Bifogade filer
Interim Report January-June 2024
Kurs & Likviditet
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | Large Cap Stockholm |
| Sektor | Industri |
| Industri | Industriprodukter |
Reporting period January – June
- Net sales increased 4.6 per cent to SEK 12,731 (12,165) million. Organically, net sales declined 3.9 per cent.
- EBITA increased 2.5 per cent to SEK 2,886 (2,817) million.
- The EBITA margin amounted to 22.7 (23.2) per cent.
- Profit before tax declined 2.6 per cent to SEK 2,175 (2,233) million.
- Net profit for the period decreased 2.9 per cent to SEK 1,615 (1,663) million.
- Earnings per share declined 2.8 per cent to SEK 3.50 (3.60).
- Cash flow from operating activities increased 12.9 per cent to SEK 1,721 (1,524) million.
- Three new businesses were consolidated during the period with total annual net sales of
about SEK 880 million.
Reporting period April – June
- Net sales increased 8.4 per cent to SEK 6,725 (6,206) million. Organically, net sales declined 0.1 per cent.
- EBITA increased 8.1 per cent to SEK 1,608 (1,487) million.
- The EBITA margin amounted to 23.9 (24.0) per cent.
- Profit before tax increased 5.0 per cent to SEK 1,234 (1,176) million.
- Net profit for the period increased 5.0 per cent to SEK 914 (870) million.
- Cash flow from operating activities increased 37.5 per cent to SEK 1,090 (793) million.
Summary of financial performance
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Net sales | 12,731 | 12,165 | 4.6% | 6,725 | 6,206 | 8.4% | 25,019 | 2.3% | 24,454 |
| EBITA | 2,886 | 2,817 | 2.5% | 1,608 | 1,487 | 8.1% | 5,733 | 1.2% | 5,664 |
| EBITA margin | 22.7% | 23.2% | -0.5 | 23.9% | 24.0% | -0.1 | 22.9% | -0.3 | 23.2% |
| Profit before tax | 2,175 | 2,233 | -2.6% | 1,234 | 1,176 | 5.0% | 4,316 | -1.3% | 4,374 |
| Net profit for the period | 1,615 | 1,663 | -2.9% | 914 | 870 | 5.0% | 3,275 | -1.5% | 3,323 |
| Earnings per share | 3.50 | 3.60 | -2.8% | 1.98 | 1.88 | 5.3% | 7.10 | -1.5% | 7.21 |
| Return on capital employed | 21.6% | 22.6% | -1.0 | 21.6% | 22.6% | -1.0 | 21.6% | -1.0 | 22.6% |
| Return on capital employed excl. goodwill | 134% | 133% | 1.0 | 134% | 133% | 1.0 | 134% | -5.0 | 139% |
COMMENTS FROM THE CEO
Net sales increased 4.6 per cent during the first half of the year to SEK 12,731 (12,165) million as the result of acquisitions. During the six-month period, the organic decrease was 3.9 per cent due to a continued weak market situation in Demolition & Tools and parts of Systems Solutions.
In the second quarter, net sales increased 8.4 per cent to SEK 6,725 (6,206) with an organic decrease of 0.1 per cent. The positive development in the second quarter is due to acquisitions and good organic growth in Dental, which is partly due to Easter occurring in the first quarter, as well as organic growth in parts of Systems Solutions. The continued weak market situation in Demolition & Tools had a negative impact.
EBITA increased 2.5 per cent in the first half of the year to SEK 2,886 (2,817) million as the result of acquisitions. The EBITA margin declined 0.5 percentage points to 22.7 (23.2) per cent, negatively impacted by a decline in organic sales and earnings were therefore weaker in Demolition & Tools.
During the second quarter, EBITA increased by 8.1 per cent to SEK 1,608 (1,487) million as a result of acquisitions and good organic growth in Dental thanks to the positive Easter effect and organic growth in parts of Systems Solutions. Within Dental and Demolition & Tools, we saw a positive mix effect in the second quarter, i.e. better net sales development in companies with higher margins.
Earnings per share decreased 2.8 per cent to SEK 3.50 (3.60) during the first six months of the year, mainly due to higher interest expenses. Cash flow from operating activities increased 12.9 per cent to SEK 1,721 (1,524) million as a result of a decline in tied-up capital.
During the first half of the year, Lifco consolidated both the Italian companies Brevetti Montolit and CFR, as well as the Cardel Group in the UK. Brevetti Montolit has been consolidated into Demolition & Tools, and CFR and Cardel Group into Systems Solutions. The companies are highly specialised and together have sales of about SEK 880 million.
Lifco’s financial position remains good and interest-bearing net debt amounted to 1.3 times EBITDA at 30 June 2024, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA and means that Lifco possesses the financial scope to make additional acquisitions.
Per Waldemarson
President and CEO
GROUP PERFORMANCE IN JANUARY – JUNE
Net sales increased 4.6 per cent to SEK 12,731 (12,165) million. Acquisitions contributed 8.1 per cent and exchange rate changes had a positive impact on net sales of 0.4 per cent. As a result of the continued weak market situation in Demolition & Tools and part of Systems Solutions, organic net sales declined 3.9 per cent. The Italian companies Brevetti Montolit and CFR, as well as the Cardel Group in the UK, were consolidated during the period.
