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Fagerhult

Quarterly Report Jul 20, 2023

3045_ir_2023-07-20_838cf309-8d6a-4fd8-a163-5cf65ee65c42.pdf

Quarterly Report

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Interim Report Q2 January – June 2023

[email protected] www.fagerhultgroup.com

2,107

Order intake, MSEK

Order intake was MSEK 2,107 (2,183), a decrease of -3.5% adjusted to -8.6% for currency effects of MSEK +121 and business closures of MSEK -9

2,147

Net sales, MSEK

Net sales were MSEK 2,147 (2,045), an increase of +5.0% adjusted to +0.4% for currency effects of MSEK +121 and business closures of MSEK -26

202

Operating profit, MSEK

Operating profit was MSEK 201.6 (186.5), an increase of +8.1% with an operating margin of 9.4 (9.1)%

119

Net profit, MSEK Earnings after tax were MSEK 119.4 (131.1)

0.68

Earnings per share, SEK Earnings per share were SEK 0.68 (0.74)

326

Operating cash flow, MSEK Cash flow from operating activities was MSEK 326.1 (20.3)

The second quarter

With an overall net sales increase of 5.0% from 2,045 MSEK to 2,147 MSEK and an 8.1% operating profit increase from 187 MSEK to 202 MSEK, the Group continues to deliver strong operating results.

The net sales growth combined with a healthy development of the gross profit margin increased the operating margin to 9.4 (9.1)%.

The previously communicated pricing improvements continue to positively impact the result and we continue to invest in our strategic focus areas of innovation, sustainability and people where we make steady progress.

Externally, we are cautious as some markets demonstrate a high activity level and some remain with uncertainties. By covering many markets and geographies the Group's business model spreads individual market risks.

The supply of modern lighting solutions, which provide highly sustainable energy savings is one of our core strengths and this is especially important with the EU ban on fluorescent lamps later in the year.

In isolation, the order intake of 2,107 (2,183) MSEK for the quarter was robust, despite an -8.6% organic decline. The R12M order intake is 8,2 BSEK. The order backlog has grown in the period to 1,942 MSEK and remains healthy.

During the first half of 2022 the supply chain challenges provided a stimulus for the early placement of orders. As lead times have now returned to normal and so too order placement cycles, the comparables should be viewed carefully.

Net sales at 2,147 (2,045) MSEK for the quarter delivers +0.4% organic growth.

The operating profit for the quarter of 201.6 (186.5) MSEK delivers an operating margin of 9.4 (9.1)%.

The strong operating cash flow for the quarter of 326.1 (20.3) MSEK results from good profitability levels and a working capital reduction. Further working capital reductions are anticipated in coming quarters, easing the interest expense.

CEO comment

The second quarter; resilient results

The Group's results continue to show strong resilience.

The mega-trends remain positive and for these, the Group's lighting brands develop value propositions and business models to promote lighting solutions that offer energy savings, carbon reduction and smart lighting.

The demand to reduce energy costs has never been so high and our solutions achieve this by up to 90%. During the quarter we significantly increase our success rate in winning refurbishment and retrofit projects, please refer to later pages. The ban on fluorescent lamps later in the year will increase this further.

As a result of external factors and the mix of private investment and public investment, new-build and refurbishment, the overall market activity remains mixed. Many of our brands perform well.

Our Q2 performance was resilient with annualised order intake and net sales both above 8 BSEK and positive gross and operating margin development compared to Q2 last year.

Rolling 12 month and quarterly order intake

Strategic focus areas; securing the long-term

People and culture

In recent months we have secured several key appointments in senior positions.

The addition of these skills and competences will help to further continue the growth and delivery of the short term results and long term strategy.

Bodil Sonesson, CEO and President

Innovation

Innovation is not just about great luminaires, and so we continue to increase the funding and investment for our smart and sustainable lighting solutions.

At Organic Response we have embedded an AI Chatbot in our OR Customer Support Portal. The AI can answer 95% of the basic enquiries in more than 100 languages.

