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Fagerhult
Annual Report • Feb 16, 2024
3045_10-k_2024-02-16_07cf2e07-be0f-41ca-a317-91d01506357a.pdf
Annual Report
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Year-end report January – December 2023
[email protected] www.fagerhultgroup.com
2,123
Order intake, MSEK
Order intake was MSEK 2,123 (1,964), an increase of +8.1% adjusted to +5.5% for currency effects of MSEK +49 and business closures of MSEK +2
2,111
Net sales, MSEK
Net sales were MSEK 2,111 (2,271), a decrease of -7.1% adjusted to -7.7% for currency effects of MSEK +46 and business closures of MSEK -31
216
Operating profit, MSEK Operating profit was MSEK 215.9 (254.7), a decrease of -15.2% with an operating margin of 10.2 (11.2)%
108
Net profit, MSEK Earnings after tax were MSEK 107.5 (168.9)
0.61
Earnings per share, SEK Earnings per share were SEK 0.61 (0.96)
365
Operating cash flow, MSEK Cash flow from operating activities was MSEK 364.8 (365.5)
The fourth quarter
The fourth quarter performance included a record level of order intake, strong net sales, an improved gross margin, healthy operating profits and a very robust cash flow.
For the fourth quarter the order intake of 2,123 (1,964) MSEK, shows a strong overall growth of +8.1% and an organic growth of +5.5%. The fourth quarter order intake results in the R12M order intake reaching a new all-time high of 8,435 MSEK.
The success in renovation and retrofit projects leads to the improving order intake and this is driven by the global trends for energy reduction, sustainability and the ban of fluorescent lamps. We see these trends continuing and our smart, modern lighting solutions are developed to address this.
The delivery of net sales in excess of 2.1 BSEK, an operating profit of 216 MSEK with an operating margin of 10.2% is a strong performance as the comparable period included the order backlog catch up following the supply chain recovery.
Net sales for the quarter of 2,111 (2,271) MSEK delivered a healthy operating profit of 216 (255) MSEK and a strong operating margin of 10.2 (11.2)%. Due to the order backlog catch up in Q4 2022 as well as a positive 45 MSEK impact to operating profit from one-off items, the 11.2% margin was exceptionally strong.
The consistent levels of good profitability have enabled increased funding in our strategic focus areas of innovation, sustainability and people.
The quarterly operating cash flow of 364.8 (365.5) MSEK is driven by good profitability combined with ongoing working capital reduction.
The financial items in the quarter is due to net interest expense of 32.1 MSEK, FX losses of 16.0 and IFRS 16 impact of 5.3 MSEK.
During the quarter the Group used its surplus cash balances to repay 457 MSEK of term loans to reduce the interest expense for 2024 and beyond.
The Board intends to propose a dividend of SEK 1.80 (1.60) per share.
CEO comment
The fourth quarter; a strong Q4 to close a record year
The Group's strategic agenda makes good progress and we see it enhancing the performance, however, it is the hard work, effort and innovation of all 4,100 colleagues and strong customer loyalty that makes the real difference.
As the focus to reduce carbon footprint and the cost of energy continues to increase we see many stakeholders increasingly commit to SBTi.
As a result, our increased order intake comes from the renovation and retrofit market where we are well positioned as our solutions offer up to 90% savings. The ban on fluorescent lamps will accelerate this.
In Q4 we have many notable highlights, with a strong organic order intake growth, the highest ever year with our smart lighting solution Organic Response and continued robust cash flow.
The order intake trend has been positive and the Q4 result of +5.5% growth shows we are succeeding in gaining market share. The R12M order intake is a record at 8,435 MSEK.
Rolling 12 month and quarterly order intake
Strategic focus areas; enhancing the result
People and culture
People are so important to our future, earlier I mentioned them making a real difference. We become a more attractive employer on the market as a result of our continued HR development. We have recruited
some great people in the last 3 to 4 months and these new recruits will enhance our future even more.
Innovation
Innovation, the speed of innovation and the adoption of innovation in times of technology shifts is a vital component in our strategic direction.
Following an intense 18 month development period, Citygrid released a new industry standard protocol (Zhaga) smart controller for outdoor applications, this is a significant step forward for our outdoor lighting customers.
iGuzzini kept up the pace of innovation by launching "Light Shed Linen", a high energy efficient luminaire with the body made from the bio-material linen, meaning from a renewable source.
Fagerhult brought to market "Streamer Mini" which leads the way to the future of retail lighting both minimising energy consumption and reducing embodied carbon without compromising on quality or performance.
Sustainability
Our open and transparent knowledge leadership position is what we offer the market. Our go-to-market approach of smart lighting solutions focussed on helping our customers achieve their sustainability goals gains traction.
