Quarterly Report • Feb 16, 2023
Quarterly Report
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l Alligo completed acquisitions of Profilföretaget Z-Profil AB, Kents Textiltryck i Halmstad AB and Olympus Profile i Uddevalla AB on 2 January 2023.
In this report, Alligo's former subsidiary Momentum Group AB (the Components & Services business area) is reported as discontinued operations in accordance with IFRS 5. The Alligo business area represents continuing operations. Comments and figures relate to continuing operations unless otherwise specified. Comparison figures in the consolidated income statement have been recalculated. For more information, see Note 1 Accounting policies and Note 7 Discontinued operations.
| Group, MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue, MSEK | 2,723 | 2,436 | 9,211 | 8,417 |
| Operating profit, MSEK | 268 | 194 | 669 | 427 |
| Operating margin, % | 9.8 | 8.0 | 7.3 | 5.1 |
| EBITA, MSEK | 298 | 250 | 756 | 645 |
| EBITA margin, % | 10.9 | 10.3 | 8.2 | 7.7 |
| Return on equity2.3, % | 16 | 13 | ||
| Equity per share4 , SEK |
67.51 | 67.95 | 67.51 | 67.95 |
| Equity/assets ratio5 , % |
41 | 40 | 41 | 40 |
1) Before and after dilution.
2) Adjusted for the impact on earnings of the distribution of Momentum Group AB.
3) Refers to the Group total (continuing operations and discontinued operations).
4) Refers to equity attributable to the Parent Company's shareholders.
5) KPI calculated on the basis of the figures reported in the financial statements. This means that profit/loss items for previous periods are recalculated and based on continuing operations, while balance sheet items for previous periods are not recalculated.
T he fourth quarter brings to an end a year like no other in recent history. The year 2022 began with an ongoing pandemic and social restrictions, a war broke out in Europe and inflation in Sweden was at its highest level since the early 1990s, to give just a few examples. At the same time, Alligo has completed several important integration projects and further developed the business model. We have changed the organizational structure, coordinated logistics in Sweden, changed IT and business systems and merged companies. The business has been streamlined through the distribution of Momentum Group to the shareholders on 31 March 2022 and we are now a more integrated and efficient company.
Sales in the fourth quarter were stable, although we observed a slowdown in Sweden towards the end of the quarter. Revenue for the fourth quarter was MSEK 2,723 (2,436), an increase of 11.8 per cent. Of this growth, 6.7 per cent was organic, 2.8 per cent was through acquisitions and 2.3 per cent derived from currency effects. It was pleasing that the target for organic growth was exceeded in all countries.
Revenue for the full year 2022 increased by 19 per cent and amounted to MSEK 9,211 (8,417), an increase of 9.4 per cent. Organic growth amounted to 6.1 per cent and growth through acquisitions to 1.0 per cent, while currency effects totalled 2.3 per cent. Revenue for the full year also contains an inflationary effect. The organic growth was stable on all markets during the year and was supplemented by several completed acquisitions.
The high level of inflation and the weak Swedish krona are putting pressure on margins and we are constantly working to ensure that pricing reflects our more expensive procurement and underlying cost increases. At the same time, it is important that we get our pricing right in relation to our competitors at a time when everyone is feeling the pressure of cost increases.
EBITA for the fourth quarter amounted to MSEK 298 (250) and the EBITA margin was 10.9 per cent (10.3). The improvement in profit can be attributed to increases on all three markets in Sweden, Norway and Finland. Furthermore, there is room for additional improvement as we now have a clearer focus on sales and operational efficiency rather than integration.
EBITA for the full year 2022 amounted to MSEK 756 (645) and the EBITA margin was 8.2 per cent (7.7).
Cash flow from operating activities for the fourth quarter totalled MSEK 417 (432). The build-up of inventories is being driven by growth in own brands. It is a conscious strategy to prioritise sales and a high level of availability that ensures we can meet customer demand.
Cash flow from operating activities for the full year 2022 totalled MSEK 507 (750) and was negatively affected by increased working capital. During 2023, we will gradually reduce our stock levels and improve our cash flow from operating activities, while maintaining availability for our customers.
We have a strong financial position and good liquidity that means we can invest in initiatives to drive sales and efficiency, as well as make acquisitions. Alligo's acquisition strategy is based on identifying the right
Despite the uncertainty in the world around us, 2022 was a stable year for Alligo in which we carried out a large number of integration and improvement projects.
companies to acquire and integrating them through an efficient process. Nine acquisitions during 2022 are proof that our model works and we will continue to acquire the right companies at the right time during 2023.
Despite the uncertainty in the world around us, 2022 was a stable year for Alligo in which we carried out a large number of integration and improvement projects. Alligo performed well in terms of sales and earnings during the fourth quarter and during 2022 as a whole. We have developed the business at a rapid pace in a short time but we can now put the large-scale project to coordinate Swedol and Tools behind us. We do not know exactly what the future holds, but we are well prepared and Alligo is now a much stronger company than even just a year ago. We believe in what we are doing and we look forward to our continued work in advancing and making Alligo even more successful in 2023.
Clein Johansson Ullenvik Group President and CEO
Alligo is a leading player within workwear, personal protective equipment, tools and consumables in the Nordic region. Its offering consists of a standardised product range of goods and services that enable companies to function. The range consists of a balanced mix of own brands and leading external brands and is characterised by high quality, value for money and product safety, combined with a good service level and availability.
Alligo's main markets of Sweden, Norway and Finland generate total revenue of approximately SEK 53 billion per year. Its customers are a balanced mix of small and medium-sized enterprises, large companies and public-sector agencies within eight defined industry segments: Manufacturing, Construction industry, Public sector, Transport and storage, Repair and maintenance, Agriculture and forestry, Fishing and aquaculture and Oil and gas.
Through the concept brands Swedol, Tools, Grolls and Univern, alongside local independent stores, we meet professional users throughout the Nordic region in the channels where they want to meet us, whether this is a store, field sales, digital channels or on-site service.
Since Alligo was formed through the merger of Swedol and Tools in 2020, intensive work has been under way to construct an integrated company with a common platform that provides economies of scale within key areas such as assortment, procurement, logistics, finance, IT, HR and sales.
Based on common values, strategies and objectives, we will work together to achieve the vision of becoming unbeatable as a partner to our customers and suppliers, as an employer to our employees and as a leader of sustainable development in our industry.
SWEDEN: Mercus, Company Line, Reklamproffsen, Industriprofil, TriffiQ, Profilmakarna, Defacto, Magnusson Agentur, Profeel, Z-Profil, Kents Textiltryck and Olympus Profile. FINLAND: Metaplan and Liukkosen Pultti.
Revenue increased by 11.8 per cent to MSEK 2,723 (2,436) and contains a non-negligible inflationary effect. Revenue from like-for-like sales, measured in local currency and adjusted for the number of trading days, increased by 6.7 per cent compared with the corresponding quarter last year. The growth in like-for-like sales corresponds to organic growth, as no new stores were established during the period. This increase was driven mainly by larger industrial customers in Finland and Norway. There was a slight slowdown in sales in Sweden from November onwards. The proportion of own brands during the quarter was 20.2 per cent (21.2). This reduction is mainly the result of the divestment of Gigant and Nytello during the fourth quarter last year; adjusted for this, the proportion of own brands is higher than in the corresponding period last year (19.0) and has increased on all markets. This increase was driven by the successful launch of the Group's own shoe and clothing brands. Currency translation effects had a positive impact on revenue of MSEK 55 as a result of the development of both NOK and EUR. The quarter contained the same number of trading days as last year.
REVENUE
| 2021 | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| Per quarter | 1,968 | 2,157 | 1,856 | 2,436 | 2,095 | 2,275 | 2,118 | 2,723 | ||
| Rolling 12 mos | 7,953 | 8,115 | 8,205 | 8,417 | 8,544 | 8,662 | 8,924 | 9,211 |
| SALES TREND | 2022 | 2022 | 20211 |
|---|---|---|---|
| 150 | OCT–DEC | JAN–DEC | JAN–DEC 400 |
| Change in revenue from: | |||
| Like-for-like sales in local currency,% 75 |
6.7 | 6.1 | 4.3 200 |
| Currency effects, % | 2.3 | 2.3 | 0.0 |
| Number of trading days, % 0 |
- | - | 0.4 0 |
| Q1 Q2 Q3 Q4 New stores established in local currency,% |
Q1 Q2 - |
Q3 Q4 - |
- |
| Per 2021 Other units2 , % quarter, |
2.8 | 2022 1.0 |
Rolling 0.2 12 months, |
| MSEK Total change |
11.8 | 9.4 | MSEK 4.9 |
1) Swedol is included in like-for-like sales as though the acquisition had closed on 1 April 2020.
2) Acquisitions and divestments during 2020–2022 (excluding Swedol).