During the second quarter, WE-EF launched the new "AFL100" range of street and outdoor area lighting. This global range focusses on sustainability and night/nature sensitive lighting. "AFL100" offers increased connectivity, superior energy performance and outstanding optical control.

Sustainability

With additional resources and focus, our sustainability strategy continues to make strong progress. We have submitted our long term targets to the Science Based Targets initiative and these are currently being validated and we expect feedback during the summer. But we do not wait, in our operations we make significant investments for reducing our scope 1 and 2 carbon footprint.

Outlook; strengthening and well positioned

Looking internally, the Group's financial performance remains robust. We have improving margins and a healthy order backlog. The strategic focus is clear and we make steady progress on our activities.

Externally, our supply of sustainable solutions for the rapidly growing opportunity of renovation projects increases significantly. These projects provide even shorter payback periods as energy prices remain high.

We are well positioned for when the markets return to a more stable state.

4,286

Order intake, MSEK

Order intake was MSEK 4,286 (4,388), a decrease of -2.3% adjusted to -6.4% for currency effects of MSEK +210 and business closures of -29 MSEK

4,371

Net sales, MSEK

Net sales were MSEK 4,371 (3,917), an increase of +11.6% adjusted to +7.0% for currency effects of MSEK +214 and business closures of -35 MSEK

446

Operating profit, MSEK Operating profit was MSEK 445.7 (359.8), an increase of +23.9% with an operating margin of 10.2 (9.2)%

277

Net profit, MSEK Earnings after tax were MSEK 277.3 (250.6)

1.57

Earnings per share, SEK Earnings per share were SEK 1.57 (1.42)

533

Operating cash flow, MSEK Cash flow from operating activities was MSEK 532.5 ( negative 48.1)

January-June

During the first half year the Group delivered a strong set of results with net sales, operating profit, operating margin and cash flow all ahead of last year.

Order intake levels across the brands and business areas remains mixed and a little slower compared to the previously reported 'high early order placement period' in 2022.

The Group's half year order intake of 4,286 (4,388) MSEK shows a -2.3% decrease, decreasing to -6.4% when adjusting for currency effects of +210 MSEK and business closures of -29 MSEK.

The Group's half year net sales of 4,371 (3,917) MSEK show an +11.6% increase, decreasing to +7.0% when adjusting for currency effects of +214 MSEK and business closures of -35 MSEK.

The Group's operating profit for the half year of 446 (360) MSEK shows a continuing strong and resilient performance.

The operating margin for the half year increases 100 basis points from 9.2% to 10.2%. This should be capable of further development as a consequence of the Q4 2022 and Q1 2023 price revisions.

As we drive for a reduced net debt, the operating cash flow in the period was strongly positive at 533 (negative -48) MSEK with the variance coming from an 86 MSEK increase in operating profit and a significant 497 MSEK improvement in working capital compared to last year. We continue the focus here.

The increased financial items of 69.4 (25.2) MSEK arise from a net increase in interest expenses of 41.2 MSEK.

The tax expense in the period of 99.0 (84.0) MSEK results in a 26.3 (25.1)% tax rate.

Business areas

Net sales and operating profit by business area

Net sales Operating profit Operating margin %
Q2 Q1-2 Q2 Q1-2 Q2 Q1-2
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Collection 947.0 962.5 1,949.7 1,877.8 64.1 85.7 164.4 179.3 6.8 8.9 8.4 9.5
Premium 754.6 708.9 1,531.2 1,314.5 97.9 90.6 214.0 159.0 13.0 12.8 14.0 12.1
Professional 265.7 245.7 502.6 493.5 20.7 7.4 29.4 19.0 7.8 3.0 5.8 3.9
Infrastructure 256.9 207.1 549.5 393.5 42.3 21.0 84.6 43.6 16.5 10.1 15.4 11.1
Eliminations -77.1 -79.6 -162.2 -162.0 - - - - - - - -
Results by business area 2,147.1 2,044.6 4,370.8 3,917.3 225.0 204.7 492.4 400.9 10.5 10.0 11.3 10.2
IFRS 16 - - - - 4.6 3.0 9.3 6.4 - - - -
Unallocated cost - - - - -28.0 -21.2 -56.0 -47.5 - - - -
Operating profit - - - - 201.6 186.5 445.7 359.8 9.4 9.1 10.2 9.2
Financial items - - - - -40.2 -11.4 -69.4 -25.2 - - - -
Profit before tax - - - - 161.4 175.1 376.3 334.6 - - - -

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 this business area.