EBITA increased 2.5 per cent to SEK 2,886 (2,817) million, and the EBITA margin declined 0.5 percentage points to 22.7 (23.2) per cent. EBITA was negatively impacted by a decline in organic sales and earnings were therefore weaker in Demolition & Tools, while acquisitions in all business areas had a positive impact. Foreign exchange gains had a positive impact on EBITA of 0.4 per cent. During the period, 45 (44) per cent of EBITA was generated in EUR, 18 (21) per cent in SEK, 14 (10) per cent in GBP, 12 (11) per cent in NOK, 4 (5) per cent in DKK, 4 (4) per cent in USD and 4 (5) per cent in other currencies.
Net financial items were SEK -230 (-151) million, negatively impacted primarily by higher interest expenses.
Profit before tax decreased 2.6 per cent to SEK 2,175 (2,233) million and net profit for the period declined 2.9 per cent to SEK 1,615 (1,663) million.
Average capital employed excluding goodwill increased SEK 230 million during the period to
SEK 4,291 million at 30 June 2024, compared with SEK 4,088 million at 31 December 2023. EBITA in relation to average capital employed excluding goodwill declined during the period to 134 per cent, from 139 per cent at year-end.
The Group’s net debt increased SEK 1,282 million from 31 December 2023 to SEK 11,915 million at 30 June 2024, of which liabilities related to put/call options for acquisitions increased SEK 27 million since year-end to SEK 2,632 million. Interest-bearing net debt increased by SEK 1,248 million since year-end and amounted to SEK 8,097 million at 30 June 2024.
The Group has bonds outstanding totalling SEK 4,000 million. In addition to bonds, Lifco has standard short-term credit facilities.
The net debt/equity ratio at 30 June 2024 was 0.7 and was unchanged compared to 31 December 2023. Net debt in relation to EBITDA increased to 1.9 times from 1.7 times at 31 December 2023. Interest-bearing net debt in relation to EBITDA increased to 1.3 times from 1.1 times at the end of the year. At period-end, 37 (39) per cent of the Group’s interest-bearing liabilities were denominated in EUR.
Cash flow from operating activities during the period increased 12.9 per cent to SEK 1,721 (1,524) million in the first half of the year. Cash flow from investing activities was SEK -1,231 (-2,142) million, which was mainly attributable to acquisitions.
GROUP PERFORMANCE IN THE SECOND QUARTER
Net sales increased 8.4 per cent to SEK 6,725 (6,206) million in the second quarter. Acquisitions contributed 7.9 per cent, exchange rate changes had a positive impact on net sales of 0.6 per cent and the organic decline amounted to 0.1. The positive development in the second quarter is due to acquisitions and good organic growth in Dental, which is partly due to Easter occurring in the first quarter, as well as organic growth in parts of Systems Solutions. The continued weak market situation in Demolition & Tools had a negative impact.
EBITA increased 8.1 per cent to SEK 1,608 (1,487) million, and the EBITA margin decreased 0.1 percentage points to 23.9 (24.0) per cent. EBITA was positively impacted by acquisitions and good organic growth in Dental thanks to the positive Easter effect as well as organic growth in parts of Systems Solutions. Within Dental and Demolition & Tools, a positive mix effect also contributed, i.e. better net sales development in companies with higher margins. Foreign exchange gains had a positive impact on EBITA of 0.6 per cent. During the second quarter, 44 (44) per cent of EBITA was generated in EUR, 18 (19) per cent in SEK, 14 (11) per cent in GBP, 12 (11) per cent in NOK, 4 (4) per cent in USD, 4 (4) per cent in DKK and 4 (6) per cent in other currencies.
Net financial items were SEK -127 (-86) million, negatively impacted primarily by higher interest expenses.
Profit before tax increased 5.0 per cent, totalling SEK 1,234 (1,176) million. Net profit for the period increased 5.0 per cent to SEK 914 (870) million.
Average capital employed excluding goodwill increased by SEK 94 million to SEK 4,291 million at 30 June 2024, compared with SEK 4,197 million at 31 March 2024. EBITA relative to average capital employed excluding goodwill amounted to 134 per cent at 30 June 2024 and was unchanged compared to 31 March 2024.
From 31 March 2024, the Group’s net debt increased SEK 1,692 million to SEK 11,915 million. At the Annual General Meeting on 24 April 2024, the dividend for the 2023 financial year was set at SEK 2.10 (1.80) per share. The total dividend to shareholders for the 2023 financial year was SEK 953.9 (817.6) million, and was paid out on 2 May 2024.
Cash flow from operating activities increased 37.5 per cent to SEK 1,090 (793) million. Cash flow from investing activities was SEK -1,045 (-763) million, which was mainly attributable to acquisitions.
FINANCIAL PERFORMANCE – BUSINESS AREAS
Dental
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Net sales | 3,208 | 3,029 | 5.9% | 1,639 | 1,504 | 9.0% | 6,209 | 3.0% | 6,030 |
| EBITA | 691 | 630 | 9.7% | 364 | 302 | 20.4% | 1,309 | 4.9% | 1,248 |
| EBITA margin | 21.5% | 20.8% | 0.7 | 22.2% | 20.1% | 2.1 | 21.1% | 0.4 | 20.7% |
The companies in Lifco’s Dental business area are leading suppliers of consumables, equipment and technical service to dentists across Europe, and the business area also has operations in the US. Lifco sells dental technology to dentists in the Nordic countries and Germany, and develops and sells medical record systems in Denmark, Sweden and Germany. The business area also includes a number of manufacturers which produce, inter alia, fitting products for dentures, disinfectants, saliva ejectors, bite registration and dental impression materials, bonding agents and other consumables that are sold to dentists through distributors around the world.