As you are aware we have SBTi validated targets, including net-zero for 2045 and we begin to monitor our progress towards our these targets for scope 1, 2 and 3.
Outlook; we look forward to 2024 where we expect further progress
Looking internally, the Group's performance continues to improve and we expect this to continue. The strategic agenda gains momentum and enhances the performance and we make progress on our new M&A agenda.
Externally, we see no shortage of opportunities on the market and the Group is well positioned for when the markets return to a more stable state.
We carry confidence with us into 2024.
8,435
Order intake, MSEK
Order intake was MSEK 8,435 (8,243), an increase of +2.3% adjusted to -1.9% for currency effects of MSEK +384 and business closures of MSEK -33
8,560
Net sales, MSEK
Net sales were MSEK 8,560 (8,270), an increase of +3.5% adjusted to +0.2% for currency effects of MSEK +387 and business closures of MSEK -113
901
Operating profit, MSEK
Operating profit was MSEK 901.2 (833.3), an increase of +8.1% with an operating margin of 10.5 (10.1)%
544
Net profit, MSEK Earnings after tax were MSEK 543.7 (576.4)
3.09
Earnings per share, SEK Earnings per share were SEK 3.09 (3.27)
1,209
Operating cash flow, MSEK Cash flow from operating activities was MSEK 1,208.8 (402.7)
January-December
The full year results delivered many all-time high levels of performance. Order intake, net sales, gross profit margin, operating profit, and cash flow were all new records for the Group in 2023.
The full year order intake of 8,435 (8,243) MSEK shows a +2.3% overall growth and a -1.9% organic decline. The +2.3% overall growth was -2.3% at the half year, so clearly order intake levels have been trending positive since Q2.
We continue to see mixed activity across the brands. During the final quarter there were strong order intake performances in business areas Collection, Premium and Infrastructure.
The full year net sales of 8,560 (8,270) MSEK show an increase of +3.5%, adjusted to +0.2% for currency effects of +387 MSEK and business closures of -113 MSEK.
The operating profit for the full year of 901 (833) MSEK is a strong performance and delivers a 40 basis points increased operating margin of 10.5 (10.1)%.
Our smart lighting strategy continues to grow its success on the market and during the year we have further increased the market penetration rate of luminaires enabled with Organic Response. We see a vast amount of opportunities for these solutions.
The focus on cash has continued and this has been successful with an all-time high operating cash flow of 1,209 (403) MSEK. The surplus cash balances have been put to good use by making early repayments of term loans to the value of 457 MSEK. This will reduces the interest expense for the future.
In Q4 the net debt reduced 378 MSEK from 2,792 MSEK to 2,414 MSEK and this reduction is additional to the 345 MSEK reduction in Q3.
The increased financial items of 145.0 (42.3) MSEK arises from a net increase in interest expense of 76.8 MSEK and an expense of -19.6 (income of +20.1) of currency impacts.
The tax expense in the period of 212.5 (214.6) MSEK results in a 28.1 (27.1)% tax rate.
Business areas
Net sales and operating profit by business area
| Net sales | Operating profit | Operating margin % | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q1-4 | Q4 | Q1-4 | Q4 | Q1-4 | |||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Collection | 1,035.2 | 1,029.7 | 3,860.1 | 3,853.8 | 104.8 | 92.1 | 344.0 | 352.6 | 10.1 | 8.9 | 8.9 | 9.1 |
| Premium | 690.8 | 781.3 | 2,951.4 | 2,814.4 | 89.3 | 123.6 | 415.5 | 397.9 | 12.9 | 15.8 | 14.1 | 14.1 |
| Professional | 240.9 | 258.4 | 1,040.8 | 1,018.9 | 21.0 | 18.9 | 86.8 | 43.8 | 8.7 | 7.3 | 8.3 | 4.3 |
| Infrastructure | 212.3 | 279.5 | 1,017.1 | 909.4 | 24.1 | 36.9 | 146.6 | 113.6 | 11.4 | 13.2 | 14.4 | 12.5 |
| Eliminations | -68.7 | -77.9 | -309.0 | -326.9 | - | - | - | - | - | - | - | - |
| Results by business area | 2,110.5 2,271.0 8,560.4 8,269.6 | 239.2 | 271.5 | 992.9 | 907.9 | 11.3 | 12.0 | 11.6 | 11.0 | |||
| IFRS 16 | - | - | - | - | 3.3 | 3.2 | 16.5 | 12.0 | - | - | - | - |
| Unallocated cost | - | - | - | - | -26.6 | -20.0 | -108.2 | -86.6 | - | - | - | - |
| Operating profit | - | - | - | - | 215.9 | 254.7 | 901.2 | 833.3 | 10.2 | 11.2 | 10.5 | 10.1 |
| Financial items | - | - | - | - | -53.4 | -12.7 | -145.0 | -42.3 | - | - | - | - |
| Profit before tax | - | - | - | - | 162.5 | 242.0 | 756.2 | 791.0 | - | - | - | - |
Net sales per business area, MSEK Sales share per business area, %
Operating profit per business area, MSEK
Collection
Collection is home to our brands with a global market footprint. All have an international product portfolio and are well-renowned in the lighting designer and architect communities globally. They offer a wide product range with a focus on indoor and outdoor architectural applications.
