Quarterly Report • May 11, 2022
Quarterly Report
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• Framework agreement signed with a global vehicle manufacturer regarding charging infrastructure for the European market.
| Jan–Mar | Jan–Mar | +/- | R12 | Jan–Dec | |
|---|---|---|---|---|---|
| GARO Group key figures1) | 2022 | 2021 | % | 2021 | |
| Net sales, MSEK | 381.6 | 290.6 | 31 | 1386.7 | 1295.8 |
| EBITDA, MSEK | 75.4 | 53.8 | 264.6 | 243.0 | |
| EBITDA margin, % | 19.8 | 18.5 | 19.1 | 18.8 | |
| EBIT, MSEK | 66.8 | 45.9 | 46 | 228.2 | 207.2 |
| EBIT margin, % | 17.5 | 15.8 | 16.5 | 16.0 | |
| Net income, MSEK | 53.7 | 38.3 | 40 | 182.1 | 166.7 |
| Earnings per share2 , SEK |
1.07 | 0.76 | 41 | 3.64 | 3.33 |
| Cash flow from operating activities, MSEK | 12.2 | 16.6 | 117.2 | 121.7 | |
| Investments, MSEK | 16.7 | 8.3 | 53.7 | 45.3 | |
| Depreciation, MSEK | 8.6 | 7.9 | 36.4 | 35.8 | |
| Equity ratio, % | 62.3 | 59.3 | 62.3 | 58.9 | |
| Equity per share2 , SEK |
12.13 | 9.39 | 12.13 | 11.03 | |
| Return on equity, % | 33.8 | 28.8 | 33.8 | 34.0 | |
| Return on capital employed, % | 38.6 | 35.7 | 38.6 | 39.2 | |
| Net debt (+) / net cash position (-), MSEK | -1.7 | 6.6 | -1.7 | -9.4 |
1) For definitions of key figures, see page 17.
2) Earnings per share were not diluted, so earnings per share pertains to before and after dilution. In the second quarter of 2021, a 5:1 share split was carried out. All share-related data has been recalculated in the annual report based on the new number of shares.
GARO AB (publ) Corp. Reg. No. 556071–7772 is a company that develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. GARO's customer offering is to provide complete solutions in the product areas of Electrical distribution products, E-mobility, Project business & Temporary Power with a focus on electrical safety, user-friendliness and sustainability. GARO was founded in 1939, has its head office in Gnosjö and is today an international company with operations in six countries with around 500 employees. The company's production units in Sweden are located in Gnosjö and Värnamo, as well as in Szczecin, Poland. GARO is listed on Nasdaq Stockholm under the ticker name GARO. For more information, see www.garo.se
GARO is performing positively. Net sales rose 31% and amounted to MSEK 382, driven by strong performances in both the GARO Emobility and GARO Electrification business areas.
In the first quarter of the year, we completed offensive investments in the form of recruitments, mainly in the sales function, and increased our marketing. EBIT for the quarter amounted to MSEK 67, with the earnings trend compared with the preceding year mainly consisting of volume growth.
The sales trend in all our product areas is confirmation of the strength of our customer offering. This creates an overall solution that sets us apart from other suppliers and generates flexible solutions for our customers. A clear example of this is the positive trend we are seeing in the UK, where the expansion of charging infrastructure is leading to increased sales in the Project business and Electrical distribution products product areas.
Growth in the GARO E-mobility business area amounted to 56% during the quarter with a strong sales trend mainly in home chargers and public chargers. The trend was positive in essentially all of our markets. Clear climate goals have accelerated the transition to hybrid and electric cars and vehicle manufacturers are continually launching new models, which is driving the expansion of charging infrastructure. Long lead times for hybrid and electric cars may have a short-term impact on the pace of installation and a minor impact on demand for chargers in homes, while the expansion of public charging remains at a high level. Armed with our broad product portfolio, we feel well-equipped for the expansion of charging infrastructure in Europe.
Growth in the GARO Electrification business area amounted to 20% during the quarter with a strong trend in the Electrical distribution products and Project business product areas. New construction and the renovation sectors remained favorable during the quarter, which has driven sales in all product groups in the Electrical distribution
products product area. During the quarter, we also noted strong sales of engine heaters.
The Project business product area trended positively, mainly in Sweden and the UK. The Temporary Power product area remained on corresponding levels as the same quarter last year.
During the quarter, the challenging situation concerning the supply of components and materials has continued. To date, we have managed the situation well, managing to also maintain a satisfactory delivery capacity.
The situation regarding material supply worsened toward the end of the quarter and we foresee short-term challenges in meeting demand in the GARO E-mobility business area. With the prevailing uncertainty regarding material supply, we believe that sales in GARO E-mobility for the second quarter will be on similar level as the corresponding quarter of 2021.
The market for charging infrastructure is growing structurally with rising numbers of rechargeable vehicles, and we see a continuing strong trend with further expansion of the charging infrastructure in the European market. Housing construction remains at a high production rate with increased energy efficiency and electrification in general. Demand for construction-related products combined with renovation requirements and energy efficiency is expected to remain favorable.
