Second Quarter (April-June 2022)

Net sales amounted to TSEK 106,392 (79,885), which is an increase of 33.2% compared to the same period last year.

The gross margin amounted to 58.6% (54.5).

Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 29,911 (16,422), which corresponds to an operating margin before depreciation and amortization of 28.1% (20.6).

Operating profit (EBIT) amounted to TSEK 20,589 (9,960), which corresponds to an operating margin of 19.4% (12.5).

Earnings per share before dilution amounted to SEK 1.48 (0.72).

(Comparative figures in parentheses refer to the corresponding period in the previous year.)

Half-year (Jan-June 2022)

Net sales amounted to TSEK 205,698 (154,089), which is an increase of 33.5% compared to the same period last year.

The gross margin amounted to 58.8% (55.0).

Operating profit before depreciation and amortization (EBITDA) amounted to TSEK 58,462 (34,378), which corresponds to an operating margin before depreciation and amortization of 28.4% (22.3).

Operating profit (EBIT) amounted to TSEK 40,446 (21,256), which corresponds to an operating margin of 19.7% (13.8).

Earnings per share before dilution amounted to SEK 2.96 (1.54).

(Comparative figures in parentheses refer to the corresponding period in the previous year.)

Comments from the CEO

Doubled profitability and continued strong growth
We continue the year with a strong second quarter where we see organic growth of 33% and improved operating profit of as much as 107%. The value in installations grows by approximately 37% and inventories at wholesalers are in the normal range for the period. The gross margin also increases to 58.6% from 54.5% for the same quarter last year, mainly due to production optimizations for our volume products.
Norway continues to grow strongly by 151% in installations, with a growth curve similar to the one we saw in Sweden in 2019. Sweden continues to grow steadily with an increase of 20% in installations, even Finland and the Netherlands are growing strongly in anticipation of product adaptations.
We presented a new product category at Eliaden 2022, Norway's largest trade fair. The category is heat regulation and we start with thermostats for electric underfloor heating, where we have identified both installation and end customer benefits. With electricians as the main installers of thermostats it is a natural area to broaden our range within. Initially, Norway will be the market we are focused on, as electric underfloor heating is one of the most common ways to heat the home. In Sweden, electric underfloor heating is used mainly in bathrooms and halls. Launch of this new product category is expected in 2023.
We will participate in Light + Building in Frankfurt 2-6 October 2022, which will be part of the start of a broader push in Europe. In addition to our regular range, we will show some new products, including pucks for shutter control. Shutters are very common in large parts of Europe and by adding our ecosystem with smart control, we will be able to create added value for products that are currently controlled manually.
Despite the turbulent world situation, higher interest rates and inflation, we do not see any significant effect on our sales. For us, as for other companies, the situation may change since it is difficult to predict future developments.
The component situation in the world is unchanged, which means continued challenges. We handle this through a fast and agile redesign of products and higher levels of inventory, which means that our delivery ability remains unaffected.
In summary, a strong quarter on our journey of multidimensional growth with increased profitability.

Babak Esfahani

CEO