Brands included are; ateljé Lyktan, iGuzzini, LED Linear and WE-EF with product development and manufacturing facilities in Sweden, Italy, Canada, China, Germany and Thailand. Seneco is also consolidated in the business area.
Business Area order intake for the quarter of 989 (865) MSEK shows an overall growth of 14.3% and an organic growth of 10.6%. This continues to be a significantly improved performance than the first half year where the organic decline was -14.5% and provides confidence for 2024.
Net sales for the quarter were 1,035 (1,030) MSEK, an organic increase of +0.5%, despite the very tough comparable. We remain confident of improving this as the order intake trend is positive.
The high level of sales combined with continued gross profit margin development and a cost control results in the operating profit being 104.8 (92.1) MSEK and an increase in the operating margin to 10.1 (8.9)%.
An example of our portfolio reach and cross brand collaboration. During Q4 LED Linear based in Düsseldorf won the order to refurbish the lighting on a very highend luxury yacht with specification collaboration from Fagerhult based in the UK.
Also, iGuzzini won the Frankfurt Terminal 3 airport project in Germany and The Templo De Los Mormones in Madrid, Spain.
| Collection | Q4, 2023 | Q4, 2022 | Q1-4, 2023 | Q1-4, 2022 |
|---|---|---|---|---|
| Net sales | 1,035.2 | 1,029.7 | 3,860.1 | 3,853.8 |
| (of which, intercompany sales) | (31.1) | (42.9) | (135.9) | (156.1) |
| Operating profit | 104.8 | 92.1 | 344.0 | 352.6 |
| Operating margin, % | 10.1 | 8.9 | 8.9 | 9.1 |
| Sales growth, % | 0.5 | 24.8 | 0.2 | 21.9 |
| Sales growth, adjusted for exchange rate differences , % |
-2.6 | 13.8 | -5.5 | 13.8 |
| Growth in operating profit, % | 13.8 | 97.6 | -2.4 | 46.0 |
1,035
Net sales, MSEK
105
Operating profit, MSEK
10.1 Operating margin, %
Premium
Premium focuses on the European market and European-based global customers. Our Premium brands work closely with specifiers and partners to deliver premium projects, often with bespoke solutions. The majority of sales are related to indoor applications and there is also an outdoor offering for specific markets.
Brands included are Fagerhult and LTS with product development and manufacturing facilities in Sweden, Germany and China. Organic Response is also consolidated in this business area.
Business Area order intake for the quarter of 707 (680) MSEK shows a good +4.0% overall growth and an organic growth of +1.9%. In Premium also the recent order intake levels have been stronger. We have ceased our operation in Russia.
Net sales for the quarter were 691 (781) MSEK and it is difficult to compare with 2022 and the supply chain recovery period, where Premium was significantly affected. The operating profit was 89.3 (123.6) MSEK with an operating margin of 12.9 (15.8)%.
For the full year the sales growth was +4.9%, operating profit growth of +4.4% and a Premium maintained the high level operating margin of 14.1%.
During the quarter Fagerhult won the order in Tallinn, Estonia for Pelgulinna State High School – the best wooden building of the year. Fagerhult also won the renovation lighting project for the Bertrand Dauvin swimming pool in France which is to be used in the Olympic games.
Fagerhult was a main sponsor here in Stockholm for the Nobel Week Lights, a partnership highlighting innovation and a brighter future.
| Premium | Q4, 2023 | Q4, 2022 | Q1-4, 2023 | Q1-4, 2022 |
|---|---|---|---|---|
| Net sales | 690.8 | 781.3 | 2,951.4 | 2,814.4 |
| (of which, intercompany sales) | (12.3) | (12.4) | (70.1) | (61.0) |
| Operating profit | 89.3 | 123.6 | 415.5 | 397.9 |
| Operating margin, % | 12.9 | 15.8 | 14.1 | 14.1 |
| Sales growth, % | -11.6 | 23.1 | 4.9 | 11.2 |
| Sales growth, adjusted for exchange rate differences , % |
-13.2 | 16.7 | 1.2 | 6.6 |
| Growth in operating profit, % | -27.8 | 30.2 | 4.4 | 12.9 |
691
Net sales, MSEK
89
Operating profit, MSEK
12.9
Operating margin, %
Professional
Professional focuses mainly on indoor applications for local and neighbouring markets. The brands work closely together with local partners on project specifications to deliver full and complete solutions. Local production and product development allows for tailored solutions with bespoke products delivered within short lead times.
