Interim / Quarterly Report • Jul 20, 2023
Interim / Quarterly Report
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| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos |
Jan-Dec |
| Order intake | 7,829 | 7,029 | 11% | 15,905 | 14,114 | 13% | 29,492 | 27,701 |
| Net sales | 8,100 | 6,683 | 21% | 16,163 | 13,081 | 24% | 30,098 | 27,016 |
| Operating profit | 1,061 | 908 | 17% | 2,140 | 1,757 | 22% | 4,003 | 3,620 |
| EBITA | 1,213 | 1,023 | 19% | 2,438 | 1,982 | 23% | 4,554 | 4,098 |
| EBITA margin, % | 15.0 | 15.3 | 15.1 | 15.2 | 15.1 | 15.2 | ||
| Profit before taxes | 939 | 871 | 8% | 1,920 | 1,685 | 14% | 3,675 | 3,440 |
| Net profit for the period | 724 | 675 | 7% | 1,476 | 1,313 | 12% | 2,844 | 2,681 |
| Earnings per share before dilution, SEK | 1.99 | 1.85 | 8% | 4.05 | 3.60 | 13% | 7.81 | 7.36 |
| Return on capital employed, % | 22 | 23 | 22 | 23 | 22 | 23 | ||
| Cash flow from operating activities | 1,112 | 622 | 79% | 1,744 | 898 | 94% | 3,218 | 2,372 |
| Net debt/equity ratio, % | 74 | 64 | 74 | 64 | 74 | 67 |
Indutrade AB (publ.), Reg.no. 556017-9367. Box 6044, SE-164 06 Kista. Visiting address: Raseborgsgatan 9. Tel: +46 8 703 03 00. www.indutrade.com «
Stable order intake and strong sales growth
Demand during the second quarter remained at a high and stable level. Order intake amounted to SEK 7.8 billion, corresponding to an increase of 11% compared to the corresponding period previous year. The majority of companies showed order growth, and despite strong comparison figures, aggregated organic order intake was essentially unchanged. There was still large variation in demand between companies, segments and countries, with the strongest growth in companies with customers in the water/wastewater segment and engineering industry. Demand was weakest for companies with customers in infrastructure and construction.
Net sales improved further during the quarter and amounted to a record-high SEK 8.1 billion, corresponding to a sales growth of 21% compared to the corresponding period previous year. Organically, growth was 7%, with a positive development in seven of the eight business areas. The strongest growth was in the Benelux and Industrial Components business areas, where most of the companies developed positively. Business area Finland had negative organic sales development, with a somewhat weakened development in several segments and companies.
EBITA increased by 19% to SEK 1.2 billion, corresponding to an EBITA margin of 15.0%. Earnings also include some nonrecurring items related to revaluation of contingent earn-out payments, among others, which in total had a positive impact of SEK 17 million. Excluding nonrecurring items, the EBITA margin amounted to 14.8%. The organic growth of the EBITA margin was somewhat dampened due to a higher level of expenses, which was primarily attributable to increased marketing activities and other growth initiatives in many companies. Thanks to successful pricing efforts, the gross margin remained at a high and stable level.
Cash flow increased compared to the corresponding period previous year, primarily thanks to a more favourable development of working capital. Inventories for comparable units decreased somewhat during the quarter, mainly due to high invoicing and fewer disturbances in the supply chains. All companies are working in a determined way to reduce inventories and the trend is going in the right direction. The Group's financial position remains strong, which provides good conditions for additional value-creating acquisitions and investments for organic growth.
In terms of acquisitions, the activity level remains high and thus far this year, we have acquired six companies, with total annual sales of approximately SEK 900 million. We welcomed three new companies in the second quarter – Safematic (Denmark), Labema (Finland) and I-tronik (Italy). Safematic is specialised in process and ventilation filtration and Labema offers diagnostic equipment and supplies to, among others, public healthcare, food industry and research laboratories. It is our first acquisition of a medical technology company in Finland. I-tronik is specialised in machinery, consumables, spare parts, and services for assembly and manufacturing of Printed Circuit Boards (PCBs). Through the acquisition of I-tronik we strengthen our position in northern Italy.
Despite the uncertain market situation, the inflow of new, interesting acquisition candidates is good and we remain active in our ongoing acquisition processes.
Performance during the first half of 2023 remained positive, with a high and stable demand, even though the market situation varied for our companies. Among the larger customer segments, only infrastructure and construction has shown a slowdown. Our companies work closely with their customers and carefully monitor the market development on a continuous basis. The order backlog remains good, and several of our companies are well positioned in structurally growing market areas with good opportunities for continued growth. We are also convinced that our decentralised model – with local decision-making close to the customer – together with our well diversified structure, will enable us to manage any market fluctuations in a good way.
Indutrade's strategy works well and we have a good foundation for continued, long-term, sustainable and competitive value creation.
Bo Annvik, President and CEO
Overall, demand during the second quarter remained high and stable. Despite the strong comparison figures, our order intake organically was at essentially the same level as the corresponding period previous year. There was still variation in the order intake between companies and segments, but the development was positive compared to the corresponding period previous years for the majority of companies. In the major customer segments, the strongest demand was in the engineering industry and water/wastewater segment. Customers in medical technology and pharmaceuticals, the process industry and energy segment also exhibited a high and stable demand. For companies with customers in infrastructure and construction, demand was in general somewhat weaker.
Order intake was 3% lower than invoicing, primarily due to strong invoicing, and amounted to SEK 7,829 million (7,029), which is an increase of 11% compared to the corresponding period previous year. For comparable units, order intake decreased by 1%, acquisitions contributed with 7% and currency movements had a positive impact of 5%.
The Industrial Components and Fluids & Mechanical Solutions business areas demonstrated the strongest growth in order intake for comparable units, thanks to, among others, a positive performance from companies in medical technology and pharmaceuticals. The weakest development in order intake for comparable units occurred in the Benelux business area, primarily due to strong comparison figures during the corresponding period previous year for a couple of companies in infrastructure and construction, as well as valves for power generation.
Order intake during the period January – June amounted to SEK 15,905 (14,114) million, which is an increase of 13%. Comparable units increased by 1%, acquisitions contributed with 8% and currency movements had a positive impact of 4%.
Net sales were further strengthened during the second quarter and increased by 21% compared to the corresponding period previous year, amounting to SEK 8,100 million (6,683). Comparable units increased by 7%, acquisitions contributed with 8% and currency movements had a positive impact of 6%.
Net sales increased organically in seven of the eight business areas, with the strongest growth in the Benelux and Industrial Components business areas. For Benelux, valves for power generation had the strongest growth, and in the Industrial Components business area, it was companies with customers in the medical technology and pharmaceutical segment that performed best. Net sales for comparable units decreased in business area Finland, caused by a somewhat weakened demand in several companies and segments.
Some companies are still being affected by disturbances in the supply chains and the delivery times from suppliers are still relatively long. However, the situation is significantly better than last year.
All business with companies in Russia and Belarus is still suspended because of Russia's invasion of Ukraine at the beginning of last year. The overall direct and indirect exposure to these countries is very limited and the Group does not have any subsidiaries or employees in Russia, Ukraine or Belarus.
During the period January – June, net sales increased by 24% to SEK 16,163 (13,081) million. Comparable units increased by 10%, acquisitions contributed with 8% and currency movements had a positive impact of 6%.
Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) amounted to SEK 1,213 million (1,023) for the second quarter, which is an improvement of 19%. Comparable units increased by 6%, acquisitions contributed with 7% and currency movements had a positive impact of 6%. The EBITA margin remained high but decreased somewhat and amounted to 15.0% (15.3%).
There was a positive impact of SEK 17 (-) million net on EBITA during the quarter from nonrecurring items. Revaluation of contingent earn-out payments had a positive impact of SEK 64 million and restructuring costs had a negative impact of SEK 47 million. Excluding nonrecurring items, the EBITA margin amounted to 14.8% (15.3%). The somewhat weaker EBITA margin is mainly explained by a higher level of expenses in many companies, primarily due to increased marketing activities and other growth initiatives. Many companies continued raising their prices to customers during the quarter and the gross margin remained at a high level, amounting to 34.6% (34.9%). Accumulated for the first half of the year, the gross margin was 34.6% (34.7%).