Net sales in Dental increased by 5.9 per cent to SEK 3,208 (3,029) million during the first half of the year, primarily as the result of acquisitions and organic growth. Net sales in the second quarters were somewhat positively impacted by the early Easter occurring in the first quarter of 2024, compared with 2023 when Easter fell in the second quarter.
EBITA increased 9.7 per cent to SEK 691 (630) million in the six-month period, and the EBITA margin increased 0.7 percentage points to 21.5 (20.8) per cent. EBITA was positively impacted by acquisitions and the organic growth. Profitability was also positively affected by a mix effect, i.e. companies with higher margins showed better net sales development.
Demolition & Tools
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Net sales | 3,235 | 3,699 | -12.5% | 1,744 | 1,889 | -7.7% | 6,632 | -6.5% | 7,097 |
| EBITA | 757 | 979 | -22.6% | 453 | 533 | -15.0% | 1,638 | -11.9% | 1,859 |
| EBITA margin | 23.4% | 26.5% | -3.1 | 26.0% | 28.2% | -2.2 | 24.7% | -1.5 | 26.2% |
The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, demolition and construction industries. The Group is the world’s leading supplier in the markets for demolition robots and crane attachments. The Group is also one of the leading global suppliers of forest machinery and excavator attachments. The business area’s EBITA margin might fluctuate between quarters due to single, major special orders and changes to the product mix.
Net sales decreased 12.5 per cent during the first half of the year to SEK 3,235 (3,699) million as the result of a continued weak market situation and thus reduced organic sales.
EBITA declined 22.6 per cent in the first half of the year to SEK 757 (979) million, and the EBITA margin decreased 3.1 percentage points to 23.4 (26.5) per cent, impacted negatively by lower organic sales while acquisitions made a positive contribution. During the second quarter, profitability was impacted by a positive mix effect, i.e. companies with higher margins showed better net sales development.
As of April 2024, the Italian company Brevetti Montolit – a niche manufacturer of high-end professional tile cutting tools and accessories – has been consolidated. The company had net sales of about EUR 18.5 million in 2023 and has 36 employees.
Systems Solutions
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Net sales | 6,288 | 5,437 | 15.6% | 3,342 | 2,813 | 18.8% | 12,178 | 7.5% | 11,328 |
| EBITA | 1,526 | 1,285 | 18.7% | 838 | 691 | 21.1% | 2,945 | 8.9% | 2,704 |
| EBITA margin | 24.3% | 23.6% | 0.7 | 25.1% | 24.6% | 0.5 | 24.2% | 0.3 | 23.9% |
Through its operating units, the Systems Solutions business area operates in industries offering systems solutions. Systems Solutions is divided into five divisions: Contract Manufacturing, Environmental Technology, Infrastructure Products, Special Products and Transportation Products.
Net sales in Systems Solutions increased by 15.6 per cent to SEK 6,288 (5,437) million in the first half of the year, mainly due to acquisitions and organic growth in parts of the business area.
EBITA increased 18.7 per cent to SEK 1,526 (1,285) million in the first half of the year, and the EBITA margin improved 0.7 percentage points to 24.3 (23.6) per cent. Acquisitions and organic growth in parts of the business area contributed to the increased EBITA.
Contract Manufacturing reported higher net sales over the six-month period, with improved profitability.
Environmental Technology reported a healthy performance in net sales and somewhat improved profitability in the first six months of the year as a result of acquisitions.
Infrastructure Products reported lower net sales over the six-month period, with lower profitability, mainly as a result of weaker market conditions in the construction segment.
Special Products reported a strong net sales trend in the first six months of the year with improved profitability as a result of acquisitions.
Transportation Products reported a favourable net sales trend during the six-month period, with stable profitability as a result of organic growth and acquisitions.
The Italian company CFR – a niche manufacturer of electric drive systems for industrial applications – has been consolidated into the Transportation Products division as of April 2024. The company had a turnover of around EUR 38.5 million in 2023 and has 100 employees. UK Cardel Group – a global niche provider of lamination plates for products with high quality requirements such as ID, bank and SIM cards – has been consolidated into the Contract Manufacturing division as of June 2024. The company had a turnover of around GBP 16.5 million in 2023 and has 74 employees.
ACQUISITIONS
Lifco made the following consolidations in the first six months of the year:
| Consolidated from month | Acquisitions | Business area | Net sales | Employees |
| April | Brevetti Montolit | Demolition & Tools | EUR 18.5 m | 36 |
| April | CFR | Systems Solutions | EUR 38.5 m | 100 |
| June | Cardel Group | Systems Solutions | GBP 16.5 m | 74 |
Further information on the acquisitions is provided on page 16. The figures for net sales and number of employees refer to estimated annual net sales and the number of employees at the acquisition date.
Taken together, the acquisitions will have a positive impact on Lifco’s results and financial position in the current year.
OTHER INFORMATION
Employees
The average number of employees was 6,851 (6,710) in the first half of the year. At the end of the period, the number of employees was 7,079 (6,788). About 210 employees joined the company through acquisitions in the first six months of the year.
Events after the end of the reporting period
Consolidation of the Dutch company Eurosteel into Business Area Demolition & Tools is expected to take place in the third quarter of 2024. Eurosteel is a niche manufacturer of attachments and tools for excavators and wheel loaders as well as other construction machinery. The company reported net sales of about EUR 16.8 million in 2023 and has 49 employees. The acquisition, which comprised a majority of the shares, was announced on 27 June 2024.