All in all, we have a positive view of long-term market conditions, mainly driven by growth in charging infrastructure.
President and CEO
Net sales for the first quarter amounted to MSEK 381.6, a rise of 31% compared with the same quarter in 2021. The increased sales have taken place entirely through organic growth.
| Change in | Jan-Mar | Jan-Mar |
|---|---|---|
| net sales | 2022 (MSEK) | 2022 (%) |
| Year-earlier period | 290.6 | |
| Organic growth | 92.2 | 31.7 |
| Acquisitions and structural changes | 0 | - |
| Exchange-rate effects | -1.2 | -0.7 |
| Current quarter | 381.6 | 31.0 |
For definitions of key figures, see page 17
EBIT for the quarter improved to MSEK 66.8 (45.9) and the EBIT margin amounted to 17.5% (15.8). High sales during the quarter have yielded favorable volume effects compared with the year-earlier quarter. EBIT was impacted by costs mainly in GARO E-mobility, where market activities in Ireland and the UK are continuing. The volume increase, together with a beneficial product mix, are the main reasons for the quarter's strong EBIT.
Currency effects on EBIT in the quarter amounted to MSEK -4.4 (2.9), with a weakened EUR against the SEK.
Net financial items amounted to MSEK -0.1 (1.3) for the quarter and included currency effects from loans and hedging in foreign currency. No currency effects attributable to revaluations in hedging were noted (MSEK 2.4).
Net income amounted to MSEK 53.7 (38.3) for the quarter, and earnings per share amounted to MSEK 1.07 (0.76). The tax expense amounted to MSEK 13.0 (8.9) generating an average effective tax rate of 19.5% (18.9).
Cash flow from operating activities for the quarter amounted to MSEK 12.2 (16.6). A higher EBIT was counteracted by continued high tied-up working capital compared with the year-earlier quarter. The higher tied-up working capital is mainly the result of higher accounts receivable and larger component inventories, a result of the tactical material purchases for which GARO has secured material for upcoming product launches.
Investments for the quarter amounted to MSEK 16.7 (8.3), of which MSEK 8.1 (7.0) pertained to product development. To date this year, the company's right-of-use assets (leases and rental contracts) has declined net by MSEK 3.1 (increase: 3.7).
The Group's net cash at the end of the period amounted to MSEK 1.7 (net debt: MSEK 6.6). The Group's net cash excluding lease liabilities, which is to say effects of IFRS 16, amounted to MSEK 37.6 (32.4). Available liquidity in the Group, including unutilized overdraft facilities, amounted to MSEK 173.1 (168.0) and the equity ratio was 62.3% (59.3).
In the second quarter of 2021, a 5:1 share split was carried out, meaning that each existing share was replaced with five new shares. Figures pertaining to dividends and earnings per share for previous periods have been recalculated in the report based on the new number of shares.
At the end of the period, the number of shares amounted to 50,000,000 (50,000,000). The average number of shares, adjusted for the split, amounted to 50,000,000 (50,000,000) for the first quarter of 2022.
GARO signed a framework agreement with a global vehicle manufacturer regarding charging infrastructure for the European market. Otherwise, from the end of the period until the publication of this report, no significant events or conditions have occurred, favorable or unfavorable, that would require further disclosures.
Since January 1, 2022, GARO has divided operations in two business areas: GARO E-mobility and GARO Electrification. GARO E-mobility consist of the E-mobility product area and GARO Electrification consists of the three product areas of Electrical distribution products, Project business & Temporary Power.
Net sales for GARO E-mobility amounted to MSEK 146.4 for the first quarter, compared with MSEK 93.8 for the year-earlier quarter, yielding growth of 56%. In Sweden, GARO has noted strong sales to wholesalers with end customers such as tenant-owner associations, property owners, workplaces and private individuals. Internationally, GARO has seen a strong sales trend during the quarter, mainly in the UK and Finland compared with the year-earlier quarter. The trend in Norway has been weaker due to increased maturity primarily in home charging.
GARO's contract customers such as energy companies and automotive companies established in Europe continued to perform well during the quarter and more deliveries have been made under previously signed framework agreements. Group-external exports grew by over 100% during the quarter.
EBIT for the quarter improved to MSEK 30.7 (17.6) and the EBIT margin amounted to 20.9% (18.8). The margin for the quarter improved as a result of increased sales volumes and a changed mix of sold products. EBIT was impacted by costs for continued marketing activities in Ireland and the UK, mainly by strengthening resources.