The DACH business area exhibited the strongest growth in EBITA margin during the quarter, primarily thanks to the positive performance of newly acquired companies. The weakest development was in the business areas Finland and Measurement & Sensor Technology, due to a higher level of expenses, among others, and in Finland there was also a positive one-off effect previous year associated with a property divestment.
Net financial items during the second quarter amounted to SEK -122 million (-37). The higher financial costs were due to increased borrowing and higher interest rates. Tax on profit for the quarter amounted to SEK -215 million (-196), corresponding to a tax rate of 23% (23%). Profit for the quarter increased by 7% to SEK 724 million (675). Earnings per share before dilution increased by 8% and amounted to SEK 1.99 (1.85).
Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) during the period of January – June amounted to SEK 2,438 million (1,982), which is an increase of 23%. Comparable units increased by 10%, acquisitions contributed with 8% and currency movements had a positive impact of 5%. The EBITA margin amounted to 15.1% (15.2%).
Net financial items for the period January – June amounted to SEK -220 million (-72). Tax on profit for the period amounted to SEK -444 million (-372), corresponding to a tax rate of 23% (22%). Profit for the period increased by 12% to SEK 1,476 million (1,313). Earnings per share before dilution increased by 13% and amounted to SEK 4.05 (3.60).
Return on capital employed remained at a high level but decreased somewhat compared to the corresponding period previous year and amounted to 22% (23%), which is primarily due to a higher amount of tied-up capital. Return on equity amounted to 23% (23%).
The companies in this business area offer custom-manufactured niche products, design solutions, aftermarket service and assembly, and customisation. The business area includes companies with a considerable amount of own manufacturing and proprietary products. Customers are in the energy, construction & infrastructure, and healthcare segments. Product areas include valves, hydraulic and industrial equipment, and measurement technology. The business area has strong market positions in the Benelux area (Belgium, the Netherlands and Luxembourg).
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 1,362 | 970 | 40% | 2,767 | 1,919 | 44% | 4,932 | 4,084 |
| EBITA | 197 | 155 | 27% | 426 | 293 | 45% | 732 | 599 |
| EBITA margin, % | 14.5 | 16.0 | 15.4 | 15.3 | 14.8 | 14.7 |
Net sales increased by 40% during the second quarter to SEK 1,362 million (970). Comparable units increased by 14%, acquisitions contributed with 16% and currency movements had a positive impact of 10%.
Order intake increased in most of the companies but was offset by a weaker development in valves for power generation and in a couple of companies in infrastructure and construction. Overall, demand during the quarter was lower than in the corresponding period previous year. Order intake was 15% lower than invoicing.
EBITA increased during the second quarter by 27% to SEK 197 million (155), corresponding to an EBITA margin of 14.5% (16.0%). Comparable units increased by 1%, acquisitions contributed with 17% and currency movements had a positive impact of 9%.
The lower EBITA margin was primarily attributable to a weak development in a couple of companies in infrastructure and construction.
This business area includes companies that offer custom manufactured niche products, design solutions, aftermarket service and assembly, and customisation. The business area includes companies with a considerable amount of own manufacturing and proprietary products. Customers are in the construction & infrastructure, engineering, healthcare and chemical industries. Product areas include construction material, hydraulic and industrial equipment and valves. Each of the individual companies has a strong market position in the DACH area (Germany, Austria and Switzerland), and most companies are market leaders in their fields.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 684 | 521 | 31% | 1,310 | 1,025 | 28% | 2,396 | 2,111 |
| EBITA | 107 | 78 | 37% | 198 | 148 | 34% | 366 | 316 |
| EBITA margin, % | 15.6 | 15.0 | 15.1 | 14.4 | 15.3 | 15.0 |
Net sales increased by 31% during the second quarter to SEK 684 million (521). Comparable units increased by 4%, acquisitions contributed with 15% and currency movements had a positive impact of 12%.
Overall, demand was lower than in the corresponding period previous year and order intake decreased in the majority of companies. Companies with customers in the medical technology and pharmaceuticals industry and in the process industry exhibited the weakest growth in demand, largely because of strong comparison figures in the corresponding period previous year. Order intake was 10% lower than invoicing.
EBITA increased during the second quarter by 37% to SEK 107 million (78), corresponding to an EBITA margin of 15.6% (15.0%). Comparable units increased by 6%, acquisitions contributed with 18% and currency movements had a positive impact of 13%.
The improved EBITA margin was primarily driven by good margins in newly acquired companies.
The Finland business area includes companies that offer sales of components as well as customisation, combinations and installations of products from various suppliers. Customers are in the construction & infrastructure, engineering, water/wastewater, energy and chemical industries. Products range from hydraulics and industrial equipment to measurement technology, valves, service, filters and process technology. The business area has a strong market position in Finland.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 569 | 545 | 4% | 1,119 | 1,050 | 7% | 2,289 | 2,220 |
| EBITA | 72 | 96 | -25% | 144 | 169 | -15% | 345 | 370 |
| EBITA margin, % | 12.7 | 17.6 | 12.9 | 16.1 | 15.1 | 16.7 |
Net sales increased by 4% during the second quarter to SEK 569 million (545). Comparable units decreased by 5%, acquisitions contributed with 1% and currency movements had a positive impact of 8%.
Order intake decreased in most of the business area's companies during the quarter and demand was overall lower than in the corresponding period previous year. Order intake was however 4% higher than invoicing.
EBITA decreased during the second quarter by 25% to SEK 72 million (96), corresponding to an EBITA margin of 12.7% (17.6%). Comparable units decreased by 28%, acquisitions had a negative impact of 3% and currency movements had a positive impact of 6%.
The decline of the EBITA margin is primarily explained by the lower sales, but also higher expenses and positive one-off effects during the corresponding period previous year associated with a property divestment. Also, one-off items associated with acquisitions contributed to weakened results.
Companies in this business area offer components and systems for controlling, measuring, monitoring and regulating flows. The business area includes companies that specialise in various areas of industrial flow technology. Customers are in the process industry, food and pharmaceutical industries, water/wastewater, energy and marine industries. Product areas include valves, pipes and pipe systems, measurement technology, pumps, hydraulics and industrial equipment. The business area has a strong market position especially in Sweden, but also in the Northern Europe.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 1,557 | 1,385 | 12% | 3,164 | 2,650 | 19% | 5,921 | 5,407 |
| EBITA | 268 | 236 | 14% | 552 | 436 | 27% | 998 | 882 |
| EBITA margin, % | 17.2 | 17.0 | 17.4 | 16.5 | 16.9 | 16.3 |
Net sales increased by 12% during the second quarter to SEK 1,557 million (1,385). Comparable units increased by 7%, acquisitions contributed with 1% and currency movements had a positive impact of 4%.
Demand during the quarter was higher than in the corresponding period previous year. Order intake strengthened for most of the companies, with a particularly good demand from customers in water/wastewater, engineering and the energy sector. Strong comparison figures for some companies with customers in the medical technology and pharmaceuticals industry dampened this somewhat. Order intake was 2% lower than invoicing.
EBITA increased during the second quarter by 14% to SEK 268 million (236), corresponding to an EBITA margin of 17.2% (17.0%). Comparable units increased by 7%, acquisitions contributed marginally and currency movements had a positive impact of 7%.
The improved EBITA margin is primarily explained by improved gross margin for comparable units.
Companies in this business area offer technological components (both hydraulic and mechanic), as well as solutions that have a high technological content to the industry in, primarily Scandinavia and Europe, but also USA and Asia. The companies have a considerable amount of own manufacturing and proprietary products, as well as technical trading companies. Important product areas include filters, hydraulics, auto repair, tools & transmission, industrial springs, water & wastewater and lighting. The business area has a strong market position in the Nordic region.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 980 | 753 | 30% | 1,922 | 1,475 | 30% | 3,417 | 2,970 |
| EBITA | 154 | 116 | 33% | 298 | 229 | 30% | 522 | 453 |
| EBITA margin, % | 15.7 | 15.4 | 15.5 | 15.5 | 15.3 | 15.3 |
Net sales increased by 30% during the second quarter to SEK 980 million (753). Comparable units increased by 6%, acquisitions contributed with 21% and currency movements had a positive impact of 3%.
