Earnings Release • Apr 29, 2021
Earnings Release
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| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Order intake | 5,747 | 5,401 | 6% | 19,941 | 19,595 |
| Net sales | 5,147 | 4,976 | 3% | 19,388 | 19,217 |
| Operating profit | 623 | 528 | 18% | 2,361 | 2,266 |
| EBITA | 713 | 616 | 16% | 2,712 | 2,615 |
| EBITA margin, % | 13.9 | 12.4 | 14.0 | 13.6 | |
| Profit before taxes | 594 | 496 | 20% | 2,238 | 2,140 |
| Net profit | 461 | 388 | 19% | 1,742 | 1,669 |
| Earnings per share before dilution, SEK | 1.27 | 1.07 | 19% | 4.80 | 4.60 |
| Return on capital employed, % | 20 | 18 | 20 | 19 | |
| Cash flow from operating activities | 489 | 421 | 16% | 2,848 | 2,780 |
| Net debt/equity ratio, % | 56 | 85 | 56 | 56 |
Overall, demand during the first quarter was favourable and improved compared to last year's high level. Still, the development varied across companies, segments and countries. Order intake amounted to SEK 5.7 billion, an increase of 5% organically, and was 12% higher than net sales. The strongest growth was still in the medical technology and pharmaceutical segment, but there was also positive development for infrastructure, wind power and the process industry. Many companies with customers in the engineering industry noted an improvement in demand during the quarter compared to last year. Demand remained weak, however, for the aircraft industry and marine sector. The Measurement & Sensor Technology and Fluids & Mechanical Solutions business areas reported the most favourable organic order growth, with positive development in most segments.
Sales increased by 3% organically and amounted to SEK 5.1 billion. The strongest performance came from the Industrial Components and Benelux business areas, which was primarily driven by the medical technology and pharmaceutical segment. Organic growth was weakest for the Finland and Flow Technology business areas. In Finland, the business climate is still being negatively impacted by weaker demand due to the pandemic and for Flow Technology, the comparison figures for the same period last year were high.
The EBITA result increased by 16% to SEK 713 million, corresponding to an EBITA margin of 13.9% (12.4%). It is a record-high result for a first quarter and seven of our eight business areas strengthened their margins, with the strongest development in the Industrial Components and Benelux business areas. The improvement was primarily driven by the continued positive performance of companies in the medical technology and pharmaceutical segment, along with good cost control and performance from newly acquired companies.
During the quarter, many companies were impacted by longer lead times and disruptions in the supply chains, which resulted in somewhat hampered delivery and invoicing opportunities. Several of our companies also noted that there were price increases from suppliers during the end of the quarter. The overall impact on the Group's net sales and earnings has, however, been assessed as being limited.
Since the end of last year, most of the short-term work that had been set up at the start of pandemic has been terminated and during the quarter, there were only a few companies with some of their employees on temporary lay-off.
The inventory for comparable units continued to decrease somewhat, which, in combination with positive earnings, contributed to an improved cash flow. The Group's financial position remains strong, with a relatively low debt/equity ratio. During the quarter, Indutrade was assigned the credit rating BBB-, with stable outlook from S&P Global Ratings, which corresponds to investment grade and is affirmation of our stable business model. The rating strengthens our position and attractiveness even further in the credit markets.
Five acquisitions were made during the quarter with total annual sales of nearly SEK 500 million. In January, the Finnish company Pistesarjat was acquired, which is focused on advanced cable systems for such things as heating and frost protection. Indutrade also acquired the Dutch company Fire Proof, which is a distributor of passive fire protection products. In February, Indutrade acquired the German company Tecno Plast, which offers single-use tubing sets, PTFE and silicone hoses. The Dutch company Typhoon was also acquired, specialising in stirring and mixing systems for customers in a variety of segments, including the food, chemical and pharmaceutical industries. In March, we welcomed the Dutch company Efcon Water to the Group. It is a highly focused supplier of products and measurement instrumentation for wastewater sampling systems. There is a good inflow of interesting companies and we also assess our opportunities for making future acquisitions as good. Thanks to our local presence, we are able to drive the acquisition processes forward despite the ongoing restrictions on travel and physical meetings.
We expect that there will be gradual improvement in overall demand. Our strong segments, such as medical technology and pharmaceutical, are expected to continue performing at a good level, although with a slightly lower rate of growth. However, the business climate remains somewhat uncertain because of the pandemic, with many local restrictions and lock-downs still in place. Disruptions in the supply chains, involving longer lead times, is contributing to the uncertainty. As the level of activity increases in our companies, so too will the cost levels.
Our success is largely based on decentralised decision-making by dedicated MDs who work closely with customers, act on opportunities and respond to the challenges. Going forward, I am convinced that we will continue to manage the changed market conditions in an agile and successful way, thereby creating the prerequisites for continued competitive value creation.
Bo Annvik, President and CEO
Overall, demand during the first quarter was higher than last year, although there was still variation across companies and markets. Performance remained strong for companies with customers in the medical technology and pharmaceutical industry, with only a small portion of demand driven by Covid-19. The positive trend continued in several other segments as well, such as process industry, infrastructure and wind power. This also applied to the engineering industry, where performance in the first quarter was good. However, the demand from customers in, for example the marine sector and aircraft industry, remained weak.
Order intake was 12% higher than invoicing and amounted to SEK 5,747 million (5,401), which is an increase of 6% compared to the same period last year. For comparable units, order intake increased by 5%. The acquired growth amounted to 6%, divestments to -1% and currency movements had an impact on order intake of -4%.
Order intake for comparable units was most favourable in the Measurement & Sensor Technology and Fluids & Mechanical Solutions business areas. For both, the favourable performance was relatively widespread across customer segments, with increased demand compared to last year. Order intake was weakest for the UK and Flow Technology business areas. For the UK business area, the decline was primarily attributable to weaker demand from customers in the aircraft industry and in the energy sector and for Flow Technology the comparison figures for the same period last year were high.
