Reporting period January - March
- Net sales increased 0.8 per cent to SEK 6,006 (5,959) million. Organically, net sales declined 7.8 per cent.
- EBITA decreased 3.9 per cent to SEK 1,278 (1,330) million.
- The EBITA margin declined 1.0 percentage point to 21.3 (22.3) per cent.
- Profit before tax declined 11.0 per cent to SEK 941 (1,057) million.
- Net profit for the period decreased 11.6 per cent to SEK 701 (793) million.
- Earnings per share declined 11.6 per cent to SEK 1.52 (1.72).
- Cash flow from operating activities decreased 13.6 per cent to SEK 631 (731) million.
Summary of financial performance
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Net sales | 6,006 | 5,959 | 0.8% | 24,500 | 0.2% | 24,454 |
| EBITA | 1,278 | 1,330 | -3.9% | 5,613 | -0.9% | 5,664 |
| EBITA margin | 21.3% | 22.3% | -1.0 | 22.9% | -0.3 | 23.2% |
| Profit before tax | 941 | 1,057 | -11.0% | 4,257 | -2.7% | 4,374 |
| Net profit for the period | 701 | 793 | -11.6% | 3,231 | -2.8% | 3,323 |
| Earnings per share | 1.52 | 1.72 | -11.6% | 7.00 | -2.9% | 7.21 |
| Return on capital employed | 21.7% | 22.8% | -1.1 | 21.7% | -0.9 | 22.6% |
| Return on capital employed excl. goodwill | 134% | 134% | 0.1 | 134% | -4.8 | 139% |
COMMENTS FROM THE CEO
Net sales increased 0.8 per cent during the quarter to SEK 6,006 (5,959) million, primarily as the result of acquisitions. In the quarter, organic net sales declined 7.8 per cent due to a weak market situation in Demolition & Tools and parts of Systems Solutions.
EBITA declined 3.9 per cent in the first quarter, to SEK 1,278 (1,330) million, and the EBITA margin declined 1.0 percentage point to 21.3 (22.3) per cent. EBITA was negatively impacted by a decline in organic sales and earnings were therefore weaker, primarily in Demolition & Tools, while acquisitions in all business areas had a positive impact. Dental was somewhat negatively impacted by the early Easter occurring in the first quarter of 2024 compared with 2023 when Easter fell in the second quarter.
Earnings per share declined 11.6% till SEK 1.52 (1.72) in the first quarter. Cash flow from operating activities decreased 13.6 per cent in the quarter to SEK 631 (731) million.
In March, we announced the acquisition of two Italian companies, Brevetti Montolit and CFR, which are expected to be consolidated in Demolition & Tools and Systems Solutions, respectively, in the second quarter of 2024. The companies are highly specialised and together have sales of about SEK 660 million.
In February, Lifco issued two unsecured bonds totalling SEK 1,000 million, and thereby has bonds outstanding totalling SEK 4,000 million. Lifco's financial position remains good and interest-bearing net debt amounted to 1.0 time EBITDA at 31 March 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 - MARCH
Net sales increased 0.8 per cent to SEK 6,006 (5,959) million. Acquisitions contributed 8.4 per cent and exchange rate changes had a positive impact on net sales of 0.2 per cent. As a result of the weak market situation in Demolition & Tools and part of Systems Solutions, organic growth amounted to -7.8 per cent.
EBITA declined 3.9 per cent to SEK 1,278 (1,330) million and the EBITA margin declined 1.0 percentage point to 21.3 (22.3) per cent. EBITA was negatively impacted by a decline in organic sales and earnings were therefore weaker, primarily in Demolition & Tools, while acquisitions in all business areas had a positive impact. Foreign exchange gains had a positive impact on EBITA of 0.2 per cent. During the period, 45 (44) per cent of EBITA was generated in EUR, 18 (23) per cent in SEK, 14 (8) per cent in GBP, 12 (10) per cent in NOK, 4 (6) per cent in DKK, 3 (4) per cent in USD and 3 (5) per cent in other currencies.
Net financial items were SEK -104 (-65) million, negatively impacted primarily by higher interest expenses.
Profit before tax declined 11.0 per cent to SEK 941 (1,057) million. Net profit for the period decreased 11.6 per cent to SEK 701 (793) million.
Average capital employed excluding goodwill increased by SEK 109 million during the quarter, to SEK 4,197 million at 31 March 2024, compared with SEK 4,088 million at 31 December 2023. EBITA in relation to average capital employed excluding goodwill declined during the quarter to 134 per cent from 139 per cent at year-end.