Overall, demand during the quarter was higher than in the corresponding period previous year and order intake increased in nearly half of the business area's companies. Demand was strongest for companies with customers in the medical technology and pharmaceuticals industry, as well as the automotive aftermarket. Order intake was 4% higher than invoicing.
EBITA increased during the second quarter by 33% to SEK 154 million (116), corresponding to an EBITA margin of 15.7% (15.4%). Comparable units increased by 11%, acquisitions contributed with 17% and currency movements had a positive impact of 5%.
The improved EBITA margin is explained by increased organic net sales and good cost control.
Companies in this business area are mainly technical trading companies and offer a wide range of technically advanced components and systems for industrial production and maintenance, as well as medical technology equipment. The products consist mainly of consumables. Its customers exist in the following segments: engineering, healthcare, construction and infrastructure. The product areas include hydraulics and industrial equipment, chemical technology and fasteners. The business area has a strong market position in the Nordic region.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 1,552 | 1,342 | 16% | 3,061 | 2,612 | 17% | 5,845 | 5,396 |
| EBITA | 241 | 218 | 11% | 484 | 436 | 11% | 915 | 867 |
| EBITA margin, % | 15.5 | 16.2 | 15.8 | 16.7 | 15.7 | 16.1 |
Net sales increased by 16% during the second quarter to SEK 1,552 million (1,342). Comparable units increased by 11%, acquisitions contributed with 4% and currency movements had a positive impact of 1%.
Demand during the quarter was stronger than in the corresponding period previous year, with order growth in the majority of the companies in the business area. Growth was strongest in the medical technology and pharmaceuticals industry. Order intake was 3% higher than invoicing.
EBITA increased during the second quarter by 11% to SEK 241 million (218), corresponding to an EBITA margin of 15.5% (16.2%). Comparable units increased by 6%, acquisitions contributed with 4% and currency movements had a positive impact of 1%.
The weaker EBITA margin was mainly attributable to a somewhat lower gross margin for comparable units.
Companies in this business area sell measurement instruments, measurement systems, sensors, control and regulating technology, and monitoring equipment for various industries. All of the business area's companies have proprietary products based on advanced technological solutions and own development, design and manufacturing. Its customers exist in a variety of areas, such as various types of manufacturing industries like electronics, vehicles and energy. Companies in this business area work globally and have the entire world as the market for their products, with established production and sales companies on six continents.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 871 | 692 | 26% | 1,782 | 1,379 | 29% | 3,352 | 2,949 |
| EBITA | 124 | 128 | -3% | 281 | 259 | 8% | 557 | 535 |
| EBITA margin, % | 14.2 | 18.5 | 15.8 | 18.8 | 16.6 | 18.1 |
Net sales increased by 26% during the second quarter to SEK 871 million (692). Comparable units increased by 9%, acquisitions contributed with 11% and currency movements had a positive impact of 6%.
Overall, demand during the quarter was lower than in the corresponding period previous year, with a lower order intake in the majority of the companies. The development was weak for, among others, some companies with customers in engineering, which was partly attributable to strong comparison figures previous year. Demand was strongest for companies with customers in the energy segment. Order intake was 6% lower than invoicing during the quarter.
EBITA decreased during the second quarter by 3% to SEK 124 million (128), corresponding to an EBITA margin of 14.2% (18.5%). Comparable units decreased by 12%, acquisitions contributed with 4% and currency movements had a positive impact of 5%.
The weaker EBITA margin is mainly explained by a higher level of expenses associated with increased marketing activities and other growth initiatives, along with lower gross margin in some companies.
The companies in this business area offer custom-manufactured niche products, design solutions, aftermarket service and assembly, and customisation. They have a considerable amount of own manufacturing and proprietary products. Customer segments include construction and infrastructure, engineering and commercial vehicles. Examples of product areas are springs, piston rings, press work, valve channels, pipes and pipe systems. The individual companies all have strong market positions in the UK, and most are market leaders in their respective niches.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |||
|---|---|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Moving 12 mos | Jan-Dec |
| Net sales | 546 | 504 | 8% | 1,087 | 1,024 | 6% | 2,057 | 1,994 |
| EBITA | 66 | 59 | 12% | 131 | 127 | 3% | 235 | 231 |
| EBITA margin, % | 12.1 | 11.7 | 12.1 | 12.4 | 11.4 | 11.6 |
Net sales increased by 8% during the second quarter to SEK 546 million (504). Comparable units increased by 2% and currency movements had a positive impact of 6%.
Overall, demand during the quarter was somewhat lower than in the corresponding period previous year and order intake increased in nearly half of the companies. Among others, demand was good in companies with customers in the energy segment, yet weaker in infrastructure and construction, as well as in the marine segment. Order intake was 2% lower than invoicing during the quarter.
EBITA increased during the second quarter by 12% to SEK 66 million (59), corresponding to an EBITA margin of 12.1% (11.7%). Comparable units increased by 5% and currency movements had a positive impact of 7%.
The higher EBITA margin is mainly explained by improved gross margin in several companies.
Shareholders' equity amounted to SEK 13,831 million (11,005) and the equity ratio to 43% (44%). Cash and cash equivalents amounted to SEK 1,446 million (1,265). In addition to that, there were unutilised credit commitments of SEK 6,238 million (4,957). Interest-bearing net debt amounted to SEK 10,166 million (6,998) at the end of the quarter. The increase compared to previous year is primarily attributable to a high rate of acquisition and a somewhat lower operating cash flow during the last year. The net debt/equity ratio was 74% (64%) at the end of the period. Net debt in relation to EBITDA was 1.9x (1.6x).
Indutrade's financing is primarily managed by the Parent Company and it consists of loans from financial institutions, corporate bonds and commercial paper programmes.
At the end of the quarter, the Parent Company's shortterm borrowing amounted to SEK 526 million and long-term unutilised credit facilities amounted to SEK 5,500 million.
1) Pertains to the Parent Company, which is responsible for most of the Group's financing. Excluding leasing according to IFRS 16.
Cash flow from operating activities increased during the second quarter compared to the corresponding period previous year and amounted to SEK 1,112 million (622). The improvement was primarily due to a more favourable development of working capital. Working capital increased last year, but for the current year, the level has remained essentially unchanged. Inventories started to decrease somewhat for comparable units, primarily thanks to high invoicing and fewer disturbances in the supply chains. Working capital efficiency, measured as working capital in relation to net sales on a moving 12-month basis for comparable units, was, due to the still high inventory levels, lower than in the corresponding period previous year.
Cash flow from operating activities during the period January – June amounted to SEK 1,744 million (898).
The Group's net capital expenditures, excluding company acquisitions, totalled SEK 258 million (234).
Cash flow after net capital expenditures in intangible noncurrent assets and in property, plant and equipment (excluding company acquisitions) amounted to SEK 1,486 million (664).
Depreciation of property, plant and equipment totalled SEK 433 million (350). Investments in company acquisitions amounted to SEK 1,036 million (608). In addition, payments pertaining to previous years' acquisitions totalled SEK 165 million (107). Divestments amounted to SEK 0 million (0).
In cash flow from operating activities, depreciation of leased assets in the amount of SEK 240 million (194) was added back during the period January – June in accordance with IFRS 16. Lease amortisation is reported as cash flow from financing activities.
The number of employees was 9,283 at the end of the period, compared with 9,128 at the start of the year.
The Group acquired the following companies, which are consolidated for the first time in 2023.
| Month acquired | Acquisitions | Business area | Net sales/SEK m* | No. of employees* |
|---|---|---|---|---|
| January | Sax Lift A/S | Fluids & Mechanical Solutions | 130 | 34 |
| January | Hobe GmbH | DACH | 80 | 32 |
| January | Siersema Komponenten Service B.V | Benelux | 390 | 50 |
| April | Safematic A/S | Fluids & Mechanical Solutions | 55 | 7 |
| June | Labema Oy | Finland | 70 | 20 |
| June | I-tronik S.r.l. | DACH | 165 | 24 |
| Total | 890 | 167 |
*) Estimated annual sales and number of employees at the time of acquisition.
Further information about completed company acquisitions can be found on page 20 of this interim report.
No material events occurred after the end of the reporting period.