Consolidation of the Danish company Pro-Dental into Business Area Dental is expected to take place in the third quarter of 2024. Pro-Dental is a dental laboratory that manufactures prosthetics for Danish dentists. The company reported net sales of about DKK 17 million in 2023 and has twelve employees. The acquisition, which comprised all of the shares, was announced on 24 June 2024.
Related party transactions
No significant transactions with related parties took place during the period.
2024 Annual General Meeting
The 2024 Annual General Meeting was held on 24 April in Stockholm. The main resolutions of the Meeting were as follows: • The dividend for the 2023 financial year was set at SEK 2.10 per share. The record date for the right to a dividend was set at 26 April, with the payment date at 2 May 2024. • Carl Bennet, Ulrika Dellby, Dan Frohm, Erik Gabrielson, Ulf Grunander, Caroline af Ugglas, Axel Wachtmeister and Per Waldemarson were re-elected members of the Board. Anna Hallberg was elected as a new member of the Board. Carl Bennet was re-elected Chairman of the Board. • The AGM re-elected the accounting firm Öhrlings PricewaterhouseCoopers AB as auditor for the period until the end of the 2025 AGM. The auditor-in-charge is Cecilia Andrén Dorselius. • Fees for the Board and auditors were adopted. • The Board of Directors’ remuneration report was approved.
Risks and uncertainties
The risk factors which have the biggest impact for Lifco are global macroeconomic factors, the competitive situation, structural changes in the market and general level of economic activity. Lifco is also exposed to financial risks, including currency risks, interest rate risks, credit and counterparty risks.
Lifco is working actively to monitor and continually evaluate sustainability-related risks and their impact on the Group’s operations and earnings. The Group has established a governance structure that involves both Group management and the Board and works to continually improve the company’s sustainability-related activities and minimise related risks. As part of this governance, Group management evaluates the compliance of, for example, the Code of Conduct, occupational injuries, IT security and legal disputes, for every subsidiary on a quarterly basis.
The Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies. For further information on Lifco’s risks and risk management, see the 2023 Annual Report.
Accounting policies
The Group’s interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In respect of the Parent Company, the report has been prepared in accordance with the Annual Accounts Act and Recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies have been applied in accordance with those which are presented in the 2023 Annual Report and should be read in conjunction with these. The total figures in the tables and calculations do not always add up due to rounding differences. The aim is for each row to correspond to its original source and as such, rounding differences can affect the total figures.
This report has not been examined by the company’s auditors.
DECLARATION OF THE BOARD OF DIRECTORS
The Board of Directors and Chief Executive Officer warrant and declare that this six-month report gives a true and fair view of the Parent Company’s and Group’s operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group.
Enköping, 12 July 2024
Carl Bennet Chairman of the Board | Ulrika Dellby Director | Dan Frohm Vice Chairman |
| Erik Gabrielson Director | Ulf Grunander Director | Anna Hallberg Director |
| Anders Lindström Director, employee representative | Tobias Nordin Director, employee representative | Caroline af Ugglas Director |
Axel Wachtmeister Director | Per Waldemarson President and CEO, Director |
FINANCIAL CALENDAR
The report for the third quarter will be published on 22 October.
The year-end report and the report for the fourth quarter will be published on 31 January 2025.
The Annual Report and Sustainability Report 2024 will be published in March 2025.
ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday, 12 July at 9:00 a.m. CEST. The presentation can be listened to online or by calling in to the telephone conference. Questions can be asked at the telephone conference.
Link to the presentation: https://ir.financialhearings.com/lifco-q2-report-2024
If you wish to participate at the telephone conference, you can register using the link below. Following registration, you will receive a telephone number and a conference ID to log in to the conference.
Link to register for the telephone conference:
https://conference.financialhearings.com/teleconference/?id=50048555
CONDENSED CONSOLIDATED INCOME STATEMENT
| SIX MONTHS | SECOND QUARTER | FULL YEAR | |||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | 2023 |
| Net sales | 12,731 | 12,165 | 4.6% | 6,725 | 6,206 | 8.4% | 24,454 |