Business Area order intake for the quarter of 907 (968) MSEK shows an organic decline of -12.3% compared with the previous year. This is a slightly better performance than the first quarter where the decline was -16.7%.

We see the global high-end businesses facing some difficult market conditions as investment decision making is taking longer in less favourable markets conditions where interest rates are higher.

Net sales for the quarter were 947 (963) MSEK, an organic decrease of -8.5%. This volume decrease resulted in a -25.2% reduction in operating profits to 64.1 (85.7) MSEK. The gross profit margin developed positively and the operating margin was 6.8 (8.9)%. The results from iGuzzini are flat and at a good level.

During the quarter iGuzzini won many great projects; Museo de Antioquia in Medellin Colombia, Haymarket in Edinburgh Scotland and Lusail Sports Club in Doha Qatar. Ateljé Lyktan secured an 1800 luminaire retrofit street lighting project in Stockholm Sweden.

Collection Q2, 2023 Q2, 2022 Q1-2, 2023 Q1-2, 2022
Net sales 947.0 962.5 1,949.7 1,877.8
(of which, intercompany sales) (30.0) (36.0) (68.4) (75.7)
Operating profit 64.1 85.7 164.4 179.3
Operating margin, % 6.8 8.9 8.4 9.5
Sales growth, % -1.6 17.1 3.8 19.3
Sales growth, adjusted for exchange rate
differences , %
-8.5 10.8 -2.9 13.3
Growth in operating profit, % -25.2 6.3 -8.3 28.9

947

Net sales, MSEK

64

Operating profit, MSEK

6.8

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 733 (731) MSEK shows a slight organic decline of -3.5% compared with the previous year. The performance is very much consistent with the first quarter. We have ceased our operation in Russia.

Net sales for the quarter were 755 (709) MSEK, an organic growth of +2.0% delivering an increase in operating profit to 97.9 (90.6) MSEK and an increase in operating margin to 13.0 (12.8)%.

Fagerhult won many significant projects during the quarter. We categorise them in three themes to demonstrate our focus.

Firstly, there were in excess of 7,100 luminaires in two renovation projects in Norway and Sweden, secondly there was 22 MSEK of smart office lighting projects with Organic Response in the UK and thirdly, there was approximately 46 MSEK of two energy saving projects, with a payback less than 2 years for two high-street fashion retailers, one from the UK and one from Spain.

Premium Q2, 2023 Q2, 2022 Q1-2, 2023 Q1-2, 2022
Net sales 754.6 708.9 1,531.2 1,314.5
(of which, intercompany sales) (17.9) (16.2) (42.0) (30.8)
Operating profit 97.9 90.6 214.0 159.0
Operating margin, % 13.0 12.8 14.0 12.1
Sales growth, % 6.4 7.8 16.5 3.8
Sales growth, adjusted for exchange rate
differences , %
2.0 4.5 12.6 0.6
Growth in operating profit, % 8.1 0.3 34.6 -0.4

755

Net sales, MSEK

98

Operating profit, MSEK

13.0

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 240 (265) MSEK, shows an organic decline of -12.1%. For the year to date the organic order intake growth is +4.4% and we see an improving order trend in Australia.

Net sales for the quarter were 266 (246) MSEK, an organic growth of +6.3% and the quarterly operating profit was 20.7 (7.4) MSEK with an operating margin of 7.8 (3.0)%.

We continue to report an overall improving situation in all three markets, notably the UK and Australia. Government legislation in Turkey continues to negatively impact the results.