The main functions of Indutrade AB are to take responsibility for business development, talent development, sustainability, acquisitions, financing, business control, analysis and communication. The Parent Company's net sales, which consist entirely of internal invoicing of services, amounted to SEK 0 million (0) during the period January – June. The Parent Company's financial fixed assets consist mainly of shares in subsidiaries. During the period January – June, the Parent Company acquired shares in three companies. The Parent Company has not made any major investments in intangible assets or in property, plant and equipment. The number of employees as of 30 June was 20 (20).
The Indutrade Group conducts business in some 30 countries, on six continents, via more than 200 companies. This diversification, together with a large number of customers in various industries and a large number of suppliers, mitigates the business and financial risks. Besides the risks and uncertainties described in the Indutrade Annual Report for 2022, Indutrade has assessed that no additional significant risks or uncertainties have arisen or dissipated.
Since the Parent Company is responsible for the Group's financing, it is exposed to financing risk. The Parent Company's other activities are not exposed to risks other than indirectly via subsidiaries. For a more detailed account of risks that affect the Group and Parent Company, please see the 2022 Annual Report.
No transactions took place during the period between Indutrade and related parties that have significantly affected the Company's financial position or result of operations.
Indutrade reports in accordance with International Financial Reporting Standards (IFRS). This interim report has been prepared in accordance with IAS 34 and RFR 1. The Parent Company applies RFR 2. The same accounting principles and calculation methods have been used for the Group and Parent Company in this report as those in the most recent annual report. There are no new IFRSs or IFRIC pronouncements endorsed by the EU that are applicable for Indutrade or that have a significant impact on the Group's result of operations and position in 2023.
The Board of Directors and President/CEO certify that the half-year interim report gives a true and fair view of the Company's and Group's operations, position and result of operations, and describes material risks and uncertainties facing the Company and companies included in the Group.
Stockholm, 20 July 2023 Indutrade AB (publ)
Katarina Martinson Chairman
Susanna Campbell Director
Anders Jernhall Director
Ulf Lundahl Director
Krister Mellvé Director
Lars Pettersson Director
Kerstin Lindell Director
Bo Annvik Director, President and CEO
This report has not been reviewed by the company's auditors.
The information in this report is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication by the agency of the following contact persons on 20 July 2023 at 9.30 CEST.
For further information, please contact: Bo Annvik, President and CEO, tel. +46 8 703 03 00, Patrik Johnson, CFO, tel. +46 70 397 50 30.
A webcast of the report will be presented on 20 July at 11.00 CEST via the following link: https://ir.financialhearings.com/indutrade-q2-2023/register
To participate in the conference call and ask questions, please register yourself via the link below. Once you have registered, you will be given the telephone number and a conference ID to login to the conference call. https://conference.financialhearings.com/teleconference/?i d=2001158
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos | Jan-Dec |
| Net sales | 8,100 | 6,683 | 16,163 | 13,081 | 30,098 | 27,016 |
| Cost of goods sold | -5,301 | -4,350 | -10,572 | -8,536 | -19,690 | -17,654 |
| Gross profit | 2,799 | 2,333 | 5,591 | 4,545 | 10,408 | 9,362 |
| Development costs | -98 | -83 | -193 | -159 | -368 | -334 |
| Selling costs | -1,209 | -994 | -2,343 | -1,931 | -4,387 | -3,975 |
| Administrative expenses | -491 | -380 | -974 | -757 | -1,777 | -1,560 |
| Other operating income and expenses | 60 | 32 | 59 | 59 | 127 | 127 |
| Operating profit | 1,061 | 908 | 2,140 | 1,757 | 4,003 | 3,620 |
| Net financial items | -122 | -37 | -220 | -72 | -328 | -180 |
| Profit before taxes | 939 | 871 | 1,920 | 1,685 | 3,675 | 3,440 |
| Income Tax | -215 | -196 | -444 | -372 | -831 | -759 |
| Net profit for the period | 724 | 675 | 1,476 | 1,313 | 2,844 | 2,681 |
| Net profit, attributable to: | ||||||
| Equity holders of the parent company | 724 | 675 | 1,475 | 1,312 | 2,845 | 2,682 |
| Non-controlling interests | 0 | 0 | 1 | 1 | -1 | -1 |
| 724 | 675 | 1,476 | 1,313 | 2,844 | 2,681 | |
| EBITA | 1,213 | 1,023 | 2,438 | 1,982 | 4,554 | 4,098 |
| Operating profit includes: | ||||||
| Amortisation of intangible assets 1) | -164 | -126 | -322 | -247 | -599 | -524 |
| of which attributable to acquisitions | -152 | -115 | -298 | -225 | -551 | -478 |
| Depreciation of property, plant and equipment | -223 | -176 | -433 | -350 | -817 | -734 |
| Earnings per share before dilution, SEK | 1.99 | 1.85 | 4.05 | 3.60 | 7.81 | 7.36 |
| Earnings per share after dilution, SEK | 1.99 | 1.85 | 4.05 | 3.60 | 7.81 | 7.36 |
| 1) Excluding impairment losses |
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos | Jan-Dec |
| Net profit for the period | 724 | 675 | 1,476 | 1,313 | 2,844 | 2,681 |
| Other comprehensive income | ||||||
| Items that can be reversed into income statement | ||||||
| Fair value adjustment of hedge instruments | 12 | 9 | 15 | 9 | 10 | 4 |
| Tax attributable to fair value adjustments | -2 | -2 | -3 | -2 | -2 | -1 |
| Exchange rate differences | 484 | 147 | 548 | 238 | 826 | 516 |
| Items that cannot be reversed into income statement | ||||||
| Actuarial gains/losses | - | - | - | - | 137 | 137 |
| Tax on actuarial gains/losses | - | - | - | - | -29 | -29 |
| Other comprehensive income for the period, net of tax | 494 | 154 | 560 | 245 | 942 | 627 |
| Total comprehensive income for the period | 1,218 | 829 | 2,036 | 1,558 | 3,786 | 3,308 |
| Total comprehensive income, attributable to: | ||||||
| Equity holders of the parent company | 1,218 | 829 | 2,035 | 1,557 | 3,787 | 3,309 |
| Non-controlling interests | 0 | 0 | 1 | 1 | -1 | -1 |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK million | 30-Jun | 30-Jun | 31-Dec |
| Goodwill | 8,790 | 6,018 | 7,649 |
| Other intangible assets | 4,836 | 3,613 | 4,408 |
| Property, plant and equipment | 4,436 | 3,620 | 4,045 |
| Financial assets | 174 | 215 | 160 |
| Inventories | 5,986 | 4,835 | 5,605 |
| Trade receivables | 5,341 | 4,274 | 4,452 |