Revenue increased by 9.4 per cent to MSEK 9,211 (8,417) and contains an inflationary effect. Revenue from like-for-like sales, measured in local currency and adjusted for the number of trading days, increased by 6.1 per cent compared with the corresponding period last year. The growth in like-for-like sales corresponds to organic growth, as no new stores were established during the period. This increase was driven mainly by larger industrial customers in Finland and Norway, as well as small and mediumsized enterprises in Sweden. Sales to larger industrial customers in Sweden have been negatively affected by disruption to logistics and sales processes as a result of the migration to a common business system and the coordination of logistics during the second quarter. A slight slowdown in sales in Sweden was also observed during the fourth quarter. The proportion of own brands during the period was 18.2 per cent (20.4). This reduction is mainly the result of the divestment of Gigant and Nytello during the fourth quarter last year; adjusted for this, the proportion of own brands is higher than in the corresponding period last year (17.9). This increase was driven by the successful launch of the Group's own brands for shoes and, during the latter part of the year, clothing. The clothing brand launch was delayed as a result of disruption to supplies from Asia during the first half of the year. There is now good availability of own brands and the proportion of sales of own brands has increased in both Sweden and Finland. Currency translation effects had a positive impact on revenue of MSEK 195, mainly as a result of the development of NOK, but also of EUR. The period contained the same number of trading days as last year.
Operating profit amounted to MSEK 268 (194). EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets arising in connection with corporate acquisitions) increased by 19 per cent to MSEK 298 (250), corresponding to an EBITA margin of 10.9 per cent (10.3). This improvement in profit can be seen across all countries and was driven by growth, price increases that compensate for higher purchase prices and unfavourable currency effects, as well as synergies. The effect is mitigated by an unfavourable country mix in the form of stronger growth in Norway and Finland than in Sweden. Operating profit was charged with items affecting comparability of MSEK -15 (-40), which comprise costs for organisational changes resulting from new sales organisations in Sweden and Norway of MSEK -9 and rental costs for the coordination of logistics of MSEK -6. 1,800 2,400 3,000 8,000 9,000 10,000
During the quarter, MSEK 11 was utilised from restructuring reserves reported in previous years, MSEK 1 of which originates from the third quarter of 2020 and MSEK 10 from the third quarter of 2021. 600 1,200 7,000
The effective tax rate was 21.1 per cent (24.9). Profit after financial items was MSEK 246 (185) and profit after tax was MSEK 194 (139), which corresponds to earnings per share for continuing operations of SEK 3.82 (2.75) for the quarter. 2021 Q1 Q2 Q3 Q4 Q1 Q2 2022 Q3 Rolling 12 months, MSEK Q4 Per quarter, MSEK
Rolling 12 mos 456 499 557 645 668 676 708 756
Operating profit amounted to MSEK 669 (427). EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets arising in connection with corporate acquisitions) increased by 17 per cent to MSEK 756 (645), corresponding to an EBITA margin of 8.2 per cent (7.7). This improvement in profit can be seen across all markets and was driven by growth, better gross margins and synergies. The effect is mitigated by an unfavourable country mix in the form of stronger growth in Norway and Finland than in Sweden. Operating profit has been charged with items affecting comparability of MSEK -24 (-155), which comprise costs for organisational changes of MSEK -13, rental costs for the coordination of logistics of MSEK -6 and costs ahead of the separate listing of Momentum Group of MSEK -5.
The coordination of Tools and Swedol is proceeding according to plan. In principle, only the coordination of the range remains to be fully implemented, alongside the planned change of business system in Norway. The store integrations in Norway and Sweden have been completed, with the exception of two that remain in Sweden. At 203, the net total number of Alligo stores remained unchanged compared with the beginning of the year. The logistics operations in Sweden were coordinated during the second quarter and a common business system and pricing system were also implemented in Tools in Sweden. The relocation of logistics operations has caused disruption to the logistics processes, but will provide both cost savings and better service for customers in the long term. A common business system and pricing system were implemented in Tools in Finland during the second quarter of 2021 and there are similar plans for Tools in Norway in early 2025. During the period, MSEK 54 was utilised from restructuring reserves reported in previous years. The restructuring reserve from the third quarter of 2020 amounts to MSEK 19 (originally MSEK 97). The restructuring reserve originating from the third quarter of 2021 amounts to MSEK 80, compared with an initial MSEK 108.
The effective tax rate was 21.4 per cent (23.2). Profit after financial items was MSEK 612 (379) and profit after tax was MSEK 481 (291), which corresponds to earnings per share for continuing operations of SEK 9.51 (5.75) for the period. The Group's profitability, measured as the return on equity, amounted to 16 per cent for the most recent 12-month period, corresponding to a return on capital employed of 11 per cent.
Total profit from the Group amounted to MSEK 4,062 (430), of which MSEK 481 (291) is attributable to continuing operations, MSEK 28 (139) to discontinued operations, and MSEK 3,553 to the impact on earnings of the distribution of Momentum Group.
Revenue in Sweden amounted to MSEK 1,645 (1,527). Sales have been positively affected by the acquisitions of Magnusson Agenturer AB and Profeel Sweden AB. Organic growth was around 6 per cent. Sales were good at the beginning of the quarter but weakened during November and December. EBITA increased to MSEK 253 (232) and the EBITA margin to 15.4 per cent (15.2). This improvement in profit was driven by growth, synergies and price increases that compensate for higher purchase prices. The sales organisation was streamlined during the quarter.
Revenue in Norway amounted to MSEK 744 (618). The increase of around 20 per cent was positively affected by the acquisitions of Lunna AS, H E Seglem and LVH AS, favourable currency effects and good development within the oil and gas industry in particular. Organic growth was around 9 per cent. EBITA for the quarter amounted to MSEK 34 (29) and the EBITA margin to 4.6 per cent (4.7). The improvement in profit was driven by growth and synergies. The sales organisation was streamlined during the quarter and work to develop our sales management and so improve margins was intensified.
Revenue in Finland amounted to MSEK 433 (364). The acquisition of Liukkosen Pultti Oy made a positive contribution to this, alongside favourable currency effects and continued positive development among larger industrial customers. Organic growth was around 6 per cent. EBITA for the quarter amounted to MSEK 17 (-8) and the EBITA margin to 3.9 per cent (-2.2). The improvement in profit was driven by growth, synergies and better sales management. The customer mix remains unfavourable, but activities are under way to increase the proportion of small and mediumsized enterprises, including by investing in stores.
Revenue in Sweden increased by approximately 4 per cent to MSEK 5,339 (5,151) and organic growth was around 5 per cent. The revenue contains a non-negligible inflationary effect and was also positively affected by the acquisitions of Magnusson Agenturer AB and Profeel Sweden AB, at the same time this was offset by the divestment of Gigant last year. Following a weak first quarter, with winter sales arriving in the fourth quarter of 2021 and small and medium-sized enterprises exercising restraint as a result of Russia's war in Ukraine, development in stores has now stabilised. Development within the industrial segment, which was strong during the first quarter, was negatively affected by a new business system through disruptions to the logistics and sales processes during the second and third quarters. Sales weakened gradually during the fourth quarter, despite favourable winter weather.
Four stores were integrated during the period and there are now only two more remaining to be completed in the integration project. The number of stores at the end of the period was 107 (109). EBITA for the period amounted to MSEK 610 (560) and the EBITA margin to 11.4 per cent (10.9). The improvement in profit was driven by synergies and good margin development in stores, but was negatively affected by challenges within the industrial segment, which are partly the result of the integration work. Operating profit was charged with items affecting comparability of MSEK -9 (-130), which comprise costs for organisational changes in connection with establishing new sales organisations of MSEK -6 and rental costs for the coordination of logistics of MSEK -3.
Revenue in Norway amounted to MSEK 2,591 (2,198). This increase of around 18 per cent contains a non-negligible inflationary effect and was positively affected by the acquisitions of RAF Romerike Arbeidstøy AS, Lunna AS, H E Seglem and LVF AS, as well as positive currency effects. Organic growth was around 8 per cent. Following a weaker start to the year, with a high spread of infection and an early winter that particularly hit sales to small and medium-sized enterprises, demand has stabilised and, since the second quarter, sales growth within the oil and gas industry has been strong.
The number of stores at the end of the period was 57 (55). EBITA for the period amounted to MSEK 107 (80) and the EBITA margin to 4.1 per cent (3.6). The improvement in profit was driven by growth and synergies. Work is ongoing to establish a more favourable customer mix and to strengthen the sales and assortment management in order to improve margins, while the new sales organisation is also helping to reduce costs. Operating profit was charged with items affecting comparability of MSEK -6 (-19), which comprise costs for organisational changes in connection with establishing new sales organisations of MSEK -3 and rental costs for the coordination of logistics of MSEK -3.
Revenue in Finland amounted to MSEK 1,552 (1,320) and contains a non-negligible inflationary effect. The acquisitions of Imatran Pultti Oy and Liukkosen Pultti Oy made a positive contribution to this, alongside growth at larger industrial customers and favourable currency effects. Organic growth was around 8 per cent. EBITA for the period amounted to MSEK 62 (19) and the EBITA margin to 4.0 per cent (1.4). The improvement in profit was driven by growth, while the work to strengthen the sales and assortment management also began to have an effect from the third quarter onwards.
The number of stores at the end of the period was 39 (39). The customer mix remains unfavourable, but activities are under way to increase the proportion of small and mediumsized enterprises, including by investing in stores. Operating profit was charged with items affecting comparability of MSEK -5 (0), which comprise severance costs in connection with the change of management in Finland of MSEK -4 and rental costs of MSEK -1. A new country manager for Finland took up their post during the fourth quarter.