Professional Q2, 2023 Q2, 2022 Q1-2, 2023 Q1-2, 2022
Net sales 265.7 245.7 502.6 493.5
(of which, intercompany sales) (19.3) (19.0) (35.5) (38.5)
Operating profit 20.7 7.4 29.4 19.0
Operating margin, % 7.8 3.0 5.8 3.9
Sales growth, % 8.1 -7.2 1.8 -1.1
Sales growth, adjusted for exchange rate
differences , %
6.3 -4.9 1.6 0.8
Growth in operating profit, % 179.7 -73.4 54.7 -60.0

266

Net sales, MSEK

21

Operating profit, MSEK

7.8

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 227 (220) MSEK shows an organic decline of -5.9%. The year to date the organic order intake growth is +5.8%, with good growth in the UK.

Net sales for the quarter were 257 (207) MSEK, an organic growth of +14.1% with good growth from all three businesses.

Operating profits more than doubled to 42.3 (21.0) MSEK and the operating margin increased a significant 6.4 percentage points to 16.5 (10.1)%, an all-time record.

During the quarter Designplan won Sanierung JVA Essen, Germany, exhibiting their specification strength in European prisons.

Infrastructure Q2, 2023 Q2, 2022 Q1-2, 2023 Q1-2, 2022
Net sales 256.9 207.1 549.5 393.5
(of which, intercompany sales) (9.8) (8.3) (16.3) (16.9)
Operating profit 42.3 21.0 84.6 43.6
Operating margin, % 16.5 10.1 15.4 11.1
Sales growth, % 24.0 10.1 39.6 11.0
Sales growth, adjusted for exchange rate
differences , %
14.1 6.1 30.5 6.5
Growth in operating profit, % 101.4 -10.3 94.0 10.1

257

Net sales, MSEK

42

Operating profit, MSEK

16.5

Financial position

The Group's equity/assets ratio at the end of the reporting period was 51.4 (48.6)% and consolidated equity was 7,127 (6,441) MSEK.

The net debt at the end of the period was 3,137 (3,130) MSEK. Cash and bank balances at the end of the period were 1,307 (1,403) MSEK. Adjusting for cash and bank balances the gross debt was 4,444 (4,533) MSEK. During the quarter the dividend of 281.9 (229.0) MSEK was paid. During the quarter the Group completed the refinancing of 2 BSEK of the long term loan portfolio.

Operating cash flow was positive 532.5 (negative 48.1) MSEK.

Pledged assets and contingent liabilities amounted to 18.1 (16.1) MSEK and 23.1 (8.8) MSEK respectively.

Investments

The Group's net investments in non-current assets was 92 (74) MSEK. The figure does not include investments in subsidiaries, which were 0 (0) MSEK.

Employees

The average number of employees during the period was 4,089 (4,087).

Parent company

Fagerhult Group AB, (formerly AB Fagerhult) operations comprise Group Management, financing and business development activities. The profit after financial items was 415.8 (955.4) MSEK. The number of employees during the period was 14 (15).

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 1-16 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.

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.

Declaration

The Board of Directors and Chief Executive Officer warrant that the interim report gives a true and fair picture of the company's and Group's operations, financial position and results, and describes all significant risks and uncertainties faced by the Group

Digital Meeting, 20 July 2023 Fagerhult Group AB (publ)

Jan Svensson Eric Douglas Chairman Vice chairman

Eva Elmstedt Magnus Meyer Board Member Board Member

Magnus Nell Lars-Åke Johansson

Bodil Sonesson President and CEO

This report has not been subject to a review by the company's auditor.

Interim report for the third quarter 2023 will be released on 27 October.