The number of employees at the end of the period was 214 (156). In addition, around 15 temporary personnel were contracted in production.
| GARO E-mobility | Jan–Mar | Jan–Mar | R12 | Jan–Dec | |
|---|---|---|---|---|---|
| Key figures | 2022 | 2021 | 2021 | ||
| Net sales | MSEK | 146.4 | 93.8 | 490.6 | 437.8 |
| Growth | % | 56 | 60 | 51 | 52 |
| EBIT | MSEK | 30.7 | 17.6 | 99.0 | 85.8 |
| EBIT margin | % | 20.9 | 18.8 | 20.2 | 19.6 |
| Investments | MSEK | 14.5 | 7.0 | 36.7 | 29.2 |
| Depreciation | MSEK | 2.6 | 1.7 | 9.1 | 8.2 |
| Number of employees | 214 | 156 | 192 | 202 |
For definitions of key figures, see page 17
The global transition to a fossil-free society benefits GARO. The strong demand for electric and chargeable hybrid cars is driving the need for the rapid expansion of charging infrastructure in Europe through products for electric car charging in the home, in public and at workplaces. Norway and Sweden are at the forefront of this development, primarily in electric car charging for housing, and these countries are investing heavily in public spaces in both destination charging and quick charging.
To accelerate the expansion of the charging infrastructure, governments in several countries are launching various initiatives to further promote the development of fossil-free fuel. For example, the UK has introduced similar measures from 2022 with the requirement that all new housing, business premises, offices etc. must install a minimum of one charging station for electric cars. This requirement also concerns properties that are undergoing major renovation. The requirement is expected to result in the addition of 1.45 million extra charging stations annually.
In Sweden, green technology tax deductions of 50% of the labor and material costs for the installation of wall boxes for purchases through electrical installers were also introduced in January 2021.
In 2021, annual growth of rechargeable passenger cars in the EU amounted to 18%, a growth rate that is expected to continue. However, rechargeable passenger cars comprise less than 2% of the total vehicle fleet in the EU. In 2021, there were more than 1.1 million rechargeable passenger cars in the Nordic countries and 3.9 million in the EU.
Energy companies play an important role for the end user. The relationship that they have with their customers is continually changing, and GARO has noted that energy companies are developing their customer relationships toward various forms of subscription and other long-term relationships. This means that the Group's relationships with energy companies and vehicle manufacturers is becoming increasingly important. With the help of their platforms, GARO receives access to new markets and opportunities to introduce products to more European countries.
GARO developed its first wall box back in 2008 and today is a complete supplier with a broad offering in electric car charging, primarily in destination charging1 . Together with the GARO Electrification business area, GARO offers a complete solution from power supply to electric car charging.
GARO currently has a very broad and strong product portfolio, which is a prerequisite for success in this rapidly growing industry. To ensure that the customer offering remains at the forefront in terms of the product portfolio, considerable resources are invested in product development, primarily in destination charging1 . In the destination charger product category, a number of products are being manufactured that meet the need of electric car charging in home environments, at the workplace and in public.
GARO has been established in Ireland for a long time and commenced operations in 2019 in the UK. We have a well-known brand and established sales channels. When the new regulations regarding requirements for connectable products enter force in the UK at the end of June, GARO will have a favorable market position with its broad product portfolio of connectable products.
The strong growth in the GARO E-mobility has benefited sales of components in GARO Electrification and the Electrical distribution products product area as well as cable cabinets and energy supply in the Project business product area. This synergy effect between the business areas is a great advantage for customers and creates growth.
1 The range includes AC chargers (alternating current) with effects between 11-22 kW and DC chargers (direct current) with an effect up to 50 kW.
Net sales amounted to MSEK 235.2 for the first quarter, compared with MSEK 196.8 for the year-earlier quarter, yielding growth of 20%. The business area reported growth in all product areas except Temporary Power, which remained at essentially the same levels as the year-earlier quarter.
EBIT for the quarter improved to MSEK 36.1 (28.3) and the EBIT margin amounted to 15.3% (14.4). The margin improved primarily as a result of increased sales volumes, a favorable product mix and general strict cost control.
Due to price hikes on incoming materials and components, GARO has risen prices for customers to corresponding amounts.
The number of employees at the end of the period was 303 (268). In addition, around 25 temporary personnel were contracted in production.
Sales in the Electrical distribution products product area increased 21% during the quarter compared with the year-earlier period. Sales remained high in the customer segments of new construction, renovation and the energy efficiency of properties. Sales of engine heaters were also strong during the quarter, in which GARO holds a leading position in the Nordic region.
Sales in the Project business product area increased 30% during the quarter compared with the year-earlier quarter as a result of larger and more complex customer projects.
In Sweden the demand was high, leading to favorable volume growth driven by new construction and renovation of properties. In Ireland and the UK, the construction of charging infrastructure is driving GARO's project sales, which generate good sales growth for these two countries.
Sales in the Temporary Power product area are in line with the yearearlier period. Sales in this product area are primarily to customers in Sweden, where it is notable that several rental companies are now investing in this type of product again.