The Group's net debt declined by SEK 410 million from 31 December 2023 to SEK 10,222 million at 31 March 2024, of which liabilities related to put/call options for acquisitions declined by SEK 114 million to SEK 2,490 million from SEK 2,605 million at the end of the year. Interest-bearing net debt declined by SEK 312 million during the quarter to SEK 6,537 million at 31 March 2024, compared with SEK 6,849 million at 31 December 2023.
On 21 February 2024, Lifco issued two unsecured bonds totalling SEK 1,000 million under its MTN programme, and thereby has bonds outstanding totalling SEK 4,000 million. In addition to bonds outstanding, Lifco has standard short-term credit facilities.
The net debt/equity ratio at 31 March 2023 was 0.6 compared with 0.7 at the end of the year, and net debt/EBITDA was 1.6 times compared with 1.7 at the end of the year. Interest-bearing net debt in relation to EBITDA was 1.0 time compared to 1.1 times at the end of the year. At period-end, 40 per cent of the Group's interest-bearing liabilities were denominated in EUR, compared with 41 per cent at the end of the year.
Cash flow from operating activities amounted to SEK 631 (731) million. Cash flow from investing activities was SEK -186 (-1,379) million, which was mainly attributable to investments in tangible assets.
FINANCIAL PERFORMANCE - BUSINESS AREAS
Dental
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Net sales | 1,568 | 1,525 | 2.8% | 6,073 | 0.7% | 6,030 |
| EBITA | 327 | 328 | -0.3% | 1,247 | -0.1% | 1,248 |
| EBITA margin | 20.9% | 21.5% | -0.6 | 20.5% | -0.2 | 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 2.8 per cent to SEK 1,568 million (1,525) during the first quarter as the result of acquisitions. Net sales was somewhat negatively impacted by the early Easter occurring in the first quarter of 2024 compared with 2023 when Easter fell in the second quarter.
EBITA decreased 0.3 per cent to SEK 327 (328) million during the period and the EBITA margin decreased 0.6 of a percentage point to 20.9 (21.5) per cent.
Demolition & Tools
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Net sales | 1,491 | 1,810 | -17.6% | 6,778 | -4.5% | 7,097 |
| EBITA | 305 | 446 | -31.6% | 1,718 | -7.6% | 1,859 |
| EBITA margin | 20.5% | 24.6% | -4.1 | 25.3% | -0.9 | 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 of 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 may fluctuate between quarters due to single, major special orders and changes to the product mix.
Net sales declined 17.6 per cent during the quarter to SEK 1,491 (1,810) million as the result of a weak market situation and a decline in organic sales as a result.
EBITA decreased 31.6 per cent to SEK 305 (446) million and the EBITA margin decreased 4.1 percentage points to 20.5 (24.6) per cent, negatively impacted by lower organic sales, while acquisitions had a positive impact.
Systems Solutions
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Net sales | 2,946 | 2,624 | 12.3% | 11,650 | 2.8% | 11,328 |
| EBITA | 689 | 594 | 16.0% | 2,799 | 3.5% | 2,704 |
| EBITA margin | 23.4% | 22.6% | 0.8 | 24.0% | 0.1 | 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 12.3 per cent to SEK 2,946 (2,624) million during the quarter on the back of acquisitions.
EBITA increased during the period by 16.0 per cent to SEK 689 (594) million and the EBITA margin increased 0.8 of a percentage point to 23.4 (22.6) per cent. Acquisitions and organic earnings growth contributed to the increased EBITA.
Contract Manufacturing reported lower sales in the quarter with unchanged profitability.
Environmental Technology reported a healthy sales and profitability trend in the quarter as a result of acquisitions.
Infrastructure Products reported lower sales in the quarter with a decline in profitability.
Special Products reported a strong sales trend in the quarter with improved profitability as a result of acquisitions.
Transportation Products reported a favourable sales trend in the quarter with improved profitability as a result of acquisitions and organic growth.
ACQUISITIONS
Lifco did not consolidate any acquisitions in the first quarter of 2024.
OTHER INFORMATION
Employees
The average number of employees was 6,879 (6,583) in the first quarter. At the end of the period, the number of employees was 6,887 (6,694).
