PRESS RELEASE
July 17, 2024
Acquisition-intensive quarter in a continued weak market
Second quarter highlights
- Revenue increased by 1.8 per cent to MSEK 2,432 (2,388). Organic growth was -3.2 per cent.
- Gross margin was 40.3 per cent (40.9).
- Adjusted EBITA decreased to MSEK 166 (201), corresponding to an adjusted EBITA margin of 6.8 per cent (8.4).
- Operating profit decreased to MSEK 147 (183) and the operating margin was 6.0 per cent (7.7). Operating profit was charged with items affecting comparability of MSEK -4 (-4).
- Profit amounted to MSEK 87 (124).
- Earnings per share amounted to SEK 1.70¹ (2.42¹).
- Cash flow from operating activities amounted to MSEK 270 (287).
First six months highlights
- Revenue decreased by -1.6 per cent to MSEK 4,601 (4,675). Organic growth was -4.5 per cent.
- Gross margin increased to 40.7 per cent (40.3).
- Adjusted EBITA decreased to MSEK 250 (328), corresponding to an adjusted EBITA margin
of 5.4 per cent (7.0). - Operating profit decreased to MSEK 212 (295) and the operating margin was 4.6 per cent (6.3). Operating profit was charged with items affecting comparability of MSEK -8 (-4).
- Profit amounted to MSEK 110 (192).
- Earnings per share amounted to SEK 2.16¹ (3.76¹).
- Cash flow from operating activities amounted to MSEK 398 (433).
1)Before and after dilution.
Comments from the CEO
"Demand from our relatively more profitable small and medium-sized customers has been affected most by the weak economy, while sales to some larger industrial customers increased."
"Acquisitions are important for driving the development and growth of Alligo. Our focus is on profitable companies that complement our business."
"During the second quarter, we signed agreements to acquire seven new companies with total annual revenue of approximately MSEK 300."
"It is difficult to predict, however, when the weak market trend will change. For now, we are continuing to focus on what we can influence ourselves and to build an even stronger Alligo."
Significant events during the second quarter
- On 28 June, Alligo signed an agreement to acquire 100 per cent of the shares in T. Brantestig Svetsmaskinservice AB and Sundholm Welding AB. The companies together generate annual revenue of approximately MSEK 50.
- On 14 June, Alligo acquired 100 per cent of the shares in Workwear AS. The company generates annual revenue of approximately MNOK 30.
- On 11 June, Alligo acquired 70 per cent of the shares in New Promotion Sverige AB and its subsidiary. The companies together generate annual revenue of approximately MSEK 45.
- On 3 May, Alligo acquired 100 per cent of the shares in Wiklunds i Bollnäs AB. The company generates annual revenue of approximately MSEK 30.
- On 24 April, Alligo signed agreements to acquire 100 per cent of the shares in Hämeen Teollisuuspalvelu Oy and Riihimäen Teollisuuspalvelu Oy. The companies together generate annual revenue of approximately MEUR 15.
- The Annual General Meeting on 23 May approved a dividend of SEK 3.50 per share (3.00).
- The Annual General Meeting on 23 May voted for the re-election of the Board members Göran Näsholm, Stefan Hedelius, Cecilia Marlow, Johan Sjö and Christina Åqvist in line with the proposal of the Nomination Committee. Pontus Boman declined re-election. Johan Lilliehöök was elected as a new Board member. Göran Näsholm was re-elected Chair of the Board of Directors.
- In April, 1,780 Class A shares were converted to Class B shares at the request of shareholders. This resulted in a change to the number of votes in Alligo.
Events after the end of the period
- On 5 July, Alligo received regulatory approval for the acquisitions of Hämeen Teollisuuspalvelu Oy and Riihimäen Teollisuuspalvelu Oy. The acquisitions are expected to be completed in August.
Presentation of the interim report for the second quarter 2024
Alligo publishes its interim report for the second quarter 2024 on Wednesday, 17 July 2024, at 08:00 a.m. CEST. In conjunction with this, Alligo is pleased to issue this invitation to a webcast conference call in which President & CEO Clein Johansson Ullenvik and CFO Irene Wisenborn Bellander will present the report and answer any subsequent questions. The presentation will be held in English.
Date and time: Wednesday July 17, 2024, at 11:00 a.m. CEST
Weblink: https://edge.media-server.com/mmc/p/x535kyg3
Telephone conference: https://register.vevent.com/register/BIf27adcaa47a149168326fab772d3963b
Participants need to register in advance of the conference call using the link above. Upon registering, each participant will be provided with Participant Dial-In Number, and a unique Personal PIN.
Contact information:
Clein Johansson Ullenvik, President & CEO
Irene Wisenborn Bellander, CFO
Tel +46 8 712 00 00
ir@alligo.com
This information is information that Alligo AB (publ) is obliged to publish under the EU Market Abuse Regulation. The information was submitted for publication through the agency of the Chief Executive Officer on 17 July 2024 at 08:00 CEST.
About Alligo AB
Alligo is a leading player within workwear, personal protective equipment, tools, and consumables in the Nordic region. Sales are mainly made through the strong concept brands Swedol in Sweden and TOOLS in Norway and Finland. The Group has approximately 2,400 employees and an annual revenue of SEK 9.3 billion. The share is listed on Nasdaq Stockholm. Read more at alligo.com