78% Sweden
Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 1,047 (922). Inventories increased during the period by MSEK 349 as a result of increased volumes for the rollout of own brands and other adaptations to the range. External factors, such as increased costs for purchasing products, freight and currency also had an impact. The average value of inventories was MSEK 2,068 (1,722) and the inventory turnover rate was 4.5 (4.9). Operating receivables increased by MSEK 100 and operating liabilities fell by MSEK -91. Cash flow from operating activities for the reporting period therefore amounted to MSEK 507 (750). Cash flow for the period was also impacted by a net amount of MSEK -152 (-166) pertaining to investments in and divestments of non-current assets, as well as by MSEK -144 (-54) pertaining to acquisitions and divestments of subsidiaries. Investments in non-current assets principally relate to the implementation of a new common business system in Sweden, the development of e-commerce solutions and service concepts, store modifications in all countries and the continued expansion and automation of the Group's logistics centre in Örebro.
At the end of the period, the Group's financial net loan liability amounted to MSEK 2,547, compared with MSEK 2,272 at the beginning of the financial year. The Group's operational net loan liability at the end of the period amounted to MSEK 1,534, compared with MSEK 1,259 at the beginning of the year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 1,176 compared with MSEK 1,334 at the beginning of the year. The business was refinanced during the first quarter as a result of the distribution of Momentum Group. The total credit facility is MSEK 2,300 and was raised in March 2022. It has a term of three years, with the option to extend for one year and subsequently for a further year. The interest rate is linked to STIBOR plus a surcharge based on the ratio of net operational liabilities to EBITDA. The equity/assets ratio at the end of the period was 41 per cent. Equity per share was SEK 67.51 at the end of the period, compared with SEK 67.95 at the beginning of the financial year.
Continuing operations at Alligo made six corporate acquisitions, one of which was a conveyance of assets and liabilities, with closing during 2022. In addition, agreements were signed for three more corporate acquisitions with closing during 2023.
On 5 January 2022, Alligo signed an agreement to acquire 100 per cent of the shares in Liukkosen Pultti Oy. Liukkosen Pultti operates a store in Lahti that sells workwear and tools and the acquisition strengthens Alligo's presence on the Finnish market. Liukkosen Pultti generates annual revenue of approximately MEUR 4.5 with favourable profitability and has 12 employees. Closing took place on 1 February 2022.
As of 8 March 2022, Alligo has acquired 100 per cent of the shares in Lunna AS, which has three stores north of Oslo and sells industrial components, tools, workwear and personal protective equipment. The acquisition strengthens Alligo's position as a leading supplier to Norwegian industry. Lunna generates annual revenue of approximately MNOK 82 with favourable profitability and has 26 employees. Closing took place in conjunction with the acquisition. The company will be integrated into Tools AS.
As of 2 June, Alligo has acquired the industrial operations of Norwegian company H E Seglem AS through a conveyance of assets and liabilities. H E Seglem's hydraulics and bunker operations are not included in the acquisition. H E Seglem has a store in Egersund in south-west Norway and sells industrial products, tools, forestry and gardening equipment, workwear and personal protective equipment. The industrial operations of H E Seglem AS generate annual revenue of approximately MNOK 40 and have eight employees. The acquisition strengthens Alligo's position in south-west Norway. Closing took place in conjunction with the acquisition.
On 1 July 2022, Alligo acquired 100 per cent of the shares in Magnusson Agentur AB, which runs a store selling corporate branded products and workwear in Vinslöv. The acquisition strengthens Alligo's position in corporate branded products and workwear. Magnussons generates annual revenue of approximately MSEK 27 with favourable profitability and has six employees. Closing took place in conjunction with the acquisition.
On 19 August 2022, Alligo acquired 100 per cent of the shares in LVH AS, a reseller of tools, consumables, workwear and personal protective equipment in Lillehammer. The acquisition strengthens Alligo's position in the Norwegian Interior. LVH AS generates annual revenue of approximately MNOK 13 and has four employees. Closing took place in conjunction with the acquisition. The company has been integrated into Tools AS.
On 9 November, Alligo signed an agreement to acquire 75 per cent of the shares in Profeel Sweden AB, which operates two stores: one in Eskilstuna and one in Västerås. The acquisition strengthens Alligo's position in corporate branded clothing and product media in Sweden. Profeel generates annual revenue of approximately MSEK 70 and has 18 employees. Closing took place in conjunction with the acquisition.
On 6 December, Alligo signed an agreement to acquire 70 per cent of the shares in Profilföretaget Z-Profil AB, which has operations in Umeå and Skellefteå. The acquisition strengthens Alligo's position in corporate branded clothing and product media in Sweden. Z-Profil generates annual revenue of approximately MSEK 40 and has 13 employees. Closing took place on 2 January 2023.
On 22 December, Alligo signed an agreement to acquire 70 per cent of the shares in corporate branding companies Kents Textiltryck i Halmstad AB and Olympus Profile i Uddevalla AB. The companies generate annual revenue of just over MSEK 40, have 15 and 13 employees respectively and sell workwear, corporate branded clothing and product media. Closing took place on 2 January 2023.
At the end of the period, the number of employees in the Group amounted to 2,371, compared with 2,319 at the beginning of the year. The increase in the number of employees is the result of corporate acquisitions made.
No transactions having a material impact on the Group's position or earnings occurred between Alligo and its related parties during the period.
In accordance with a resolution at the Extraordinary General Meeting of 2 December 2021, the Group's parent company has changed its name from Momentum Group AB to Alligo AB.
At the end of the period, the Group comprised the parent company
Alligo AB and a total of 25 Swedish and foreign subsidiaries. The parent company's operations comprise Group-wide management, including Legal and Investor Relations functions. Income takes the form of a management fee from Group companies for Group-wide services and costs which the parent company has provided. Income from discontinued operations has been received for the period January to October 2021.
The parent company's revenue for the period amounted to MSEK 17 (23) and the loss after financial items totalled MSEK -29 (-15). Items affecting comparability have had an impact on profit of MSEK -4 (-6), relating to costs ahead of the separate listing of Momentum Group. The distribution of Momentum Group corresponded to the carrying amount of MSEK 43. The balance sheet total amounted to MSEK 4,064 (4,133), with equity accounting for 46 per cent (48) of total assets. The number of employees at the parent company at the end of the period was 2 (2).
Alligo's profits and financial position, as well as its strategic position, are affected by a number of internal factors over which the Group has control, as well as a number of external factors where the opportunity to influence the course of events is limited. The most significant external risk factors for Alligo are the economic and market situation, as well as the development of the number of employees in the industrial and construction sectors, combined with structural changes and the competitive situation.
The ongoing Covid-19 pandemic has affected the entire global economy since spring 2020, including Alligo and its customers, suppliers and employees. The pandemic has had a negative impact on the Group's demand, but has also led to supply disruptions as a result of production shutdowns and major difficulties on the freight market. Alligo has continually taken steps to ensure an ongoing high level of availability of products and services.
Russia's war in Ukraine has increased uncertainty in the world around us and contributed to record-high energy prices in Europe. Alligo has no operations in Russia or Ukraine and only limited customer and supplier exposure. We are entering the fourth quarter with strong inflation and increasing interest rates, which have generated considerable uncertainty about the economic situation and this constitutes a risk in terms of demand on Alligo's markets. Inflation also has a significant impact on purchase prices, which Alligo continuously strives to offset by adapting our customer pricing. Purchases in dollars becoming more expensive also risks having a negative impact on margins.
For a more detailed summary of the Group's other risks and uncertainties, see pages 23–25 of the annual report for 2021. The parent company is indirectly affected by the above risks and uncertainties through its function in the Group.
Alligo's financial targets focus on profitable growth, financial stability and dividend. The targets have been set based on Alligo's conditions during a medium-term strategy period.
The sustainability targets are based on Alligo's vision and material sustainability issues and are designed to make Alligo a leader in sustainable development in our industry.
| CSI 100 |
2020 | 2021 | 2022 |
|---|---|---|---|
| Swedol, Sweden 6,8% 100 |
7,1% 76 |
76 | 76 |
| Tools, Sweden 5 |
80 78%1 78%1 |
79 5,4% 79% 79% |
77 |
| 74%1 74%1 Tools, Norway |
78 78%1 |
79 79% |
79 |
| 74%1 Tools, Finland |
n/a | 77 | n/a |
| Grolls, Sweden | 78 | 79 | 78 |
| Grolls, Finland | 76 | 76 | n/a |
| 0 0 0 Univern, Norway 2020 2020 2020 |
83 2021 2021 2021 |
85 2022 2022 2022 |
81 |
| 0 2020 |
2021 | 2022 | |
| 30 | 7,1% 7,1% |
Sickness absence shall be less than 5 per cent of total scheduled hours.
The proportion of female managers shall be more than 30 per cent.
the company shall be reduced. 2022 2023 2024 2025.. [A survey of the carbon emissions of the company is ongoing. Once this work is complete, Alligo will set an overall target for reducing carbon emissions.]
1) The basis of calculation was adjusted in 2022 and the comparison figures have been recalculated according to the same principles.
In accordance with a resolution at the Extraordinary General Meeting of 2 December 2021, the Group's parent company has changed its name from Momentum Group AB to Alligo AB. As of 15 December 2021, the listed class B share is traded under the short name ALLIGO B with the ISIN code SE0009922305 on Nasdaq Stockholm, otherwise the name change does not affect shareholders or trading in the share.