Events after the end of the reporting period
Consolidation of the Italian company CFR is expected to take place in the second quarter of 2024 in the Systems Solutions business area, division Transportation Products. CFR is a niche manufacturer of electric drive systems for industrial applications. CFR had a turnover of about EUR 38.5 million in 2023 and has 100 employees. The acquisition, which comprised the majority of the shares, was announced on 26 March 2024.
Consolidation of the Italian company Brevetti Montolit is expected to take place in the second quarter of 2024 in the Demolition & Tools business area. Brevetti Montolit is a niche manufacturer of high-end professional tile cutting tools and accessories. Brevetti Montolit had a turnover of about EUR 18.5 million in 2023 and has 36 employees. The acquisition, which comprised the majority of the shares, was announced on 28 March 2024.
Related party transactions
No significant transactions with related parties took place during the period.
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 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 report for the first quarter 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, 24 April 2024
Carl Bennet Chairman of the Board | Ulrika Dellby Director | Annika Espander Director |
| Dan Frohm Vice Chairman | Erik Gabrielson Director | Ulf Grunander 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 second quarter of 2024 will be published on 12 July.
The report for the third quarter of 2024 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 Wednesday, 24 April 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-q1-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=50048554
CONDENSED CONSOLIDATED INCOME STATEMENT
| FIRST QUARTER | FULL YEAR | |||
| SEK million | 2024 | 2023 | change | 2023 |
| Net sales | 6,006 | 5,959 | 0.8% | 24,454 |
| Cost of goods sold | -3,344 | -3,350 | -0.2% | -13,637 |
| Gross profit | 2,661 | 2,609 | 2.0% | 10,817 |
| Selling expenses | -702 | -664 | 5.7% | -2,645 |
| Administrative expenses | -880 | -782 | 12.5% | -3,252 |
| Development costs | -56 | -46 | 21.7% | -196 |
| Other income and expenses | 21 | 5 | 320% | 28 |
| Operating profit | 1,044 | 1,122 | -7.0% | 4,753 |
| Net financial items | -104 | -65 | 60.0% | -379 |
| Profit before tax | 941 | 1,057 | -11.0% | 4,374 |
| Tax | -240 | -264 | -9.1% | -1,051 |
| Net profit for the period | 701 | 793 | -11.6% | 3,323 |
| Profit attributable to: | ||||
| Parent Company shareholders | 689 | 782 | -11.9% | 3,274 |
| Non-controlling interests | 11 | 11 | 0.0% | 49 |
| Earnings per share before and after dilution for the period, attributable to Parent Company shareholders | 1.52 | 1.72 | -11.6% | 7.21 |
| EBITA | 1,278 | 1,330 | -3.9% | 5,664 |
| Depreciation of tangible assets | 158 | 129 | 22.5% | 600 |
| Amortisation of intangible assets | 6 | 5 | 20.0% | 24 |
| Amortisation of intangible assets arising from acquisitions | 233 | 191 | 22.0% | 859 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| FIRST QUARTER | FULL YEAR 2023 | |||
| SEK million | 2024 | 2023 | change | |
| Net profit for the period | 701 | 793 | -11.6% | 3,323 |
| Other comprehensive income | ||||
| Items which can later be reclassified to profit or loss: | ||||
| Hedge of net investment | -51 | 32 | -259% | -2 |
| Translation differences | 657 | 41 | 1,502% | -254 |
| Tax related to other comprehensive income | 11 | -7 | -257% | 1 |
| Total comprehensive income for the period | 1,319 | 859 | 53.6% | 3,069 |
| Comprehensive income attributable to: | ||||
| Parent Company shareholders | 1,305 | 850 | 53.5% | 3,024 |
| Non-controlling interests | 14 | 9 | 55.6% | 44 |
| 1,319 | 859 | 53.6% | 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.