New construction and the renovation sector remained positive during the quarter and GARO believes that the underlying market as a whole is unchanged compared with the preceding year, which indicates that GARO has captured market shares.
| GARO Electrification | Jan–Mar | Jan–Mar | R12 | Jan–Dec | |
|---|---|---|---|---|---|
| Key figures | 2022 | 2021 | 2021 | ||
| Net sales | MSEK | 235.2 | 196.8 | 896.1 | 858.0 |
| Growth | % | 20 | 4 | 18 | 15.0 |
| EBIT | MSEK | 36.1 | 28.3 | 129.2 | 121.4 |
| EBIT margin | % | 15.3 | 14.4 | 14.4 | 14.1 |
| Investments | MSEK | 2.2 | 1.3 | 17.0 | 16.1 |
| Depreciation | MSEK | 6.0 | 6.2 | 27.3 | 27.5 |
| Number of employees | 303 | 268 | 291 | 296 |
For definitions of key figures, see page 17
EBIT, GARO Electrification
GARO is continually developing its customer offering in both of its business areas of Electrification and E-mobility. As such, the material synergy effects between the Electrical distribution products, Project business and E-mobility product areas are further improved.
The trend we see now is for increased safety requirements from different players in the market, while regulations are becoming increasingly stringent for all types of electrical products. GARO welcomes the developments related to safety and certifications. With the help of innovative product development, the products are designed based on country-specific requirements and regulations in the European market. The Group offers the market safe and futureproof products.
In 2022, we will also be launching a number of new exciting and innovative products, mainly in the E-mobility product area.
The Group bases its framework of GARO's sustainability work on two cornerstones: how proprietary operations are structured, and how the products contribute to the transition to an electrified society. The business is working continuously to be an environmentally friendly, safe and enjoyable workplace in which the Group assumes overall responsibility for the organization and the value chain. The products and services that provided create the preconditions for a fossil-free society and, in this way, operations can contribute to the transition to a carbon-neutral society.
GARO's sustainability efforts are to contribute to the UN Sustainable Development Goals (SDGs) and be in line with the Paris Agreement. The Group has selected six SDGs for contributing to the global transition. To ensure that relevant operational targets have been identified, continual follow-ups and assessments are conducted throughout operations, including the value chain.
For more information about GARO's goals for a more sustainable environment, refer to our 2021 Annual Report, pages 34-51.
The Parent Company's operations encompass the product group Electrical distribution products, development department, Group Management, as well as certain Group-wide functions and the Group's finance function.
Net sales for the Parent Company in the first quarter amounted to MSEK 122.2 (106.8). Of this amount, MSEK 40.7 (38.5) comprised internal sales to other Group companies. EBIT for the quarter amounted to MSEK 22.5 (13.2).
| Sales growth Organic growth will amount to not less than 10% over a business cycle. |
30 20 10 0 2017 2018 2019 2020 2021 R12 Growth, % Goal, % |
|---|---|
| Profitability The EBIT margin for the Group will amount to not less than 10% of net sales over a business cycle. |
20 15 10 5 0 2017 2018 2019 2020 2021 R12 Operating margin, % Goal, % |
| Return Return on equity will amount to not less than 20% over a business cycle. |
50 40 30 20 10 0 2017 2018 2019 2020 2021 R12 Return on Equity, % Goal, % |
| Equity ratio The equity ratio will not be less than 30%. |
80 60 40 20 0 2017 2018 2019 2020 2021 R12 Equity rato, % Goal, % |
| Dividend policy GARO's dividend will amount to approximately 50% of the Group's net earnings after tax. The dividend proposal must take into account GARO's long-term dividend potential and the Group's general investment and consolidation requirements. |
60 40 20 0 2017 2018 2019 2020 2021 Dividend, % Policy, % |
GARO develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. The company has operations in Sweden, Norway, Finland, Ireland, Poland and the UK. The Group is organized in two business areas: GARO Electrification and GARO E-mobility. GARO has a broad product assortment and is a market leader within several product areas.
GARO's business concept is to, with a focus on innovation, sustainability and design, provide profitable complete solutions for the electrical industry.
GARO's operations are, to a certain degree, subject to seasonal variations. GARO's sales are generally stable from one quarter to the next, but can fluctuate monthly within the quarter. Sales can be somewhat lower during the vacation months (July–August) and from December to January. During periods of high production, GARO is normally tied up in working capital. Cash and cash equivalents are freed from working capital after the busy season, when the finished products have been installed in customers' facilities and invoices have been paid.
GARO's risks and uncertainties are described in Note 3 on pages 68- 71 of the 2021 Annual Report. The Annual Report is available at www.garo.se. Aside from these, no other changes have affected the company's view of risks and uncertainties.
In this interim report, GARO presents certain financial measures that are not defined by IFRS, known as alternative performance measures. The Group believes that these measures provide valuable supplementary information to investors since they enable evaluations of the company's earnings and financial position. These
financial measures are not always comparable with the measures used by other companies since not all companies calculated them in the same way. Investors should view these financial measures as a supplement rather than a replacement of financial reporting in accordance with IFRS.
Related-party transactions in 2021 took place at a limited extent and in accordance with the principles described in the 2021 Annual Report.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Disclosures in accordance with IAS 34, 16A are presented in the financial statements and their notes in the interim information on pages 1–18, which constitute an integrated part of this financial statement.
The Parent Company's interim report was prepared in accordance with Chapter 9 of the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.
GARO AB applies the same accounting policies as in the most recent Annual Report.
This interim report has not been reviewed by the company's auditors.
