Third quarter highlights

• Net sales increased to SEK 1,259.2 million (1,208.0), corresponding to growth of 4 percent. Organic growth was -2 percent in local currencies.
• EBITA amounted to SEK 113.2 million (148.9) and the EBITA margin was 9.0 percent (12.3).
• Items affecting comparability impacted EBITA by SEK -5.3 million (9.4). Adjusted EBITA (excluding items affecting comparability) amounted to SEK 118.5 million (139.4).
• Earnings for the period amounted to SEK 60.5 million (105.4), earnings per share before and after dilution were SEK 1.22 (2.15).
• Operating cash flow rose to SEK 144.7 million (125.0).
• The order backlog increased to SEK 3,410.0 million (3,173.0).

Nine month highlights

• Net sales increased to SEK 3,712.2 million (3,162.6), corresponding to growth of 17 percent. Organic growth was 5 percent in local currencies.
• EBITA amounted to SEK 289.1 million (304.2) and the EBITA margin was 7.8 percent (9.6).
• Items affecting comparability impacted EBITA by SEK -31.0 million (-2.2). Adjusted EBITA (excluding items affecting comparability) increased to SEK 320.1 million (306.4).
• Earnings for the period amounted to SEK 145.7 million (204.3), earnings per share before and after dilution were SEK 2.94 (4.26).
• Operating cash flow rose to SEK 337.8 million (191.7).

Significant events during the quarter

• Fasadgruppen has entered into a new financing agreement.
• Fasadgruppen has entered into agreements for the acquisition of façade contractor Rosborg Entreprenad and the bankrupt estate of balcony specialist Teknova.
• Fasadgruppen has joined the Science Based Targets initiative.

Events after the end of the period

• Fasadgruppen has entered into an agreement for the acquisition of Surface Byggställningar.
• Fasadgruppen has undergone a reorganisation, with a new operating unit led by a COO.
• Fasadgruppen initiates a share buy-back programme.

Condensed CEO comment from Martin Jacobsson: “Strong cash flow and positive order backlog development”
“Sales during the period January to September totalled SEK 3,712 million, an increase of 17 percent, including organic growth of 5 percent, compared with the corresponding period last year. For the third quarter, the increase was 4 percent, of which -2 percent was organic growth compared to the corresponding quarter last year. Norway and Finland showed positive organic growth, while Sweden and Denmark exhibited a weaker development due to tougher market competition. We saw a positive development for projects related to energy efficiency in all markets, where Fasadgruppen has a strong and comprehensive offering. Our SmartFront method continues to grow and has tripled in 2023.

Adjusted EBITA for the first nine months of the year increased by 4 percent to SEK 320 million, while the adjusted EBITA margin decreased from 9.7 to 8.6 percent. For the third quarter, the margin decreased from 11.5 to 9.4 percent. In our decentralised model, each subsidiary is responsible for its own earnings, and they are used to working flexibly with a focus on costs. Several redundancy consultations have been announced during the autumn.

The order backlog has increased by 7 percent, of which organic growth of 5 percent, compared with the corresponding point last year and amounted to SEK 3,410 million at the end of the period.

Cash flow from operating activities for the nine-month period strengthened by 76 percent compared with the same period last year. A number of activities were launched at the beginning of the year to improve tied-up capital within the group, and these have contributed to the development.”

Report presentation
The interim report will be presented in a conference call and webcast today on 14 November 2023 at 8.15 a.m. CET.
Link to webcast: https://ir.financialhearings.com/fasadgruppen-group-q3-report-2023
Registration for participation by phone: https://conference.financialhearings.com/teleconference/?id=5005485