January - March 2024
- Net sales amounted to SEK 1,383 (1,250) million.
- Growth was 11 percent, of which organic growth amounted to 8 percent.
- EBITA increased by 5 percent to SEK 90 (86) million.
- The EBITA margin amounted to SEK 6.5 (6.9) percent.
- Cash flow from operating activities amounted to SEK 208 (221) million.
- Earnings per share, basic and diluted, were SEK 0.40 (0.63). Exchange rate gain from loan revaluations corresponded to SEK 0.00 (0.38).
CEO comments
Performance was positive for the Green Landscaping Group during the first quarter of the year. Net sales increased by 11 percent and profitability, expressed as EBITA margin, reached 6.5 percent in what is seasonally our weakest quarter of the year. Cash flow was strong.
Our good trend continues
During the last 12-month period, net sales grew by 15 percent and amounted to SEK 5,964 million. Our profit, expressed as EBITA, also increased by 19 percent to SEK 517 million, which corresponds to a margin of 8.7 percent. We have thus consistently been delivering at a level that exceeds our targets for growth of 10 percent and profitability, expressed as EBITA margin, of 8 percent. For me, it is proof that we are in an attractive market and working with the right type of business model for it. We have also continuously been able to attract some of the best companies in our industry, while our existing companies are thriving with us. All of it makes me proud and confident.
A good start to the year
The year has gotten off to a good start. Net sales increased by 11 percent in the first quarter and amounted to SEK 1,383 (1,250) million. Organic growth was 8 percent, acquisitions contributed with 4 percent and the impact from changed exchange rates was -1 percent. Winter conditions prevail in the first quarter, which is low season for most of our companies, since snow and ice limits opportunities for maintenance and landscaping activities. Snowfall was heavier than usual, which was beneficial to some areas of our operations and a reason for the high organic growth rate. Overall, I conclude that the underlying demand is favorable.
EBITA amounted to SEK 90 (86) million, corresponding to an EBITA margin of 6.5 (6.9) percent. The lower level of profitability is in line with normal seasonal variation. Profitability was stable in Sweden. In Norway, it increased and in segment Rest of Europe it improved from low levels. Group-wide expenses increased, among other things, for acquisitions.
Cash flow is typically strong during the first quarter and consistent with that, the cash flow from operating activities amounted to SEK 208 (221) million. A strong cash flow offers us the freedom to control our level of indebtedness. It also enables us to maintain a steady, high rate of acquisition over the long term, which is a cornerstone of our strategy. Indebtedness, expressed as net debt in relation to EBITDA pro-forma RTM amounted to 2.4 (2.2) times. It is slightly below our financial target of 2.5 times, which I feel is appropriate given the stability of our market and operations.
Our journey on Continental Europe continues
For quite some time, we have been working hard on setting up the best possible conditions for entering the market in Germany, Austria and Switzerland. We are reaping the benefits from those efforts now. We have added to the acquisitions we made last year by acquiring two more companies thus far in 2024. In March, we welcomed Lässle Landschaftsbau & Tiefbau. It offers green space management, landscaping and recycling of ground materials in Baden-Württemberg, Germany Subsequent to the end of the quarter, we acquired Gartenidee Kuchler GmbH, a company offering grounds maintenance, green space management and landscaping in and around Munich, Germany. In 2023, the combined sales of these two companies exceeded SEK 200 million. They have each said that motivating factors behind the acquisition were our knowledge of the industry and "hands-off" philosophy of allowing our subsidiaries to keep running their business as they see fit. What really mattered though, was the fact that we were offering them a home, not just a way station. It's how we view our ownership and what influences our behaviour. It is much appreciated and clearly high on the list of priorities for the growing number of potential acquisition candidates that we engage with.
Presentation of the report:
The report will be presented in a teleconference/audiocast on 25 April 2024 at 09:00 CET. The presentation will be held in English.
If you would like to participate in the webcast, please visit the link below.
https://ir.financialhearings.com/green-landscaping-group-q1-report-2024
If you would like to participate in the teleconference, you will need to register via the link below. Once you have registered, you will receive the phone number and a conference ID for logging in. There are opportunities for asking questions via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50047359
Contacts
Magnus Larsson, Head of Investor Relations, Green Landscaping Group AB
+46 (0)70 2705283, magnus.larsson@glgroup.se
About Us
Green Landscaping Group AB (publ) is a home for entrepreneurs. The service areas it is involved in are landscaping and construction, ground maintenance and snow & ice removal. The Group has closer to 3,000 employees and net sales amounted to SEK 5.8 billion for 2023. The shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information visit www.greenlandscaping.com.
This information is information that Green Landscaping Group 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 2024-04-25 07:00 CEST.