| Other receivables | 1,386 | 1,028 | 954 |
| Cash and cash equivalents | 1,446 | 1,265 | 1,589 |
| Total assets | 32,395 | 24,868 | 28,862 |
| Equity | 13,831 | 11,005 | 12,773 |
| Non-current interest-bearing liabilities and pension liabilities | 9,956 | 6,286 | 7,903 |
| Other non-current liabilities and provisions | 1,435 | 1,035 | 1,300 |
| Current interest-bearing liabilities | 1,656 | 1,977 | 2,266 |
| Trade payables | 2,189 | 1,954 | 1,870 |
| Other current liabilities | 3,328 | 2,611 | 2,750 |
| Total equity and liabilities | 32,395 | 24,868 | 28,862 |
| Attributable to equity holders of the parent company SEK million |
2023 30-Jun |
2022 30-Jun |
2022 31-Dec |
|---|---|---|---|
| Opening equity | 12,759 | 10,292 | 10,292 |
| Total comprehensive income for the period | 2,035 | 1,557 | 3,309 |
| New issues | - | 11 | 11 |
| Dividend 1) | -946 | -837 | -837 |
| Hedging of incentive programme | -51 | -44 | -44 |
| Share-based payments | 19 | 14 | 32 |
| Acquisition of non-controlling interests | - | - | -4 |
| Closing equity | 13,816 | 10,993 | 12,759 |
| 1) Dividend per share for 2022 (2021) was SEK 2.60 (2.30) | |||
| Equity, attributable to: | |||
| Equity holders of the parent company | 13,816 | 10,993 | 12,759 |
| Non-controlling interests | 15 | 12 | 14 |
| 13,831 | 11,005 | 12,773 |
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos |
Jan-Dec |
| Operating profit | 1,061 | 908 | 2,140 | 1,757 | 4,003 | 3,620 |
| Non-cash items | 358 | 316 | 741 | 606 | 1,355 | 1,220 |
| Interests and other financial items, net | -91 | -23 | -138 | -50 | -234 | -146 |
| Paid tax | -204 | -168 | -529 | -410 | -883 | -764 |
| Change in working capital | -12 | -411 | -470 | -1,005 | -1,023 | -1,558 |
| Cash flow from operating activities | 1,112 | 622 | 1,744 | 898 | 3,218 | 2,372 |
| Net capital expenditures in non-current assets | -118 | -104 | -258 | -234 | -522 | -498 |
| Company acquisitions and divestments | -319 | -557 | -1,201 | -715 | -3,312 | -2,826 |
| Change in other financial assets | 5 | 0 | -6 | 6 | -5 | 7 |
| Cash flow from investing activities | -432 | -661 | -1,465 | -943 | -3,839 | -3,317 |
| Debt/repayment of debt, net | -433 | 911 | 472 | 631 | 1,658 | 1,817 |
| Dividend paid out | -946 | -837 | -946 | -837 | -946 | -837 |
| New issues | - | 11 | - | 11 | - | 11 |
| Cash flow from financing activities | -1,379 | 85 | -474 | -195 | 712 | 991 |
| Cash flow for the period | -699 | 46 | -195 | -240 | 91 | 46 |
| Cash and cash equivalents at start of period | 2,102 | 1,189 | 1,589 | 1,460 | 1,265 | 1,460 |
| Exchange rate differences | 43 | 30 | 52 | 45 | 90 | 83 |
| Cash and cash equivalents at end of period | 1,446 | 1,265 | 1,446 | 1,265 | 1,446 | 1,589 |
| 2023 | 2022 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|
| Moving 12 mos | 30-Jun | 31-Dec | 30-Jun | 31-Dec | 31-Dec |
| Net sales, SEK million | 30,098 | 27,016 | 24,097 | 21,715 | 19,217 |
| Sales growth, % | 25 | 24 | 19 | 13 | 4 |
| EBITA, SEK million | 4,554 | 4,098 | 3,628 | 3,202 | 2,615 |
| EBITA margin, % | 15.1 | 15.2 | 15.1 | 14.7 | 13.6 |
| Capital employed at end of period, SEK million | 23,997 | 21,353 | 18,003 | 15,792 | 13,512 |
| Capital employed, average, SEK million | 21,059 | 18,111 | 15,878 | 14,516 | 13,541 |
| Return on capital employed, % 1) | 22 | 23 | 23 | 22 | 19 |
| Equity, average, SEK million | 12,493 | 11,272 | 10,172 | 9,297 | 7,899 |
| Return on equity, % 1) | 23 | 24 | 23 | 23 | 21 |
| Interest-bearing net debt at end of period, SEK million | 10,166 | 8,580 | 6,998 | 5,489 | 4,878 |
| Net debt/equity ratio, % | 74 | 67 | 64 | 53 | 56 |
| Net debt/EBITDA, times | 1.9 | 1.8 | 1.6 | 1.4 | 1.5 |
| Equity ratio, % | 43 | 44 | 44 | 47 | 48 |
| Average number of employees | 8,946 | 8,483 | 8,109 | 7,715 | 7,349 |
| Number of employees at end of period | 9,283 | 9,128 | 8,397 | 8,185 | 7,270 |
| Attributable to equity holders of the parent company Key ratios per share |
|||||
| Earnings per share before dilution, SEK | 7.81 | 7.36 | 6.55 | 5.76 | 4.60 |
| Earnings per share after dilution, SEK | 7.81 | 7.36 | 6.54 | 5.75 | 4.59 |
| Equity per share, SEK | 37.92 | 35.02 | 30.17 | 28.26 | 23.72 |
| Cash flow from operating activities per share, SEK | 8.83 | 6.51 | 6.78 | 7.84 | 7.66 |
| Average number of shares before dilution, '000 | 364,323 | 364,270 | 364,166 | 363,921 | 362,721 |
| Average number of shares after dilution, '000 | 364,323 | 364,303 | 364,270 | 364,180 | 363,320 |
| Number of shares at the end of the period, '000 | 364,323 | 364,323 | 364,323 | 364,188 | 363,615 |
1) Calculated on average capital and equity.
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
|---|---|---|---|---|---|---|
| Net sales, SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos | Jan-Dec |
| Benelux | 1,362 | 970 | 2,767 | 1,919 | 4,932 | 4,084 |
| DACH | 684 | 521 | 1,310 | 1,025 | 2,396 | 2,111 |
| Finland | 569 | 545 | 1,119 | 1,050 | 2,289 | 2,220 |
| Flow Technology | 1,557 | 1,385 | 3,164 | 2,650 | 5,921 | 5,407 |
| Fluids & Mechanical Solutions | 980 | 753 | 1,922 | 1,475 | 3,417 | 2,970 |
| Industrial Components | 1,552 | 1,342 | 3,061 | 2,612 | 5,845 | 5,396 |
| Measurement & Sensor Technology | 871 | 692 | 1,782 | 1,379 | 3,352 | 2,949 |
| UK | 546 | 504 | 1,087 | 1,024 | 2,057 | 1,994 |
| Parent company and Group items | -21 | -29 | -49 | -53 | -111 | -115 |
| Total | 8,100 | 6,683 | 16,163 | 13,081 | 30,098 | 27,016 |
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
| EBITA, SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos | Jan-Dec |
| Benelux | 197 | 155 | 426 | 293 | 732 | 599 |
| DACH | 107 | 78 | 198 | 148 | 366 | 316 |
| Finland | 72 | 96 | 144 | 169 | 345 | 370 |
| Flow Technology | 268 | 236 | 552 | 436 | 998 | 882 |
| Fluids & Mechanical Solutions | 154 | 116 | 298 | 229 | 522 | 453 |
| Industrial Components | 241 | 218 | 484 | 436 | 915 | 867 |
| Measurement & Sensor Technology | 124 | 128 | 281 | 259 | 557 | 535 |
| UK | 66 | 59 | 131 | 127 | 235 | 231 |
| Parent company and Group items | -16 | -63 | -76 | -115 | -116 | -155 |
| Total | 1,213 | 1,023 | 2,438 | 1,982 | 4,554 | 4,098 |
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
| EBITA margin, % | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos | Jan-Dec |
| Benelux | 14.5 | 16.0 | 15.4 | 15.3 | 14.8 | 14.7 |
| DACH | 15.6 | 15.0 | 15.1 | 14.4 | 15.3 | 15.0 |
| Finland | 12.7 | 17.6 | 12.9 | 16.1 | 15.1 | 16.7 |
| Flow Technology | 17.2 | 17.0 | 17.4 | 16.5 | 16.9 | 16.3 |
| Fluids & Mechanical Solutions | 15.7 | 15.4 | 15.5 | 15.5 | 15.3 | 15.3 |