Gnosjö, May 11, 2022
GARO AB (publ)
The Board of Directors
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||
|---|---|---|---|
| ---------------------------------------------------------- | -- | -- | -- |
| Jan–Mar | Jan–Mar | R12 | Jan–Dec | |
|---|---|---|---|---|
| Amount in MSEK | 2022 | 2021 | 2021 | |
| Operating income | ||||
| Net sales | 381.6 | 290.6 | 1,386.7 | 1,295.8 |
| Other operating income | 2.2 | 1.2 | 7.6 | 6.6 |
| Total operating income | 383.8 | 291.8 | 1,394.3 | 1,302.4 |
| Operating expenses | ||||
| Raw materials and consumables | -193.2 | -143.8 | -698.7 | -649.3 |
| Other external expenses | -37.9 | -33.1 | -149.7 | -144.9 |
| Personnel expenses | -77.4 | -61.0 | -281.5 | -265.2 |
| Depreciation/amortization of tangible and intangible assets | -8.6 | -7.9 | -36.4 | -35.8 |
| EBIT | 66.8 | 45.9 | 228.2 | 207.2 |
| Result from financial items | ||||
| Net financial income/expenses | -0.1 | 1.3 | -0.3 | 1.2 |
| Profit before tax | 66.7 | 47.2 | 227.9 | 208.4 |
| Income tax | -13.0 | -8.9 | -45.8 | -41.7 |
| Net income | 53.7 | 38.3 | 182.0 | 166.7 |
| Other comprehensive income: | ||||
| Items that may be reclassified to the income statement | ||||
| Translation differences | 1.3 | 0.9 | 2.4 | 2.0 |
| Other comprehensive income, net | 1.3 | 0.9 | 2.4 | 2.0 |
| Total comprehensive income for the year | 55.0 | 39.2 | 184.4 | 168.7 |
| Net income and total comprehensive income for the year is | ||||
| attributable to shareholders of the Parent Company. | ||||
| Key ratios per share | ||||
| Average number of shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
| Earnings per share, before and after dilution, SEK | 1.07 | 0.76 | 3.64 | 3.33 |
| Amount in MSEK | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2021 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | 113.7 | 97.9 | 108.1 |
| Tangible assets | 149.5 | 140.0 | 144.1 |
| Financial assets | 2.9 | 5.1 | 3.2 |
| Total fixed assets | 266.1 | 243.0 | 255.4 |
| Current assets | |||
| Inventories | 267.5 | 195.7 | 242.1 |
| Accounts receivable | 349.8 | 268.1 | 336.0 |
| Other current receivables | 16.7 | 16.0 | 21.8 |
| Cash and cash equivalents | 73.3 | 68.9 | 81.6 |
| Total current assets | 707.3 | 549.3 | 681.5 |
| TOTAL ASSETS | 973.4 | 792.3 | 936.9 |
| EQUITY AND LIABILITIES | |||
| Share capital | 20.0 | 20.0 | 20.0 |
| Other reserves | 0.4 | 2.9 | -0.9 |
| Other equity including net income for the period | 586.1 | 446.6 | 532.4 |
| Total equity | 606.5 | 469.5 | 551.5 |
| Long-term liabilities | |||
| Liabilities to credit institutions | 23.9 | 23.9 | 26.5 |
| Lease liabilities | 26.4 | 28.8 | 26.3 |
| Other provisions | 7.1 | 3.7 | 6.3 |
| Deferred tax liabilities | 0 | 0.6 | 0 |
| Total long-term liabilities | 57.4 | 57.0 | 59.1 |
| Short-term liabilities | |||
| Liabilities to credit institutions | 11.8 | 12.6 | 9.9 |
| Lease liabilities | 9.5 | 10.3 | 9.5 |
| Accounts payable | 145.0 | 127.5 | 166.5 |
| Other short-term liabilities | 143.2 | 115.4 | 140.4 |
| Total short-term liabilities | 309.5 | 265.8 | 326.3 |
| TOTAL EQUITY AND LIABILITIES | 973.4 | 792.3 | 936.9 |
| Equity attributable to shareholders in the Parent Company | Share | Retained | Total | |
|---|---|---|---|---|
| Amount in MSEK | capital | Reserves | earnings | equity |
| Equity at January 1, 2021 | 20.0 | -2.9 | 413.2 | 430.3 |
| Net income for the period | 166.7 | 166.7 | ||
| Other comprehensive income for the period | 2.0 | 0 | 2.0 | |
| Dividend to shareholders | -47.5 | -47.5 | ||
| Currency effects | -0.3 | -0.3 | ||
| Closing equity, December 31, 2021 | 20.0 | -0.9 | 532.4 | 551.5 |
| Equity at January 1, 2022 | 20.0 | -0.9 | 532.4 | 551.5 |
| Net income for the period | 53.7 | 53.7 | ||
| Other comprehensive income for the period | 1.3 | 0 | 1.3 | |
| Currency effects | ||||
| Closing equity, March 31, 2022 | 20.0 | 0.4 | 586.1 | 606.5 |
| Jan–Mar | Jan–Mar | R12 | Jan–Dec | |
|---|---|---|---|---|