| Cost of goods sold | -7,065 | -6,832 | 3.4% | -3,721 | -3,482 | 6.8% | -13,637 |
| Gross profit | 5,665 | 5,333 | 6.2% | 3,004 | 2,724 | 10.3% | 10,817 |
| Selling expenses | -1,403 | -1,287 | 9.0% | -701 | -623 | 12.5% | -2,645 |
| Administrative expenses | -1,770 | -1,594 | 11.1% | -891 | -812 | 9.7% | -3,252 |
| Development costs | -121 | -91 | 33.2% | -66 | -45 | 44.2% | -196 |
| Other income and expenses | 34 | 23 | 51.0% | 14 | 18 | -24.3% | 28 |
| Operating profit | 2,405 | 2,384 | 0.9% | 1,361 | 1,262 | 7.9% | 4,753 |
| Net financial items | -230 | -151 | 52.8% | -127 | -86 | 48.1% | -379 |
| Profit before tax | 2,175 | 2,233 | -2.6% | 1,234 | 1,176 | 5.0% | 4,374 |
| Tax | -560 | -570 | -1.6% | -320 | -306 | 4.9% | -1,051 |
| Net profit for the period | 1,615 | 1,663 | -2.9% | 914 | 870 | 5.0% | 3,323 |
| Profit attributable to: | |||||||
| Parent Company shareholders | 1,589 | 1,637 | -3.0% | 900 | 855 | 5.1% | 3,274 |
| Non-controlling interests | 26 | 26 | -1.3% | 14 | 15 | -1.7% | 49 |
| Earnings per share before and after dilution for the period, attributable to Parent Company shareholders | 3,50 | 3.60 | -2.8% | 1,98 | 1.88 | 5.3% | 7.21 |
| EBITA | 2,886 | 2,817 | 2.5% | 1,608 | 1,487 | 8.1% | 5,664 |
| Depreciation of tangible assets | 326 | 276 | 18.4% | 168 | 147 | 14.4% | 600 |
| Amortisation of intangible assets | 12 | 11 | 1.4% | 6 | 6 | 3.0% | 24 |
| Amortisation of intangible assets arising from acquisitions | 470 | 398 | 18.1% | 237 | 207 | 14.2% | 859 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| SIX MONTHS | SECOND QUARTER | FULL YEAR 2023 | |||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | |
| Net profit for the period | 1,615 | 1,663 | -2.9% | 914 | 870 | 5.0% | 3,323 |
| Other comprehensive income | |||||||
| Items which can later be reclassified to profit or loss: | |||||||
| Hedge of net investment | -75 | -74 | 1.7% | -24 | -106 | -77.1% | -2 |
| Translation differences | 522 | 776 | -32.7% | -135 | 735 | 118% | -254 |
| Tax related to other comprehensive income | 17 | 17 | 1.8% | 6 | 24 | -76.0% | 1 |
| Total comprehensive income for the period | 2,079 | 2,382 | -12.7% | 761 | 1,523 | -50.1% | 3,069 |
| Comprehensive income attributable to: | |||||||
| Parent Company shareholders | 2,051 | 2,355 | -12.9% | 747 | 1,505 | -50.4% | 3,024 |
| Non-controlling interests | 28 | 27 | 4.9% | 14 | 18 | -21.2% | 44 |
| 2,079 | 2,382 | -12.7% | 761 | 1,523 | -50.1% | 3,069 | |
SEGMENT OVERVIEW
Lifco’s operations are monitored and evaluated by the CEO and resources are allocated based on information from the three operating segments Dental, Demolition & Tools and Systems Solutions. The defined quantitative limits have been exceeded only by Dental and Demolition & Tools. One further operating segment, Systems Solutions, is presented. This operating segment consists of a merger of those divisions which have similar economic characteristics and which do not individually meet the defined quantitative limits. These divisions are Infrastructure Products, Contract Manufacturing, Environmental Technology, Transportation Products and Special Products.
NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Dental | 3,208 | 3,029 | 5.9% | 1,639 | 1,504 | 9.0% | 6,209 | 3.0% | 6,030 |
| Demolition & Tools | 3,235 | 3,699 | -12.5% | 1,744 | 1,889 | -7.7% | 6,632 | -6.5% | 7,097 |
| Systems Solutions | 6,288 | 5,437 | 15.6% | 3,342 | 2,813 | 18.8% | 12,178 | 7.5% | 11,328 |
| Group | 12,731 | 12,165 | 4.6% | 6,725 | 6,206 | 8.4% | 25,019 | 2.3% | 24,454 |
Net sales by significant type of income:
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Dental products | 3,208 | 3,029 | 5.9% | 1,639 | 1,504 | 9.0% | 6,209 | 3.0% | 6,030 |
| Machinery and tools | 3,235 | 3,699 | -12.5% | 1,744 | 1,889 | -7.7% | 6,632 | -6.5% | 7,097 |
| Infrastructure Products | 904 | 965 | -6.3% | 472 | 486 | -2.9% | 1,846 | -3.2% | 1,907 |
| Contract Manufacturing | 1,174 | 1,146 | 2.4% | 687 | 592 | 15.9% | 2,240 | 1.3% | 2,213 |
| Environmental Technology | 1,653 | 1,492 | 10.8% | 851 | 744 | 14.3% | 3,313 | 5.1% | 3,152 |
| Transportation Products | 1,652 | 1,318 | 25.4% | 870 | 709 | 22.8% | 3,074 | 12.2% | 2,740 |
| Special Products | 904 | 516 | 75.3% | 462 | 282 | 64.3% | 1,705 | 29.5% | 1,316 |
| Group | 12 731 | 12,165 | 4.6% | 6,725 | 6,206 | 8.4% | 25,019 | 2.3% | 24,454 |
EBITA
A breakdown of results by segment is made up to and including EBITA. EBITA is reconciled to profit before tax in accordance with the following table:
| SIX MONTHS | SECOND QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2024 | 2023 | change | 2024 | 2023 | change | change | 2023 | |
| Dental | 691 | 630 | 9.7% | 364 | 302 | 20.4% | 1,309 | 4.9% | 1,248 |
| Demolition & Tools | 757 | 979 | -22.6% | 453 | 533 | -15.0% | 1,638 | -11.9% | 1,859 |