As part of the preparations for the distribution of Momentum Group, Nordstjernan requested the conversion of 498,363 Class A shares to the corresponding number of Class B shares in Alligo. This resulted in a change to the number of shares and votes in Alligo in February. At the end of the period, the share capital amounted to MSEK 102. The distribution by class of share at the end of the period on 31 December 2022 was as shown in the table below:
| CLASS OF SHARE | 31/12/2022 |
|---|---|
| Class A shares | 564,073 |
| Class B shares | 50,342,116 |
| Total number of shares before repurchasing | 50,906,189 |
| Less: Repurchased Class B shares | -425,300 |
| Total number of shares after repurchasing | 50,480,889 |
The quotient value is SEK 2.04 per share. Each Class A share entitles the holder to ten votes and each Class B share to one vote. All shares carry equal rights to the company's assets, earnings and dividends. Only the Class B share is listed on the Stockholm Stock Exchange. A conversion provision in the Articles of Association allows for conversion of Class A shares into Class B shares. Nordstjernan AB is the only shareholder whose shareholding provides total voting rights in excess of one-tenth of the voting rights of all the shares in the company. Nordstjernan's shareholding corresponds to 54.6 per cent of the outstanding shares and 49.6 per cent of the votes in Alligo.
In connection with the decision on the distribution and separate listing of Momentum Group, a recalculation was requested of the redemption price and the number of shares to which each outstanding call option in the programme for 2018/2022 provides entitlement according to the option terms. In May, the redemption price for the call options was calculated using an external independent valuation according to the accepted Black-Scholes model at SEK 86.20 per share (previous redemption price SEK 137.30) with entitlement to redeem 1.59 shares per option (previously 1.00 share). On 2 June, a cash redemption of the remaining 8,000 outstanding options in the programme took place for a cash sum of SEK 362,647.
The 2022 Annual General Meeting approved a call option programme containing a maximum of 185,000 options, corresponding to approximately 0.36 per cent of the total number of shares and approximately 0.33 per cent of the total number of votes in the company. The programme is designed for key personnel in senior positions and provides the opportunity to acquire call options at market price for Class B shares repurchased by Alligo. After two years, a subsidy will be paid equivalent to the premium paid for each call option (before tax) provided that the option holder's employment at the Group has not been terminated and that the call options have not been divested
prior to this point. The subsidy is recognised as an accrued expense until the time when the employment condition is met. The subsidy is also charged with social security contributions. Each call option entitles the holder to acquire one (1) repurchased Class B share in the company on three occasions: 1) during the period from 2 June 2025 to 16 June 2025 inclusive, 2) during the period from 18 August 2025 to 1 September 2025 inclusive, and 3) during the period from 3 November 2025 to 17 November 2025 inclusive. The redemption price has been calculated as SEK 129.30, based on 120 per cent of the volumeweighted average price during the period 12 May to 25 May 2022. If the share price at the time the call option is exercised exceeds SEK 194.00, the redemption price shall be increased krona for krona by the amount in excess of SEK 194.00. The option premium has been calculated as SEK 7.82 by an independent third party according to the accepted Black-Scholes model.
185,000 call options have been allotted and acquired by employees on market terms. Of these, 80,000 have been acquired by the Group CEO and CFO and 105,000 by other key personnel. The option premium paid totals MSEK 1.4.
As at 31 December 2022, Alligo's holding of Class B treasury shares amounted to 425,300, corresponding to 0.8 per cent of the total number of shares and 0.8 per cent of the total number of votes. There were no changes in the holding of treasury shares after the end of the period and the holding of treasury shares will be used for incentive programmes or cancelled.
An Extraordinary General Meeting on 23 March 2022 voted through a proposal from the Board of Directors to distribute all of the company's shares in Momentum Group AB to the shareholders of Alligo. This distribution contained a total of 50,480,889 shares, of which 564,073 were Class A shares and 49,916,816 were Class B shares, corresponding to all of the shares in Momentum Group. One Class A share in Alligo provided entitlement to one Class A share in Momentum Group and one Class B share in Alligo provided entitlement to one Class B share in Momentum Group.
This distribution corresponded to a total sum of MSEK 43, based on the carrying amount, constituting a dividend per share of approximately SEK 0.84. Alligo's 425,300 Class B treasury shares did not provide entitlement to allotment of shares in Momentum Group. The record date for the distribution was 25 March 2022. Momentum Group's net assets prior to distribution were MSEK 486. Remeasurement to fair value on distribution, corresponding to the market value of MSEK 4,038 of Momentum Group on listing, resulted in an impact on earnings of MSEK 3,553.
The board of directors proposes to the Annual General Meeting of 24 May 2023 a dividend of SEK 3.00 (1.75) per share, which corresponds to 31 percent (30) of the earnings per share for continuing operations for the financial year. Taking into account the repurchased Class B shares, the proposed dividend corresponds to a total of MSEK 151 (88).
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue | 2,723 | 2,436 | 9,211 | 8,417 |
| Other operating income | 30 | 28 | 122 | 91 |
| Total operating income | 2,753 | 2,464 | 9,333 | 8,508 |
| Cost of goods sold | -1,596 | -1,435 | -5,483 | -4,987 |
| Personnel costs | -476 | -432 | -1,719 | -1,640 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses | -126 | -128 | -486 | -563 |
| Other operating expenses | -287 | -275 | -976 | -891 |
| Total operating expenses | -2,485 | -2,270 | -8,664 | -8,081 |
| Operating profit | 268 | 194 | 669 | 427 |
| Financial income | 1 | 1 | 4 | 3 |
| Financial expenses | -23 | -10 | -61 | -51 |
| Net financial items | -22 | -9 | -57 | -48 |
| Profit/loss after financial items | 246 | 185 | 612 | 379 |
| Taxes | -52 | -46 | -131 | -88 |
| Profit/loss for the period, continuing operations | 194 | 139 | 481 | 291 |
| Profit/loss for the period, discontinued operations | - | 31 | 3,581 | 139 |
| Profit/loss for the period, Group total | 194 | 170 | 4,062 | 430 |
| Profit/loss for the period attributable to: | ||||
| Parent Company shareholders | 193 | 170 | 4,061 | 429 |
| Profit/loss for the period, continuing operations | 193 | 139 | 480 | 291 |
| Profit/loss for the period, discontinued operations excluding impact on earnings of the distribution of Momentum Group |
- | 31 | 28 | 138 |
| Impact on earnings of the distribution of Momentum Group | - | - | 3,553 | - |
| Non-controlling interests | 1 | 0 | 1 | 1 |
| Profit/loss for the period, continuing operations | 1 | 0 | 1 | 0 |
| Profit/loss for the period, discontinued operations | - | 0 | 0 | 1 |
| Earnings per share, SEK | ||||
| Continuing operations, before and after dilution | 3.82 | 2.75 | 9.51 | 5.75 |
| Discontinued operations excluding impact on earnings of the distribution of Momentum Group, before and after dilution |
- | 0.60 | 0.55 | 2.75 |
| Impact on earnings of the distribution of Momentum Group, before and after dilution |
- | - | 70.38 | - |
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Profit/loss for the period | 194 | 170 | 4,062 | 430 |
| OTHER COMPREHENSIVE INCOME FOR THE PERIOD | ||||
| Components that will not be reclassified to profit/loss for the period: | ||||
| Remeasurement of defined benefit pension plans | 0 | 0 | 0 | 1 |
| Tax attributable to components that will not be reclassified | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 1 | |
| Components that will be reclassified to profit/loss for the period: | ||||
| Translation differences | 19 | 14 | 57 | 51 |
| Fair value changes for the period in cash flow hedges | -7 | 3 | -5 | 21 |
| Tax attributable to components that will be reclassified | 2 | 0 | 1 | -4 |
| 14 | 17 | 53 | 68 | |
| Other comprehensive income for the period | 14 | 17 | 53 | 69 |
| Comprehensive income for the period | 208 | 187 | 4,115 | 499 |
| Profit/loss for the period attributable to: | ||||
| Parent Company shareholders | 207 | 187 | 4,114 | 498 |
| Non-controlling interests | 1 | 0 | 1 | 1 |
| MSEK | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible non-current assets | 2,655 | 2,577 |
| Right-of-use assets | 983 | 935 |
| Tangible non-current assets | 574 | 532 |
| Financial investments | 0 | 0 |
| Other non-current receivables | 24 | 14 |
| Deferred tax assets | 67 | 75 |
| Total non-current assets | 4,303 | 4,133 |
| Current assets | ||
| Inventories | 2,275 | 1,856 |
| Accounts receivable | 1,285 | 1,154 |
| Other current receivables | 286 | 277 |
| Cash and cash equivalents | 215 | 286 |
| Discontinued operations, assets held for distribution | - | 973 |
| Total current assets | 4,061 | 4,546 |
| TOTAL ASSETS | 8,364 | 8,679 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity attributable to Parent Company shareholders | 3,408 | 3,429 |
| Non-controlling interests | 5 | 19 |
| Total equity | 3,413 | 3,448 |
| Non-current liabilities | ||
| Non-current interest-bearing liabilities | 1,749 | 1,421 |
| Non-current lease liabilities | 661 | 674 |
| Provisions for pensions | 0 | 0 |
| Other non-current liabilities and provisions | 415 | 399 |
| Total non-current liabilities | 2,825 | 2,494 |
| Current liabilities | ||
| Current interest-bearing liabilities | 0 | 124 |
| Current lease liabilities | 352 | 339 |
| Accounts payable | 1,070 | 1,144 |
| Other current liabilities | 704 | 620 |
| Discontinued operations, liabilities held for distribution | - | 510 |
| Total current liabilities | 2,126 | 2,737 |
| TOTAL LIABILITIES | 4,951 | 5,231 |
| TOTAL EQUITY AND LIABILITIES | 8,364 | 8,679 |
| Equity attributable to Parent Company shareholders | ||||||
|---|---|---|---|---|---|---|
| Retained earnings | ||||||
| MSEK | Share capital | Reserves | incl. profit/loss for the year |
Total | Non-controlling interests |
Total equity |
| Opening equity, 01/01/2021 | 102 | -73 | 3,008 | 3,037 | 14 | 3,051 |
| Profit/loss for the period | 429 | 429 | 1 | 430 | ||
| Other comprehensive income | 68 | 1 | 69 | 69 | ||
| Dividend | -76 | -76 | -76 | |||
| Repurchase of share options | -20 | -20 | -20 | |||
| Sale of treasury shares | 9 | 9 | 9 | |||
| Acquisitions of partly owned subsidiaries | - | 10 | 10 | |||
| Changes in ownership share in partly owned subsidiaries | -5 | -5 | -5 | -10 | ||
| Dividends paid in partly owned subsidiaries | - | -1 | -1 | |||
| Option liability, acquisitions¹ | -16 | -16 | -16 | |||
| Change in value of option liability² | 2 | 2 | 2 | |||
| Closing equity, 31/12/2021 | 102 | -5 | 3,332 | 3,429 | 19 | 3,448 |
| Opening equity, 01/01/2022 | 102 | -5 | 3,332 | 3,429 | 19 | 3,448 |
| Profit/loss for the period | 4,061 | 4,061 | 1 | 4,062 | ||
| Other comprehensive income | 53 | 53 | 53 | |||
| Distribution of shares in Momentum Group3 | -4,038 | -4,038 | -17 | -4,055 | ||
| Dividend | -88 | -88 | -88 | |||
| Premium received for issued share options | 1 | 1 | 1 | |||
| Repurchase of share options | 0 | 0 | 0 | |||
| Acquisitions of partly owned subsidiaries | 0 | 4 | 4 | |||
| Changes in ownership share in partly owned subsidiaries | -1 | -1 | -2 | -3 | ||
| Option liability, acquisitions4 | -9 | -9 | -9 | |||
| Closing equity, 31/12/2022 | 102 | 48 | 3,258 | 3,408 | 5 | 3,413 |
1) Pertains to the value of the put options in relation to non-controlling interests in the acquired subsidiary Mekano AB which grant the shareholders the right to sell shares to Alligo. The price of the options is dependent on the results achieved at the company and may be extended by one year at a time from 2025 onwards.