| 182.0Amount in MSEK | 2022 | 2021 | 2021 | |
| Operating activities | ||||
| Cash flow from operating activities | ||||
| before changes in working capital | 59.7 | 46.9 | 230.2 | 217.5 |
| Cash flow from changes in working capital | -47.5 | -30.3 | -113.0 | -95.8 |
| Cash flow from operating activities | 12.2 | 16.6 | 117.2 | 121.7 |
| Investing activities | ||||
| Investments in intangible assets | -8.1 | -7.9 | -27.6 | -26.5 |
| Acquisition of subsidiaries | 0 | 0 | 0 | 0 |
| Investments in tangible assets | -8.6 | -1.3 | -26.1 | -18.8 |
| Disposal of tangible assets | 0 | 0 | 0.9 | 0.9 |
| Cash flow from investing activities | -16.7 | -8.3 | -52.8 | -44.3 |
| Financing activities | ||||
| Net borrowing/amortization of loans | -0.7 | -6.5 | -0.4 | -6.2 |
| Amortization of lease liability | -2.9 | -2.8 | -11.8 | -11.7 |
| Dividend paid to shareholders | 0 | 0 | -47.5 | -47.5 |
| Cash flow from financing activities | -3.6 | -9.3 | -59.7 | -65.4 |
| Cash flow for the period | -8.1 | -1.0 | 4.7 | 11.9 |
| Currency effect in cash and cash equivalents | -0.2 | 0.5 | -0.3 | 0.3 |
| Cash and cash equivalents, start of the period | 81.6 | 69.4 | 68.9 | 69.4 |
| Cash and cash equivalents, end of the period | 73.3 | 68.9 | 73.3 | 81.6 |
| Jan-Mar | Jan-Mar | Jan–Dec | |
|---|---|---|---|
| Amount in MSEK | 2022 | 2021 | 2021 |
| Operating income | |||
| Net sales | 122.2 | 106.8 | 481.7 |
| Other operating income | 16.4 | 2.9 | 12.8 |
| Total income | 138.6 | 109.7 | 494.5 |
| Operating expenses | |||
| Raw materials and consumables | -75.2 | -68.5 | -291.3 |
| Other external expenses | -13.1 | -2.5 | -50.1 |
| Personnel expenses | -25.3 | -22.7 | -77.1 |
| Depreciation/amortization of tangible and intangible assets | -2.5 | -2.8 | -12.6 |
| EBIT | 22.5 | 13.2 | 63.4 |
| Result from financial items | |||
| Profit from participations in Group companies | 0 | 0 | 7.2 |
| Net interest income and similar items | 1.0 | 1.5 | 6.8 |
| Net interest expenses and similar items | 0.5 | 1.2 | -2.5 |
| Profit before tax | 24.0 | 15.9 | 74.9 |
| Appropriations | 0 | 0 | 47.0 |
| Income tax | -5.0 | -2.8 | -23.6 |
| Net income | 19.0 | 13.2 | 98.3 |
The Parent Company does not have any items recognized as other comprehensive income which is why total comprehensive income corresponds to net income.
| Amount in MSEK | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2021 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | 50.7 | 29.9 | 43.5 |
| Tangible assets | 37.5 | 40.7 | 38.4 |
| Participations in Group companies | 80.5 | 79.3 | 80.8 |
| Other financial assets | 56.8 | 59.1 | 59.9 |
| Total fixed assets | 225.4 | 209.6 | 222.6 |
| Current assets | |||
| Inventories | 40.9 | 36.5 | 40.8 |
| Accounts receivable | 95.1 | 74.1 | 83.9 |
| Other receivables | 177.3 | 115.2 | 189.9 |
| Cash and bank balances | 52.0 | 62.9 | 71.4 |
| Total current assets | 365.3 | 288.7 | 386.0 |
| TOTAL ASSETS | 590.7 | 498.3 | 608.6 |
| EQUITY AND LIABILITIES | |||
| Share capital | 20.0 | 20.0 | 20.0 |
| Fund for internal development expenses | 40.5 | 35.9 | 40.5 |
| Statutory reserve | 2.6 | 2.6 | 2.6 |
| Non-restricted equity including net income for the period | 318.1 | 266.1 | 299.1 |
| Total equity | 381.2 | 324.6 | 362.2 |
| Provisions | 1.7 | 1.2 | 1.7 |
| Long-term liabilities Liabilities to credit institutions Total long-term liabilities Short-term liabilities Short-term interest-bearing liabilities Short-term non-interest-bearing liabilities Total short-term liabilities TOTAL EQUITY AND LIABILITIES |
9.7 9.7 2.6 195.5 198.1 590.7 |
7.9 7.9 2.3 162.3 164.6 498.3 |
10.4 10.4 2.6 231.7 234.3 608.6 |
| GARO Electrification | GARO E-mobility Elimination |
Group | ||||||
|---|---|---|---|---|---|---|---|---|
| Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | |
| Business area information | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Income | ||||||||
| Total income | 315.3 | 269.0 | 237.6 | 143.2 | -171.3 | -121.6 | 381.6 | 290.6 |
