Improved profitability with continued growth
Summary of the period
Numbers in parentheses refer to outcomes during the corresponding period of the previous year.
First quarter:
Net revenue amounted to 597.4 MSEK (523.2 MSEK), corresponding to an increase of 14% (39%)
Organic, currency-adjusted growth amounted to 12% (10%)
Operational EBITDA amounted to 138.8 MSEK (105.7 MSEK), corresponding to an increase of 31%, and an EBITDA-margin of 23.2% (20.2%). The operational adjustments amount to 8.3 MSEK and include M&A costs, a post-revision adjustment from 2022, and non-cash flow-impacted revaluation of acquisition stock to fair value
Operational EBITA amounted to 119.2 MSEK (87.7 MSEK), corresponding to an increase of 36% and an EBITA-margin of 20.0% (16.8%)
Operational EBIT amounted to 118.8 MSEK (87.5 MSEK), corresponding to an increase of 36% and an EBIT-margin of 19.9% (16.7%)
Exchange gains amounted to 4.5 MSEK (-1.9 MSEK)
Profit after tax amounted to 30.1 MSEK (17.2 MSEK)
Earnings per share calculated on 158,731,900 shares (158,731,900 shares) amounted to
Cash flow from operating activities amounted to 70.6 MSEK (99.8 MSEK)
25.0 MSEK has been amortized on the debts to credit institutions
As of
Significant event during the first quarter
Significant events after the first quarter
There are no significant events after the end of the first quarter to comment on.
Words from the CEO
Intensive quarter kicks off the year
The first quarter's net sales of 597 MSEK represented a 14% increase compared to Q1 2023, while our operational EBITDA amounted to 139 MSEK, corresponding to a margin of 23.2%. This represents an increase of 31% compared to Q1 2023 and a record EBITDA for us. In addition, the margin is the highest since 2022. It's gratifying to see how our margin has already improved, despite not all price increases having taken full effect yet and our active participation in trade shows and product launch efforts. During the quarter, we also acquired the remaining 70% of Riley's from our own cash flow and continued to reduce our net debt.
Our organic growth, 12%, is double-digit but slightly lower than what I expect for the full year but can be easily explained. The organic growth was influenced by several factors: our transition to self-controlled Amazon sales in the
Business development in focus
I have participated in numerous meetings within the group during the quarter and can conclude that our choice of a soft integration strategy is beginning to show results. Over the past year, the organization has taken many steps toward leveraging the entire group's expertise and opportunities. Several major product expansions between group companies have been implemented, where we see strong market interest with immediate sales successes. We have also worked on structuring our various brands more clearly within different market segments and regions. It is especially important to have a clear plan now as we are launching NaturVet® in
Organization
We continue to change and partly expand our organization with expertise, and we find it easy to attract highly qualified employees. Our investment in an Ecom-team in Malmö has been successful, and I look forward to reporting on the progress later this year. Major changes are also happening in our largest group company, Garmon/NaturVet, where we have been working intensively on a new strategy to capitalize on all the opportunities we have with the NaturVet® brand. CEO
Market, new acquisitions, and outlook for 2024
The pet industry (5%-7%) continues to grow in all major markets, and in our segments no major impact has been seen despite global conditions and personal financial strains.
The climate for M&A has improved, and we have ongoing discussions with interesting companies that want to become part of our group. We also receive more approaches for projects where we do not have a previous relationship, which is both a sign that activity has picked up again in the industry and that our reputation as an attractive acquirer continues to spread.
Finally, I want to thank the entire organization for a good start to the year, and now we look forward to participating for the first time with a joint booth for several of our brands at InterZoo, the world's largest trade show held every other year!
Håkan Lagerberg
Malmö
The complete interim report is attached to this press release and is available at www.swedencare.com
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