Net sales increased during the quarter by 3% compared to last year and amounted to SEK 5,147 million (4,976). Comparable units increased by 3% and acquisitions contributed with 5%. Currency movements had an effect of -4% and divestments had an effect of -1%.
Performance was strongest for comparable units in the Industrial Components and Benelux business areas. For both of these business areas, the development was driven by companies with customers in the medical technology and pharmaceutical segment, but companies in the engineering industry also contributed. The Benelux business area was also positively impacted by performance in the area of valves for power generation. Growth in net sales for comparable units was weakest for the Finland and Flow Technology business areas. The reason for the decline for Business Area Finland was lower demand attributable to the pandemic and to the cold winter. For Flow Technology business area, the comparison figures for the same period last year were high.
All of the business areas noted that delivery times from a large number of suppliers had lengthened, which had a slight impact on both delivery and invoicing abilities. However, the overall effect on the Group's net sales has been assessed as being relatively limited.
Sales growth
Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) amounted to SEK 713 million (616) for the first quarter, an improvement of 16%. Comparable units increased by 12%, acquisitions contributed 9% and currency movements had an effect of -5%. The effect of divestments was marginal. The EBITA margin increased and amounted to 13.9% (12.4%).
The increase in EBITA margin resulted from good organic growth in net sales, low cost levels and the favourable performance of newly acquired companies. Personnel related government support during the quarter was marginal.
Gross margin for the first quarter increased somewhat, partly owing to decreased production overheads and amounted to 34.3 % (34.0%).
The Industrial Components and Benelux business areas reported the largest improvements in EBITA margin. For both of these business areas, the positive development was driven by strong organic growth in net sales from, among others, customers in the medical technology and pharmaceutical segment. Lowered costs also had a positive impact on the Industrial Components business area and in Benelux, a good margin from newly acquired companies contributed.
The UK business area reported a decrease in EBITA margin, primarily due to lower net sales for comparable units and less favourable changes in the product mix.
SEK million
0 % 5 % 10% 15% 20% 25% 30% 35% 40% 15/Q1 16/Q1 17/Q1 18/Q1 19/Q1 20/Q1 21/Q1 Target Return on capital employed
Net financial items during the first quarter amounted to SEK -29 million (-32). Tax on profit for the quarter amounted to SEK -133 million (-108), corresponding to a tax charge of 22% (22%).
Profit for the quarter rose 19% to SEK 461 million (388). Earnings per share before dilution grew 19% and amounted to 1.27 (1.07).
Return on capital employed was higher than last year's first quarter and amounted to 20% (18%). Return on equity was 21% (22%).
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).
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 801 | 676 | 18% | 2,898 | 2,773 |
| EBITA | 115 | 83 | 39% | 392 | 360 |
| EBITA margin, % | 14.4 | 12.3 | 13.5 | 13.0 |
Net sales rose during the first quarter by 18% to SEK 801 million (676). Comparable units had an effect of 10%, acquisitions contributed 14% and currency movements had an effect of -6%.
Overall, demand during the quarter was higher than the corresponding period last year, primarily driven by higher demand within medical technology. Order intake was 14% higher than invoicing during the quarter.
EBITA increased by 39% in the quarter to SEK 115 million (83), corresponding to an EBITA margin of 14.4% (12.3%). Comparable units impacted EBITA positively by 18%, acquisitions contributed 27% and currency movements had an effect of -6%.
The higher EBITA margin is in part explained by the strong growth in net sales for comparable units and in part by the good margins contributed by newly acquired companies.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 371 | 413 | -10% | 1,487 | 1,529 |
| EBITA | 45 | 45 | 0% | 169 | 169 |
| EBITA margin, % | 12.1 | 10.9 | 11.4 | 11.1 |
Net sales decreased during the quarter by 10% to SEK 371 million (413). Comparable units had an effect of -4%, acquisitions contributed 1% and currency movements had an effect of -6%. Divestments had an effect of -1%.
Overall, demand was relatively unchanged during the quarter compared to the corresponding period last year. The trend among customers in the German engineering industry was positive, but that was counteracted by a somewhat lower level of project activity in the Swiss process industry. Order intake was 12% higher than invoicing.
EBITA was unchanged for the quarter and amounted to SEK 45 million (45). The EBITA margin increased and amounted to 12.1% (10.9%). For comparable units, EBITA increased by 9%. Acquisitions had an effect of -1% and currency movements -7%. Divestments had an effect of -1%.
The improved EBITA margin is primarily explained by lowered costs, but also positively impacted by a one-off item associated with pensions. Support for temporary lay-offs corresponded to 0.7% of net sales.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 386 | 436 | -11% | 1,629 | 1,679 |
| EBITA | 45 | 48 | -6% | 244 | 247 |
| EBITA margin, % | 11.7 | 11.0 | 15.0 | 14.7 |
Net sales were 11% lower during the quarter than the same period last year and amounted to SEK 386 million (436). Comparable units had an effect of -13%, acquisitions contributed 6% and currency movements had an effect of -4%.
Demand during the quarter was somewhat weaker than the corresponding period last year due to a lower level of overall demand because of the pandemic, along with the cold winter having suppressed demand in the infrastructure segment. However, order intake was 14% higher than invoicing during the quarter.
EBITA for the quarter decreased by 6% and amounted to SEK 45 million (48). The EBITA margin increased and amounted to 11.7% (11.0%). Comparable units had an effect of -8%, acquisitions contributed 7% and currency movements had an effect of -5%.
The improved EBITA margin was primarily attributable to favourable changes in the product mix. Support for temporary lay-offs was marginal during the quarter.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 1,003 | 1,045 | -4% | 4,029 | 4,071 |
| EBITA | 140 | 140 | 0% | 607 | 607 |
| EBITA margin, % | 14.0 | 13.4 | 15.1 | 14.9 |
Net sales decreased during the quarter by 4% to SEK 1,003 million (1,045). Comparable units had an effect of - 4%, acquisitions contributed 5% and currency movements had an effect of -3%. Divestments impacted net sales by - 2%.
Overall, demand during the quarter was lower than in the corresponding period last year. The comparison figures from last year were strong, with good order intake from customers in the marine and medical technology sectors and the process industry. Order intake was, however, 18% higher than invoicing during the quarter.
