Financial position and cash flow
At the end of the interim period, the equity ratio stood at 37 percent (40). Equity per share totalled SEK 39.39 (35.14) and the return on equity at the end of the interim period was 14 percent (22). Return on working capital, P/WC (EBITA in relation to working capital) amounted to 69 percent (95). The slight decrease is mainly due to a relatively higher working capital, due to acquisitions and logistics chain disruptions where entities increased inventory volume to ensure deliveries to costumers.
The group’s interest-bearing net debt at the end of the interim period totalled SEK 5,590m (3,870), including pension liabilities of SEK 67m (82), leasing liabilities of SEK 347m (339) and contingent considerations corresponding to SEK 274m (349). Outstanding bank loans at the end of the interim period amount to SEK 5,052 million (3,408). The short-term bank loans amount to SEK 2,351m (3,147), of which EUR 98.5m is due in the first quarter of 2023, with an option for an extension of up to another 24 months. During the quarter, AddLife renegotiated credit facilities of EUR 225m, which run for three years with an extension option of up to 24 additional months. 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 1.2 compared to 0.9 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 806m (674) on September 30, 2022.
Cash flow from operating activities reached SEK 558m (617) during the interim period. The change is mainly due to a lower profit after financial items. Acquisitions of companies amounted to SEK 818m (2,660). Net investments in non-current assets during the interim period amounted to SEK 186m (93). The increase is attributable to investments in instruments for rental to customers. Repurchase of treasury shares amounted to SEK 49m (0). Exercised, issued and repurchased call options amounted to SEK 23m (-12). Dividend paid to the parent company's shareholders amounted to SEK 243m (183).
Long term financial goals
Dynamisk graf: Profitability P/WC (%)
Dynamisk graf: Profit growth (%)