Group Performance in the quarter
Net sales in the quarter increased by 10 percent to SEK 2,319 m (2,100). Organic growth, excluding COVID-19 and exchange rate changes amounted to 10 percent. Net sales related to COVID-19 has now ceased and is reported as SEK 0 m (151). Exchange rate changes had a positive impact of 8 percent on net sales in the quarter, corresponding to SEK 176 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 decreased by 15 percent to SEK 244 m (288) and EBITA-margin amounted to 10.5 percent (13.7). The decrease is largely explained by the lack of covid-19 sales. Reversal of previously allowance of contingent consideration has had a positive impact on the operating profit by SEK 18 m (85) in the quarter. Exchange rate changes had a positive effect on EBITA, corresponding to SEK 19 m.
Net financial items amounted to SEK -71 m (-41) and profit after financial items amounted to SEK 61 m (142). Net financial items include interest costs related to financing of previous acquisitions and exchange rate fluctuations. Interest expenses amounted to SEK 72 m (22) and exchange rate gains to SEK 5 m (-17). Exchange rate changes are related to recalculation of loans and contingent considerations in foreign currencies. Profit after tax for the quarter amounted to SEK 26 m (120) and the effective tax rate was 57 percent (15). The higher effective tax rate in the quarter is attributable to the total effect of non-deductible interest and non-capitalized losses, but it does not impact the cash flow.
Group Performance in the interim period
Net sales in the interim period increased by 6 percent to SEK 7,141 m (6,758). 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 (696). Exchange rate changes had a positive impact on net sales of 7 percent, corresponding to SEK 430 m.
Increased commercial activity and strengthened sales organisation have increased sales costs. EBITA decreased by 11 percent to SEK 857 m (963) and EBITA-margin amounted to 12.0 percent (14.3). The decrease is largely explained by the lack of covid-19 sales. Reversal of previously allowance for contingent consideration has had a positive impact on the operating profit of SEK 101 (85) m in the interim period. Exchange rate changes had a positive effect on EBITA with 5 percent, corresponding to SEK 49 m.
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Dynamisk graf: Covid-19 related sales
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Net financial items amounted to SEK -189 m (-134) and profit after financial items amounted to SEK 337 m (525). The net financial items is due to interest costs related to the acquisitions as well as exchange rate changes. Interest expenses amounted to SEK 199 m (65) and exchange rate gains to SEK 14 m (-69). Exchange rate changes are related to recalculation of loans and contingent considerations in foreign currencies. Profit after tax amounted to SEK 233 m (421) and the effective tax rate was 31 percent (20).
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. We follow the development in the Middle East but, at this point in time, our assessment is that this don’t have a significant impact on the group.