Financial position and cash flow
At the end of the interim period, the equity ratio stood at 38 percent (38). Equity per share totalled SEK 43.42 (40.76) and the return on equity at the end of the interim period was 8 percent (10). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 53 percent (61). The lower yield is partly due to a a slightly lower result and relatively higher working capital.
The group’s interest-bearing net debt at the end of the interim period totalled SEK 5,817 m (5,410), including pension liabilities of SEK 60 m (60), leasing liabilities of SEK 377 m (351) and contingent considerations corresponding to SEK 164 m (266). Outstanding bank loans at the end of the interim period amounted to SEK 5,363 m (4,968), whereof short-term bank loans amounted to SEK 2,696 m (2,432). The group has a good margin in the covenants applicable under the banking agreements, which stipulate an interest coverage ratio of at least 4.0 times and an equity ratio exceeding 25 percent.
The net debt/equity ratio totalled 1.1 compared to 1.1 at the beginning of the interim period. The intention is to reduce indebtedness through self-generated cash flow.
Cash and cash equivalents, consisting of cash and bank balances, together with approved but non-utilised credit facilities, totalled SEK 595 m (890) on June 30, 2023.
Cash flow from operating activities reached SEK 187 m (538) during the quarter. The change is mainly due to increased capital tie-up in stock and accounts receivables, above all driven by increased net sales and broadening of the product portfolio which temporarily increased the inventory. Paid out contingent consideration related to acquisitions of companies in previous years amounted to SEK 16 m (796). Net investments in non-current assets during the interim period amounted to SEK 131 m (128) and is mainly attributable to investments in instruments for rental to customers. Repurchase of treasury shares amounted to SEK 0m (49). Exercised, issued and repurchased call options amounted to SEK -17 m (5). A dividend of SEK 146 m (243) has been paid to the parent company´s shareholders.
Long term financial goals
Dynamisk graf: Profitability P/WC (%)
Dynamisk graf: Profit growth (%)