| Total internal income | -80.1 | -72.2 | -91.2 | -49.4 | 171.3 | 121.6 | ||
| Income from contracts with customers | 235.2 | 196.8 | 146.4 | 93.8 | 0 | 0 | 381.6 | 290.6 |
| EBIT | 36.2 | 28.3 | 30.7 | 17.6 | 0 | 0 | 66.8 | 45.9 |
| Net financial income/expenses | -0.1 | 1.3 | ||||||
| Tax expense for the year | -13.0 | -8.9 | ||||||
| Net income for the year | 53.7 | 38.3 |
| Product area | GARO Electrification | GARO E-mobility | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Jan–Mar 2020 |
Jan–Mar 2021 |
growth, % | Jan–Mar 2022 |
Jan–Mar 2021 |
growth, % | Jan–Mar 2022 |
Jan–Mar 2021 |
growth, % | |
| Sweden | 149.7 | 132.2 | 13 | 81.1 | 60.1 | 35 | 230.8 | 192.3 | 20 |
| Nordic region excl. Sweden |
34.8 | 33.6 | 5 | 17.0 | 13.8 | 32 | 51.8 | 47.3 | 9 |
| Europe excl. Nordic region | 50.7 | 31.0 | 64 | 49.5 | 18.3 | 170 | 100.2 | 49.3 | 103 |
| Currency effects | - | - | - | -1.2 | 1.7 | - | -1.2 | 1.7 | - |
| Total | 235.2 | 196.8 | 20 | 146.4 | 93.9 | 57 | 381.6 | 290.6 | 31 |
| Jan-Mar | Jan-Mar | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | R12 | 2021 | 2020 | 2019 | 2018 | 2017 | ||
| Net sales | MSEK | 381.6 | 290.6 | 1386.7 | 1295.8 | 1039.8 | 1008.1 | 903.7 | 796.0 |
| Growth | % | 31 | 17 | 28 | 25 | 3 | 12 | 13 | 21 |
| EBITDA | MSEK | 75.4 | 53.8 | 264.6 | 243.0 | 163.2 | 134.9 | 128.8 | 110.3 |
| EBITDA margin | % | 19.8 | 18.5 | 19.1 | 18.8 | 15.7 | 13.4 | 14.3 | 13.9 |
| EBIT | MSEK | 66.8 | 45.9 | 228.2 | 207.2 | 136.2 | 112.6 | 113.8 | 98.1 |
| EBIT margin | % | 17.5 | 15.8 | 16.5 | 16.0 | 13.1 | 11.2 | 12.6 | 12.3 |
| Earnings per share, before | |||||||||
| and after dilution | SEK | 1.07 | 0.76 | 3.64 | 3.33 | 1.91 | 1.71 | 1.65 | 1.71 |
| Equity per share | SEK | 12.13 | 9.39 | 12.13 | 11.03 | 8.61 | 6.86 | 5.92 | 5.05 |
| Dividend per share | SEK | 1.40** | 0.95 | 0 | 0.80 | 0.80 | |||
| Dividend | MSEK | 70.0** | 47.5 | 0 | 40.0 | 40.0 | |||
| Return on equity | % | 33.8 | 28.8 | 33.8 | 34.0 | 24.7 | 26.8 | 31.2 | 38.3 |
| Return on capital | |||||||||
| employed, | % | 38.6 | 35.7 | 38.6 | 39.2 | 32.2 | 30.4 | 34.7 | 36.5 |
| Investments | MSEK | 16.7 | 8.3 | 53.7 | 45.3 | 45.3 | 33.4 | 22.7 | 51.4 |
| Depreciation | MSEK | 8.6 | 7.9 | 36.4 | 35.8 | 26.9 | 22.3 | 15.0 | 12.2 |
| Equity ratio | % | 62.3 | 59.3 | 62.3 | 58.9 | 57.9 | 52.2 | 52.4 | 47.3 |
| Net debt | MSEK | -1.7 | 6.6 | -1.7 | -9.4 | 11.3 | 45.6 | 45.7 | 56.1 |
| Net debt/EBITDA | multiple | 0 | 0 | 0 | 0.0 | 0.1 | 0.3 | 0.4 | 0.5 |
| Number of employees | 517 | 424 | 483 | 498 | 412 | 421 | 402 | 376 |
*For definitions of key figures, see page 17
** The Board of Directors' proposals ahead of the AGM
| Consolidated income statement | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Amount in MSEK | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 |
| Net sales | 381.6 | 370.1 | 293.9 | 341.2 | 290.6 | 306.3 | 247.0 | 238.3 | 248.3 | 277.8 | 235.2 | 246.7 | 248.4 |
| Operating expenses | -314.7 | -312.4 | -245.4 | -286.1 | -244.7 | -256.8 | -209.5 | -208.0 | -229.5 | -242.0 | -211.5 | -222.8 | -219.2 |
| EBIT | 66.8 | 57.7 | 48.5 | 55.1 | 45.9 | 49.5 | 37.5 | 30.3 | 18.8 | 35.9 | 23.6 | 24.0 | 29.2 |
| Net financial income/expenses | -0.1 | 1.4 | 0.5 | -2.1 | 1.3 | -4.6 | -1.3 | -6.8 | -0.5 | -2.5 | -0.8 | -0.5 | 1.4 |
| Profit before tax | 66.7 | 59.1 | 49.0 | 53.0 | 47.2 | 45.0 | 36.3 | 23.6 | 18.3 | 33.3 | 22.8 | 23.5 | 30.6 |
| Tax | -13.0 | -12.7 | -9.6 | -10.5 | -8.9 | -10.5 | -7.9 | -5.5 | -3.8 | -8.7 | -4.9 | -5.0 | -5.7 |
| Net income | 53.7 | 46.4 | 39.4 | 42.6 | 38.3 | 34.4 | 28.3 | 18.1 | 14.6 | 24.6 | 17.9 | 18.4 | 24.8 |
| Net sales per business area | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Amount in MSEK | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 |
| GARO E-mobility | 146.4 | 134.4 | 91.2 | 118.4 | 93.8 | 100.2 | 68.9 | 64.8 | 58.6 | 70.7 | 51.7 | 54.7 | 15.4 |
| GARO Electrification | 235.2 | 235.7 | 202.7 | 222.8 | 196.8 | 206.1 | 178.1 | 173.5 | 189.7 | 207.1 | 183.5 | 192.0 | 233.0 |
