First quarter 2015 – Continued Growth
· Order intake rose 25% to SEK 2,926 million (2,349). The increase for
comparable units was 7%.
· Net sales rose 16% to SEK 2,601 million (2,250). For comparable units, net
sales decreased by 1%.
· Operating profit before amortisation of intangible non-current assets
attributable to acquisitions (EBITA) rose 25% to SEK 280 million (224),
corresponding to an EBITA margin of 10.8% (10.0%).
· Profit after tax rose 31% to SEK 165 million (126).
· Earnings per share grew 31% to SEK 4.13 (3.15).
· Cash flow from operating activities was SEK 100 million (90).
CEO's message
Indutrade’s model of acquiring and developing stable and profitable companies in
selected niches, continues to generate profitable growth.
Following a somewhat weak start to the year, the first quarter ended on a strong
note, and Indutrade can once again report order intake, sales and earnings at
new, record high levels for the comparable quarter.
Demand continues to vary between product segments, geographical markets and
companies, and during the past year we have also noted major currency movements.
The Group’s mix of companies along with a long-term, concerted effort to
increase the share of proprietary products with an international base has
strengthened our ability to deal with changed market conditions and thereby also
create greater stability and profitability.
First quarter
During the quarter, order intake grew by 25%, invoicing by 16%, and earnings per
share by 31% compared with the same quarter a year ago. Growth is being driven
above all by completed acquisitions, but we also saw positive performance for
most comparable units during the quarter.
Our businesses that supply components, systems and services to a range of
different segments are generally experiencing increased market activity and
improved demand, which is also reflected in order intake for the quarter.
Order intake has strengthened above all in Special Products and in the new
Measurement & Sensor Technology business area. Growth is coming primarily from
companies with proprietary products and own manufacturing that work in an
international market.
Flow Technology, Fluids & Mechanical Solutions and Measurement & Sensor
Technology reported higher sales and improved margins compared with a year ago.
Engineering & Equipment, which conducts business mainly in Finland, managed to
strengthen its profitability despite continued weak domestic demand. Industrial
Components includes a number of companies in which the gross margin has been
hurt by the past year’s currency movements, as higher purchasing costs could not
fully be compensated for.
For Special Products, the monthly and quarterly variation in order intake and
sales remains large. During the quarter, a temporary dip in invoicing for
companies with large project-related business had a negative impact on sales as
well as earnings and margins. This has been countered by continued acquisitions
of companies with good profitability.
Acquisitions
We carried out seven acquisitions during the quarter plus an additional two
after the end of the quarter. Together these companies represent annual sales of
nearly SEK 840 million. Expansion outside Sweden continues, both in the form of
traditional trading companies and of companies with proprietary products and own
manufacturing. There is still a good availability of companies for sale, which
is why we expect to make additional acquisitions during the year.
Outlook
Our fundamental principles of decentralisation, entrepreneurship and profitable
growth have been instrumental since Indutrade’s start. Apart from attracting
smaller companies in search of a new, long-term owner that can help them further
develop their business, these concepts are central for the company’s governance.
Decentralisation contributes to responsibility, and through the years
Indutrade’s companies have also shown an ability to swiftly adapt to prevailing
demand. It is my unwavering conviction that our business model – even in the
prevailing, volatile market conditions – creates conditions for the companies
and the Indutrade Group as a whole to continue to perform well.
Johnny Alvarsson, President and CEO
This report will be commented upon as follows:
· Through a conference call/webcast today at 3 p.m. (CET) under the following
link:
http://event.onlineseminarsolutions.com/r.htm?e=981670&s=1&k=4125A8DFE70DEDAEF9A
6
6A3F9822E4A6
To participate, call SE: +46 8566 426 61, UK: +44 203 428 1413 or US: +1 855 753
2236
· Through a video under the following link:
www.indutrade.se
For further information, please contact: Johnny Alvarsson, President and CEO: 46
70 589 17 95
About Indutrade
Indutrade markets and sells components, systems and services with a high-tech
content within selected niches. Indutrade’s business is distinguished by Hhgh
-tech products for recurring needs, growth through a structured and tried-and
tested acquisition strategy and a decentralised organisation characterised by an
entrepreneurial spirit.
The Group is organised into six business areas: Engineering & Equipment, Flow
Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement &
Sensor Technology and Special Products. Indutrade’s sales totalled SEK 9,746
million in 2014, generating operating income of SEK 1,134 million before
depreciation of intangible assets. Indutrade is listed on the Nasdaq Stockholm.
