• Net sales amounted to SEK 1,657 (1,495) million.
• Growth was 11 percent, of which organic growth amounted to 5 percent.
• EBITA increased by 4 percent to SEK 143 (138) million.
• The EBITA margin amounted to SEK 8.7 (9.2) percent.
• Cash flow from operating activities amounted to SEK -11 (80) million.
• Earnings per share, basic and diluted, were SEK 1.04 (0.70).
• In April, the German company, Gartenidee Kuchler GmbH, was acquired, with net sales in 2023 of EUR 14.6 million (SEK 169 million).
• Own shares valued at SEK 20 million were repurchased during the quarter within the scope of the existing buyback program.
  
• After the end of the reporting period the following companies were acquired in July: A. Markussen AS (Norway) Stange Grünanlagen & Winterdienst GmbH (Germany) and BUK Garten- und Landschaftsbau GmbH (Germany). The combined net sales of those companies in 2023 was approximately SEK 270 million.

CEO comments

Green Landscaping Group continued to grow during the second quarter. Net sales increased by 11 percent and profitability, expressed as EBITA margin, reached 8.7 percent.

Stable trend for our financial targets
Net sales increased by 10 percent over the last 12-month period and amounted to SEK 6,125 million. It means that we’ve achieved yet another important milestone, with sales in excess of SEK 6 billion. Expressed as EBITA, our profit amounted to SEK 522 million, which corresponds to a margin of 8.5 percent. It demonstrates that we have continued delivering at a level that exceeds our targets, which are 10 percent for growth and 8 percent for profitability, expressed as EBITA margin. Our companies working with landscaping have been facing tougher competition from construction companies that have started competing in our market due to the downturn in their own. Our customers have also been forced to navigate a more uncertain world. Despite all that, we have consistently been exceeding our targets, which, for me, serves as proof that we are not only doing the right things, but also that things are being done in the right way.

Second quarter is high season
Net sales increased by 11 percent in the second quarter and amounted to SEK 1,657 (1,495) million. Organic growth was 5 percent, acquisitions contributed with 7 percent and the impact from changed exchange rates was -1 percent. Spring and summer is high season for nearly all our customers. The winter season wraps up with sand removal and other related activities, followed by rapid growth with grass, bushes and trees. Landscaping activities increase considerably as soon as the ground thaws. In the midst of all this, there was one particular event that really stood out, namely, when our Norwegian company, Aktiv Veidrift signed a large, important contract with a long-time, loyal customer. For many years, Aktiv Veidrift has been providing services for road, water and sewage facilities and the value of this new contract amounts to as much as NOK 500 million.

EBITA amounted to SEK 143 (138) million, corresponding to an EBITA margin of 8.7 (9.2) percent. Profitability increased somewhat in Sweden, fell in Norway and was once again very strong in the Rest of Europe segment.

Cash flow from operating activities amounted to SEK -11 (80) million. The high level of activity in the second quarter fueled working capital and resulted in a significantly higher balance in accounts receivable at the end of the quarter, since many of the payments on invoices issued in June were not received until July. It also impacts indebtedness, which is expressed as net debt in relation to EBITDA pro-forma RTM. It amounted to 2.7 (2.4) times.

New members of the family
We actively pursue acquisitions and in my role as leader, few things are more satisfying than welcoming new members to the family. Four very reputable companies joined the Green Landscaping Group during the second quarter (and just after the closing). I had already mentioned the acquisition of Gartenidee Kuchler GmbH in my CEO comments from last quarter. Our next acquisition after that was A Markussen AS. It is based in Narvik, which is in the northern part of Norway. The company has a full-range offering of services in landscaping, gardening, infrastructure and maintenance of outdoor environments. We also welcomed Stange Grünanlagen & Winterdienst GmbH, situated in Neubrandenburg, Mecklenburg-Vorpommern, Germany. It offers maintenance services for public spaces, including snow and ice removal. Yet another acquisition in Germany was BUK Garten- und Landschaftsbau GmbH. It operates under the brand BUK Garden Coutur, and is based in Oberhaching, south of Munich. The company creates and maintains high-end gardens. In 2023, the combined sales of these companies exceeded SEK 400 million. We warmly welcome all of them to Green Landscaping Group. Since our entry into the German market in June of last year, we have succeeded in building a strong platform that currently consists of eight companies.

Lastly, I’d like to take this opportunity to thank our CFO and my long-time colleague, Carl-Fredrik Meijer, for all of his efforts and contribution over the years. He has now decided to pursue other opportunities outside the Group. Marcus Holmström will take over that role later in the year and we welcome him to the Green Landscaping Group.

Presentation of the report:

The report will be presented in a teleconference/audiocast on 23 August 2024 at 09:00 CET. The presentation will be held in English.

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