Interim report January-June 2024

Second quarter highlights

• Net sales amounted to SEK 1,303.7 million (1,309.6) corresponding to -0.5 percent. The organic change was -4.2 percent in local currencies.
• EBITA amounted to SEK 80.7 million (104.0) and the EBITA margin was 6.2 percent (7.9).
• Adjusted EBITA amounted to SEK 81.2 million (127.5) and the adjusted EBITA margin was 6.2 percent (9.7).
• Profit for the period amounted to SEK 31.4 million (56.3), earnings per share before and after dilution were SEK 0.65 (1.13).
• Operating cash flow totalled SEK 92.2 million (116.1).
• The order backlog amounted to SEK 3,001.4 million (3,527.9).

 First half highlights

• Net sales amounted to SEK 2,348.9 million (2,453.0), corresponding to -4.2 percent. The organic change was -7.6 percent in local currencies.
• EBITA amounted to SEK 98.9 million (175.9) and the EBITA margin was 4.2 percent (7.2).
• Adjusted EBITA amounted to SEK 101.5 million (201.7) and the adjusted EBITA margin was 4.3 percent (8.2).
• Profit for the period amounted to SEK 21.5 million (85.1), earnings per share before and after dilution were SEK 0.45 (1.72).
• Operating cash flow totalled SEK 110.7 million (193.1).

Significant events during the quarter

• Fasadgruppen has launched a new subsidiary with a focus on solar cell solutions under the name Elenta Solar AB.

Events after the end of the period

• Fasadgruppen has acquired Brenden, one of Norway’s leading scaffolding companies.
• Fasadgruppen has acquired steel and forging company JE:s Svets & Smide.

Condensed CEO comment from Martin Jacobsson: “Navigating tough market conditions”
“The tough competitive situation that has dominated the Swedish market in particular over the past year was still evident during the second quarter of the year. Demand for renovation services remained stable, but the number of competing tenders for every single project is well above what we normally see, which brings price pressure. This is also affecting ongoing projects, where the margin for additional work has decreased. We expect the situation to improve as the new construction market recovers and with several interest rate cuts expected ahead.

Sales in the second quarter amounted to SEK 1,303 million, a decrease of 0.5 percent in total and of 4.2 percent organically. The negative organic development comes from the Swedish operations and in particular those subsidiaries within new construction. Norway, Denmark and Finland exhibited positive organic growth in the quarter.

Adjusted EBITA totalled SEK 81.2 million, with a margin of 6.2 percent. The decline is mainly attributable to our Swedish operations. Price pressure from a continued challenging competitive situation and a weak new construction market were contributing factors to this outcome. Compared with the second quarter last year, earnings in Norway fell slightly, while Denmark and Finland developed positively.

All our businesses are working actively to protect their profitability in the current market. In Sweden, where the situation is toughest, some of the companies are indicating a slight improvement. Centrally, we have also taken a number of structural measures in the past quarter, including CEO changes and closer cooperation between certain companies to ensure that we have the right conditions to reverse the negative trend. We are also working to further clarify Fasadgruppen's values to customers in the form of security, delivery quality and the capacity to carry out several different measures on the building envelope within the same project.”

Report presentation
The interim report will be presented in a conference call and webcast today on 15 August 2024 at 8.15 a.m. CEST.
Link to webcast: https://ir.financialhearings.com/fasadgruppen-group-q2-report-2024
Registration for participation by phone: https://conference.financialhearings.com/teleconference/?id=50048882