Brands included are; Arlight, Eagle and Whitecroft, with product development and manufacturing facilities in Turkey, Australia and the UK.
Business Area order intake for the quarter of 198 (218) MSEK shows an organic decline of -6.0% but a full year organic growth of +10.5%.
Compared to the previously reported challenges in 2022, we see a continued strong recovery performance in all three countries.
Net sales for the quarter were 241 (258) MSEK, an organic decline of -3.2% and due to pricing management and cost control the operating profit increased +11.1% from 18.9 MSEK to 21.0 MSEK.
In Professional, the operating margin continues to recover, with 8.7 (7.3)% in the quarter and 8.3 (4.3)% in the full year. We expect this to continue.
| Professional | Q4, 2023 | Q4, 2022 | Q1-4, 2023 | Q1-4, 2022 |
|---|---|---|---|---|
| Net sales | 240.9 | 258.4 | 1,040.8 | 1,018.9 |
| (of which, intercompany sales) | (15.5) | (10.1) | (68.5) | (66.8) |
| Operating profit | 21.0 | 18.9 | 86.8 | 43.8 |
| Operating margin, % | 8.7 | 7.3 | 8.3 | 4.3 |
| Sales growth, % | -6.8 | 9.5 | 2.1 | 2.2 |
| Sales growth, adjusted for exchange rate differences , % |
-3.2 | 9.4 | 2.6 | 3.9 |
| Growth in operating profit, % | 11.1 | 31.3 | 98.2 | -47.7 |
241
Net sales, MSEK
21
Operating profit, MSEK
8.7
Operating margin, %
Infrastructure
Infrastructure provides lighting solutions for environments with specific requirements for installation, durability and robustness. The companies are worldleading in their areas and highly experienced in finding the best solutions for every project and customer. The majority of their sales are within Europe with some global installations.
Brands included are; Designplan, i-Valo and Veko, with product development and manufacturing facilities in UK, Finland and the Netherlands.
Business Area order intake for the quarter of 229 (201) MSEK shows an organic growth of +8.5%. Mainly due to the decision to withdraw from the non-strategic horticulture segment the full year order intake of 922 (901) MSEK shows an overall growth of +2.3% with an organic decline of -4.7%. Horticulture order intake activity in 2022 was approximately 70 MSEK.
Net sales for the quarter were 212 (280) MSEK, an organic decline of -27.2% and the operating profits were 24.1 (36.9) MSEK resulting in an operating margin of 11.4 (13.2)%.
For the full year and for the first time, Infrastructure grew sales to in excess of 1 BSEK and delivered a +1.9 per cent point improvement in operating margin of 14.4 (12.5)%.
In the quarter Designplan won their largest ever German based custodial order for JVA Passau, Germany, a key milestone for us in Germany with a large LED refurbishment project.
During the quarter Veko won the project and started to supply the lighting for the new H&M distribution centre in Cheb, Slovakia.
| Infrastructure | Q4, 2023 | Q4, 2022 | Q1-4, 2023 | Q1-4, 2022 |
|---|---|---|---|---|
| Net sales | 212.3 | 279.5 | 1,017.1 | 909.4 |
| (of which, intercompany sales) | (9.7) | (12.4) | (34.5) | (42.9) |
| Operating profit | 24.1 | 36.9 | 146.6 | 113.6 |
| Operating margin, % | 11.4 | 13.2 | 14.4 | 12.5 |
| Sales growth, % | -24.0 | 40.9 | 11.8 | 24.3 |
| Sales growth, adjusted for exchange rate differences , % |
-27.2 | 32.1 | 4.2 | 18.4 |
| Growth in operating profit, % | -34.7 | 44.7 | 29.0 | 28.5 |
212
Net sales, MSEK
24
Operating profit, MSEK
11.4
Operating margin, %
Financial position
The Group's equity to assets ratio at the end of the reporting period was 55.2 (51.9)% and consolidated equity was 7,184 (6,957) MSEK.
The net debt at the end of the period was 2,414 (2,971) MSEK. Cash and bank balances at the end of the period were 1,272 (1,292) MSEK. Adjusting for cash and bank balances the gross debt was 3,686 (4,263) MSEK. The majority of the Group's long term loans are denominated in Euros and as mentioned earlier, the Group has used surplus cash balances to reduce the impact of the higher interest rates by repaying 40 MEUR (457 MSEK) of the long term loans.