| Industrial Components | 15.5 | 16.2 | 15.8 | 16.7 | 15.7 | 16.1 |
| Measurement & Sensor Technology | 14.2 | 18.5 | 15.8 | 18.8 | 16.6 | 18.1 |
| UK | 12.1 | 11.7 | 12.1 | 12.4 | 11.4 | 11.6 |
| 15.0 | 15.3 | 15.1 | 15.2 | 15.1 | 15.2 |
| 2023 | 2022 | |||||
|---|---|---|---|---|---|---|
| Net sales, SEK million | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Benelux | 1,362 | 1,405 | 1,153 | 1,012 | 970 | 949 |
| DACH | 684 | 626 | 534 | 552 | 521 | 504 |
| Finland | 569 | 550 | 605 | 565 | 545 | 505 |
| Flow Technology | 1,557 | 1,607 | 1,370 | 1,387 | 1,385 | 1,265 |
| Fluids & Mechanical Solutions | 980 | 942 | 781 | 714 | 753 | 722 |
| Industrial Components | 1,552 | 1,509 | 1,514 | 1,270 | 1,342 | 1,270 |
| Measurement & Sensor Technology | 871 | 911 | 821 | 749 | 692 | 687 |
| UK | 546 | 541 | 480 | 490 | 504 | 520 |
| Parent company and Group items | -21 | -28 | -30 | -32 | -29 | -24 |
| Total | 8,100 | 8,063 | 7,228 | 6,707 | 6,683 | 6,398 |
| 2022 | |||
|---|---|---|---|
| Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| 1,153 | 1,012 | 970 | 949 |
| 534 | 552 | 521 | 504 |
| 605 | 565 | 545 | 505 |
| 1,370 | 1,387 | 1,385 | 1,265 |
| 781 | 714 | 753 | 722 |
| 1,514 | 1,270 | 1,342 | 1,270 |
| 821 | 749 | 692 | 687 |
| 480 | 490 | 504 | 520 |
| -30 | -32 | $-29$ | -24 |
| 7,228 | 6,707 | 6,683 | 6,398 |
| Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
|---|---|---|---|---|---|---|
| 197 | 229 | 167 | 139 | 155 | 138 | |
| 107 | 91 | 80 | 88 | 78 | 70 | |
| 73 | ||||||
| 200 | ||||||
| 113 | ||||||
| 218 | ||||||
| 131 | ||||||
| 68 | ||||||
| -52 | ||||||
| 959 | ||||||
| 2023 72 268 154 241 124 66 -16 1,213 |
72 284 144 243 157 65 -60 1,225 |
96 222 116 227 142 51 -20 1,081 |
2022 105 224 108 204 134 53 -20 1,035 |
96 236 116 218 128 59 -63 1,023 |
| 2023 | 2022 | ||
|---|---|---|---|
| 2023 | 2022 | |||||
|---|---|---|---|---|---|---|
| EBITA margin, % | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Benelux | 14.5 | 16.3 | 14.5 | 13.7 | 16.0 | 14.5 |
| DACH | 15.6 | 14.5 | 15.0 | 15.9 | 15.0 | 13.9 |
| Finland | 12.7 | 13.1 | 15.9 | 18.6 | 17.6 | 14.5 |
| Flow Technology | 17.2 | 17.7 | 16.2 | 16.1 | 17.0 | 15.8 |
| Fluids & Mechanical Solutions | 15.7 | 15.3 | 14.9 | 15.1 | 15.4 | 15.7 |
| Industrial Components | 15.5 | 16.1 | 15.0 | 16.1 | 16.2 | 17.2 |
| Measurement & Sensor Technology | 14.2 | 17.2 | 17.3 | 17.9 | 18.5 | 19.1 |
| UK | 12.1 | 12.0 | 10.6 | 10.8 | 11.7 | 13.1 |
| 15.0 | 15.2 | 15.0 | 15.4 | 15.3 | 15.0 |
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| 15.0 | 15.2 | 15.0 | 15.4 | 15.3 | 15.0 |
| 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Apr-Jun, SEK million | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 63 | 5 | 502 | 876 | 692 | 1,352 | 164 | 24 | -8 | 3,670 |
| Other Europe | 1,149 | 653 | 42 | 569 | 250 | 179 | 317 | 463 | -7 | 3,615 |
| Americas | 67 | 16 | 1 | 6 | 28 | 13 | 234 | 29 | -3 | 391 |
| Asia | 71 | 8 | 17 | 86 | 11 | 7 | 130 | 25 | -2 | 353 |
| Other | 12 | 2 | 7 | 20 | -1 | 1 | 26 | 5 | -1 | 71 |
| 1,362 | 684 | 569 | 1,557 | 980 | 1,552 | 871 | 546 | -21 | 8,100 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Over time | 17 | 71 | 0 | 0 | 94 | 4 | 85 | 0 | -1 | 270 |
| Point in time | 1,345 | 613 | 569 | 1,557 | 886 | 1,548 | 786 | 546 | -20 | 7,830 |
| 1,362 | 684 | 569 | 1,557 | 980 | 1,552 | 871 | 546 | -21 | 8,100 | |
| 2022 | ||||||||||
| Apr-Jun, SEK million | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 34 | 4 | 491 | 759 | 567 | 1,191 | 148 | 27 | -13 | 3,208 |
| Other Europe | 805 | 499 | 39 | 480 | 153 | 130 | 217 | 415 | -8 | 2,730 |
| Americas | 49 | 14 | 5 | 6 | 23 | 15 | 199 | 30 | -4 | 337 |
| Asia | 71 | 4 | 8 | 130 | 8 | 4 | 114 | 28 | -4 | 363 |
| Other | 11 | 0 | 2 | 10 | 2 | 2 | 14 | 4 | 0 | 45 |
| 970 | 521 | 545 | 1,385 | 753 | 1,342 | 692 | 504 | -29 | 6,683 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Over time | 11 | 62 | 0 | 0 | 54 | 1 | 63 | 0 | -2 | 189 |
| Point in time | 959 | 459 | 545 | 1,385 | 699 | 1,341 | 629 | 504 | -27 | 6,494 |
1) Parent company & Group items
FT - Flow Technology FMS - Fluids & Mechanical Solutions
IC - Industrial Components MST - Measurement & Sensor Technology
| 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Jan-Jun, SEK million | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 94 | 9 | 980 | 1,734 | 1,369 | 2,681 | 332 | 49 | -18 | 7,230 |
| Other Europe | 2,342 | 1,251 | 92 | 1,202 | 479 | 331 | 655 | 924 | -18 | 7,258 |
| Americas | 160 | 30 | 13 | 16 | 52 | 31 | 490 | 57 | -6 | 843 |
| Asia | 138 | 17 | 26 | 168 | 19 | 15 | 257 | 49 | -5 | 684 |
| Other | 33 | 3 | 8 | 44 | 3 | 3 | 48 | 8 | -2 | 148 |
| 2,767 | 1,310 | 1,119 | 3,164 | 1,922 | 3,061 | 1,782 | 1,087 | -49 | 16,163 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Over time | 33 | 151 | 0 | 0 | 166 | 7 | 156 | 0 | -1 | 512 |
| Point in time | 2,734 | 1,159 | 1,119 | 3,164 | 1,756 | 3,054 | 1,626 | 1,087 | -48 | 15,651 |
| 2,767 | 1,310 | 1,119 | 3,164 | 1,922 | 3,061 | 1,782 | 1,087 | -49 | 16,163 | |
| 2022 | ||||||||||
| Jan-Jun, SEK million | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 50 | 9 | 903 | 1,433 | 1,112 | 2,301 | 281 | 59 | -23 | 6,125 |
| Other Europe | 1,619 | 977 | 80 | 919 | 296 | 272 | 466 | 844 | -17 | 5,456 |
| Americas | 104 | 26 | 12 | 11 | 47 | 29 | 404 | 56 | -7 | 682 |
| Asia | 117 | 12 | 20 | 268 | 16 | 8 | 192 | 55 | -5 | 683 |
| Other | 29 | 1 | 35 | 19 | 4 | 2 | 36 | 10 | -1 | 135 |
| 1,919 | 1,025 | 1,050 | 2,650 | 1,475 | 2,612 | 1,379 | 1,024 | -53 | 13,081 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FMS | IC | MST | UK | Elim.1) | Total |
| Over time | 23 | 138 | 0 | 0 | 102 | 4 | 123 | 0 | -2 | 388 |
| Point in time | 1,896 | 887 | 1,050 | 2,650 | 1,373 | 2,608 | 1,256 | 1,024 | -51 | 12,693 |
1) Parent company & Group items
FT - Flow Technology FMS - Fluids & Mechanical Solutions
IC - Industrial Components MST - Measurement & Sensor Technology
All of the shares were acquired in Sax Lift A/S (Denmark), Hobe GmbH (Germany), Siersema Komponenten Service B.V. (Netherlands), Safematic A/S (Denmark), Labema Oy (Finland) and I-tronik S.r.l. (Italy).
On 19 January, Siersema Komponenten Service B.V. (Netherlands) was acquired, with annual sales of SEK 390 million. SKS is a specialised technical trading company offering flow technology components to the food and pharmaceutical industries.
On 10 January, Hobe GmbH (Germany) was acquired, with annual sales of SEK 80 million. Hobe manufactures micro precision tools for the shaping of interior profiles in very small bores.