EBITA was unchanged for the quarter and amounted to SEK 140 million (140), corresponding to an EBITA margin of 14.0% (13.4%). Comparable units had an effect of -2%, acquisitions contributed 6% and currency movements had an effect of -4%. The effect of divestments was marginal.
Good cost control and positive effects from both new acquisitions and divestments contributed to the improved EBITA margin. Government support was marginal during the quarter.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 525 | 512 | 3% | 1,992 | 1,979 |
| EBITA | 73 | 63 | 16% | 278 | 268 |
| EBITA margin, % | 13.9 | 12.3 | 14.0 | 13.5 |
Net sales increased during the quarter by 3% to SEK 525 million (512). Comparable units increased by 5% and currency movements had an effect of -2%.
For most companies, demand was higher during the quarter compared to the same period last year, with the strongest performance among companies in the industry and automotive aftermarket segments. Order intake was 12% higher than invoicing.
EBITA increased by 16% during the quarter to SEK 73 million (63) and the EBITA margin increased to 13.9% (12.3%). Comparable units increased by 18% and currency movements had an effect of -2%.
The improved EBITA margin was primarily attributable to positive organic development in net sales along with good price management by companies. Government support was marginal during the quarter.
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 countries.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 1,153 | 969 | 19% | 3,987 | 3,803 |
| EBITA | 186 | 124 | 50% | 631 | 569 |
| EBITA margin, % | 16.1 | 12.8 | 15.8 | 15.0 |
Net sales rose 19% during the quarter to SEK 1,153 million (969). Comparable units increased by 17%, acquisitions contributed 5% and currency movements had an effect of -3%.
Overall, demand during the quarter was stronger than the corresponding period last year, with a positive development in most of the business area's segments. The strongest growth in demand occurred in the medical technology segment. Order intake was in line with invoicing during the quarter.
EBITA for the quarter increased by 50% to SEK 186 million (124) and the EBITA margin amounted to 16.1% (12.8%). For comparable units, EBITA increased by 46%, acquisitions contributed 9% and currency movements had an effect of -5%.
The EBITA margin improved for most of the business area's segments, with the strongest performance occurring within medical technology. Government support was marginal during the quarter.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 570 | 557 | 2% | 2,133 | 2,120 |
| EBITA | 99 | 91 | 9% | 342 | 334 |
| EBITA margin, % | 17.4 | 16.3 | 16.0 | 15.8 |
Net sales increased by 2% during the quarter to SEK 570 million (557). Comparable units increased by 3%, acquisitions contributed 5% and currency movements had an effect of -6%.
Demand during the quarter was higher than the corresponding period last year, with increases in most of the business area's segments and companies. Order intake was strong and 23% higher than invoicing during the quarter.
EBITA for the quarter increased by 9% and amounted to SEK 99 million (91). The EBITA margin amounted to 17.4% (16.3%). Comparable units had an effect of 6%, acquisitions contributed 7% and currency movements had an effect of -4%.
The improved EBITA margin was primarily driven by growth in organic net sales together with low costs but also good margins in newly acquired companies. Support for temporary lay-offs was marginal during the quarter.
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.
| 2021 | 2020 | 2020/21 | 2020 | ||
|---|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Change | Moving 12 mos | Jan-Dec |
| Net sales | 355 | 385 | -8% | 1,292 | 1,322 |
| EBITA | 38 | 50 | -24% | 147 | 159 |
| EBITA margin, % | 10.7 | 13.0 | 11.4 | 12.0 |
Net sales decreased during the quarter by 8% to SEK 355 million (385). Comparable units had an effect of -2% and currency movements -6%.
Overall, demand during the quarter was somewhat weaker compared to the same period last year. However, most companies noted an improvement in order intake, particularly towards the end of the quarter. Order intake was 7% higher than invoicing during the quarter.
EBITA decreased by 24% during the quarter to SEK 38 million (50) and the EBITA margin amounted to 10.7% (13.0%).
Comparable units had an effect of -19% and currency movements -5%.
The weaker EBITA margin primarily results from lower net sales and a somewhat unfavourable product mix. To some extent, however, it was offset by cost savings. Support for temporary lay-offs corresponded to 0.3% of net sales.
Shareholders' equity amounted to SEK 9,275 million (7,711) and the equity ratio was 48% (40%). Cash and cash equivalents amounted to SEK 872 million (897). In addition to this, the Group had unutilised credit commitments of SEK 4,728 million (2,913). Interest-bearing net debt amounted to SEK 5,157 million (6,528) at the end of the quarter. The decline compared to last year was primarily attributable to the strong cash flow and not having paid dividends for 2020. The net debt/equity ratio was 56% (85%) at the end of the period.
Indutrade's financing, nearly all of which is managed by the Parent Company, consists of loans from financial institutions, corporate bonds and commercial paper programmes.
During the quarter, Indutrade AB was assigned the long-term credit rating BBB- with stable outlook from S&P Global Ratings.
At the end of the quarter, the Parent Company's short-term borrowing amounted to SEK 1,502 million and long-term unutilised credit facilities amounted to SEK 4,250 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 first quarter and amounted to SEK 489 million (421). The improvement is primarily attributable to a higher operating profit. Despite higher sales, inventory declined somewhat for comparable units during the first quarter.
Cash flow after net capital expenditures in intangible non-current assets and in property, plant and equipment (excluding company acquisitions) amounted to SEK 410 million (301).
The Group's net capital expenditures, excluding company acquisitions, totalled SEK 79 million (120). Depreciation of property, plant and equipment totalled SEK 153 million (149). Investments in company acquisitions amounted to SEK 442 million (357). In addition, contingent earn-out payments for previous years' acquisitions totalled SEK 7 million (32). Divestments amounted to SEK 0 million (28).
The number of employees was 7,488 at the end of the period, compared with 7,270 at the start of the year.