Operating cash flow for the full year is 1,208.8 (402.7) MSEK. During Q2 the dividend of 281.9 (229.0) MSEK was paid and during Q4 loans were repaid of 457 MSEK.
Pledged assets and contingent liabilities amounted to 17.5 (18.1) MSEK and 37.2 (23.1) MSEK respectively.
Investments
The Group's net investments in non-current assets was 243 (180) MSEK. The figure does not include investments in subsidiaries, which were 0 (0) MSEK.
Employees
The average number of employees during the period was 4,080 (4,059).
Parent company
Fagerhult Group AB operations comprise Group Management, financing and business development activities. The profit after financial items was 553.2 (1,028.4) MSEK. The number of employees during the period was 17 (16).
Dividend
The Group has a dividend policy of between 40%-60% of earnings per share and the Board intends to propose that the Annual General Meeting approve a dividend of SEK 1.80 (1.60) per share, an increase of 12.5% and a distribution of 58.3% of the earnings per share for the year. This is based on 176.1 million shares.
Accounting principles
The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual accounts Act. The information for the interim period on pages 1-17 is an integral part of this financial report. The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.
Applied accounting principles are unchanged in comparison with those described in Fagerhult Group's annual report for the financial year 2022 besides the retroactive application mentioned below.
Fagerhult Group has operations in Turkey, whose functional currency since 2022 is considered to be a currency in a high inflationary economy. The group has therefore made a retroactive application and taken the high inflation into consideration. Details of the adjustments are specified in note 1.
Risks and uncertainties
The Group's significant risks and uncertainties consist primarily of business risks, and financial risks associated with currencies and interest rates. Through the company's international operations, the Fagerhult Group is subject to financial exposure arising from currency fluctuations as well as the regionalised uncertainty of political situations.
The most prominent risks, however, are currency risks arising from export sales and imports of raw materials and components. This exposure is reduced by hedging the flow of sensitive currencies, based on individual assessment. Currency risk also arises in the translation of foreign net assets and earnings.
Nomination committee
The Nomination Committee consists of the following individuals together with the names of the shareholders they represent; Jan Svensson as Chairman of the Board of Fagerhult Group AB, Johan Hjertonsson, Investment AB Latour, Jan Särlvik, Fjärde AP-Fonden, Björn Henriksson, Nordea Funds and Sussi Kvart, Handelsbanken Funds.
Questions regarding the nomination committee shall be addressed to the Group's CFO Michael Wood, [email protected]
Repurchase of shares
The Annual General Meeting held on 25 April 2023 authorised the Board to decide to acquire the company's own shares. No acquisitions of the company's own shares have been made. The company's holding of treasury shares totals 1,046,064.
Habo, February 16 2024 Fagerhult Group AB 556110-6203
Bodil Sonesson President and CEO
An investor webcast following the Quarter 4 Report 2023 will be held on 16 February 2024 at 09:30 CET. A link to the webcast and management presentation will be available on http://www.fagerhultgroup.com/investors
In 2024, interim reports will be submitted on 2 May, 19 July and 28 October and the Annual General Meeting will be held on 2 May.
This report has not been subject to a review by the company's auditor.