Information can be obtained from;

Bodil Sonesson, CEO, +46 72223 7602

Michael Wood, CFO, +46 73087 4647

Fagerhult Group AB (publ.) Corporate ID no. 556110-6203

Cecilia Fasth Teresa Enander Board Member Board Member

Board Member & Employee Representative Board Member & Employee Representative

Group

Condensed financial statements

Income statement

2023 2022 2023 2022 2022/2023 2022
Q2 Q2 Q1-2 Q1-2 Jul-Jun Jan-Dec
3 months 3 months 6 months 6 months 12 months 12 months
Net sales 2,147.1 2,044.6 4,370.8 3,917.3 8,723.1 8,269.6
Cost of goods sold -1,314.9 -1,298.0 -2,694.3 -2,470.8 -5,370.7 -5,147.2
Gross profit 832.2 746.6 1,676.5 1,446.5 3,352.4 3,122.4
Selling expenses -447.3 -393.4 -865.5 -770.5 -1,714.7 -1,619.7
Administrative expenses -212.0 -185.0 -414.5 -353.6 -807.9 -747.0
Other operating income 28.7 18.3 49.2 37.4 89.4 77.6
Operating profit 201.6 186.5 445.7 359.8 919.2 833.3
Financial items -40.2 -11.4 -69.4 -25.2 -86.5 -42.3
Profit before tax 161.4 175.1 376.3 334.6 832.7 791.0
Tax -42.0 -44.0 -99.0 -84.0 -229.6 -214.6
Net profit for the period 119.4 131.1 277.3 250.6 603.1 576.4
Net profit for the period attributable to shareholders of the Parent Company 119.4 131.1 277.3 250.6 603.0 576.3
Net profit for the period attributable to Non-controlling interests - - - - 0.1 0.1
Sum 119.4 131.1 277.3 250.6 603.1 576.4
Earnings per share, based on net profit for the period attributable to the
shareholders of the Parent Company
Earnings per share before dilution, SEK 0.68 0.74 1.57 1.42 3.42 3.27
Earnings per share after dilution, SEK 0.68 0.74 1.57 1.42 3.42 3.27
Average number of outstanding shares before dilution, thousands 176,147 176,147 176,147 176,147 176,147 176,147
Average number of outstanding shares after dilution, thousands 176,147 176,147 176,147 176,147 176,147 176,147
Number of outstanding shares, thousands 176,147 176,147 176,147 176,147 176,147 176,147
STATEMENT OF COMPREHENSIVE INCOME
Net profit for the period 119.4 131.1 277.3 250.6 603.1 576.4
Other comprehensive income
Items which may not be reclassified in the income statement:
Revaluation of pension plans 5.5 -1.6 6.0 -1.6 15.9 8.3
Items which may be reclassified in the income statement:
Translation differences 201.3 152.2 240.4 199.5 343.4 302.5
Other comprehensive income for the period, net after tax 206.8 150.6 246.4 197.9 359.3 310.8
Total comprehensive income for the period 326.2 281.7 523.7 448.5 962.4 887.2
Company 326.2 281.7 523.7 448.5 962.3 887.1
Total comprehensive income attributable to Non-controlling interests - - - - 0.1 0.1
Sum 326.2 281.7 523.7 448.5 962.4 887.2

Balance sheet

30 Jun 30 Jun 31 Dec
2023 2022 2022
Intangible assets 6,349.3 5,913.3 6,074.8
Tangible fixed assets 2,549.8 2,411.5 2,421.2
Financial assets 236.5 222.2 226.5
Inventories 1,519.3 1,541.3 1,492.5
Accounts receivable - trade 1,653.8 1,532.4 1,603.5
Other non-interest-bearing current assets 252.8 238.2 222.4
Cash and cash equivalents 1,307.1 1,403.2 1,291.7
Total assets 13,868.6 13,262.1 13,332.6
Equity 7,127.1 6,440.6 6,882.2
Long-term interest-bearing liabilities 4,121.6 3,888.6 3,964.0
Long-term non-interest-bearing liabilities 575.5 524.4 548.2
Short-term interest-bearing liabilities 322.2 644.3 298.2
Short-term non-interest-bearing liabilities 1,722.2 1,764.2 1,640.0
Total equity and liabilities 13,868.6 13,262.1 13,332.6

