January-March 2024
- Net sales were 493.4 MSEK (533.2), an decrease of 7.5% compared to the equivalent period in 2023. Organic growth was -8.0% for the period.
- EBITA was 53.3 MSEK (78.5), an EBITA margin of 10.8% (14.7). Previous year was affected by one-off costs of 1.6 MSEK regarding an efficiency program in Sweden.
- Earnings per share were 0.67 SEK (1.25).
- Cash flow after investing activities was 38.3 MSEK (39.8).
Significant events during and after the quarter
No significant events have occurred during or after the end of the period.
STATEMENT FROM THE CEO
A mixed start to the year
Sales in the first quarter totalled SEK 493 million, 7.5% lower than the first quarter of 2023, which was particularly strong - our second highest ever. The EBITA margin was impacted by lower sales and amounted to 10.8% compared to 14.7% in the corresponding quarter in 2023. Cash flow has remained strong.
The market situation continues to be challenging for all business areas within the group. When we take a closer look at sales, we see mixed trends during the quarter. International sales have had a relatively good quarter, while the Nordic domestic market has been tougher. It is difficult to draw major conclusions from a single quarter, but we see advantages with our six brands that give us a better presence in different geographies and customer segments, and a better balance as a group with a more stable base. In the international market, we are still a small player in most countries, which provides greater scope for growth. Among our customers, we continue to see that it is primarily new construction and the more consumer-oriented businesses that show the least activity. Hopefully, we will see increased optimism in line with lower inflation and expected interest rate cuts. For the coming quarters, however, our assessment is that the economic situation will remain challenging.
Profitability in the quarter reduced, mainly as a result of lower sales. The gross margin was in line with last year thanks to changes in product mix and cost-effective purchasing for certain brands that compensated for the lower production volumes in the factory in Mora. We work continuously to adjust costs based on current production volumes and focus on initiatives that can improve cost efficiency in both the short and long term. We also have slightly higher overheads as a result of, among other things, our ongoing investments in enhancing our profile and market position, for example in the UK. Going forward, we will continue to work with a high level of cost awareness in all parts of the group in order to adapt to the development of demand in the best possible way.
In the longer term, we see a clear underlying need in all our countries to both renovate and build new bathrooms and kitchens. We are well positioned to meet that demand. The sale of new products that exude sustainable, attractive design is at the top of the agenda and we continue to develop our products further with that focus. During the quarter, Aqualla launched frames and cisterns to build into toilets and with so-called flush plates which match our taps. It is a completely new product category for us and it follows the strategy of Aqualla to offer an increasingly broad product range for bathrooms in the UK and Ireland. In parallel with the sales work, we are continuing to identify and implement cost efficiencies throughout the Group to balance the current economic situation. In summary, the year has begun with mixed results and signals in the market and we are addressing these with clear actions to enhance our marketing and internal efficiency.
For more information please contact:
Fredrik Skarp, CEO, Tel: +46 (0) 250 596 405.
Martin Gallacher, CFO, Tel +46 (0) 250 596 225.
About Us
FM Mattsson Group conducts the sale, manufacture and product development of water taps and related products under the strong, established brands of FM Mattsson, Mora Armatur, Damixa, Hotbath, Aqualla and Adamsez. The group's vision is to be the customer's first choice in the bathroom, kitchen and beyond. In 2023 the business generated sales of more than 1.9 billion SEK from its companies in Sweden, Norway, Denmark, Finland, Benelux, UK, Germany and Italy and had 568 employees. FM Mattsson Group is listed on Nasdaq Stockholm.
This information is information that FM Mattsson AB 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 2024-05-07 08:00 CEST.