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Operating activities | ||||
| Profit/loss after financial items | 246 | 185 | 612 | 379 |
| Adjustment for non-cash items | 124 | 170 | 485 | 656 |
| Income taxes paid | 26 | -16 | -50 | -113 |
| Cash flow from operating activities before changes in working capital | 396 | 339 | 1,047 | 922 |
| Change in inventories | -66 | -113 | -349 | -271 |
| Change in operating receivables | -27 | -106 | -100 | -222 |
| Change in operating liabilities | 114 | 312 | -91 | 321 |
| Cash flow from operating activities | 417 | 432 | 507 | 750 |
| Investing activities | ||||
| Net investments in non-current assets | -55 | -70 | -152 | -166 |
| Acquisition of subsidiaries and other business units | -25 | -12 | -144 | -31 |
| Divestment of subsidiaries and other business units | - | -23 | - | -23 |
| Cash flow from investing activities | -80 | -105 | -296 | -220 |
| Financing activities | ||||
| Borrowings | 80 | 0 | 1,871 | 0 |
| Repayment of loans | -225 | -165 | -2,058 | -486 |
| Other transactions with shareholders | -7 | - | -7 | -15 |
| Repurchase/sale of share options | - | -17 | 1 | -20 |
| Repurchase/sale of treasury shares | - | 0 | - | 9 |
| Dividends paid | - | - | -88 | -76 |
| Cash flow from financing activities | -152 | -182 | -281 | -588 |
| Cash flow for the period, continuing operations | 185 | 145 | -70 | -58 |
| Cash flow for the period, discontinued operations (see note 7) | - | 57 | 7 | 27 |
| Cash flow for the period, Group total | 185 | 202 | -63 | -31 |
| Cash and cash equivalents at the beginning of the period | 31 | 145 | 345 | 375 |
| Exchange difference in cash and cash equivalents | -1 | -2 | -1 | 1 |
| Cash and cash equivalents in discontinued operations | - | - | -66 | - |
| Cash and cash equivalents at the end of the period | 215 | 3451 | 215 | 3451 |
1) In comparison with cash and cash equivalents on the balance sheet, MSEK 286 can be found on the line Cash and cash equivalents and MSEK 59 on the line Assets held for distribution.
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Revenue | 4 | 6 | 17 | 23 |
| Other operating income | 1 | 1 | 4 | 5 |
| Total operating income | 5 | 7 | 21 | 28 |
| Operating expenses | -11 | -12 | -48 | -48 |
| Operating profit | -6 | -5 | -27 | -20 |
| Financial income and expenses | -2 | 1 | -2 | 5 |
| Profit/loss after financial items | -8 | -4 | -29 | -15 |
| Appropriations | 32 | 42 | 32 | 42 |
| Profit/loss before tax | 24 | 38 | 3 | 27 |
| Taxes | -5 | -8 | -1 | -6 |
| Profit/loss for the period | 19 | 30 | 2 | 21 |
There are no items at the parent company that are recognised under other comprehensive income. Total comprehensive income therefore corresponds to the profit/loss for the period.
| MSEK | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | 0 | 0 |
| Tangible non-current assets | - | - |
| Financial non-current assets | 3,432 | 3,685 |
| Total non-current assets | 3,432 | 3,685 |
| Current receivables | 457 | 197 |
| Cash and bank | 175 | 251 |
| Total current assets | 632 | 448 |
| TOTAL ASSETS | 4,064 | 4,133 |
| EQUITY, PROVISIONS AND LIABILITIES | ||
| Restricted equity | 102 | 102 |
| Non-restricted equity | 1,761 | 1,889 |
| Total equity | 1,863 | 1,991 |
| Untaxed reserves | 1 | - |
| Provisions | 4 | 4 |
| Non-current liabilities | 1,739 | 1,421 |
| Current liabilities | 457 | 717 |
| TOTAL EQUITY, PROVISIONS AND LIABILITIES | 4,064 | 4,133 |
At the Extraordinary General Meeting of 2 December 2021, it was decided, in accordance with the proposal of the Board of Directors, to amend Article 1 of the Articles of Association and change the company name from Momentum Group AB to Alligo AB. The new company name was registered with the Swedish Companies Registration Office on 13 December.
The interim report for the Group has been prepared in accordance with IFRS, with the application of IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Markets Act. Disclosures in accordance with paragraph 16A of IAS 34 are made in the financial statements and related notes, as well as in other sections of the report. The interim report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Markets Act, which is consistent with the provisions of Recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies and assessment criteria applied are the same as in the annual report for 2021.
Amounts quoted in the interim report are stated in millions of Swedish kronor (MSEK) unless otherwise indicated. Amounts in parentheses refer to the comparison period.
The operations of Momentum Group are reported in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The distribution of Momentum Group has been reported in accordance with IFRIC 17 Distributions of Non-cash Assets to Owners. The shares in the discontinued operations of Momentum Group were distributed to the shareholders of Alligo with a record date of 25 March and reported as discontinued operations in accordance with IFRS 5. Discontinued operations are recognised separately from continuing operations in the income statement, with retroactive effect for earlier periods. Momentum Group's earnings up to the point of distribution, and the non-cash gain that the distribution of Momentum Group has generated in accordance with IFRIC 17, are recognised on a line in the income statement. The gain reflects the difference between the market value of Momentum Group's shares (based on the opening price on the first day of trading, 31 March 2022) and the carrying amount of the company on
As of Q1 2022, the Group's operating segments consist of the geographic segments of Sweden, Norway and Finland. The operating segments reflect the operational organisation, as used by Group management and the Board of Directors to monitor operations. Group-wide includes the Group's management and support functions. The support functions include Investor the consolidated balance sheet. The Group also reports a profit/loss after tax from the distributed operations up to the point of distribution. See Note 7 Discontinued operations for further information.
In the Q1 report for 2022, certain components that were previously recognised as revenue (approximately MSEK 58 for 2021) have been reclassified as other income in order to better reflect the underlying operations.
As a result of Momentum Group (Components & Services business area) being defined as discontinued operations during Q1 2022, Alligo adapted its segment reporting so that it reflects how continuing operations are organised and monitored. As of Q1 2022, Alligo reports three operating segments: Sweden, Norway and Finland. See Note 2 Operating segments for further information.
As a result of Momentum Group (Components & Services business area) being defined as discontinued operations during Q1 2022, Alligo adapted the Group's revenue categories to better reflect the continuing operations. As of Q1 2022, the revenue categories were expanded to include an additional breakdown: own brands and external brands. See Note 3 Revenue by category.
The subsidy for the call option programme 2022/2025 equivalent to the premium paid for each call option (before tax) is recognised as an accrued expense until the time when the employment condition is met. The subsidy is also charged with social security contributions.
