) was 2.3 (2.9) times. The growth rate for the last 12-month period was 40 percent, compared with the goal of growing by 10 percent.
Over the last three years, our Compound Annual Growth Rate (CAGR) has been 34 percent for sales and 123 percent for EBITA.
Our business is affected by increased input costs and we work actively to limit the effect of cost increases. Many of the Group's contracts stretch over many years and they contain indexation clauses to adjust prices. Other project activities are carried out in contracts with a duration shorter than one year, which makes it possible to adapt them for rising costs as needed. The situation is being carefully monitored and the CEOs of our subsidiaries are working proactively with this.
New acquisitions strengthen our position
The Group acquired four new companies during the first quarter (their estimated annual sales are shown in parentheses): Markbygg Anläggning Väst AB (
The addressable market for potential companies that could become part of the Group is high and we continuously meet exciting companies. The interest for the Group is growing and we can see that our offering to entrepreneurs is attractive. We have a long-term approach and believe in the power of local entrepreneurship, which is why we take great care in ensuring that there is a good cultural fit between the Group and companies that we acquire. During the acquisition process, we thus put a great deal of emphasis on getting to know the new entrepreneurs well.
Local entrepreneurship is fundamental to our strategy and success
The Group now consists of 42 subsidiaries in
As a group, we also work in a structured way to derive the greatest benefits from the expertise that exists at the local subsidiaries and support them in their development. We do this, for example, using methods for business development/LEAN and various initiatives associated with digitalization.
I am proud of what we have accomplished thus far on our journey to consolidate the Nordic market for ground maintenance & landscaping. I regard the results from the last quarter as evidence that our strategy is both viable and strong.
Presentation of the report:
Phone: SE: +46850558369
Webcast: https://financialhearings.com/event/44141
This disclosure contains information that
For more information:
Johan Nordström, CEO,
+46 70 838 58 12, johan.nordstrom@glgroup.se
+46 70 108 70 19, carl-fredrik.meijer@glgroup.se
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