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Dental | 1,568 | 1,525 | 2.8% | 6,073 | 0.7% | 6,030 |
| Demolition & Tools | 1,491 | 1,810 | -17.6% | 6,778 | -4.5% | 7,097 |
| Systems Solutions | 2,946 | 2,624 | 12.3% | 11,650 | 2.8% | 11,328 |
| Group | 6,006 | 5,959 | 0.8% | 24,501 | 0.2% | 24,454 |
Net sales by significant type of income:
| FIRST QUARTER | Rolling 12 months | FULL YEAR | |||||
| SEK million | 2024 | 2023 | change | change | 2023 | ||
| Dental products | 1,568 | 1,525 | 2.8% | 6,073 | 0.7% | 6,030 | |
| Machinery and tools | 1,491 | 1,810 | -17.6% | 6,778 | -4.5% | 7,097 | |
| Infrastructure Products | 432 | 479 | -9.8% | 1,860 | -2.5% | 1,907 | |
| Contract Manufacturing | 487 | 554 | -12.1% | 2,146 | -3.0% | 2,213 | |
| Environmental Technology | 802 | 748 | 7.2% | 3,206 | 1.7% | 3,152 | |
| Transportation Products | 783 | 609 | 28.6% | 2,914 | 6.4% | 2,740 | |
| Special Products | 442 | 234 | 88.9% | 1,524 | 15.8% | 1,316 | |
| Group | 6,006 | 5,959 | 0.8% | 24,501 | 0.2% | 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:
| FIRST QUARTER | Rolling 12 months | FULL YEAR | ||||
| SEK million | 2024 | 2023 | change | change | 2023 | |
| Dental | 327 | 328 | -0.3% | 1,247 | -0.1% | 1,248 |
| Demolition & Tools | 305 | 446 | -31.6% | 1,718 | -7.6% | 1,859 |
| Systems Solutions | 689 | 594 | 16.0% | 2,799 | 3.5% | 2,704 |
| Central Group functions | -42 | -38 | 10.5% | -152 | 2.7% | -148 |
| EBITA before acquisition costs | 1,278 | 1,330 | -3.9% | 5,612 | -0.9% | 5,664 |
| Acquisition costs | -1 | -17 | -94.1% | -36 | -30.8% | -52 |
| EBITA | 1,278 | 1,313 | -2.7% | 5,576 | -0.6% | 5,612 |
| Amortisation of intangible assets arising from acquisitions | -233 | -191 | 22.0% | -901 | 4.9% | -859 |
| Net financial items | -104 | -65 | 60.0% | -418 | 10.3% | -379 |
| Profit before tax | 941 | 1,057 | -11.0% | 4,257 | -2.7% | 4,374 |
CONDENSED CONSOLIDATED BALANCE SHEET
| SEK million | 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 |
| ASSETS | |||
| Intangible assets | 22,383 | 19,553 | 21,927 |
| Tangible assets | 2,825 | 2,547 | 2,723 |
| Financial assets | 389 | 364 | 380 |
| Inventories | 4,217 | 3,965 | 3,906 |
| Accounts receivable - trade | 3,260 | 3,209 | 2,940 |
| Current receivables | 887 | 729 | 824 |
| Cash and cash equivalents | 1,560 | 1,754 | 1,591 |
| TOTAL ASSETS | 35,521 | 32,121 | 34,291 |
| EQUITY AND LIABILITIES | |||
| Equity | 16,705 | 14,180 | 15,332 |
| Non-current interest-bearing liabilities incl. pension provisions | 3,628 | 2,564 | 3,337 |
| Other non-current liabilities and provisions | 4,991 | 4,269 | 5,101 |
| Current interest-bearing liabilities | 5,665 | 6,647 | 6,282 |
| Accounts payable - trade | 1,742 | 1,773 | 1,396 |
| Other current liabilities | 2,790 | 2,688 | 2,844 |
| TOTAL EQUITY AND LIABILITIES | 35,521 | 32,121 | 34,291 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Attributable to Parent Company shareholders |
| SEK million | 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 |
| Opening equity | 15,212 | 13,238 | 13,238 |
| Comprehensive income for the period | 1,305 | 850 | 3,024 |
| Change in value, owner transactions | 55 | -18 | -233 |
| Dividend | - | - | -818 |
| Closing equity | 16,572 | 14,070 | 15,212 |
| Equity attributable to: | |||
| Parent Company shareholders | 16,572 | 14,070 | 15,212 |
| Non-controlling interests | 133 | 110 | 119 |
| 16,705 | 14,180 | 15,332 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| FIRST QUARTER | FULL YEAR | ||
| SEK million | 2024 | 2023 | 2023 |
| Operating activities | |||
| Operating profit | 1,044 | 1,122 | 4,753 |
| Depreciation of right-of-use assets | 73 | 62 | 276 |
| Other non-cash items | 248 | 258 | 1,212 |
| Interest and financial items, net | -104 | -65 | -379 |
| Tax paid | -426 | -296 | -1,343 |
| Cash flow before changes in working capital | 836 | 1,081 | 4,519 |