Relations and Legal. Financial items and taxes are not broken down by operating segment and are instead reported as a whole in Group-wide. Intra-Group pricing between the operating segments takes place on market terms. The accounting policies are the same as for the consolidated financial statements.
| OCT–DEC 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Total | |||||||
| MSEK | Sweden | Norway | Finland¹ | segments | Group-wide | Eliminations | Group total |
| External revenue | 1,570 | 725 | 428 | 2,723 | - | - | 2,723 |
| Internal revenue | 75 | 19 | 5 | 99 | - | -99 | 0 |
| Revenue | 1,645 | 744 | 433 | 2,822 | - | -99 | 2,723 |
| EBITA | 253 | 34 | 17 | 304 | -6 | 0 | 298 |
| Items affecting comparability2 | -8 | -6 | -1 | -15 | - | - | -15 |
| Amortisation of intangible assets in connection with corporate acquisitions | -9 | -4 | -2 | -15 | - | - | -15 |
| Operating profit | 236 | 24 | 14 | 274 | -6 | 0 | 268 |
| Non-current assets | 3,120 | 659 | 433 | 4,212 | 0 | - | 4,212 |
| OCT–DEC 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Sweden | Norway | Finland¹ | Total segments |
Group-wide | Eliminations | Group total | |
| External revenue | 1,463 | 609 | 364 | 2,436 | - | - | 2,436 | |
| Internal revenue | 64 | 9 | 0 | 73 | - | -73 | 0 | |
| Revenue | 1,527 | 618 | 364 | 2,509 | - | -73 | 2,436 | |
| EBITA | 232 | 29 | -8 | 253 | -3 | 0 | 250 | |
| Items affecting comparability3 | -23 | -16 | - | -39 | -1 | - | -40 | |
| Amortisation of intangible assets in connection with corporate acquisitions | -11 | -3 | -2 | -16 | - | - | -16 | |
| Operating profit | 198 | 10 | -10 | 198 | -4 | 0 | 194 | |
| Non-current assets | 3,054 | 593 | 397 | 4,044 | 0 | - | 4,044 |
| JAN–DEC 2022 | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | Sweden | Norway | Finland¹ | Total segments |
Group-wide | Eliminations | Group total |
| External revenue | 5,105 | 2,559 | 1,547 | 9,211 | - | - | 9,211 |
| Internal revenue | 234 | 32 | 5 | 271 | - | -271 | 0 |
| Revenue | 5,339 | 2,591 | 1,552 | 9,482 | 0 | -271 | 9,211 |
| EBITA | 610 | 107 | 62 | 779 | -23 | - | 756 |
| Items affecting comparability4 | -9 | -6 | -5 | -20 | -4 | - | -24 |
| Amortisation of intangible assets in connection with corporate acquisitions | -41 | -16 | -6 | -63 | - | - | -63 |
| Operating profit | 560 | 85 | 51 | 696 | -27 | 0 | 669 |
| Non-current assets | 3,120 | 659 | 433 | 4,212 | 0 | - | 4,212 |
| JAN–DEC 2021 | |||||||
|---|---|---|---|---|---|---|---|
| MSEK | Sweden | Norway | Finland¹ | Total segments |
Group-wide | Eliminations | Group total |
| External revenue | 4,920 | 2,177 | 1,320 | 8,417 | - | - | 8,417 |
| Internal revenue | 231 | 21 | 0 | 252 | - | -252 | 0 |
| Revenue | 5,151 | 2,198 | 1,320 | 8,669 | - | -252 | 8,417 |
| EBITA | 560 | 80 | 19 | 659 | -14 | 0 | 645 |
| Items affecting comparability5 | -130 | -19 | - | -149 | -6 | - | -155 |
| Amortisation of intangible assets in connection with corporate acquisitions | -44 | -14 | -5 | -63 | - | - | -63 |
| Operating profit | 386 | 47 | 14 | 447 | -20 | 0 | 427 |
| Non-current assets | 3,054 | 593 | 397 | 4,044 | 0 | - | 4,044 |
1) The Finland operating segment also includes Estonia.
2) Items affecting comparability in Sweden and Norway relate to costs for organisational changes in connection with establishing new sales organisations as well as rental costs for the coordination of logistics. Items affecting comparability in Finland relate to rental costs.
3) Items affecting comparability relate to losses on divestment of operations as well as costs in connection with preparations ahead of the separate listing of the Components & Services business area.
4) Items affecting comparability in Sweden and Norway relate to costs for organisational changes in connection with establishing new sales organisations as well as rental costs for the coordination of logistics. Items affecting comparability in Finland relate to severance costs in connection with a change of management and rental costs. In addition, the period has been impacted by items affecting comparability relating to costs ahead of the separate listing of Momentum Group.
5) Items affecting comparability in Sweden relate to restructuring costs in connection with the coordination of logistics. This coordination concerns the relocation of the Swedish logistics operations of Tools to Alligo's central warehouses, consisting primarily of write-downs of non-current assets and right-of-use assets (Alingsås lease agreement) and of losses on divestment of operations. Items affecting comparability in Norway relate to losses on the divestment of operations. In addition, the period has been impacted by items affecting comparability relating to costs for advisers in connection with the investigation of the conditions for a possible division of the Group.
| COUNTRY | ||||
|---|---|---|---|---|
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
| Sweden | 1,570 | 1,463 | 5,105 | 4,920 |
| Norway | 725 | 609 | 2,559 | 2,177 |
| Finland | 428 | 364 | 1,547 | 1,320 |
| Total revenue | 2,723 | 2,436 | 9,211 | 8,417 |
| PRODUCT BRANDS | ||||
| MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
| Own brands | ||||
| Sweden | 374 | 376 | 1,167 | 1,217 |
| Norway | 125 | 111 | 374 | 402 |
| Finland | 51 | 28 | 136 | 97 |
| Total own brands | 550 | 515 | 1,677 | 1,716 |
| External brands | ||||
| Sweden | 1,196 | 1,087 | 3,938 | 3,703 |
| Norway | 600 | 498 | 2,185 | 1,775 |
| Finland | 377 | 336 | 1,411 | 1,223 |
| Total external brands | 2,173 | 1,921 | 7,534 | 6,701 |
| Total revenue | 2,723 | 2,436 | 9,211 | 8,417 |
The Group has financial instruments measured at fair value at level 3. Financial liabilities measured at fair value through profit or loss pertain to additional purchase considerations not yet paid and at the beginning of the period amounted to MSEK 5. Additional purchase considerations in the amount of MSEK 2 were paid during the period January to December 2022. New additional purchase considerations amounted to MSEK 4 from the acquisition of Liukkosen Pultti Oy, MSEK 6 from the acquisition of Magnusson Agentur AB and TSEK 500 from the acquisition of LVH AS. Additional purchase considerations not yet paid amounted to MSEK 13 at the end of the period. In all cases, the additional purchase considerations are based on gross profit for the years 2022, 2023 and 2024. The additional purchase considerations are measured at fair value, with an assessment made of whether they will be paid at the agreed amounts. In line with a valuation on 31 December 2022, additional purchase considerations not yet paid have been revalued by a net amount of TSEK -300. The fair value of the Group's financial assets and liabilities is estimated to be the same as their carrying amount. The Group does not use net recognition for any of its material assets or liabilities. There were no transfers between levels or measurement categories during the period.
| ASSETS, MSEK | |
|---|---|
| Opening contingent purchase considerations, 01/01/2022 | 4 |
| Contingent additional purchase considerations added 2022 | - |
| Additional purchase considerations paid 2022 | - |
| Additional purchase considerations paid 2022 in excess of estimated value |
- |
| Revaluation of contingent additional purchase considerations 2022 | -4 |
| Closing contingent additional purchase considerations, 31/12/2022 | 0 |
| Expected receipts/disbursements | |
| Expected receipts/disbursements < 12 months |
- |
| Expected receipts/disbursements > 12 months |
- |
| LIABILITIES, MSEK | |
| Opening contingent purchase considerations, 01/01/2022 | 5 |
| Contingent additional purchase considerations added 2022 | 10 |
| Additional purchase considerations paid 2022 | -2 |
| Additional purchase considerations paid 2022 in excess of estimated value |
- |
| Revaluation of contingent additional purchase considerations 2022 | -1 |
| Translation effect | 1 |
| Closing contingent additional purchase considerations, 31/12/2022 | 13 |
| Expected payments | |
| Expected payments < 12 months |
-7 |
| Expected payments > 12 months |
-6 |
Alligo made six corporate acquisitions with closing during 2022. None of the acquisitions is deemed significant enough to require a separate presentation of the acquisition analysis.
During 2022, the acquired companies have contributed MSEK 158 to the Group's revenue and MSEK 13 to the Group's EBITA. Calculated as if closing had taken place on 1 January 2022, the acquired companies have contributed MSEK 208 to the Group's revenue and MSEK 11 to the Group's EBITA. The total purchase consideration for the acquisitions amounted to MSEK 138, of which MSEK 10 comprised additional purchase considerations. The additional purchase considerations were measured at fair value, where it was determined that they will be paid at the agreed amount, totalling MSEK 10. Acquisition costs of approximately MSEK 5 were recognised as other operating expenses in 2022.
As of 2 June, Alligo has acquired the industrial operations of Norwegian company H E Seglem AS through a conveyance of assets and liabilities. H E Seglem's hydraulics and bunker operations are not included in the acquisition. H E Seglem has a store in Egersund in southwest Norway and sells industrial products, tools, forestry and gardening equipment, workwear and personal protective equipment. The industrial operations of H E Seglem AS generate annual revenue of approximately MNOK 40 and have eight employees. The acquisition strengthens Alligo's position in south-west Norway. Closing took place in conjunction with the acquisition. Calculated as if closing had taken place on 1 January 2022, the acquired operations have contributed MSEK 40 to the Group's revenue and MSEK 3 to the Group's EBITA. The purchase consideration totalled MSEK 21, with no additional purchase consideration. Acquisition costs of approximately TSEK 300 were recognised as other operating expenses. Recognised goodwill of MSEK 6 is expected to be tax-deductible in its entirety.
