Fourth quarter highlights

• Net sales increased to SEK 1,397.5 million (1,385.1), corresponding to growth of 1 percent. Organic growth was -2 percent in local currencies.
• EBITA increased to SEK 132.1 million (117.7) and the EBITA margin to 9.5 per cent (8.5).
• Items affecting comparability impacted EBITA by SEK +4.2 million (-7.5). Adjusted EBITA (excluding items affecting comparability) increased to SEK 127.9 million (125.2).
• Profit for the period increased to SEK 73.5 million (67.6), earnings per share before and after dilution increased to SEK 1.48 (1.36).
• Operating cash flow totalled SEK 209.8 million (210.0).
• The order backlog amounted to SEK 2,867.0 million (2,983.3).

Full year highlights

• Net sales increased to SEK 5,109.7 million (4,547.7), corresponding to growth of 12 percent. Organic growth was 1 percent in local currencies.
• EBITA amounted to SEK 421.2 million (421.9) and the EBITA margin was 8.2 percent (9.3).
• Items affecting comparability impacted EBITA by SEK -26.8 million (-9.8). Adjusted EBITA (excluding items affecting comparability) increased to SEK 448.0 million (431.6).
• Profit for the period amounted to SEK 219.2 million (271.9), earnings per share before and after dilution were SEK 4.42 (5.62).
• Operating cash flow rose to SEK 547.6 million (401.7).
• The Board of Directors proposes a dividend of SEK 1.70 (1.70) per share for 2023 to be paid in two equal instalments.

Significant events during the quarter

• Fasadgruppen closed the acquisitions of Rosborg Entreprenad and Surface Byggställningar, and strengthened Alnova’s production capacity through the asset acquisition of Teknova.
• Fasadgruppen has entered into an agreement to acquire the Danish balcony specialist Alument.

Events after the end of the period

• Fasadgruppen has entered into an agreement to acquire the Norwegian roofing and solar cell company Elenta.

Condensed CEO comment from Martin Jacobsson: “Stable development in a challenging market”
“Sales for the full year 2023 totalled SEK 5,110 million, an increase of 12 percent, of which organic growth accounted for 1 percent compared to 2022. For the fourth quarter, sales increased by 1 percent, while it decreased by 2 percent organically, which can be attributable entirely to the Swedish operations. Norway, Denmark and Finland all exhibited organic growth in the quarter. Adjusted EBITA increased by 4 percent for the full year 2023, while the adjusted EBITA margin decreased from 9.5 to 8.8 percent compared with 2022. For the fourth quarter, however, the margin improved slightly compared with the corresponding period last year, from 9.0 to 9.1 percent.

Cash flow from operating activities strengthened by 36 percent for the full year 2023 compared to 2022 and amounted to SEK 548 million. Cash conversion was 104 percent, exceeding our target. The entire organisation has worked to improve tied-up working capital over the past year and changes in working capital amounted to SEK 123.9 million, compared with SEK -45.2 million in 2022.

Net debt continued to fall and at the end of the year totalled SEK 1,240.2 million, which corresponds to 2.3x EBITDA (not on a proforma basis). We completed three acquisitions during the fourth quarter and we have a number of dialogues under way with high-quality companies on all of our markets. The current market situation provides a range of opportunities that we are ready to grasp.

Overall, the full year 2023 saw relatively good demand for Fasadgruppen's products and services, helping to achieve record sales of over SEK 5 billion. We have improved our earnings, but the margin for the full year has weakened slightly. In order to strengthen the margin, we have implemented a number of measures, including an improved governance model and cost adjustments.”

Capital Markets Day 2024
Fasadgruppen will hold a Capital Markets Day on 2 September at 1 pm in Stockholm. Invitations and agenda will be sent out during the spring.

Report presentation
The year-end report will be presented in a conference call and webcast today on 13 February 2024 at 8.45 a.m. CET.
Link to webcast: https://ir.financialhearings.com/fasadgruppen-group-q4-report-2023
Registration for participation by phone: https://conference.financialhearings.com/teleconference/?id=5003425