For more information contact:
Bodil Sonesson, CEO, +46 722 23 76 02 or Michael Wood, CFO, +46 730 87 46 47
Group
Condensed financial statements
Income statement
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Q4 | Q4 | Q1-4 | Q1-4 | |
| 3 months | 3 months | 12 months | 12 months | |
| Net sales | 2,110.5 | 2,271.0 | 8,560.4 | 8,269.6 |
| Cost of goods sold | -1,272.6 | -1,367.2 | -5,213.7 | -5,147.2 |
| Gross profit | 837.9 | 903.8 | 3,346.7 | 3,122.4 |
| Selling expenses | -457.1 | -462.6 | -1,757.1 | -1,619.7 |
| Administrative expenses | -198.0 | -208.0 | -804.3 | -747.0 |
| Other operating income | 33.1 | 21.5 | 115.9 | 77.6 |
| Operating profit | 215.9 | 254.7 | 901.2 | 833.3 |
| Financial items | -53.4 | -12.7 | -145.0 | -42.3 |
| Profit before tax | 162.5 | 242.0 | 756.2 | 791.0 |
| Tax | -55.0 | -73.1 | -212.5 | -214.6 |
| Net profit for the period | 107.5 | 168.9 | 543.7 | 576.4 |
| Net profit for the period attributable to shareholders of the Parent Company | 107.4 | 168.9 | 543.5 | 576.3 |
| Net profit for the period attributable to Non-controlling interests | 0.1 | - | 0.2 | 0.1 |
| Sum | 107.5 | 168.9 | 543.7 | 576.4 |
| Earnings per share, based on net profit for the period attributable to the shareholders of the | ||||
| Parent Company | ||||
| Earnings per share before dilution, SEK | 0.61 | 0.96 | 3.09 | 3.27 |
| Earnings per share after dilution, SEK | 0.61 | 0.96 | 3.09 | 3.27 |
| Average number of outstanding shares before dilution, thousands | 176,147 | 176,147 | 176,147 | 176,147 |
| Average number of outstanding shares after dilution, thousands | 176,147 | 176,147 | 176,147 | 176,147 |
| Number of outstanding shares, thousands | 176,147 | 176,147 | 176,147 | 176,147 |
| STATEMENT OF COMPREHENSIVE INCOME | ||||
| Net profit for the period | 107.5 | 168.9 | 543.7 | 576.4 |
| Other comprehensive income | ||||
| Items which may not be reclassified in the income statement: | ||||
| Revaluation of pension plans | 7.4 | 9.9 | 13.1 | 8.3 |
| Items which may be reclassified in the income statement: | ||||
| Translation differences | -184.0 | 21.7 | -57.6 | 329.8 |
| Other comprehensive income for the period, net after tax | -176.6 | 31.6 | -44.5 | 338.1 |
| Total comprehensive income for the period | -69.1 | 200.5 | 499.2 | 914.5 |
| Total comprehensive income attributable to shareholders of the Parent Company | -69.3 | 200.4 | 499.0 | 914.4 |
| Total comprehensive income attributable to Non-controlling interests | 0.2 | 0.1 | 0.2 | 0.1 |
| Sum | -69.1 | 200.5 | 499.2 | 914.5 |
Balance sheet
| 31 Dec | 31 Dec | |
|---|---|---|
| 2023 | 2022 | |
| Intangible assets | 6,118.0 | 6,154.0 |
| Tangible fixed assets | 2,385.6 | 2,421.2 |
| Financial assets | 221.6 | 226.5 |
| Inventories | 1,278.4 | 1,492.5 |
| Accounts receivable - trade | 1,488.2 | 1,603.5 |
| Other non-interest-bearing current assets | 243.4 | 222.4 |
| Cash and cash equivalents | 1,272.2 | 1,291.7 |
| Total assets | 13,007.4 | 13,411.8 |
| Equity | 7,184.1 | 6,957.4 |
| Long-term interest-bearing liabilities | 3,407.1 | 3,964.0 |
| Long-term non-interest-bearing liabilities | 545.4 | 552.2 |
| Short-term interest-bearing liabilities | 279.0 | 298.2 |
| Short-term non-interest-bearing liabilities | 1,591.8 | 1,640.0 |
| Total equity and liabilities | 13,007.4 | 13,411.8 |
Cash flow statement
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Q4 | Q4 | Q1-4 | Q1-4 | |
| 3 months | 3 months | 12 months | 12 months | |
| Operating profit | 215.9 | 254.7 | 901.2 | 833.3 |
| Adjustments for non-cash items | 39.8 | 124.2 | 398.6 | 515.3 |
| Financial items | -36.5 | -19.3 | -135.9 | -55.3 |
| Tax paid | -46.8 | -37.3 | -242.6 | -207.0 |
| Funds contributed from operating activities before change in working capital | 172.4 | 322.3 | 921.3 | 1,086.3 |
