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Positive and organic growth with a stable order situation

Posted on by darion

Second quarter (April-June 2024)

  • Net sales increased by 9.6 per cent to SEK 790.8 million (721.5), of which organic growth in equivalent units was 2.8 per cent.
  • EBITA increased by 5.0 per cent to SEK 94.3 million (89.8), and the EBITA margin was 11.9 per cent (12.4).
  • EBIT increased by 5.4 per cent to SEK 79.8 million (75.7).
  • Cash flow from operating activities amounted to SEK -3.0 million (14.5).
  • At the 2024 AGM, Mikael Ericson was elected as the new Chairman of the Management Board. In addition, Jonas Söderkvist was hired as the new CFO and member of the Group Management Board, who will take up his position at the end of August 2024.

Period (January-June 2024)

  • Net sales increased by 11.1 per cent to SEK 1,455.7 million (1,310.7), of which organic growth in equivalent units was 0.4 per cent.
  • EBITA increased by 10.1 per cent to SEK 150.0 million (136.3), and the EBITA margin was 10.3 per cent (10.4).
  • EBIT increased by 10.4 per cent to SEK 121.3 million (109.8).
  • Cash flow from operating activities amounted to SEK 36.5 million (68.6).
  • Additional acquisitions were made: OVKservice Syd AB and Persiennteamet i Stockholm AB, with combined annual sales of approximately SEK 17 million.

Significant events after the balance sheet date

  • Updated financial targets for growth and profitability have been adopted, reflecting Novedo’s business plan for 2024–2028.
  • Novedo intends to call an EGM to implement a convertible program with an expected volume of SEK 300-500 million. The existing earnings consideration of approximately SEK 150 million is to be reinvested in convertible bonds by the affected entrepreneurs.

Per-Johan Dahlgren, President and CEO, comments on the first half of 2024:
Novedo’s growth and earnings continue to show stability and positive development. Overall, Novedo has good competitiveness and a good order situation in the slightly changing market climates of the three business segments.

Novedo’s net sales increased by 11.1 percent, of which 0.4 percent was organic growth for equivalent units, in the first half of 2024 and rose to SEK 2,853.2 million for the 12 months at the end of the period. Sales in the Infrastructure segment recorded strong growth in the half-year period, particularly in the second quarter, both as a result of acquisitions and strong organic growth, which is partly due to growing demand for the development, renovation and redundancy of infrastructure such as transport, electricity and fiber networks, and water and wastewater. Sales in Installation and Services showed stable volumes, following good demand for services and maintenance of real estate and energy-related tasks. At the same time, the weaker construction economy weakened sales from new production projects. Despite the strong comparative figures, sales in the Industry segment increased in the half-year period, where global disruptions in the supply chain had a positive impact on the corresponding period last year.

EBITA increased by 10.1 percent in the first half of the year and rose to SEK 286.0 million in R12 months. The EBITA margin in R12 months was 10.0 percent, which is in line with Novedo’s financial targets.

There is still geopolitical uncertainty and a difficult market climate for 2024. However, Novedo sees a stable overall order situation in all segments. Our updated financial targets for growth and profitability show our ambition to continue to grow in double digits with good profitability.

For more information, please contact:
Per-Johan Dahlgren
President and CEO
[email protected]
Mobile: +46 (0)705 97 06 44

About Noveda
Novedo is an industrial group of leading B2B companies with a solid corporate culture, a well-balanced range of services and products, combined with a stable and diversified customer base in three segments: Industry, Infrastructure and Installations & Services. The company has an active growth strategy and intends to continue its expansion through further acquisitions and organic growth. For more information, visit www.novedo.se.

This information is information that Novedo is required to make public under the EU Market Abuse Regulation and the Securities Markets Act. The information was sent for publication via the contact persons indicated above on 2024-08-19 07:30 CEST.