| Changes in working capital | |||
| Inventories | -231 | -238 | 146 |
| Current receivables | -76 | -374 | -25 |
| Current liabilities | 103 | 262 | -182 |
| Cash flow from operating activities | 631 | 731 | 4,458 |
| Business acquisitions and sales, net | -68 | -1,273 | -3,718 |
| Net investment in tangible assets | -112 | -80 | -387 |
| Net investment in intangible assets | -6 | -26 | -52 |
| Cash flow from investing activities | -186 | -1,379 | -4,158 |
| Borrowings/repayment of borrowings, net | -621 | 708 | 627 |
| Dividends paid | - | - | -818 |
| Dividends paid to non-controlling interests | -20 | - | -155 |
| Cash flow from financing activities | -641 | 708 | -346 |
| Cash flow for the period | -195 | 60 | -46 |
| Cash and cash equivalents at beginning of period | 1,591 | 1,703 | 1,703 |
| Translation differences | 165 | -9 | -67 |
| Cash and cash equivalents at end of period | 1,560 | 1,754 | 1,591 |
FINANCIAL INSTRUMENTS
| SEK million | 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 |
| Financial assets at amortised cost | |||
| Accounts receivable - trade | 3,260 | 3,209 | 2,940 |
| Other non-current financial receivables | 23 | 17 | 25 |
| Cash and cash equivalents | 1,560 | 1,754 | 1,591 |
| Total | 4,843 | 4,980 | 4,556 |
| Liabilities at fair value | |||
| Other liabilities1 | 2,490 | 2,013 | 2,605 |
| Financial liabilities at amortised cost | |||
| Interest-bearing borrowings | 9,189 | 9,121 | 9,520 |
| Accounts payable - trade | 1,742 | 1,773 | 1,396 |
| Total | 13,422 | 12,907 | 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 31 MAR | 2023 31 DEC | 2023 31 MAR |
| Net sales, SEK million | 24,500 | 24,454 | 22,489 |
| Change in net sales, % | 0.2 | 13.5 | 4.3 |
| EBITA, SEK million | 5,613 | 5,664 | 4,976 |
| EBITA margin, % | 22.9 | 23.2 | 22.1 |
| EBITDA, SEK million | 6,265 | 6,287 | 5,479 |
| EBITDA margin, % | 25.6 | 25.7 | 24.4 |
| Capital employed, SEK million | 25,823 | 25,007 | 21,778 |
| Capital employed excl. goodwill and other intangible assets, SEK million | 4,197 | 4,088 | 3,724 |
| Return on capital employed, % | 21.7 | 22.6 | 22.8 |
| Return on capital employed excl. goodwill, % | 134 | 139 | 134 |
| Return on equity, % | 20.9 | 22.4 | 23.1 |
| Net debt, SEK million | 10,222 | 10,633 | 9,469 |
| Net debt/equity ratio | 0.6 | 0.7 | 0.7 |
| Net debt/EBITDA | 1.6 | 1.7 | 1.7 |
| Interest-bearing net debt, SEK million | 6,537 | 6,849 | 6,347 |
| Interest-bearing net debt/EBITDA | 1.0 | 1.1 | 1.2 |
| Equity/assets ratio, % | 47.0 | 44.7 | 44.1 |
| Number of shares, thousands | 454,216 | 454,216 | 454,216 |
| Average number of employees | 6,879 | 6,753 | 6,583 |
CONDENSED PARENT COMPANY INCOME STATEMENT
| FIRST QUARTER | FULL YEAR | ||
| SEK million | 2024 | 2023 | 2023 |
| Administrative expenses | -37 | -33 | -113 |
| Other operating income1 | 0 | 0 | 67 |
| Operating loss | -37 | -33 | -46 |
| Net financial items | -11 | 48 | 1,626 |
| Profit/loss after financial items | -47 | 15 | 1,580 |
| Appropriations | - | - | 389 |
| Tax | 45 | -3 | -42 |
| Net profit/loss for the period | -2 | 12 | 1,927 |
1 Invoicing of Group-wide services.
CONDENSED PARENT COMPANY BALANCE SHEET
| SEK million | 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 |
| ASSETS | |||
| Financial assets | 8,578 | 7,792 | 8,318 |
| Current receivables | 9,883 | 9,029 | 10,415 |
| Cash and cash equivalents | 416 | 578 | 469 |
| TOTAL ASSETS | 18,878 | 17,399 | 19,203 |
| EQUITY AND LIABILITIES | |||
| Equity | 4,757 | 3,661 | 4,759 |
| Untaxed reserves | - | 114 | - |
| Provisions | 4 | 0 | 12 |
| Non-current interest-bearing liabilities | 2,492 | 1,500 | 2,203 |
| Current interest-bearing liabilities | 5,358 | 6,361 | 5,985 |
| Current non-interest-bearing liabilities | 6,267 | 5,763 | 6,244 |
| TOTAL EQUITY AND LIABILITIES | 18,878 | 17,399 | 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 1617.