| Total Group | 381.6 | 370.1 | 293.9 | 341.2 | 290.6 | 306.3 | 247.0 | 238.3 | 248.3 | 277.8 | 235.2 | 246.7 | 248.4 |
| EBIT per business area | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Amount in MSEK | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 |
| GARO E-mobility | 30.7 | 27.9 | 20.1 | 20.2 | 17.6 | 14.7 | 9.6 | 9.7 | 2.4 | 8.4 | 3.5 | 5.8 | 1.7 |
| GARO Electrification | 36.1 | 29.8 | 28.4 | 34.9 | 28.3 | 34.8 | 27.9 | 20.6 | 16.4 | 27.5 | 20.1 | 18.2 | 27.5 |
| Total Group | 66.8 | 57.7 | 48.5 | 55.1 | 45.9 | 49.5 | 37.5 | 30.3 | 18.8 | 35.9 | 23.6 | 24.0 | 29.2 |
The performance measures in this report take into account the nature of the operations and are deemed to provide relevant information to shareholders and other stakeholders and also enable comparability with other companies.
EBIT: Earnings before interest and tax EBIT margin, %: EBIT as a percentage of net sales for the period Earnings per share, before and after dilution, SEK: Net income for the period divided by the average number of shares at the end of the period Equity per share, SEK: Equity divided by the number of shares at the end of the period Return on equity, %: Net income for the past 12 months divided by average equity Return on capital employed, %: EBIT for the past 12 months divided by capital employed Equity ratio, %: Equity as a percentage of total assets Capital employed, SEK: Total assets less short-term liabilities adjusted for cash and bank balances Net debt: Interest-bearing liabilities, lease liabilities according to IFRS 16 less assets including cash and cash equivalents
Net debt/EBITDA, multiple: Net debt at the end of the period as a percentage of EBITDA for the past 12 months
GARO uses certain performance measures that are not defined in the rules for financial reporting that GARO applies. The goal of these performance measures is to create better understanding of how the operations are performing. It must be stressed that these alternative performance measures, as defined, are not entirely comparable with performance measures of the same name used by other companies.
Organic growth: Organic growth with adjustments for currency effects from operations in currencies other than SEK.
EBITDA: Earnings before interest, taxes, depreciation and amortization
EBITDA margin, %: EBITDA as a percentage of net sales for the period
R12: A summary of the outcome of the past 12 months
Number of employees: The number of employees at the end of the period
On May 11, 2022 at 3:00 p.m., the President and CEO Patrik Andersson and CFO Helena Claesson will present the report and respond to questions in a teleconference.
| Sweden: | +46 10 884 80 16 |
|---|---|
| International: | +44 203 936 2999 |
| Code: | 79 66 53 |
The presentation used during this teleconference can be downloaded at www.garo.se under Investor Relations. A recording of the teleconference will be available on the company's website afterwards.
| Patrik Andersson, President and CEO: | +46 76 148 44 44 |
|---|---|
| Helena Claesson, CFO: | +46 70 676 07 50 |
| Interim report April - June 2022 | August 16, 2022 |
|---|---|
| Interim report July – September 2022 | November 11, 2022 |
| Year-end report 2022 | February 23, 2023 |
Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specifically mentioned factors, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact of competing products and the prices of such products, difficulties associated with product development and commercialization, technical problems, interruptions to the access to raw materials and credit losses attributable to major customers.
Disclosures according to IAS 34.16A are presented in the financial statements and their notes as well as other parts of the interim report.
This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on May 11, 2022, at 2:00 p.m. CET.
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