The Group acquired the following companies, which are consolidated for the first time in 2021.
| Month acquired | Acquisitions | Business area | Net sales/SEK m* | No. of employees* |
|---|---|---|---|---|
| January | Pistesarjat Oy | Finland | 100 | 25 |
| January | Fire Proof B.V. | Benelux | 70 | 10 |
| February | Tecno Plast Industrietechnik GmbH | Benelux | 230 | 80 |
| February | Typhoon Group | Benelux | 40 | 22 |
| March | Efcon Water B.V. | Benelux | 20 | 9 |
| Total | 460 | 146 |
*) Estimated annual sales and number of employees at the time of acquisition.
Further information about completed company acquisitions can be found on page 19 of this interim report.
There are no significant events to report that occurred after the end of the reporting period.
The Annual General Meeting was held on 13 April 2021. Due to the Corona virus and recommendations of the authorities, the AGM was conducted solely via advance (postal) voting in accordance with temporary legislation.
The AGM resolved to adopt the Board's proposal on dividends for the 2020 financial year of SEK 1.80 per share.
The AGM resolved to approve the Board's proposal of establishing a long-term incentive programme (LTIP 2021), along with hedging measures associated with that. LTIP 2021 consists of performance shares and it is offered to members of the Group management team including the CEO, business area managers, the heads of subsidiaries and other key persons.
The main functions of Indutrade AB are to take responsibility for business development, acquisitions, financing, business control, analysis and communication. The Parent Company's sales, which consist exclusively of intercompany invoicing of services, amounted to SEK 0 million (0) during the period January – March. The Parent Company's financial assets consist mainly of shares in subsidiaries. During the period January – March, the Parent Company did not acquire any shares in companies. The Parent Company has not made any major investments in intangible assets or in property, plant and equipment. The number of employees on 31 March was 19 (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 2020, 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 2020 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 had a significant impact on the Group's result of operations and position in 2021.
Stockholm, 29 April 2021 Indutrade AB (publ.)
Bo Annvik 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 Act. The information was submitted for publication by the agency of the following contact persons at 08.00 CEST on 29 April 2021.
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 29 April at 9.30 a.m. (CEST) via the following link:
https://tv.streamfabriken.com/indutrade-q1-2021
To participate in the conference call and to ask questions, please call: SE: +46 8 505 58 375 UK: +44 333 300 90 31 USA: +1 8 335 26 83 96
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 5,147 | 4,976 | 19,388 | 19,217 |
| Cost of goods sold | -3,382 | -3,282 | -12,781 | -12,681 |
| Gross profit | 1,765 | 1,694 | 6,607 | 6,536 |
| Development costs | -60 | -63 | -224 | -227 |
| Selling costs | -771 | -813 | -2,967 | -3,009 |
| Administrative expenses | -303 | -303 | -1,123 | -1,123 |
| Other operating income and expenses | -8 | 13 | 68 | 89 |
| Operating profit | 623 | 528 | 2,361 | 2,266 |
| Net financial items | -29 | -32 | -123 | -126 |
| Profit before taxes | 594 | 496 | 2,238 | 2,140 |
| Income Tax | -133 | -108 | -496 | -471 |
| Net profit for the period | 461 | 388 | 1,742 | 1,669 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 461 | 389 | 1,741 | 1,669 |
| Non-controlling interests | 0 | -1 | 1 | 0 |
| 461 | 388 | 1,742 | 1,669 | |
| EBITA | 713 | 616 | 2,712 | 2,615 |
| Operating profit includes: | ||||
| Amortisation of intangible assets 1) | -100 | -98 | -398 | -396 |
| of which attributable to acquisitions | -90 | -88 | -351 | -349 |
| Depreciation of property, plant and equipment | -153 | -149 | -604 | -600 |
| Earnings per share before dilution, SEK | 1.27 | 1.07 | 4.80 | 4.60 |
| Earnings per share after dilution, SEK | 1.27 | 1.07 | 4.79 | 4.59 |
| 1) Excluding impairment losses |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net profit for the period | 461 | 388 | 1,742 | 1,669 |
| Other comprehensive income | ||||
| Items that can be reversed into income statement | ||||
| Fair value adjustment of hedge instruments | -5 | 2 | -3 | 4 |
| Tax attributable to fair value adjustments | 1 | 0 | 0 | -1 |
| Exchange rate differences | 184 | 150 | -245 | -279 |
| Items that cannot be reversed into income statement | ||||
| Actuarial gains/losses | - | - | -16 | -16 |
| Tax on actuarial gains/losses | - | - | 3 | 3 |
| Other comprehensive income for the period, net of tax | 180 | 152 | -261 | -289 |