EBITA compared with financial statements in accordance with IFRS
| SEK million | THREE MONTHS 2024 | THREE MONTHS 2023 | FULL YEAR 2023 |
| 1,044 | |||
| Operating profit | 1,122 | 4,753 | |
| Amortisation of intangible assets arising from acquisitions | 233 | 191 | 859 |
| EBITA | 1,278 | 1,313 | 5,612 |
| Acquisition costs | 1 | 17 | 52 |
| EBITA before acquisition costs | 1,278 | 1,330 | 5,664 |
EBITDA compared with financial statements in accordance with IFRS
| SEK million | THREE MONTHS 2024 | THREE MONTHS 2023 | FULL YEAR 2023 |
| 1,044 | |||
| Operating profit | 1,122 | 4,753 | |
| Depreciation of tangible assets | 158 | 129 | 600 |
| Amortisation of intangible assets | 6 | 5 | 24 |
| Amortisation of intangible assets arising from acquisitions | 233 | 191 | 859 |
| EBITDA | 1,442 | 1,447 | 6,235 |
| Acquisition costs | 1 | 17 | 52 |
| EBITDA before acquisition costs | 1,442 | 1,464 | 6,287 |
Net debt compared with financial statements in accordance with IFRS
| SEK million | 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 |
| Non-current interest-bearing liabilities including pension provisions | 2,719 | 1,711 | 2,432 |
| Current interest-bearing liabilities | 5,379 | 6,390 | 6,008 |
| Cash and cash equivalents | -1,560 | -1,754 | -1,591 |
| Interest-bearing net debt | 6,537 | 6,347 | 6,849 |
| Put/call options, additional considerations | 2,490 | 2,013 | 2,605 |
| Lease liability | 1,195 | 1,109 | 1,179 |
| Net debt | 10,222 | 9,469 | 10,633 |
Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS
| SEK million | 31 Mar 2024 | 31 Dec 2023 | 30 Sep 2023 | 30 Jun 2023 |
| Total assets | 35,521 | 34,291 | 33,711 | 34,329 |
| Cash and cash equivalents | -1,560 | -1,591 | -1,560 | -1,587 |
| Interest-bearing pension provisions | -103 | -98 | -102 | -95 |
| Non-interest-bearing liabilities | -7,033 | -6,736 | -7,029 | -7,064 |
| Capital employed | 26,825 | 25,866 | 25,020 | 25,583 |
| Goodwill and other intangible assets | -22,383 | -21,927 | -20,948 | -21,247 |
| Capital employed excluding goodwill and other intangible assets | 4,441 | 3,939 | 4,072 | 4,336 |
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 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | |
| Capital employed | 25,823 | 26,825 | 25,866 | 25,020 | 25,583 | |
| Capital employed excluding goodwill and other intangible assets | 4,197 | 4,441 | 3,939 | 4,072 | 4,336 | |
| Total | ||||||
| EBITA | 5,613 | 1,278 | 1,492 | 1,355 | 1,487 | |
Return on capital employed | 21.7% | |||||
| Return on capital employed excluding goodwill and other intangible assets | 134% |
For more information, please contact:
Åse Lindskog
Media and investor relations manager
Phone +46 730 244 872, e-mail ir@lifco.se
About Us
Lifco offers a safe haven for small and medium-sized businesses. Lifco's business concept is to acquire and develop market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows. Lifco is guided by a clear philosophy centred on long-term growth, a focus on profitability and a strongly decentralised organisation. The Group has three business areas: Dental, Demolition & Tools and Systems Solutions. At year-end 2023, the Lifco Group consisted of 233 operating companies in 31 countries. In 2023, Lifco reported EBITA of SEK 5.7 billion on net sales of SEK 24.5 billion. The EBITA margin was 23.2 per cent. Read more at www.lifco.se.
This information is information that Lifco AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-04-24 07:30 CEST.
