Interim report 1 January – 30 June 2017

12 July 2017 13:00

 

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The interim period
»    Net revenue totalled SEK 853 million (557)
»    Operating profit amounted to SEK 114 million (62)
»    Profit before tax amounted to SEK 100 million (58)
»    Profit after tax amounted to SEK 77 million (45)
»    Earnings per share were SEK 5.61 (3.27)

The second quarter
»    Net revenue totalled SEK 443 million (295)
»    Operating profit amounted to SEK 62 million (36)
»    Profit before tax amounted to SEK 52 million (36)
»    Profit after tax amounted to SEK 40 million (28)
»    Earnings per share were SEK 2.94 (2.01)

Important events
»    A 2:1 share split was carried out in June

 

CEO’s comments on the Group’s development during the period
The strong start to the year was followed by a second quarter characterised by increasing volumes and retained good profitability in all business units. Viewed over the whole interim period, the increase in revenue exceeded 50 per cent, while operating profit grew by 84 per cent compared to the first half of 2016. The profit margin rose from 10.4 to 11.8 per cent.
     During the first six months of the year, the companies in the Industrial Solutions business unit exceeded invoicing in the comparison period by 89 per cent. The addition of Jorgensen was a major contributory factor to the increase, although other companies also reported significantly higher volumes than in the corresponding period last year. At the same time, profitability improved substantially. The market conditions were favourable within most of the affected sectors, and project deliveries to the packaging industry were considerably more extensive than in the previous year. The project order stock remains good and there is a high rate of new enquiries. The order horizon is relatively short, but the order situation is generally more stable than at the corresponding time last year.
     A positive outcome from implemented marketing activities, combined with a continued favourable economic situation, resulted in further growth in revenue for the companies in the Precision Technology business unit. The sales volumes within the medical technology sector remained at a good level. At the same time, the assignments for major contract customers generally grew in size, and these were supplemented by projects in new customer segments. A high degree of automation and effective utilisation of resources in the business unit’s companies contributed to a continued improvement in the profit margins.
     Operations in the Rotational Moulding business unit also demonstrated improved profitability. The second quarter was slightly weaker than the corresponding period last year in terms of volume, although on the whole for the interim period both revenue and operating profit exceeded the figures for the comparison period by a clear margin. The positive trend related to both customer-specific and proprietary products and encompassed just about all industry segments.
     There is currently nothing to indicate any significant changes to the market conditions for the Group’s companies. With the current composition, the outcome of the Group’s combined operations is normally weaker during the second half of the year. Ahead of the remaining six months of the year, the Group as a whole has a slightly better order situation compared to last year, and the conditions are more favourable in particular with regard to project-related sales to the packaging industry. 

 

  CONTACT:  
Lennart Persson, CEO
+46 36 31 22 33
lennart.persson[at]xano.se