| Total comprehensive income for the period | 641 | 540 | 1,481 | 1,380 |
| Total comprehensive income, attributable to: | ||||
| Equity holders of the parent company | 641 | 541 | 1,480 | 1,380 |
| Non-controlling interests | 0 | -1 | 1 | 0 |
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| SEK million | 31-Mar | 31-Mar | 31-Dec |
| Goodwill | 4,648 | 4,363 | 4,306 |
| Other intangible assets | 2,892 | 2,904 | 2,693 |
| Property, plant and equipment | 3,265 | 3,183 | 3,106 |
| Financial assets | 225 | 246 | 228 |
| Inventories | 3,478 | 3,537 | 3,307 |
| Trade receivables | 3,340 | 3,406 | 2,925 |
| Other receivables | 736 | 721 | 639 |
| Cash and cash equivalents | 872 | 897 | 758 |
| Total assets | 19,456 | 19,257 | 17,962 |
| Equity | 9,275 | 7,711 | 8,634 |
| Non-current interest-bearing liabilities and pension liabilities | 3,945 | 4,597 | 4,450 |
| Other non-current liabilities and provisions | 811 | 792 | 770 |
| Current interest-bearing liabilities | 2,084 | 2,828 | 1,186 |
| Trade payables | 1,446 | 1,501 | 1,136 |
| Other current liabilities | 1,895 | 1,828 | 1,786 |
| Total equity and liabilities | 19,456 | 19,257 | 17,962 |
| Attributable to equity holders of the parent company | 2021 | 2020 | 2020 |
|---|---|---|---|
| SEK million | 31-Mar | 31-Mar | 31-Dec |
| Opening equity | 8,624 | 7,157 | 7,157 |
| Total comprehensive income for the period | 641 | 541 | 1,380 |
| New issues | - | - | 87 |
| Dividend 1) | - | - | - |
| Closing equity | 9,265 | 7,698 | 8,624 |
| 1) Dividend per share for 2019 was SEK - | |||
| Equity, attributable to: | |||
| Equity holders of the parent company | 9,265 | 7,698 | 8,624 |
| Non-controlling interests | 10 | 13 | 10 |
| 9,275 | 7,711 | 8,634 |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Operating profit | 623 | 528 | 2,361 | 2,266 |
| Non-cash items | 251 | 239 | 939 | 927 |
| Interests and other financial items, net | -21 | -20 | -104 | -103 |
| Paid tax | -200 | -188 | -520 | -508 |
| Change in working capital | -164 | -138 | 172 | 198 |
| Cash flow from operating activities | 489 | 421 | 2,848 | 2,780 |
| Net capital expenditures in non-current assets | -79 | -120 | -358 | -399 |
| Company acquisitions and divestments | -449 | -361 | -1,066 | -978 |
| Change in other financial assets | 10 | 5 | 16 | 11 |
| Cash flow from investing activities | -518 | -476 | -1,408 | -1,366 |
| Debt/repayment of debt, net | 110 | 260 | -1,557 | -1,407 |
| New issues | - | - | 87 | 87 |
| Cash flow from financing activities | 110 | 260 | -1,470 | -1,320 |
| Cash flow for the period | 81 | 205 | -30 | 94 |
| Cash and cash equivalents at start of period | 758 | 719 | 897 | 719 |
| Exchange rate differences | 33 | -27 | 5 | -55 |
| Cash and cash equivalents at end of period | 872 | 897 | 872 | 758 |
| 2021 | 2020 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|
| Moving 12 mos | 31-Mar | 31-Dec | 31-Mar | 31-Dec | 31-Dec |
| Net sales, SEK million | 19,388 | 19,217 | 19,021 | 18,411 | 16,848 |
| Sales growth, % | 2 | 4 | 10 | 9 | 13 |
| EBITA, SEK million | 2,712 | 2,615 | 2,409 | 2,330 | 2,087 |
| EBITA margin, % | 14.0 | 13.6 | 12.7 | 12.7 | 12.4 |
| Capital employed at end of period, SEK million | 14,432 | 13,512 | 14,239 | 13,300 | 10,127 |
| Capital employed, average, SEK million | 13,675 | 13,541 | 13,133 | 12,416 | 9,839 |
| Return on capital employed, % 1) | 20 | 19 | 18 | 19 | 21 |
| Equity, average, SEK million | 8,288 | 7,899 | 6,972 | 6,715 | 5,715 |
| Return on equity, % 1) | 21 | 21 | 22 | 22 | 24 |
| Interest-bearing net debt at end of period, SEK million | 5,157 | 4,878 | 6,528 | 6,130 | 3,909 |
| Net debt/equity ratio, % | 56 | 56 | 85 | 85 | 63 |
| Net debt/EBITDA, times | 1.5 | 1.5 | 2.2 | 2.1 | 1.7 |
| Equity ratio, % | 48 | 48 | 40 | 41 | 44 |
| Average number of employees | 7,338 | 7,349 | 7,316 | 7,167 | 6,710 |
| Number of employees at end of period | 7,488 | 7,270 | 7,488 | 7,357 | 6,778 |
| Key ratios per share | |||||
|---|---|---|---|---|---|
| Earnings per share before dilution, SEK | 4.80 | 4.60 | 4.20 | 4.09 | 3.77 |
| Earnings per share after dilution, SEK | 4.79 | 4.59 | 4.19 | 4.09 | 3.77 |
| Equity per share, SEK | 25.48 | 23.72 | 21.23 | 19.74 | 17.11 |
| Cash flow from operating activities per share, SEK | 7.85 | 7.66 | 6.00 | 5.30 | 3.75 |
| Average number of shares before dilution, '000 | 362,981 | 362,721 | 362,565 | 362,565 | 362,496 |
| Average number of shares after dilution, '000 | 363,597 | 363,320 | 362,853 | 362,754 | 362,529 |
| Number of shares at the end of the period, '000 | 363,615 | 363,615 | 362,565 | 362,565 | 362,565 |
Lease liabilities and right-of-use assets according to IFRS 16 are included in the key data as of 2019. The comparative financial information has not been restated.
1) Calculated on average capital and equity.