| Change in working capital | 192.4 | 43.2 | 287.5 | -683.6 |
| Cash flow from operating activities | 364.8 | 365.5 | 1,208.8 | 402.7 |
| Cash flow from investing activities | -82.5 | -60.9 | -225.9 | -192.5 |
| Cash flow from financing activities | -499.0 | -59.4 | -991.0 | -743.3 |
| Cash flow for the period | -216.7 | 245.2 | -8.1 | -533.1 |
| Cash and cash equivalents at beginning of period | 1,519.5 | 1,062.7 | 1,291.7 | 1,741.5 |
| Translation differences in cash and cash equivalents | -30.6 | -16.2 | -11.4 | 83.3 |
| Cash and cash equivalents at end of period | 1,272.2 | 1,291.7 | 1,272.2 | 1,291.7 |
Key ratios and data per share
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Q4 | Q4 | Q1-4 | Q1-4 | |
| 3 Months | 3 Months | 12 months | 12 months | |
| Sales growth, % | -7.1 | 24.8 | 3.5 | 16.7 |
| Growth in operating profit, % | -15.2 | 58.1 | 8.1 | 18.0 |
| Growth in profit before tax, % | -32.9 | 78.3 | -4.4 | 27.1 |
| Operating margin, % | 10.2 | 11.2 | 10.5 | 10.1 |
| Profit margin, % | 7.7 | 10.7 | 8.8 | 9.6 |
| Cash liquidity, % | 68.0 | 66.6 | 68.0 | 66.6 |
| EBITDA | 334 | 356 | 1,341 | 1,257 |
| Net debt/EBITDA ratio | 1.81 | 2.09 | 1.80 | 2.36 |
| Equity/assets ratio, % | 55.2 | 51.9 | 55.2 | 51.9 |
| Capital employed, MSEK | 10,870 | 11,220 | 10,870 | 11,220 |
| Return on capital employed, % | 8.1 | 9.6 | 8.6 | 8.0 |
| Return on equity, % | 6.0 | 9.7 | 7.7 | 8.7 |
| Net debt, MSEK | 2,414 | 2,971 | 2,414 | 2,971 |
| Gross investment in non-current assets, MSEK | 80.8 | 70.2 | 242.6 | 179.6 |
| Net investment in non-current assets, MSEK | 80.8 | 70.2 | 242.6 | 179.6 |
| Depreciation/amortisation/impairment of non-current assets, MSEK | 117.7 | 101.2 | 440.0 | 423.5 |
| Number of employees | 4,072 | 4,066 | 4,080 | 4,059 |
| Equity per share, SEK | 40.78 | 39.50 | 40.78 | 39.50 |
| Number of outstanding shares, thousands | 176,147 | 176,147 | 176,147 | 176,147 |
For more information about the Key ratios and the definitions applied, please refer to Fagerhult Group AB's website under "Investor/Financial data/Financial glossary." The website also includes the definition of any Alternative Performance Measures used whereas this report details the financial aspect to these.
Changes in equity
| Attributable to shareholders of the Parent Company | ||||||
|---|---|---|---|---|---|---|
| Share capital | Other contributed capital |
Reserves | Retained earnings |
Non controlling interest |
Total equity | |
| Equity at 1 January 2022 | 100.2 | 3,194.6 | -298.2 | 3,222.3 | -0.2 | 6,218.7 |
| Adjustment for retroactive application | 47.9 | 47.9 | ||||
| Adjusted equity at 1 January 2022 | 100.2 | 3,194.6 | -250.3 | 3,222.3 | -0.2 | 6,266.6 |
| Net profit for the period | 576.3 | 0.1 | 576.4 | |||
| Other comprehensive income for the period | 329.8 | 8.3 | - | 338.1 | ||
| Total comprehensive income for the period | 329.8 | 584.6 | 0.1 | 914.5 | ||
| Performance share plan | 5.3 | - | 5.3 | |||
| Dividend paid | -229.0 | - | -229.0 | |||
| Equity at 31 December 2022 | 100.2 | 3,194.6 | 79.5 | 3,583.2 | -0.1 | 6,957.4 |
| Equity at 1 January 2023 | 100.2 | 3,194.6 | 4.3 | 3,583.2 | -0.1 | 6,882.2 |
| Adjustment for retroactive application | 75.2 | 75.2 | ||||
| Adjusted equity at 1 January 2023 | 100.2 | 3,194.6 | 79.5 | 3,583.2 | -0.1 | 6,957.4 |
| Net profit for the period | 543.5 | 0.2 | 543.7 | |||
| Other comprehensive income for the period | -57.6 | 13.1 | - | -44.5 | ||
| Total comprehensive income for the period | -57.6 | 556.6 | 0.2 | 499.2 | ||
| Performance share plan | 9.4 | - | 9.4 | |||
| Dividend paid | -281.9 | - | -281.9 | |||
| Equity at 31 December 2023 | 100.2 | 3,194.6 | 21.9 | 3,867.3 | 0.1 | 7,184.1 |
Parent company
Condensed financial statements
Income statement
