• Net sales amounted to SEK 1,539 (1,430) million
• Growth was 8 percent, of which organic growth amounted to 3 percent
• EBITA increased by 1 percent to SEK 130 (128) million.
• The EBITA margin amounted to SEK 8.4 (9.0) percent.
• Cash flow from operating activities amounted to SEK 121 (-2) million.
• Earnings per share, basic and diluted, were SEK 0.96 (0.84).
• 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.
• In September, the acquisition of the Finnish company, Turun Reunakivi- ja Laatta-asennus Oy, was announced. Its net sales in 2023 amounted to EUR 3.6 million (SEK 41 million).
• After the end of the reporting period, changes and reinforcements to the Group management team were announced.

CEO comments

A stable quarter – again
Net sales increased over the last 12-month period and amounted to SEK 6,235 million. It corresponds to a growth rate of 9 percent, adjusted for currency effects. Expressed as EBITA, our profit amounted to SEK 523 million, which corresponds to a margin of 8.4 (8.8 percent). We have now delivered sales growth with good profitability in line with our financial targets, despite having faced a weak market for over a year. My assessment is that the market has moved sideways so far this year and there is still uncertainty about how long this weaker market will persist. We are focusing on what we can control: customer value, cost efficient solutions and internal costs. Our subsidiaries are doing an excellent job at keeping profitability and sales at a good level, even though the market conditions are not the best. Certainly, our longer-term contracts with customers also help us maintain both margins and volumes. It is a key component of our solid strategy.

Strong cash flow
Net sales increased by 8 percent in the third quarter and amounted to SEK 1,539 (1,430) million. Organic growth was 3 percent, acquisitions contributed with 10 percent and the impact from changed exchange rates was -5 percent.
EBITA amounted to SEK 130 (128) million, corresponding to an EBITA margin of 8.4 (9.0) percent. Profitability improved a bit in Norway and was once again very strong in the Other Europe segment.

Cash flow from operating activities amounted to SEK 121 (-2) million. There were significant payments on accounts receivable in July after robust invoicing during the early summer. Our cash flow was thus stronger in the third quarter than what it usually is. Because of that, indebtedness, expressed as net debt in relation to EBITDA proforma RTM amounted to 2.7 times. It is the same level that we reported at the end of the last period, even though several acquisitions were made this quarter.

We welcomed three new companies to Green Landscaping Group in Q3 and have announced that another is on the way in. The new members of our family are A. Markussen AS based in the northern part of Norway in Narvik, Stange Grünanlagen & Winterdienst GmbH in Germany and BUK Garten- und Landschaftsbau GmbH, also in Germany. They are all consolidated as of the third quarter. Early in September we announced our acquisition of Turun Reunakivi- ja Laatta-asennus Oy, in Finland. It provides landscaping and maintenance of outdoor environments to customers in and around Åbo, with sales of approximately EUR 3.6 million (SEK 41 million) in 2023. All in all, we have executed five acquisitions so far this year, with another two pending approvals by the authorities. We are still intent on achieving our ambition of 8-10 acquisitions in 2024.

We have many strong contacts in our existing markets, so we will not hesitate to act on opportunities that arise there. Examples of that are the recent acquisitions of A. Markussen AS in Norway, and Turun in Finland. Nevertheless, our main focus right now and for the near future is still Germany, Austria and Switzerland.

Changes and reinforcements to the Group management team
We have several years of strong profitable growth behind us, and we have a strategy to continue that journey. To put us in the best position to seize the opportunities that await, my conclusion is that we need to make changes and increase our capacity. Jakob Körner will take on the role of Vice President and Chief Operating Officer (COO). I also welcome Daniel Linderståhl, Marcus Holmström and Sam Monsén to the Group management team. I am looking forward to what we will be able to achieve together.

Presentation of the report:

The report will be presented in a teleconference/audiocast on 25 October 2024 at 08:30 CET. The presentation will be held in English.

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