| Systems Solutions | 1,526 | 1,285 | 18.7% | 838 | 691 | 21.1% | 2,945 | 8.9% | 2,704 |
| Central Group functions | -88 | -77 | 14.5% | -46 | -39 | 18.5% | -159 | 7.6% | -148 |
| EBITA before acquisition costs | 2,886 | 2,817 | 2.5% | 1,608 | 1,487 | 8.1% | 5,733 | 1.2% | 5,664 |
| Acquisition costs | -11 | -35 | -69.2% | -10 | -18 | -45.8% | -28 | -47.0% | -52 |
| 2 783 | 2,783 | 1 468 | 1,468 | 5 184 | 5,612 | ||||
| EBITA | 2,875 | 2,782 | 3.4% | 1,598 | 1,469 | 8.8% | 5,705 | 1.7% | 5,612 |
| Amortisation of intangible assets arising from acquisitions | -470 | -398 | 18.1% | -237 | -207 | 14.2% | -931 | 8.4% | -859 |
| Net financial items | -230 | -151 | 52.8% | -127 | -86 | 48.1% | -459 | 21.0% | -379 |
| Profit before tax | 2,175 | 2,233 | -2.6% | 1,234 | 1,176 | 5.0% | 4,316 | -1.3% | 4,374 |
CONDENSED CONSOLIDATED BALANCE SHEET
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
| ASSETS | |||
| Intangible assets | 23,524 | 21,247 | 21,927 |
| Tangible assets | 2,931 | 2,698 | 2,723 |
| Financial assets | 411 | 393 | 380 |
| Inventories | 4,298 | 4,248 | 3,906 |
| Accounts receivable - trade | 3,514 | 3,297 | 2,940 |
| Current receivables | 1,078 | 859 | 824 |
| Cash and cash equivalents | 1,707 | 1,587 | 1,591 |
| TOTAL ASSETS | 37,462 | 34,329 | 34,291 |
| EQUITY AND LIABILITIES | |||
| Equity | 16,431 | 14,718 | 15,332 |
| Non-current interest-bearing liabilities incl. pension provisions | 2,859 | 3,364 | 3,337 |
| Other non-current liabilities and provisions | 5,157 | 4,732 | 5,101 |
| Current interest-bearing liabilities | 8,131 | 6,924 | 6,282 |
| Accounts payable - trade | 1,773 | 1,755 | 1,396 |
| Other current liabilities | 3,112 | 2,836 | 2,844 |
| TOTAL EQUITY AND LIABILITIES | 37,462 | 34,329 | 34,291 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Attributable to Parent Company shareholders |
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
| Opening equity | 15,212 | 13,238 | 13,238 |
| Comprehensive income for the period | 2 ,051 | 2,355 | 3,024 |
| Change in value, owner transactions | -6 | -177 | -233 |
| Dividend | -954 | -818 | -818 |
| Closing equity | 16,304 | 14,598 | 15,212 |
| Equity attributable to: | |||
| Parent Company shareholders | 16,304 | 14,598 | 15,212 |
| Non-controlling interests | 127 | 120 | 119 |
| 16,431 | 14,718 | 15,332 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| SIX MONTHS | SECOND QUARTER | FULL YEAR | |||
| SEK million | 2024 | 2023 | 2024 | 2023 | 2023 |
| Operating activities | |||||
| Operating profit | 2,405 | 2,384 | 1,361 | 1,262 | 4,753 |
| Depreciation of right-of-use assets | 149 | 129 | 76 | 67 | 276 |
| Other non-cash items | 643 | 520 | 396 | 262 | 1,212 |
| Interest and financial items, net | -230 | -151 | -127 | -86 | -379 |
| Tax paid | -792 | -704 | -367 | -408 | -1,343 |
| Cash flow before changes in working capital | 2,175 | 2,178 | 1,339 | 1,097 | 4,519 |
| Changes in working capital | |||||
| Inventories | -235 | -287 | -4 | -49 | 146 |
| Current receivables | -278 | -340 | -202 | 34 | -25 |
| Current liabilities | 60 | -27 | -43 | -289 | -182 |
| Cash flow from operating activities | 1,721 | 1,524 | 1,090 | 793 | 4,458 |
| Business acquisitions and sales, net | -975 | -1,928 | -907 | -655 | -3,718 |
| Net investment in tangible assets | -233 | -184 | -120 | -104 | -387 |
| Net investment in intangible assets | -23 | -30 | -18 | -4 | -52 |
| Cash flow from investing activities | -1,231 | -2,142 | -1,045 | -763 | -4,158 |
Borrowings/repayment of borrowings, net | 603 | 1,358 | 1,224 | 650 | 627 |
| Dividends paid | -954 | -818 | -954 | -818 | -818 |
| Dividends paid to non-controlling interests | -147 | -110 | -127 | -110 | -155 |
| Cash flow from financing activities | -498 | 430 | 143 | -278 | -346 |
| Cash flow for the period | -7 | -188 | 188 | -248 | -46 |
| Cash and cash equivalents at beginning of period | 1,591 | 1,703 | 1,560 | 1,754 | 1,703 |
| Translation differences | 123 | 72 | -42 | 81 | -67 |
| Cash and cash equivalents at end of period | 1,707 | 1,587 | 1,707 | 1,587 | 1,591 |
ACQUISITIONS IN 2024
Three new businesses were consolidated in the first six months of the year. The operations that were consolidated comprise the Italian companies CFR and Brevetti Montolit, as well as the Cardel Group in the UK.
The purchase price allocation includes all acquisitions consolidated during the first six months of the year.
Acquisition-related expenses of SEK 11 million are included in administrative expenses in the consolidated income statement for the first half of the year. Since the respective consolidation dates, the acquired companies have added SEK 116 million to consolidated net sales and SEK 34 million to EBITA. If the businesses had been consolidated as of 1 January 2024, consolidated net sales for the year would have increased by a further SEK 253 million and EBITA would have increased by a further SEK 76 million.
