"The group continues to perform strongly while we take important steps to secure an interesting position once the markets turn."
Second quarter
- Net sales amounted to SEK 562.4 M (455.7), an increase of 23.4 percent. Organic growth was -1.6 percent
- EBITA amounted to SEK 75.7 M (57.6), corresponding to a margin of 13.5 percent (12.6)
- EBIT amounted to SEK 71.8 M (50.9), corresponding to a margin of 12.8 percent (11.2)
- Profit before tax amounted to SEK 53.5 M (41.5)
- Earnings per share amounted to SEK 0.76 (0.88)
- Free cash flow amounted to SEK 111.5 M (100.3)
First half year
- Net sales amounted to SEK 1,134.1 M (931.4), an increase of 21.8 percent. Organic growth was
-3.4 percent - EBITA amounted to SEK 159.4 M (121.6), corresponding to a margin of 14.1 percent (13.1)
- EBIT amounted to SEK 151.3 M (112.4), corresponding to a margin of 13.3 percent (12.1)
- Profit before tax amounted to SEK 120.7 M (93.3)
- Earnings per share amounted to SEK 1.71 (2.01)
- Free cash flow amounted to SEK 53.3 M (89.4)
Financial data | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | R12 Jul-Jun | Jan-Dec 2023 |
| Net sales, SEK m | 562.4 | 455.7 | 1,134.1 | 931.4 | 2,026.3 | 1,823.7 |
| EBITDA, SEK m | 91.3 | 69.9 | 190.9 | 145.8 | 337.2 | 292.1 |
| EBITDA-margin, % | 16.2 | 15.3 | 16.8 | 15.7 | 16.6 | 16.0 |
| EBITA, SEK m | 75.7 | 57.6 | 159.4 | 121.6 | 277.8 | 240.0 |
| EBITA-margin, % | 13.5 | 12.6 | 14.1 | 13.1 | 13.7 | 13.2 |
| EBIT, SEK m | 71.8 | 50.9 | 151.3 | 112.4 | 249.4 | 210.4 |
| EBIT-margin, % | 12.8 | 11.2 | 13.3 | 12.1 | 12.3 | 11.5 |
| Earnings per share, SEK | 0.76 | 0.88 | 1.71 | 2.01 | 2.98 | 3.19 |
| Free cash flow, SEK m | 111.5 | 100.3 | 53.3 | 89.4 | 133.8 | 169.9 |
CEO comments
A strong quarter - but still challenging in the Nordics
In a challenging market, we delivered increased revenue and improved result in the second quarter of 2024 compared to the previous year. This development is driven by the acquisition of Thebalux, continued strong performance of Roper Rhodes, and a focused effort on cost adaptations and price adjustments. Overall, this makes up for a weak market for the Svedbergs brand company.
Revenue in the quarter amounted to 562 MSEK (456), corresponding to an increase of 23.4 percent compared to the same quarter last year. In addition to the acquisition of Thebalux, growth was driven by increased sales volumes for Roper Rhodes in the UK and currency effects. Organic growth was -1.6 percent.
Gross profit increased to 248 MSEK (193), corresponding to a gross margin of 44.2 percent - an increase of +1.9 percentage points compared to the same quarter last year. EBITA amounted to 76 MSEK (58), corresponding to an EBITA margin of 13.5 percent (12.6). This development is driven by the acquisition of Thebalux, strengthened result in Roper Rhodes, a strong focus on cost adaptations, and implemented price adjustments.
Free cash flow during the quarter amounted to 112 MSEK (100). The increase is attributable to a positive change in working capital, primarily accounts receivable. The brand companies are actively working to improve the payment pattern among our customers, which led to a fine development during the second quarter of this year.
Continued strong development for Roper Rhodes
Looking at the individual brand companies, the picture continues to be varied. In an overall weak UK market, Roper Rhodes continues to increase sales and improve the result. Our perception is that we continue to gain market share and strengthen our market position. This development is driven by a strong focus on sales to existing and new customers and the launch of new products in the quarter under the Roper Rhodes brand.
Thebalux in line with plan - investments in increased capacity
Thebalux developed entirely according to plan during the quarter. Revenue in the quarter amounted to 107 MSEK and the EBITA margin to just over 26 percent. To meet strong demand in the Netherlands, the installation of new production equipment was initiated during the quarter. The installation includes a saw with an associated automatic warehouse and is planned to be fully implemented at the beginning of next year. The installation will enable increased capacity and shorter lead times throughout the supply chain.
Challenging market in the Nordics
The Svedbergs brand company continues to experience the challenging market conditions. This development is driven by a sharp slowdown in the project market and generally weak demand for bathroom furniture in the brand company's two main markets, Sweden and Finland. Additionally, the result is negatively affected by increased costs related to the commissioning of new production equipment for the production facility in Dalstorp. Over the past year, we have worked hard to adapt operations and the organization based on the tough market conditions. However, it can be noted that this has not been enough to fully compensate for the sharp decline in demand. Therefore, it was decided on further cost savings during the quarter, including personnel reductions. Alongside the work on the cost side, forward-looking investments continue in sales, communication, and production - all to be ready once the market turns.
Macro Design and Cassøe delivered in line with the same quarter last year in terms of both revenue and result. Both companies are actively working on efficiencies while maintaining a high pace in sales activities.
Continued work on reducing carbon emissions
During the quarter, we continued our sustainability work with a particular focus on integrating Thebalux regarding routines, processes, and reporting. We have come a long way here, and we have now fully incorporated Thebalux in our GHG reporting. We have also continued our work on environmental product declarations (EPDs) throughout the group.
Focus ahead
Despite the market situation, the Svedbergs Group is doing well. We continue to focus on short-term optimization while preparing for an increase in demand. Priorities include maintaining a high pace in development and sales activities, good cost control, and ensuring high delivery capabilities. We are long-term in our strategy, and our positive belief in the European bathroom market remains unchanged.
Contacts
Per-Arne Andersson, CEO: +46 (0)706 38 50 12, per-arne.andersson@svedbergsgroup.com
Ann-Sofie Davidsson, CFO: +46 (0)720 74 10 62, ann-sofie.davidsson@svedbergsgroup.com
About us
Svedbergs Group is a long-term investor in Europe's strongest independent companies that design, manufacture and market sustainable bathroom products and services.
We are growing through organic growth and acquisitions that complement and strengthen our group through new product categories, geographic spread and new knowledge in marketing, innovation and sustainability.
We create value by sharing each company's unique expertise with the rest of the group, and we care about maintaining the entrepreneurial drive and commitment of the companies. We call this cooperation without confusion.
This information is information that Svedbergs Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-18 07:30 CEST.
