Group Performance in the quarter
Net sales in the quarter increased by 14 percent to SEK 2,365 m (2,079). Organic growth, excluding COVID-19 amounted to 8 percent. Net sales related to COVID-19 has now ceased and is reported as SEK 0 m (36). Exchange rate changes had a positive impact of 7 percent on net sales in the quarter, corresponding to SEK 150 m.
Increased commercial activity and strengthened sales organisation have increased sales costs, which has driven sales growth and strengthens the growth potential going forward. EBITA increased by 3 percent to SEK 247 m (240) and EBITA-margin amounted to 10.4 percent (11.6). Exchange rate changes had a positive effect on EBITA, corresponding to SEK 17 m.
Net financial items amounted to SEK -66 m (-44) and profit after financial items amounted to SEK 70 m (94). Net financial items include interest costs related to financing of previous acquisitions and exchange rate fluctuations. Interest expenses amounted to SEK 73 m (22) and exchange rate gains to SEK 2 m (-27). Exchange rate changes are related to recalculation of loans and contingent considerations in foreign currencies. Profit after tax for the quarter decreased by 56 percent to SEK 33 m (76) and the effective tax rate was 53 percent (19). The higher effective tax rate is attributable to the effect of the general interest deduction rule, which means that deductions for a company´s negative net interest income are limited to 30 percent of EBITDA and is a correction from the previous year.
Group Performance in the interim period
Net sales in the interim period increased by 4 percent to SEK 4,822 m (4,658). Acquired growth totalled 1 percent and organic growth, excluding COVID-19 amounted to 10 percent. Net sales related to COVID-19 has now ceased and reported as SEK 0m (546). Exchange rate changes had a positive impact on net sales of 5 percent, corresponding to SEK 254 m.
Increased commercial activity and strengthened sales organisation have increased sales costs. EBITA decreased by 9 percent to SEK 613 m (675) and EBITA-margin amounted to 12.7 percent (14.5). Reversal of previously allowance for contingent consideration has had a positive impact on the operating profit of SEK 83m. Exchange rate changes had a positive effect on EBITA with 4 percent, corresponding to SEK 30 m
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Dynamisk graf: Covid-19 related sales
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¹Correction of accrual between Q1 and Q2 2022 |
Net financial items amounted to SEK -118 m (-93) and profit after financial items amounted to SEK 276 m (383). The net financial items is due to interest costs related to the acquisitions as well as exchange rate changes. Interest expenses amounted to SEK 128 m (43) and exchange rate gains to SEK 9 m (-52). Exchange rate changes are related to recalculation of loans and contingent considerations in foreign currencies. Profit after tax decreased with 32 percent amounting to SEK 207 m (301) and the effective tax rate was 25 percent (21).
The war in Ukraine has not had a significant economic impact on the financial reports, but it can not be ruled out that this will happen in the future. We follow market developments closely, where we notice rising inflation, higher raw material, component costs, shipping costs and energy costs and greater uncertainty about interest rate developments.