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Q4 | Q4 | Q1-4 | Q1-4 | |
| 3 Months | 3 Months | 12 months | 12 months | |
| Net sales | 11.3 | 9.4 | 39.9 | 38.8 |
| Administrative expenses | -23.4 | -19.2 | -98.1 | -83.9 |
| Operating profit | -12.1 | -9.8 | -58.2 | -45.1 |
| Income from shares in subsidiaries | 95.7 | 5.5 | 543.1 | 913.5 |
| Financial items | -22.3 | 38.9 | 68.3 | 160.0 |
| Profit before appropriations and tax | 61.3 | 34.6 | 553.2 | 1,028.4 |
| Group contributions received | 294.0 | 174.0 | 294.0 | 174.0 |
| Tax | -53.3 | -43.3 | -63.9 | -61.7 |
| Net profit | 302.0 | 165.3 | 783.3 | 1,140.7 |
Balance sheet
| 31 Dec | 31 Dec | |
|---|---|---|
| 2023 | 2022 | |
| Financial assets | 8,057.8 | 8,023.2 |
| Other non interest bearing receivables | 68.0 | 63.6 |
| Cash & Bank | 733.8 | 777.8 |
| Total assets | 8,859.6 | 8,864.6 |
| Equity | 5,571.0 | 5,066.3 |
| Long-term interest bearing liabilities | 2,570.3 | 3,064.3 |
| Long-term non interest bearing liabilities | 13.1 | 9.6 |
| Short-term interest bearing liabilities | 671.7 | 696.5 |
| Short-term non interest bearing liabilities | 33.5 | 27.9 |
| Total Equity and Liabilities | 8,859.6 | 8,864.6 |
Changes in equity
| Share | Statutory reserve |
Retained | earnings Total equity | |
|---|---|---|---|---|
| capital | ||||
| Equity at 1 January 2022 | 100.2 | 159.4 | 3,893.2 | 4,152.8 |
| Net profit for the period | 1,140.7 | 1,140.7 | ||
| Performance share program | 1.8 | 1.8 | ||
| Dividend paid | -229.0 | -229.0 | ||
| Equity at 31 December 2022 | 100.2 | 159.4 | 4,806.7 | 5,066.3 |
| Equity at 1 January 2023 | 100.2 | 159.4 | 4,806.7 | 5,066.3 |
| Net profit for the period | 783.3 | 783.3 | ||
| Performance share plan | 3.3 | 3.3 | ||
| Dividend paid | -281.9 | -281.9 | ||
| Equity at 31 December 2023 | 100.2 | 159.4 | 5,311.4 | 5,571.0 |
Net sales, MSEK Operating profit, MSEK
Operating margin, % Earnings per share, SEK
Operating cashflow, MSEK Net debt and Net debt/EBITDA ratio
Key ratios and data per share
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Net sales, MSEK | 7,844.9 | 6,816.3 | 7,087.5 | 8,269.6 | 8,560.4 |
| Operating profit, MSEK | 794.8 | 332.5 | 706.4 | 833.3 | 901.2 |
| Profit before tax, MSEK | 695.7 | 216.7 | 622.3 | 791.0 | 756.2 |
| Earnings per share, SEK | 3.32 | 3.21 | 2.64 | 3.27 | 3.09 |
| Sales growth, % | 39.6 | -13.1 | 4.0 | 16.7 | 3.5 |
| Growth in operating profit, % | 12.6 | -58.2 | 112.5 | 18.0 | 8.1 |
| Growth in profit before tax, % | 4.3 | -68.9 | 187.2 | 27.1 | -4.4 |
| Operating margin, % | 10.1 | 4.9 | 10.0 | 10.1 | 10.5 |
| EBITDA | 1,274 | 891 | 1,147 | 1,257 | 1,341 |
| Net debt/EBITDA ratio | 2.93 | 3.16 | 2.27 | 2.36 | 1.80 |
| Equity/assets ratio, % | 42.0 | 47.3 | 49.1 | 51.6 | 55.2 |
| Capital employed, MSEK | 10,372 | 10,238 | 10,563 | 11,144 | 10,870 |
| Return on capital employed, % | 10.8 | 3.5 | 6.9 | 8.1 | 8.6 |
| Return on equity, % | 13.5 | 10.1 | 7.8 | 8.8 | 7.7 |
| Net debt, MSEK | 3,737 | 2,812 | 2,603 | 2,971 | 2,414 |
| Net investment in non-current assets, MSEK | 242.7 | 183.6 | 149.5 | 179.6 | 242.6 |
| Depreciation/amortisation/impairment of non-current assets, MSEK | 478.8 | 558.4 | 440.9 | 423.5 | 440.0 |
| Number of employees | 4,465 | 4,419 | 4,237 | 4,059 | 4,080 |
Net sales and operating profit, MSEK
Note 1
Retroactive application relating to high inflationary economies adjustments
| 31 Dec | 31 Dec | 30 Sep | 30 Sep | 1 Jan | |
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Intangible assets | 87.7 | 79.2 | 91.3 | 77.4 | 50.5 |
| Equity | 83.3 | 75.2 | 86.7 | 73.5 | 47.9 |
| Long-term non-interest-bearing liabilities | 4.4 | 4.0 | 4.6 | 3.9 | 2.6 |
| Translation differences, Other comprehensive income for the period | 83.3 | 75.2 | 86.7 | 73.5 | - |