Acquired net assets | |||
| Net assets, SEK million | Carrying amount | Value adjustment | Fair value |
| Trademarks, customer relationships, licences | 27 | 891 | 917 |
| Tangible assets | 104 | - | 104 |
| Inventories, accounts receivable and other receivables | 320 | -11 | 310 |
| Accounts payable and other liabilities1 | -649 | -238 | -887 |
| Cash and cash equivalents | 322 | - | 322 |
| Net assets | 123 | 642 | 765 |
| Goodwill | - | 719 | 719 |
| Total net assets | 123 | 1,360 | 1,484 |
| Effect on cash flow, SEK million | |||
| Consideration | 1,484 | ||
| Considerations not paid | -286 | ||
| Cash and cash equivalents in acquired companies | -322 | ||
| Consideration paid relating to acquisitions from previous years | 98 | ||
| Total cash flow effect | 975 | ||
| 1 Of which SEK 471 million refers to external interest-bearing liabilities. | |||
FINANCIAL INSTRUMENTS
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
| Financial assets at amortised cost | |||
| Accounts receivable - trade | 3,514 | 3,297 | 2,940 |
| Other non-current financial receivables | 23 | 21 | 25 |
| Cash and cash equivalents | 1,707 | 1,587 | 1,591 |
| Total | 5,243 | 4,905 | 4,556 |
| Liabilities at fair value | |||
| Other liabilities1 | 2,632 | 2,259 | 2,605 |
| Financial liabilities at amortised cost | |||
| Interest-bearing borrowings | 10,879 | 10,193 | 9,520 |
| Accounts payable - trade | 1,773 | 1,755 | 1,396 |
| Total | 15,284 | 14,207 | 13,521 |
1 Other liabilities classified as financial instruments refer to mandatory put/call options related to non-controlling interests.
The carrying amount is the same as the fair value. Financial instruments at fair value are classified into different levels depending on how fair value is determined. All financial instruments at fair value in the Lifco Group have been classified as level 3, i.e. non-observable inputs. The fair value of short-term borrowings is equal to the carrying amount, as the discount effect is insignificant.
KEY PERFORMANCE INDICATORS
| ROLLING TWELVE MONTHS TO | 2024 30 JUNE | 2023 31 DEC | 2023 30 JUNE |
| Net sales, SEK million | 25,019 | 24,454 | 23,187 |
| Change in net sales, % | 2.3 | 13.5 | 7.6 |
| EBITA, SEK million | 5,733 | 5,664 | 5,242 |
| EBITA margin, % | 22.9 | 23.2 | 22.6 |
| EBITDA, SEK million | 6,407 | 6,287 | 5,786 |
| EBITDA margin, % | 25.6 | 25.7 | 25.0 |
| Capital employed, SEK million | 26,486 | 25,007 | 23,162 |
| Capital employed excl. goodwill and other intangible assets, SEK million | 4,291 | 4,088 | 3,952 |