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| Net sales, SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Benelux | 801 | 676 | 2,898 | 2,773 |
| DACH | 371 | 413 | 1,487 | 1,529 |
| Finland | 386 | 436 | 1,629 | 1,679 |
| Flow Technology | 1,003 | 1,045 | 4,029 | 4,071 |
| Fluids & Mechanical Solutions | 525 | 512 | 1,992 | 1,979 |
| Industrial Components | 1,153 | 969 | 3,987 | 3,803 |
| Measurement & Sensor Technology | 570 | 557 | 2,133 | 2,120 |
| UK | 355 | 385 | 1,292 | 1,322 |
| Parent company and Group items | -17 | -17 | -59 | -59 |
| Total | 5,147 | 4,976 | 19,388 | 19,217 |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| EBITA, SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Benelux | 115 | 83 | 392 | 360 |
| DACH | 45 | 45 | 169 | 169 |
| Finland | 45 | 48 | 244 | 247 |
| Flow Technology | 140 | 140 | 607 | 607 |
| Fluids & Mechanical Solutions | 73 | 63 | 278 | 268 |
| Industrial Components | 186 | 124 | 631 | 569 |
| Measurement & Sensor Technology | 99 | 91 | 342 | 334 |
| UK | 38 | 50 | 147 | 159 |
| Parent company and Group items | -28 | -28 | -98 | -98 |
| Total | 713 | 616 | 2,712 | 2,615 |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| EBITA margin, % | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Benelux | 14.4 | 12.3 | 13.5 | 13.0 |
| DACH | 12.1 | 10.9 | 11.4 | 11.1 |
| Finland | 11.7 | 11.0 | 15.0 | 14.7 |
| Flow Technology | 14.0 | 13.4 | 15.1 | 14.9 |
| Fluids & Mechanical Solutions | 13.9 | 12.3 | 14.0 | 13.5 |
| Industrial Components | 16.1 | 12.8 | 15.8 | 15.0 |
| Measurement & Sensor Technology | 17.4 | 16.3 | 16.0 | 15.8 |
| UK | 10.7 | 13.0 | 11.4 | 12.0 |
| 13.9 | 12.4 | 14.0 | 13.6 |
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Net sales, SEK million | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
| Benelux | 801 | 714 | 688 | 695 | 676 | |
| DACH | 371 | 362 | 360 | 394 | 413 | |
| Finland | 386 | 417 | 394 | 432 | 436 | |
| Flow Technology | 1,003 | 1,054 | 996 | 976 | 1,045 | |
| Fluids & Mechanical Solutions | 525 | 507 | 479 | 481 | 512 | |
| Industrial Components | 1,153 | 1,130 | 842 | 862 | 969 | |
| Measurement & Sensor Technology | 570 | 545 | 523 | 495 | 557 | |
| UK | 355 | 314 | 329 | 294 | 385 | |
| Parent company and Group items | -17 | -15 | -12 | -15 | -17 | |
| Total | 5,147 | 5,028 | 4,599 | 4,614 | 4,976 |
| 2021 | 2020 | ||
|---|---|---|---|
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| EBITA, SEK million | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
| Benelux | 115 | 103 | 89 | 85 | 83 | |
| DACH | 45 | 39 | 42 | 43 | 45 | |
| Finland | 45 | 61 | 72 | 66 | 48 | |
| Flow Technology | 140 | 154 | 162 | 151 | 140 | |
| Fluids & Mechanical Solutions | 73 | 66 | 66 | 73 | 63 | |
| Industrial Components | 186 | 193 | 122 | 130 | 124 | |
| Measurement & Sensor Technology | 99 | 89 | 96 | 58 | 91 | |
| UK | 38 | 31 | 41 | 37 | 50 | |
| Parent company and Group items | -28 | -24 | -5 | -41 | -28 | |
| Total | 713 | 712 | 685 | 602 | 616 |
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 2020 |
||||||
|---|---|---|---|---|---|---|
| EBITA margin, % | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
| Benelux | 14.4 | 14.4 | 12.9 | 12.2 | 12.3 | |
| DACH | 12.1 | 10.8 | 11.7 | 10.9 | 10.9 | |
| Finland | 11.7 | 14.6 | 18.3 | 15.3 | 11.0 | |
| Flow Technology | 14.0 | 14.6 | 16.3 | 15.5 | 13.4 | |
| Fluids & Mechanical Solutions | 13.9 | 13.0 | 13.8 | 15.2 | 12.3 | |
| Industrial Components | 16.1 | 17.1 | 14.5 | 15.1 | 12.8 | |
| Measurement & Sensor Technology | 17.4 | 16.3 | 18.4 | 11.7 | 16.3 | |
| UK | 10.7 | 9.9 | 12.5 | 12.6 | 13.0 | |
| 2021 | 2020 | |||
|---|---|---|---|---|
| 13.9 | 14.2 | 14.9 | 13.0 | 12.4 |
| 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Jan-Mar, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 13 | 2 | 350 | 541 | 373 | 892 | 144 | 34 | -7 | 2,342 |
| Other Europe | 656 | 347 | 32 | 398 | 123 | 244 | 188 | 284 | -7 | 2,265 |
| Americas | 60 | 10 | 1 | 7 | 19 | 9 | 157 | 17 | -2 | 278 |
| Asia | 60 | 11 | 2 | 42 | 8 | 6 | 67 | 16 | -1 | 211 |
| Other | 12 | 1 | 1 | 15 | 2 | 2 | 14 | 4 | 0 | 51 |
| 801 | 371 | 386 | 1,003 | 525 | 1,153 | 570 | 355 | -17 | 5,147 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 3 | 66 | 0 | 0 | 0 | 8 | 44 | 0 | -1 | 120 |
| Point in time | 798 | 305 | 386 | 1,003 | 525 | 1,145 | 526 | 355 | -16 | 5,027 |
| 801 | 371 | 386 | 1,003 | 525 | 1,153 | 570 | 355 | -17 | 5,147 | |
| 2020 | ||||||||||
| Jan-Mar, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 33 | 2 | 402 | 602 | 373 | 849 | 132 | 22 | -7 | 2,408 |
| Other Europe | 533 | 392 | 25 | 381 | 108 | 106 | 199 | 314 | -8 | 2,050 |
| Americas | 36 | 12 | 6 | 13 | 22 | 11 | 165 | 26 | -2 | 289 |
| Asia | 63 | 5 | 2 | 23 | 7 | 3 | 46 | 20 | 0 | 169 |
| Other | 11 | 2 | 1 | 26 | 2 | 0 | 15 | 3 | 0 | 60 |
| 676 | 413 | 436 | 1,045 | 512 | 969 | 557 | 385 | -17 | 4,976 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 0 | 84 | 0 | 0 | 0 | 8 | 38 | 0 | -1 | 129 |
| Point in time | 676 | 329 | 436 | 1,045 | 512 | 961 | 519 | 385 | -16 | 4,847 |
| 676 | 413 | 436 | 1,045 | 512 | 969 | 385 | -17 | 4,976 |
1 ) Parent company & Group items
FT - Flow Technology FM - Fluids & Mechanical Solutions
IC - Industrial Components MST - Measurement & Sensor Technology
All of the shares were acquired in the following companies: Pistesarjat Oy (Finland), Fire Proof B. V. (Netherlands), Tecno Plast Industrietechnik GmbH (Germany), Typhoon Group (Netherlands) and Efcon Water B. V. (Netherlands).