Additional purchase considerations of approximately MSEK 2 were paid during the period.
Some of the surplus value in the preliminary acquisition analyses presented on page 21 has been allocated to customer relations, while the unallocated surplus value has been assigned to goodwill. Goodwill relates to unidentifiable intangible assets and synergies within procurement, logistics, IT and administration, for example, that are expected to arise as a result of the acquisition. Goodwill has an indefinable useful life and is not amortised but is tested for impairment annually or where there are indications of a decline in value. The estimated value of customer relations is amortised over an estimated useful life of 10 years.
The main reason why the acquisition analyses are considered to be preliminary is that only a short time has passed since the acquisitions.
| SHARE TRANSFERS | Fair | |||
|---|---|---|---|---|
| MSEK | Carrying amount |
value adjustment |
Fair value | |
| ACQUIRED ASSETS | ||||
| Intangible non-current assets | 34 | 34 | ||
| Right-of-use assets | 30 | 30 | ||
| Other non-current assets | 3 | 2 | 5 | |
| Inventories | 55 | -10 | 45 | |
| Other current assets | 50 | 50 | ||
| TOTAL ASSETS | 108 | 56 | 164 | |
| ACQUIRED PROVISIONS AND LIABILITIES | ||||
| Non-current liabilities | 16 | 16 | ||
| Lease liabilities | 30 | 30 | ||
| Deferred tax liability | 7 | 7 | ||
| Current operating liabilities | 45 | 45 | ||
| TOTAL PROVISIONS AND LIABILITIES | 61 | 37 | 98 | |
| NET OF ASSETS AND LIABILITIES (identified) | 47 | 19 | 66 | |
| Goodwill | 76 | |||
| Non-controlling interests | -4 | |||
| Purchase consideration | 138 | |||
| Of which additional purchase consideration | -10 | |||
| Additional purchase consideration paid | 2 | |||
| Cash and cash equivalents in acquired companies | -10 | |||
| Loans settled on acquisition | 3 | |||
| EFFECT ON THE GROUP'S CASH & CASH EQUIVALENTS | 123 |
| CONVEYANCES OF ASSETS AND LIABILITIES | |||
|---|---|---|---|
| MSEK | Carrying amount |
value adjustment |
Fair value |
| ACQUIRED ASSETS | |||
| Intangible non-current assets | 4 | 4 | |
| Right-of-use assets | 8 | 8 | |
| Other non-current assets | 0 | ||
| Inventories | 12 | -1 | 11 |
| Other current assets | - | ||
| TOTAL ASSETS | 12 | 11 | 23 |
| ACQUIRED PROVISIONS AND LIABILITIES | |||
| Non-current liabilities | - | ||
| Lease liabilities | 8 | 8 | |
| Deferred tax liability | - | ||
| Current operating liabilities | - | ||
| TOTAL PROVISIONS AND LIABILITIES | - | 8 | 8 |
| NET OF ASSETS AND LIABILITIES (identified) | 12 | 3 | 15 |
| Goodwill | 6 | ||
| Purchase consideration | 21 | ||
| Of which additional purchase consideration | - | ||
| Additional purchase consideration paid | - | ||
| Cash and cash equivalents in acquired companies | - | ||
| Loans settled on acquisition | - | ||
| EFFECT ON THE GROUP'S CASH & CASH EQUIVALENTS | 21 |
| Acquisitions – from the 2015/2016 financial year onwards | Closing | Revenue¹ | Number of employees¹ |
|---|---|---|---|
| Tønsberg Maskinforretning AS, NO | April 2016 | MNOK 20 | 10 |
| Astrup Industrivarer AS, NO | November 2016 | MNOK 240 | 50 |
| TriffiQ Företagsprofilering AB², SE | September 2017 | MSEK 70 | 18 |
| AB Knut Sehlins Industrivaruhus, SE | October 2017 | MSEK 40 | 14 |
| Reklamproffsen Skandinavien AB², SE | March 2018 | MSEK 35 | 12 |
| Profilmakarna i Södertälje AB, SE | April 2018 | MSEK 25 | 8 |
| MFG Components Oy³, FI | October 2018 | MEUR 1 | 3 |
| TOOLS Løvold AS, NO | January 2019 | MNOK 95 | 28 |
| Lindström Group's PPE business³, FI | April 2019 | MEUR 6 | 5 |
| Company Line Förvaltning AB², SE | June 2019 | MSEK 75 | 25 |
| AMJ Papper AB, SE | March 2020 | MSEK 15 | 6 |
| Swedol AB, SE/NO/FI4 | April 2020 | MSEK 3,650 | 1,046 |
| Imatran Pultti Oy, FI | April 2021 | MEUR 5 | 11 |
| RAF Romerike Arbeidstøy AS, NO | October 2021 | MNOK 16 | 4 |
| Liukkosen Pultti Oy, FI | February 2022 | MEUR 4.5 | 12 |
| Lunna AS, NO | March 2022 | MNOK 82 | 26 |
| H E Seglem AS³, NO | June 2022 | MNOK 40 | 8 |
| Magnusson Agentur AB, SE | July 2022 | MSEK 27 | 6 |
| LVH AS, NO | August 2022 | MNOK 13 | 4 |
| Profeel Sweden AB5 , SE |
November 2022 | MSEK 70 | 18 |
1) Refers to full-year information at the time of acquisition.
2) Alligo initially acquired 70 per cent of the shares in each company. Alligo currently owns 100 per cent of the shares in TriffiQ Företagsprofilering AB and Reklamproffsen Skandinavien AB, as well as around 90 per cent of the shares in Company Line Förvaltning AB.
4) Following the closure of the public offering to the shareholders of Swedol AB, Alligo's holding amounted to approximately 99 per cent of the shares. The compulsory redemption of the remaining shares outstanding in Swedol was called for and preferential rights to the shares was granted by the arbitration board in the compulsory redemption dispute proceedings in early July 2020. Alligo subsequently owns 100 per cent of the shares and votes in Swedol.
3) The acquisition was carried out as a conveyance of assets and liabilities.
5) Alligo acquired 75 per cent of the shares.
| Acquisitions – after the end of the period | Closing | Revenue¹ | Number of employees¹ |
|---|---|---|---|
| Profilföretaget Z-Profil AB2 , SE |
January 2023 | MSEK 40 | 13 |
| Kents Textiltryck i Halmstad Aktiebolag2 , SE |
January 2023 | MSEK 40 | 15 |
| Olympus Profile i Uddevalla AB2 , SE |
January 2023 | MSEK 40 | 13 |
1) Refers to full-year information at the time of acquisition.
2) Alligo acquired 70 per cent of the shares in each company.
| 31/12/2022 | 31/12/2021 |
|---|---|
| 3 | 3 |
| 11 | 17 |
| 31/12/2022 | 31/12/2021 |
| - | - |
| - | 0 |
Alligo's subsidiary Momentum Group AB (Components & Services business area) was classified during the fourth quarter of 2021 as discontinued operations and since then has been recognised in accordance with the applicable accounting policies of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The distribution of the business was completed during the first quarter of 2022, when Momentum Group was distributed to the shareholders and listed on Nasdaq Stockholm on 31 March 2022. Momentum Group's net assets prior to distribution were MSEK 486. Remeasurement to fair value on distribution, corresponding to the market value of MSEK 4,038 of Momentum Group on listing, resulted in an impact on earnings of MSEK 3,553.
Momentum Group is recognised as discontinued operations in the consolidated statement of comprehensive income. The comparison periods have been recalculated according to the same principles. The profit/loss of Momentum Group has been excluded from the individual rows of the consolidated income statement and the net profit/loss is instead reported as "Profit/loss for the period, discontinued operations". On the balance sheet as at 31 December 2021, assets and liabilities relating to Momentum Group are recognised as "Discontinued operations, assets held for distribution" and "Discontinued operations, liabilities held for distribution" respectively.