On 22 June, I-tronik S.r.l. (Italy) was acquired, with annual sales of SEK 165 million. I-tronik is specialised in machinery, consumables, spare parts, and services for assembly and manufacturing of Printed Circuit Boards (PCBs).
On 14 June, Labema Oy (Finland), was acquired, with annual sales of SEK 70 million. Labema is a technical trading company operating within the life science and biotechnology field, offering diagnostic equipment and supplies primarily to public healthcare, the food industry and research laboratories.
On 3 January, Sax Lift A/S (Denmark) was acquired, with annual sales of SEK 130 million. Sax Lift manufactures standard and custom-made scissor lift tables.
On 13 April, Safematic A/S (Denmark) was acquired, with annual sales of SEK 55 million. Safematic specialises in process and ventilation filtration, offering filter solutions to the food, energy and pharmaceutical industries, among others.
Preliminary purchase price allocations
| Purchase price, incl. contingent earn-out payment | |
|---|---|
| totalling SEK 120 million | 1,253 |
| Acquired assets and liabilities | Book value |
Fair value adjustment |
Fair value |
|---|---|---|---|
| Goodwill | 47 | 696 | 743 |
| Agencies, trademarks, customer | |||
| relations, licenses, etc. | 30 | 482 | 512 |
| Property, plant and equipment | 47 | 47 | |
| Financial assets | 2 | 2 | |
| Inventories | 163 | 163 | |
| Other current assets 1) | 114 | 114 | |
| Cash and cash equivalents | 97 | 97 | |
| Deferred tax liability | -1 | -114 | -115 |
| Other operating liabilities | -310 | -310 | |
| 189 | 1,064 | 1,253 |
1) Mainly trade receivables
Agencies, customer relationships, licences, etc. will be amortised over a period of 5–20 years, while trademarks are assumed to have indefinite useful life. Trademarks are included at a value of SEK 27 million (0).
Indutrade typically uses an acquisition structure entailing a base level of consideration plus a contingent earn-out payment. Initially, the contingent earn-out payment is valued at the present value of the likely outcome, which for the acquisitions made during the year amounts to SEK 120 (207) million. The contingent earn-out payments fall due for payment within three years and can amount to a maximum of SEK 156 million (215). If the conditions are not met, the outcome can be in the range of SEK 0-156 million.
Transaction costs during the first half of the year totalled SEK 8 million (5) and are included in Other income and expenses in the income statement. Contingent earn-out payments were restated in the amount of SEK 71 million (22). The effect is reported under Other income and expenses in the amount of SEK 68 million (21) and under Net financial items in the amount of SEK 3 million (1).
The acquisition calculations for Stabalux GmbH, PMH International AB, acti-Chem A/S, Prodia AB and Oscar Medtec AB, which were acquired during the second quarter 2022, have now been finalised. No significant adjustments have been made to the calculations. For other acquisitions, the acquisition calculations are preliminary. Indutrade regards the calculations as preliminary during the time that uncertainty exists with respect to, for example, the outcome of guarantees in the acquisition agreements concerning inventories and trade receivables.
| Purchase price, incl. contingent earn-out payments | 1,253 |
|---|---|
| Purchase price not paid out | -120 |
| Cash and cash equivalents in acquired companies | -97 |
| Payments pertaining to previous years´acquisitions | 165 |
| Total cash flow impact | 1,201 |
| SEK million | Net sales | EBITA | |||
|---|---|---|---|---|---|
| Business area | Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Benelux | 160 | 305 | 26 | 51 | |
| DACH | 76 | 118 | 14 | 25 | |
| Finland | 5 | 5 | -3 | -3 | |
| Flow Technology | 8 | 21 | 1 | 4 | |
| Fluids & Mechanical Solutions | 158 | 310 | 20 | 37 | |
| Industrial Components | 56 | 169 | 8 | 29 | |
| Measurement & Sensor | |||||
| Technology | 74 | 170 | 5 | 19 | |
| UK | - | 8 | - | 2 | |
| Effect on Group | 537 | 1,106 | 71 | 164 | |
| Acquisitions carried out in 2022 | 353 | 804 | 42 | 112 | |
| Acquisitions carried out in 2023 | 184 | 302 | 29 | 52 | |
| Effect on Group | 537 | 1,106 | 71 | 164 |
If all of the acquired units had been consolidated as of 1 January 2023, net sales would have amounted to SEK 16,313 million and EBITA to SEK 2,456 million.
No acquisitions were completed after the end of the reporting period.
issues 364,323,000
The 2021, 2022 and 2023 AGMs resolved on new incentive programmes. LTIP 2021 covers around 235 employees and is aimed at senior executives and other key employees. It requires own investment and it consists of performance shares. The scope of the programme is, at most, 650,000 shares in Indutrade, which corresponds to approximately 0.18% of all shares and votes.
LTIP 2022 covers around 265 employees and is aimed at senior executives and other key employees. LTIP 2022 requires own investment and it consists of performance shares. The scope of the programme is, at most, 425,000 shares in Indutrade, which corresponds to approximately 0.12% of all shares and votes.
LTIP 2023 covers around 285 employees and is aimed at senior executives and other key employees. LTIP 2023 requires own investment and it consists of performance shares. The scope of the programme is, at most, 435,000 shares in Indutrade, which corresponds to approximately 0.12% of all shares and votes.
For all of the programmes, the participant shall receive performance shares provided that the employment is not terminated, the investment shares have been retained and the performance targets have been fulfilled. Performance targets are based on the development of earnings per share during the performance period.
During the interim period, SEK 19 million (14) (excluding social security contributions) were expensed as a result of the programme.
| Outstanding programme |
Number of investment shares |
Corresponding maximum number of performance shares |
Proportion of total shares |
Vesting period |
|---|---|---|---|---|
| LTIP 2021 | 116,735 | 373,234 | 0.1% | Programme launch June 2021 – interim report publication first quarter 2024 |
| LTIP 2022 | 57,500 | 186,915 | 0.1% | Programme launch May 2022 – interim report publication first quarter 2025 |
| LTIP 2023 | 60,745 | 194,513 | 0.1% | Programme launch May 2023 – interim report publication first quarter 2026 |
| Interest rate swaps and currency forward contracts in |
Holdings of shares and participation in unlisted |
Contingent earn-out |
Financial liabilities measured at amortised |
Total carrying |
Fair | ||
|---|---|---|---|---|---|---|---|
| 30 Jun 2023, SEK million | hedge accounting | Amortised cost | companies | payments | cost | amount | value |
| Valuation classification | Level 2 | Level 3 | Level 3 | ||||
| Other shares and participations |
- | - | 13 | - | - | 13 | 13 |
| Trade receivables | - | 5,341 | - | - | - | 5,341 | 5,341 |
| Other receivables | 18 | 28 | - | - | - | 46 | 46 |
| Cash and cash equivalents | - | 1,446 | - | - | - | 1,446 | 1,446 |
| Total | 18 | 6,815 | 13 | - | - | 6,846 | 6,846 |
| Non-current interest bearing liabilities |
- | - | - | 637 | 9,064 | 9,701 | 9,688 |
| Current interest-bearing | |||||||
| liabilities | - | - | - | 550 | 1,106 | 1,656 | 1,659 |
| Trade payables | - | - | - | - | 2,189 | 2,189 | 2,189 |
| Other liabilities | 1 | - | - | - | - | 1 | 1 |
| Total | 1 | - | - | 1,187 | 12,359 | 13,547 | 13,537 |
| 31 Dec 2022, SEK million | Interest rate swaps and currency forward contracts in hedge accounting |
Amortised cost | Holdings of shares and participation in unlisted companies |
Contingent earn-out payments |
Financial liabilities measured at amortised cost |
Total carrying amount |
Fair value |
|---|---|---|---|---|---|---|---|
| Valuation classification | Level 2 | Level 3 | Level 3 | ||||
| Other shares and participations |
- | - | 13 | - | - | 13 | 13 |
| Trade receivables | - | 4,452 | - | - | - | 4,452 | 4,452 |
| Other receivables | 5 | 24 | - | - | - | 29 | 29 |
| Cash and cash equivalents | - | 1,589 | - | - | - | 1,589 | 1,589 |
| Total | 5 | 6,065 | 13 | - | - | 6,083 | 6,083 |
| Non-current interest bearing liabilities |
- | - | - | 979 | 6,681 | 7,660 | 7,626 |
| Current interest-bearing liabilities |
- | - | - | 241 | 2,025 | 2,266 | 2,266 |
| Trade payables | - | - | - | - | 1,870 | 1,870 | 1,870 |
| Other liabilities | 2 | - | - | - | - | 2 | 2 |
| Total | 2 | - | - | 1,220 | 10,576 | 11,798 | 11,764 |
Financial instruments are measured at fair value, based on the classification of the fair value hierarchy: other observable data for assets and liabilities than quoted prices [level 2], non-observable market data [level 3].