On 29 January, Fire Proof B.V. (Netherlands) was acquired, with annual sales of SEK 70 million. The company is specialised in passive fire protection for buildings.
On 12 February, Tecno Plast Industrietechnik GmbH (Germany) was acquired, with annual sales of SEK 230 million. Tecno Plast offers single-use tubing sets, PTFE and silicone hoses.
On 15 February, Typhoon Group (Netherlands) was acquired, with annual sales of SEK 40 million. The company is a highly focused supplier in stirring and mixing systems.
On 4 March, Efcon Water B. V. (Netherlands) was acquired, with annual sales of SEK 20 million. Efcon Water is specialised in products and measurement instrumentation for wastewater sampling systems.
On 4 January, Pistesarjat Oy (Finland) was acquired, with annual sales of SEK 100 million. It is a technical trading company offering heating & frost protection cable systems, fire-resistant cables and data cable systems.
Preliminary purchase price allocations
| Purchase price, incl. contingent earn-out | |
|---|---|
| payment totalling SEK 52 million | 563 |
| Fair value | |||||
|---|---|---|---|---|---|
| Acquired assets and liabilities | Book value | adjustment | Fair value | ||
| Goodwill | 0 | 216 | 216 | ||
| Agencies, trademarks, customer | |||||
| relations, licences, etc. | 5 | 191 | 196 | ||
| Property, plant and equipment | 56 | - | 56 | ||
| Financial assets | 2 | - | 2 | ||
| Inventories | 93 | - | 93 | ||
| Other current assets 1) | 53 | - | 53 | ||
| Cash and cash equivalents | 62 | - | 62 | ||
| Deferred tax liability | 0 | -42 | -42 | ||
| Provisions including pension liabilities | -23 | - | -23 | ||
| Other operating liabilities | -50 | - | -50 | ||
| 198 | 365 | 563 |
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 3 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 amount to SEK 52 million (120). The contingent earn-out payments fall due for payment within three years and can amount to a maximum of SEK 57 million (135). If the conditions are not met, the outcome can be in the range of SEK 0-57 million.
Transaction costs during the period totalled SEK 5 million (5) and are included in Other income and expenses in the income statement. Contingent earn-out payments have been restated in the amount of SEK 4 million (15). The effect is reported under Other income and expenses in the amount of SEK 4 million (15) and under Net financial items in the amount of SEK 0 million (0).
The acquisition analyses for Stein Automation GmbH, VarioDrive B. V., AVA Monitoring AB, Sverre Hellum & Sønn AS, Jouka OY and Nortronic AS, which were acquired during the first quarter of 2020, have now been finalised. No significant adjustments have been made to the calculations. For other acquisitions, the purchase price allocation 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 | 563 |
|---|---|
| Purchase price not paid out | -59 |
| Cash and cash equivalents in acquired companies | -62 |
| Payments pertaining to previous years´acquisitions | 7 |
| Total cash flow impact | 449 |
| SEK million | Net sales | EBITA |
|---|---|---|
| Business area | Jan-Mar | Jan-Mar |
| Benelux | 98 | 23 |
| DACH | 4 | 0 |
| Finland | 27 | 3 |
| Flow Technology | 51 | 9 |
| Fluids & Mechanical Solutions | - | - |
| Industrial Components | 53 | 11 |
| Measurement & Sensor Technology | 27 | 7 |
| UK | - | - |
| Effect on Group | 260 | 53 |
| Acquisitions carried out in 2020 | 172 | 36 |
| Acquisitions carried out in 2021 | 88 | 17 |
| Effect on Group | 260 | 53 |
If all acquired units had been consolidated as from 1 January 2021, net sales for the year would have amounted to SEK 5,180 million, and EBITA would have totalled SEK 719 million.
No divestments have been made in 2021.
No acquisitions have been made after the end of the reporting period.
| Number of shares at the beginning of the year | 363,615,000 |
|---|---|
| Number of newly subscribed shares | - |
| Total number of shares outstanding after new issues | 363,615,000 |
In April 2017 the Annual General Meeting of Indutrade AB resolved to introduce a long-term incentive programme (LTI 2017) comprising a combined maximum of 704,000 warrants in two series for senior executives and other key persons in the Indutrade Group. Shares can be subscribed during specially stipulated subscription periods through Friday, 20 May 2022.
After the bonus issue in December 2020, each warrant entitles the holder to subscribe for three shares. The exercise price for series I has been recalculated to SEK 81.60 per share and for series II to SEK 92.30 per share.
At the AGM in April 2021, it was resolved to establish a new incentive programme, LTIP 2021. The programme covers approximately 235 employees and is directed at senior executives and other key persons. LTIP 2021 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.