| Return on capital employed, % | 21.6 | 22.6 | 22.6 |
| Return on capital employed excl. goodwill, % | 134 | 139 | 133 |
| Return on equity, % | 20.6 | 22.4 | 22.6 |
| Net debt, SEK million | 11,915 | 10,633 | 10,960 |
| Net debt/equity ratio | 0.7 | 0.7 | 0.7 |
| Net debt/EBITDA | 1.9 | 1.7 | 1.9 |
| Interest-bearing net debt, SEK million | 8,097 | 6,849 | 7,532 |
| Interest-bearing net debt/EBITDA | 1.3 | 1.1 | 1.3 |
| Equity/assets ratio, % | 43.9 | 44.7 | 42.9 |
| Number of shares, thousands | 454,216 | 454,216 | 454,216 |
| Average number of employees | 6,851 | 6,753 | 6,710 |
CONDENSED PARENT COMPANY INCOME STATEMENT
| SIX MONTHS | SECOND QUARTER | FULL YEAR | |||
| SEK million | 2024 | 2023 | 2024 | 2023 | 2023 |
| Administrative expenses | -70 | -64 | -34 | -31 | -113 |
| Other operating income1 | - | — | - | — | 67 |
| Operating profit | -70 | -64 | -34 | -31 | -46 |
| Net financial items2 | 1,907 | 1,444 | 1,918 | 1,396 | 1,626 |
| Profit/loss after financial items | 1,837 | 1,380 | 1,884 | 1,365 | 1,580 |
| Appropriations | - | — | - | — | 389 |
| Tax | 46 | 16 | 1 | 19 | -42 |
| Net profit for the period | 1,883 | 1,396 | 1,885 | 1,384 | 1,927 |
1 Invoicing of Group-wide services.
2 Net financial items include SEK 1,891 (1,461) million in dividends received during the six-month period.
CONDENSED PARENT COMPANY BALANCE SHEET
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
| ASSETS | |||
| Financial assets | 9,517 | 8,192 | 8,318 |
| Current receivables | 11,402 | 9,695 | 10,415 |
| Cash and cash equivalents | 375 | 271 | 469 |
| TOTAL ASSETS | 21,294 | 18,158 | 19,203 |
| EQUITY AND LIABILITIES | |||
| Equity | 5,688 | 4,228 | 4,759 |
| Untaxed reserves | - | 114 | — |
| Provisions | 6 | — | 12 |
| Non-current interest-bearing liabilities | 1,738 | 2,250 | 2,203 |
| Current interest-bearing liabilities | 7,828 | 6,624 | 5,985 |
| Current non-interest-bearing liabilities | 6,034 | 4,942 | 6,244 |
| TOTAL EQUITY AND LIABILITIES | 21,294 | 18,158 | 19,203 |
DEFINITIONS AND OBJECTIVES
| Return on equity | Net profit for the period divided by average equity. |
| Return on capital employed | EBITA before acquisition costs divided by capital employed. |
| Return on capital employed excluding goodwill and other intangible assets | EBITA before acquisition costs divided by capital employed excluding goodwill and other intangible assets. |
| EBITA | EBITA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated after investments in tangible and intangible assets requiring reinvestment but before investments in intangible assets attributable to acquisitions. Lifco defines earnings before interest, tax and amortisation (EBITA) as operating profit before amortisation and impairment of intangible assets arising from acquisitions excluding acquisition costs. |
| EBITA margin | EBITA divided by net sales. |
| EBITDA | EBITDA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated before investments in non-current assets. Lifco defines earnings before interest, tax, depreciation and amortisation (EBITDA) as operating profit before depreciation, amortisation and impairment of tangible and intangible assets excluding acquisition costs. |
| EBITDA margin | EBITDA divided by net sales. |
| Net debt/equity ratio | Net debt divided by equity. |
| Net debt | Lifco uses the alternative KPI net debt. Lifco considers that this is a useful additional KPI which allows users of the financial reports to assess the Group’s ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds, interest-bearing pension provisions, liabilities related to put/call options relating to acquisitions as well as lease liabilities less cash and cash equivalents. |
| Earnings per share | Profit after tax attributable to Parent Company shareholders, divided by the average number of shares outstanding. |
| Interest-bearing net debt | Lifco uses the alternative KPI interest-bearing net debt. Lifco considers that this is a useful additional KPI which allows users of the financial reports to assess the Group’s ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds as well as interest-bearing pension provisions less cash and cash equivalents. |
| Equity/assets ratio | Equity divided by total assets (balance sheet total). |
| Capital employed | Capital employed is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed is useful in helping users of the financial reports to understand how the Group finances itself. Lifco defines capital employed as total assets less cash and cash equivalents, interest-bearing pension provisions and non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, calculated as the average of the last four quarters. |
| Capital employed excluding goodwill and other intangible assets | Capital employed excluding goodwill and other intangible assets is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed excluding goodwill and other intangible assets is useful in helping users of the financial reports to understand the impact of goodwill and other intangible assets on that capital which requires a return. Lifco defines capital employed excluding goodwill and other intangible assets as total assets less cash and cash equivalents, interest-bearing pension provisions, non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, goodwill and other intangible assets, calculated as the average of the last four quarters. |
RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The interim report presents alternative key performance indicators for assessing the Group’s performance. The primary alternative KPIs presented in this interim report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 1920.
EBITA compared with financial statements in accordance with IFRS
| SEK million | SIX MONTHS 2024 | SIX MONTHS 2023 | FULL YEAR 2023 |
| 2,405 | |||
| Operating profit | 2,384 | 4,753 | |
| Amortisation of intangible assets arising from acquisitions | 470 | 398 | 859 |
| EBITA | 2,875 | 2,782 | 5,612 |
| Acquisition costs | 11 | 35 | 52 |
| EBITA before acquisition costs | 2 ,886 | 2,817 | 5,664 |
EBITDA compared with financial statements in accordance with IFRS
| SEK million | SIX MONTHS 2024 | SIX MONTHS 2023 | FULL YEAR 2023 |
| 2,405 | |||
| Operating profit | 2,384 | 4,753 | |
| Depreciation of tangible assets | 326 | 276 | 600 |
| Amortisation of intangible assets | 12 | 11 | 24 |
| Amortisation of intangible assets arising from acquisitions | 470 | 398 | 859 |
| EBITDA | 3,213 | 3,069 | 6,235 |
| Acquisition costs | 11 | 35 | 52 |
| EBITDA before acquisition costs | 3,224 | 3,104 | 6,287 |
Net debt compared with financial statements in accordance with IFRS
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
| Non-current interest-bearing liabilities including pension provisions | 1,960 | 2,465 | 2,432 |
| Current interest-bearing liabilities | 7,844 | 6,654 | 6,008 |
| Cash and cash equivalents | -1,707 | -1,587 | -1,591 |
| Interest-bearing net debt | 8,097 | 7,532 | 6,849 |
| Put/call options | 2,632 | 2,259 | 2,605 |
| Lease liability | 1,186 | 1,169 | 1,179 |
| Net debt | 11,915 | 10,960 | 10,633 |
Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS
| SEK million | 30 Jun 2024 | 31 Mar 2024 | 31 Dec 2023 | 30 Sep 2023 |
| Total assets | 37,462 | 35,521 | 34,291 | 33,711 |
| Cash and cash equivalents | -1,707 | -1,560 | -1,591 | -1,560 |
| Interest-bearing pension provisions | -110 | -103 | -98 | -102 |
| Non-interest-bearing liabilities | -7,410 | -7,033 | -6,736 | -7,029 |
| Capital employed | 28,235 | 26,825 | 25,866 | 25,020 |
| Goodwill and other intangible assets | -23,524 | -22,383 | -21,927 | -20,948 |
| Capital employed excluding goodwill and other intangible assets | 4,711 | 4,441 | 3,939 | 4,072 |
Capital employed and capital employed excluding goodwill and other intangible assets calculated as the average of the last four quarters compared with financial statements in accordance with IFRS
SEK million | Average | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | |
| Capital employed | 26,486 | 28,235 | 26,825 | 25,866 | 25,020 | |
| Capital employed excluding goodwill and other intangible assets | 4,291 | 4,711 | 4,441 | 3,939 | 4,072 | |
| Summa | ||||||
| EBITA | 5,733 | 1,608 | 1,278 | 1,492 | 1,355 | |
Return on capital employed | 21.6% | |||||
| Return on capital employed excluding goodwill and other intangible assets | 134% |