No transfers were made between levels 2 and 3 during the period. Contingent earn-out payments have been discounted to present value using an interest rate that is judged to be in line with the market rate at the time of acquisition. Adjustments are not made on a regular basis for changes in the market interest rate, since the effects of these are judged to be negligible.
| Contingent earn-out payments | 2023 | 2022 |
|---|---|---|
| SEK million | 30-Jun | 31-Dec |
| Opening book value | 1,220 | 861 |
| Acquisitions during the year | 120 | 659 |
| Consideration paid | -161 | -235 |
| Reclassified via income statement | -69 | -139 |
| Interest expenses | 13 | 14 |
| Exchange rate differences | 64 | 60 |
| Closing book value | 1,187 | 1,220 |
| 2023 | 2022 | 2023 | 2022 | 2022/23 | 2022 | |
|---|---|---|---|---|---|---|
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Moving 12 mos |
Jan-Dec |
| Net sales | 0 | 0 | 0 | 0 | 11 | 11 |
| Gross profit | 0 | 0 | 0 | 0 | 11 | 11 |
| Administrative expenses | -48 | -36 | -86 | -71 | -161 | -146 |
| Operating profit | -48 | -36 | -86 | -71 | -150 | -135 |
| Financial income/expenses | 30 | 20 | 44 | 43 | 92 | 91 |
| Profit from participation in Group companies | 1,444 | 1,888 | 1,445 | 1,888 | 1,484 | 1,927 |
| Profit after financial items | 1,426 | 1,872 | 1,403 | 1,860 | 1,426 | 1,883 |
| Appropriations | - | - | - | - | 850 | 850 |
| Income Tax | 2 | 3 | 7 | 5 | -166 | -168 |
| Net profit for the period | 1,428 | 1,875 | 1,410 | 1,865 | 2,110 | 2,565 |
| Amortisation/depreciation of intangible assets and property, plant and equipment |
0 | 0 | 0 | 0 | -1 | -1 |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK million | 30-Jun | 30-Jun | 31-Dec |
| Intangible assets | 1 | 0 | 1 |
| Property, plant and equipment | 2 | 1 | 2 |
| Financial assets | 11,497 | 7,794 | 9,785 |
| Current receivables | 10,090 | 9,059 | 10,939 |
| Cash and cash equivalents | 462 | 500 | 592 |
| Total assets | 22,052 | 17,354 | 21,319 |
| Equity | 10,371 | 9,254 | 9,956 |
| Untaxed reserves | 867 | 755 | 867 |
| Non-current interest-bearing liabilities and pension liabilities | 8,386 | 4,759 | 6,386 |
| Other non-current liabilities and provisions | 4 | 0 | 4 |
| Current interest-bearing liabilities | 2,208 | 2,449 | 3,710 |
| Current non-interest-bearing liabilities | 216 | 137 | 396 |
| Total equity and liabilities | 22,052 | 17,354 | 21,319 |
In this interim report Indutrade presents Alternative Performance Measures (APMs) that complement the key financial ratios defined in IFRS. The company believes that these APMs provide valuable information to stakeholders, as they contribute to assessment of the company's performance, trends, ability to repay debt and invest in new business opportunities, and they reflect the Group's acquisition-intensive business model.
Since not all companies calculate their financial key ratios in the same way, they are not always comparable. They should therefore not be regarded as a substitute for the key ratios defined in IFRS. Following are definitions of Indutrade's key ratios, of which most are APMs.
Shareholders' equity plus interest-bearing net debt.
Net profit for the period attributable to owners of the parent divided by the average number of shares outstanding. Definition according to IFRS.
Net profit for the period attributable to owners of the parent divided by the average number of shares outstanding after dilution.
Operating profit before amortisation of intangible noncurrent assets arising in connection with company acquisitions (Earnings Before Interest, Tax and Amortisation). EBITA is the principal measure of the Group's earnings.
EBITA divided by net sales.
Operating profit before depreciation and amortisation (Earnings Before Interest, Tax, Depreciation and Amortisation).
Shareholders' equity attributable to owners of the parent divided by the number of shares outstanding.
Shareholders' equity divided by total assets.
Gross profit divided by net sales.
Interest-bearing liabilities including pension liability and estimated earn-outs for acquisitions, less cash and cash equivalents.
Purchases less sales of intangible non-current assets and of property, plant and equipment, excluding those included in acquisitions and divestments of subsidiaries and operations.
Interest-bearing net debt divided by shareholders' equity.
Interest-bearing net debt at the end of the period divided by EBITDA on a moving 12-month basis.
Net profit for the period on a moving 12-month basis divided by average shareholders' equity per month.
EBITA calculated on a moving 12-month basis divided by average capital employed per month.
Indutrade is an international technology and industrial business group that today consists of more than 200 companies in some 30 countries, mainly in Europe. In a decentralised way, we work to provide sustainable profitable growth by developing and acquiring successful companies managed by passionate entrepreneurs. Our companies develop, manufacture, and sell components, systems and services with significant technical content in selected niches. Our value-based culture, where people make the difference, has been the foundation of our success since the start in 1978.
Customers can be found in a wide range of industries, including infrastructure, medical technology/pharmaceuticals, engineering, energy, water/wastewater and food.
The Group is structured into eight business areas: Benelux, DACH, Finland, Flow Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement & Sensor Technology and UK.
The Group's financial targets are that: Sales growth
• Average sales growth shall amount to a minimum of 10% per year over a business cycle. Growth is to be achieved organically as well as through acquisitions.
• The EBITA margin shall amount to a minimum of 14% per year over a business cycle.
Return on capital employed
• The return on capital employed shall be a minimum of 20% per year on average over a business cycle.
Net debt/equity ratio
• The net debt/equity ratio should normally not exceed 100%.
Dividend payout ratio
• The dividend payout ratio shall range from 30% to 50% of net profit.
This is an unofficial translation of the original Swedish text. In the event of any discrepancy between the English translation and the Swedish original, the Swedish version shall govern.
Reg.no. 556017-9367. Box 6044, SE-164 06 Kista. Visiting address: Raseborgsgatan 9. Tel: +46 8 703 03 00 www.indutrade.com
In June, Indutrade acquired the Italian technical trading company, I-tronik S.r.l., with annual sales of SEK 165 million. I-tronik is specialised in machinery, consumables, spare parts, and services for assembly and manufacturing of Printed Circuit Boards (PCBs). End customers are found in several different industries, operating in segments such as lighting, defence, pharmaceutical and aerospace.
The company has a long history of sustainable, profitable growth and it has good prospects for continued organic growth, thanks to such things as the green technology transition and electrification trend.
In June, the Finnish company, Labema Oy was acquired, with annual sales of SEK 70 million. Labema is a technical trading company operating within the life science and biotechnology field, offering diagnostic equipment and supplies primarily to public healthcare, the food industry and research laboratories.
Bo Annvik, President and CEO of Indutrade comments: "Labema has a strong entrepreneurial spirit and expertise in developing deep, long lasting relationships with its customers and suppliers. It is also the first medical technology company we acquire in Finland and we are glad to welcome them to the Indutrade family".
The 2023 winners of the Indutrade Sustainability Awards were presented during the quarter. The purpose of the awards is to recognise all of the work that our companies are doing in the area of sustainability, spreading good examples and inspiring others for further sustainable development. The companies were able to nominate themselves and each other in three categories: Employees, Environment and Products & customers.
Employees: Verplas Limited Environment: GPA Flowsystem AS Products & customers VES Ltd
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