Cash flow statement

2023 2022 2023 2022 2022/2023 2022
Q2 Q2 Q1-2 Q1-2 Jul-Jun Jan-Dec
3 months 3 months 6 months 6 months 12 months 12 months
Operating profit 201.6 186.5 445.7 359.8 919.2 833.3
Adjustments for non-cash items 165.4 121.2 275.5 241.5 549.3 515.3
Financial items -43.9 -12.3 -69.6 -25.8 -99.1 -55.3
Tax paid -68.6 -55.9 -114.9 -122.4 -199.5 -207.0
Funds contributed from operating activities before change in working 254.5 239.5 536.7 453.1 1,169.9 1,086.3
capital
Change in working capital 71.6 -219.2 -4.2 -501.2 -186.6 -683.6
Cash flow from operating activities 326.1 20.3 532.5 -48.1 983.3 402.7
Cash flow from investing activities -64.2 -49.5 -112.5 -90.8 -214.2 -192.5
Cash flow from financing activities -401.1 -237.9 -442.9 -277.6 -908.6 -743.3
Cash flow for the period -139.2 -267.1 -22.9 -416.5 -139.5 -533.1
Cash and cash equivalents at beginning of period 1,412.2 1,594.0 1,291.7 1,741.5 1,403.2 1,741.5
Translation differences in cash and cash equivalents 34.1 76.3 38.3 78.2 43.4 83.3
Cash and cash equivalents at end of period 1,307.1 1,403.2 1,307.1 1,403.2 1,307.1 1,291.7

Key ratios and data per share

2023 2022 2023 2022 2022/2023 2022
Q2 Q2 Q1-2 Q1-2 Jul-Jun Jan-Dec
3 Months 3 Months 6 months 6 months 12 months 12 months
Sales growth, % 5.0 10.8 11.6 11.2 16.6 16.7
Growth in operating profit, % 8.1 -10.4 23.9 -0.4 30.4 18.0
Growth in profit before tax, % -7.8 -6.6 12.5 5.2 30.4 27.1
Operating margin, % 9.4 9.1 10.2 9.2 10.5 10.1
Profit margin, % 7.5 8.6 8.6 8.5 9.5 9.6
Cash liquidity, % 63.9 58.3 63.9 58.3 63.9 66.6
Net debt/EBITDA ratio 2.55 2.67 2.39 2.72 2.35 2.36
Equity/assets ratio, % 51.4 48.6 51.4 48.6 51.4 51.6
Capital employed, MSEK 11,571 10,974 11,571 10,974 11,571 11,144
Return on capital employed, % 7.6 7.1 8.4 6.9 8.7 8.1
Return on equity, % 6.7 8.1 7.9 7.9 8.9 8.8
Net debt, MSEK 3,137 3,130 3,137 3,130 3,137 2,971
Gross investment in non-current assets, MSEK 49.2 47.5 91.6 74.4 196.8 179.6
Net investment in non-current assets, MSEK 49.2 47.5 91.6 74.4 196.8 179.6
Depreciation/amortisation/impairment of non-current assets, MSEK 105.4 106.1 209.6 215.4 417.7 423.5
Number of employees 4,082 4,077 4,089 4,087 4,084 4,059
Equity per share, SEK 40.46 36.56 40.46 36.56 40.46 39.07
Number of outstanding shares, thousands 176,147 176,147 176,147 176,147 176,147 176,147

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
Net profit for the period 250.6 - 250.6
Other comprehensive income for the period 199.5 -1.6 - 197.9
Total comprehensive income for the period 199.5 249.0 - 448.5
Performance share plan 2.4 - 2.4
Dividend paid -229.0 - -229.0
Equity at 30 June 2022 100.2 3,194.6 -98.7 3,244.7 -0.2 6,440.6
Equity at 1 January 2023 100.2 3,194.6 4.3 3,583.2 -0.1 6,882.2
Net profit for the period 277.3 - 277.3
Other comprehensive income for the period 240.4 6.0 - 246.4
Total comprehensive income for the period 240.4 283.3 - 523.7
Performance share plan 3.1 - 3.1
Dividend paid -281.9 - -281.9
Equity at 30 June 2023 100.2 3,194.6 244.7 3,587.7 -0.1 7,127.1