| Outstanding programme |
Number of options |
Corresponding number of shares |
Proportion of total shares |
Price per warrant, SEK |
Initial exercise price, SEK |
Adjusted exercise price, SEK |
Number of exercised warrants |
Corresponding number of shares |
Expiration period |
|---|---|---|---|---|---|---|---|---|---|
| 2017/2022, | 27 April 2020 – 20 May |
||||||||
| Series I | 526,000 | 1,578,000 | 0.4% | 15.0 | 244.9 | 81.6 | 317,000 | 951,000 | 2022 |
| 27 April 2020 | |||||||||
| 2017/2022, | – 20 May | ||||||||
| Series II | 60,000 | 180,000 | 0.0% | 13.4 | 276.8 | 92.3 | 33,000 | 99,000 | 2022 |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec | |
| Average number of shares before dilution, '000 | 363,615 | 362,565 | 362,981 | 362,721 |
| Number of shares that incur a dilutive effect due to incentive programme, '000 |
400 | 393 | 616 | 599 |
| Average number of shares after dilution, '000 | 364,015 | 362,958 | 363,597 | 363,320 |
| Dilutive effect, % | 0.11 | 0.11 | 0.17 | 0.17 |
| Number of shares at end of the period, '000 | 363,615 | 362,565 | 363,615 | 363,615 |
| 31 Mar 2021, 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 | - | - | 14 | - | - | 14 | 14 |
| Trade receivables | - | 3,340 | - | - | - | 3,340 | 3,340 |
| Other receivables | - | 33 | - | - | - | 33 | 33 |
| Cash and cash equivalents | - | 872 | - | - | - | 872 | 872 |
| Total | - | 4,245 | 14 | - | - | 4,259 | 4,259 |
| Non-current interest-bearing | |||||||
| liabilities | - | - | - | 422 | 3,099 | 3,521 | 3,533 |
| Current interest-bearing liabilities |
- | - | - | 198 | 1,886 | 2,084 | 2,084 |
| Trade payables | - | - | - | - | 1,446 | 1,446 | 1,446 |
| Other liabilities | 7 | - | - | - | - | 7 | 7 |
| Total | 7 | - | - | 620 | 6,431 | 7,058 | 7,070 |
| 31 Dec 2020, 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 | - | - | 12 | - | - | 12 | 12 |
| Trade receivables | - | 2,925 | - | - | - | 2,925 | 2,925 |
| Other receivables | 7 | 49 | - | - | - | 56 | 56 |
| Cash and cash equivalents | - | 758 | - | - | - | 758 | 758 |
| Total | 7 | 3,732 | 12 | - | - | 3,751 | 3,751 |
| Non-current interest-bearing liabilities |
- | - | - | 462 | 3,588 | 4,050 | 4,057 |
| Current interest-bearing liabilities |
- | - | - | 87 | 1,099 | 1,186 | 1,186 |
| Trade payables | - | - | - | - | 1,136 | 1,136 | 1,136 |
| Other liabilities | 10 | - | - | - | - | 10 | 10 |
| Total | 10 | - | - | 549 | 5,823 | 6,382 | 6,389 |
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 | 2021 | 2020 |
|---|---|---|
| SEK million | 31-Mar | 31-Dec |
| Opening book value | 549 | 565 |
| Acquisitions during the year | 65 | 319 |
| Consideration paid | -7 | -104 |
| Reclassified via income statement | -3 | -213 |
| Interest expenses | 2 | 5 |
| Exchange rate differences | 14 | -23 |
| Closing book value | 620 | 549 |
| 2021 | 2020 | 2020/21 | 2020 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Moving 12 mos | Jan-Dec |
| Net sales | 0 | 0 | 8 | 8 |
| Gross profit | 0 | 0 | 8 | 8 |
| Administrative expenses | -34 | -30 | -121 | -117 |
| Operating profit | -34 | -30 | -113 | -109 |
| Financial income/expenses | 16 | -20 | 57 | 21 |
| Profit from participation in Group companies | - | - | 894 | 894 |
| Profit after financial items | -18 | -50 | 838 | 806 |
| Appropriations | - | - | 403 | 403 |
| Income Tax | 4 | 11 | -78 | -71 |
| Net profit for the period | -14 | -39 | 1,163 | 1,138 |
| Amortisation/depreciation of intangible assets and property, plant | ||||
| and equipment | 0 | 0 | 0 | 0 |
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| SEK million | 31-Mar | 31-Mar | 31-Dec |
| Intangible assets | 0 | 0 | 0 |
| Property, plant and equipment | 1 | 1 | 1 |
| Financial assets | 6,233 | 6,164 | 6,253 |
| Current receivables | 6,846 | 6,735 | 6,861 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total assets | 13,080 | 12,900 | 13,115 |
| Equity | 7,074 | 5,824 | 7,088 |
| Untaxed reserves | 675 | 673 | 675 |
| Non-current interest-bearing liabilities and pension liabilities | 2,329 | 3,063 | 2,913 |
| Other non-current liabilities and provisions | 0 | 5 | 0 |
| Current interest-bearing liabilities | 2,911 | 3,098 | 2,286 |
| Current non-interest-bearing liabilities | 91 | 237 | 153 |
| Total equity and liabilities | 13,080 | 12,900 | 13,115 |
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.
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.
Shareholders' equity plus interest-bearing net debt.
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.
EBITA-margin
• The EBITA margin shall amount to a minimum of 12% 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.
1)Financial year 2020
Net sales per market, % 1)
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.nr. 556017-9367. Box 6044, SE-164 06 Kista. Visiting address: Raseborgsgatan 9. Tel: +46 8 703 03 00 www.indutrade.com
Indutrade is a proud signatory of the UN Global Compact and in March, we published our Sustainability Report for 2020. The Sustainability Report, which is available on our website, describes our systematic sustainability efforts in the areas that are most significant to the Indutrade Group, along with summarising the year's activities.
Please read more about the long-term 2030 objectives and measurable key figures that we have identified in our three focus areas: people, environment and profitable growth. The report also contains information about how we work with environmental impact, implementation of the Code of Conduct and our new sustainability platform for collecting the Group's sustainability data. We regard business opportunities linked to sustainability as a driving force for developing our companies and continuing to generate sustainable profitable growth. Read more here.
Indutrade was assigned the credit rating BBB-, with stable outlook from S&P Global Ratings.
For several years, Indutrade has been active in the Swedish capital market as an issuer of commercial paper and bonds. Many investors have rules that only allow investments in companies with a public rating. It is therefore natural for Indutrade to apply for a credit rating as a means of further expanding the investor base.
"An investment grade credit rating confirms Indutrade's stable business model and strong financial position. The rating further improves our position on the capital market and it will support Indutrade in the continued growth strategy," says Patrik Johnson, CFO at Indutrade.
Typhoon Group is a highly focused supplier in stirring and mixing systems. The systems, which range from less complex agitators to advanced installations, mix raw materials and products for a wide range of industries, for example food and beverage, chemical, pharmaceutical, cosmetics, wastewater, rubber and plastics industry. Typhoon's offering includes customised solutions to OEM customers and industrial end users in primarily the Netherlands, Belgium and Germany, and is complemented by service and maintenance.
Founded in 1946, the Group currently has 22 employees and is based in Raamsdonksveer, the Netherlands, with branch offices in Brasschaat, Belgium and in Pennigsehl, Germany.
The closing took place on 15 February, and Typhoon Group is included in Indutrade's Business Area Benelux.
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