Parent company

Condensed financial statements

Income statement

2023 2022 2023 2022 2022/2023 2022
Q2 Q2 Q1-2 Q1-2 Jul-Jun Jan-Dec
3 Months 3 Months 6 months 6 months 12 months 12 months
Net sales 8.9 9.1 19.0 18.7 39.1 38.8
Administrative expenses -25.4 -23.9 -53.0 -45.7 -91.2 -83.9
Operating profit -16.5 -14.8 -34.0 -27.0 -52.1 -45.1
Income from shares in subsidiaries 319.9 859.2 354.8 908.0 360.3 913.5
Financial items 57.2 47.0 95.0 74.4 180.6 160.0
Profit before appropriations and tax 360.6 891.4 415.8 955.4 488.8 1,028.4
Group contributions received - - - - 174.0 174.0
Tax -9.0 -6.7 -14.0 -9.8 -65.9 -61.7
Net profit 351.6 884.7 401.8 945.6 596.9 1,140.7

Balance sheet

30 Jun 30 Jun 31 Dec
2023 2022 2022
Financial assets 8,003.2 7,780.3 8,023.2
Other non interest bearing receivables 83.5 72.1 63.6
Cash & Bank 814.9 1,217.3 777.8
Total assets 8,901.6 9,069.7 8,864.6
Equity 5,187.4 4,870.2 5,066.3
Long-term interest bearing liabilities 3,191.1 2,947.1 3,064.3
Long-term non interest bearing liabilities 10.8 9.5 9.6
Short-term interest bearing liabilities 501.0 1,221.3 696.5
Short-term non interest bearing liabilities 11.3 21.6 27.9
Total Equity and Liabilities 8,901.6 9,069.7 8,864.6

Changes in equity

Share Statutory Retained
capital reserve earnings Total equity
Equity at 1 January 2022 100.2 159.4 3,893.2 4,152.8
Net profit for the period 945.6 945.6
Performance share program 0.8 0.8
Dividend paid -229.0 -229.0
Equity at 30 June 2022 100.2 159.4 4,610.6 4,870.2
Equity at 1 January 2023 100.2 159.4 4,806.7 5,066.3
Net profit for the period 401.8 401.8
Performance share plan 1.2 1.2
Dividend paid -281.9 -281.9
Equity at 30 June 2023 100.2 159.4 4,927.8 5,187.4

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

2022/2023
Jul-Jun
2019 2020 2021 2022 12 months
Net sales, MSEK 7,844.9 6,816.3 7,087.5 8,269.6 8,723.1
Operating profit, MSEK 794.8 332.5 706.4 833.3 919.2
Profit before tax, MSEK 695.7 216.7 622.3 791.0 832.7
Earnings per share, SEK 3.32 3.21 2.64 3.27 3.42
Sales growth, % 39.6 -13.1 4.0 16.7 16.6
Growth in operating profit, % 12.6 -58.2 112.5 18.0 30.4
Growth in profit before tax, % 4.3 -68.9 187.2 27.1 30.4
Operating margin, % 10.1 4.9 10.0 10.1 10.5
Net debt/EBITDA ratio 2.93 3.16 2.27 2.36 2.35
Equity/assets ratio, % 42.0 47.3 49.1 51.6 51.4
Capital employed, MSEK 10,372 10,238 10,563 11,144 11,571
Return on capital employed, % 10.8 3.5 6.9 8.1 8.7
Return on equity, % 13.5 10.1 7.8 8.8 8.9
Net debt, MSEK 3,737 2,812 2,603 2,971 3,137
Net investment in non-current assets, MSEK 242.7 183.6 149.5 179.6 196.8
Depreciation/amortisation/impairment of non-current assets, MSEK 478.8 558.4 440.9 423.5 417.7
Number of employees 4,465 4,419 4,237 4,059 4,084

Net sales and operating profit, MSEK

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