Information on the income statement, balance sheet and cash flows for discontinued operations is presented below.
| INCOME STATEMENT | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Group, MSEK | OCT–DEC | OCT–DEC | JAN–DEC | JAN–DEC |
| Revenue | - | 402 | 399 | 1,491 |
| Other operating income | - | 2 | 2 | 4 |
| Total operating income | - | 404 | 401 | 1,495 |
| Cost of goods sold | - | -211 | -211 | -795 |
| Personnel costs | - | -96 | -101 | -342 |
| Depreciation, amortisation, impairment losses and reversal of impairment losses | - | -15 | -15 | -54 |
| Other operating expenses | - | -42 | -37 | -127 |
| Total operating expenses | - | -364 | -364 | -1,318 |
| Operating profit | - | 40 | 37 | 177 |
| Net financial items | - | 0 | -1 | -1 |
| Profit/loss after financial items | - | 40 | 36 | 176 |
| Taxes | - | -9 | -8 | -37 |
| Profit/loss for the period, Components & Services | - | 31 | 28 | 139 |
| Reclassification of translation differences from other comprehensive income | - | - | 1 | - |
| Impact on earnings of the distribution of Momentum Group | - | - | 3,552 | - |
| Profit/loss for the period, discontinued operations | - | 31 | 3,581 | 139 |
| MSEK | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | - | 284 |
| Right-of-use assets | - | 127 |
| Tangible non-current assets | - | 17 |
| Other non-current receivables | - | 1 |
| Deferred tax assets | - | 1 |
| Total non-current assets | - | 430 |
| Inventories | - | 211 |
| Accounts receivable | - | 255 |
| Other current receivables | - | 18 |
| Cash and cash equivalents | - | 59 |
| Total current assets | - | 543 |
| TOTAL ASSETS HELD FOR DISTRIBUTION | - | 973 |
| LIABILITIES | ||
| Non-current interest-bearing liabilities | - | 9 |
| Non-current lease liabilities | - | 81 |
| Other non-current liabilities and provisions | - | 57 |
| Total non-current liabilities | - | 147 |
| Current interest-bearing liabilities | - | 0 |
| Current lease liabilities | - | 41 |
| Accounts payable | - | 154 |
| Other current liabilities | - | 168 |
| Total current liabilities | - | 363 |
| TOTAL LIABILITIES HELD FOR DISTRIBUTION | - | 510 |
| NET ASSETS HELD FOR DISTRIBUTION | - | 463 |
| CASH FLOW STATEMENT | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Group, MSEK | OCT–DEC | OCT–DEC | JAN–DEC | JAN–DEC |
| Cash flow from operating activities | - | 80 | 8 | 193 |
| Cash flow from investing activities | - | -12 | 0 | -125 |
| Cash flow from financing activities | - | -11 | -1 | -41 |
| Cash flow for the period from discontinued operations | - | 57 | 7 | 27 |
The Board of Directors and the Chief Executive Officer deem that the interim report gives a true and fair view of the business, financial position and performance of the company and of the Group and describes the significant risks and uncertainties faced by the company and the constituent companies of the Group.
Stockholm, 16 February 2023
Alligo AB (publ)
Göran Näsholm Chair of the Board
Johan Sjö Board member Pontus Boman Board member
Stefan Hedelius Board member
Cecilia Marlow Board member Christina Åqvist Board member
Johanna Främberg Board member Employee representative
Clein Johansson Ullenvik Group President and CEO
This interim report has not been reviewed by the company's auditors.
The information in this report is such that Alligo AB (publ) is obliged to publish under the EU Market Abuse Regulation. The information was submitted for publication through the agency of the Chief Executive Officer on 16 February 2023 at 08.00 CET.
| Group, MSEK | 2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| IFRS KEY PERFORMANCE INDICATORS | ||||
| Earnings per share, SEK | ||||
| Continuing operations, before and after dilution | 3.82 | 2.75 | 9.51 | 5.75 |
| Discontinued operations, before and after dilution¹ | - | 0.60 | 0.55 | 2.75 |
| Impact on earnings of the distribution of Momentum Group, before and after dilution | - | - | 70.38 | - |
| ALTERNATIVE KEY PERFORMANCE INDICATORS | ||||
| Income statement-based KPIs | ||||
| Revenue, MSEK | 2,723 | 2,436 | 9,211 | 8,417 |
| Operating profit, MSEK | 268 | 194 | 669 | 427 |
| Items affecting comparability | -15 | -40 | -24 | -155 |
| Amortisation of intangible assets in connection with corporate acquisitions | -15 | -16 | -63 | -63 |
| EBITA, MSEK | 298 | 250 | 756 | 645 |
| Depreciation/amortisation of tangible and other intangible non-current assets2 | -27 | -26 | -105 | -116 |
| EBITDA excl. IFRS 16, MSEK | 321 | 273 | 845 | 747 |
| Profit after financial items, MSEK | 246 | 185 | 612 | 379 |
| Operating margin, % | 9.8 | 8.0 | 7.3 | 5.1 |
| EBITA margin, % | 10.9 | 10.3 | 8.2 | 7.7 |
| Profit margin, % | 9.0 | 7.6 | 6.6 | 4.5 |
| Profitability KPIs | ||||
| Return on working capital (EBITA/WC)3 , % |
34 | 36 | ||
| Return on capital employed3 , % |
11 | 7 | ||
| Return on equity1.4, % | 16 | 13 | ||
| Financial position KPIs | ||||
| Net financial liabilities, MSEK | 2,547 | 2,272 | 2,547 | 2,272 |
| Net operational liabilities, MSEK | 1,534 | 1,259 | 1,534 | 1,259 |
| Ratio of net operational liabilities to EBITDA excl. IFRS 16 | 1.8 | 1.7 | ||
| Equity 5, MSEK | 3,408 | 3,429 | 3,408 | 3,429 |
| Equity/assets ratio4 , % |
41 | 40 | 41 | 40 |
| Other KPIs | ||||
| No. of employees at the end of the period | 2,371 | 2,319 | 2,371 | 2,319 |
| Share price at the end of the period, SEK | 79 | 192 | 79 | 192 |
1) Adjusted for the impact on earnings of the distribution of Momentum Group AB.
2) Total depreciation/amortisation of tangible and intangible non-current assets, excluding amortisation of intangible assets in connection with corporate acquisitions and the effects of IFRS 16.
3) KPI calculated on the basis of the figures reported in the financial statements. This means that profit/loss items for previous periods are recalculated and based on continuing operations, while balance sheet items for previous periods are not recalculated.
4) Refers to the Group total (continuing operations and discontinued operations).
5) Refers to equity attributable to the Parent Company's shareholders.
Alligo reports key performance indicators in order to describe the underlying profitability of the business and improve comparability. The Group applies ESMA's guidelines on alternative key performance indicators.
Revenue from like-for-like sales refers to sales in local currency from stores that were part of the Group during the current period and the entire corresponding period in the preceding year.
Used to analyse the underlying sales growth driven by changes in volume, the product and service offering, and the price for similar products and services across different periods, excluding growth driven by newly opened stores.
Operating profit adjusted for items affecting comparability and before any impairment of goodwill and amortisation and impairment of other intangible assets incurred in connection with corporate acquisitions and equivalent transactions. Used to present the Group's earnings generated from operating activities.
Used to measure the Group's earnings generated from operating activities and provides an understanding of the earnings performance over time. The EBITA margin based on revenue from both external and internal customers is presented per business area (operating segment).
Operating profit adjusted for items affecting comparability before any depreciation and write-down of tangible non-current assets and any amortisation and impairment of goodwill and other intangible non-current assets incurred in connection with corporate acquisitions and equivalent transactions, excluding effects on operating profit of reporting in accordance with IFRS 16.
This key performance indicator is used to calculate the debt ratio, excluding the effects of IFRS 16.
Used to analyse the financial risk in the Group and show how much of the Group's assets are financed by equity.
Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities.
Excluding items affecting comparability increases the comparability of results between periods.
Net financial liabilities measured as non-current interest-bearing liabilities and current interest-bearing liabilities, less cash and cash equivalents at the end of the period. Used to monitor the debt trend and analyse the Group's total indebtedness including lease liabilities.
Net operational liabilities measured as non-current interest-bearing liabilities and current interest-bearing liabilities, excluding lease liabilities and net provisions for pensions, less cash and cash equivalents at the end of the period.
Used to monitor the debt trend and analyse the Group's total indebtedness excluding lease liabilities and net provisions for pensions.
Profit before financial items and tax
Used to present the Group's earnings before interest and taxes.
Used to measure the Group's earnings generated before interest and tax and provides an understanding of the earnings performance over time. Specifies the percentage of revenue remaining to cover interest payments and tax and to provide profit after the Group's expenses have been paid.
Organic growth refers to sales in local currency from stores that were part of the Group during the current period and the entire corresponding period in the preceding year, as well as sales from new stores opened during the year.
Used to analyse the underlying sales growth driven by changes in volume, the product and service offering, and the price for similar products and services across different periods, including growth driven by newly opened stores.
Other units refers to acquired or divested units during the corresponding period.
Profit after financial items as a percentage of revenue.
Used to assess the Group's earnings generated before tax and presents the share of revenue that the Group may retain in earnings before tax.
Net operational liabilities divided by EBITDA, excl. IFRS 16, for a rolling 12-month period.
This key performance indicator shows the multiple of the EBITDA result for the most recent 12-month period, excluding the effects of IFRS 16, that would be needed in order to settle net operational liabilities. As a debt ratio, the indicator shows the Group's resilience and interest rate sensitivity.
Operating profit plus financial income for the most recent 12-month period divided by average capital employed measured as the balance sheet total less non-interestbearing liabilities and provisions at the end of the most recent four quarters and the opening balance at the start of the period divided by five.
Presented to show the Group's return on its externally financed capital and equity, meaning independent of its financing.
Net profit for the most recent 12-month period divided by average equity measured as total equity attributable to parent company shareholders at the end of the most recent four quarters and the opening balance at the start of the period divided by five. Used to measure the return generated on the capital invested by the shareholders.
EBITA for the most recent 12-month period divided by average working capital measured as total working capital (accounts receivable and inventories less accounts payable) at the end of each month for the most recent 12-month period and the opening balance at the start of the period divided by 13.
The Group's internal profitability target, which encourages high EBITA and low tied-up capital. Used to analyse profitability in the Group and its various operations.
Alligo uses certain financial key performance indicators in its analysis of the business and its performance that are not calculated in accordance with IFRS. The company believes that these alternative key performance indicators provide valuable information for the company's Board of Directors, owners and investors, as they enable a more accurate assessment of current trends and Alligo's performance when combined with other key performance indicators calculated in accordance with IFRS. As not all listed companies calculate these financial key performance indicators in the same way, there is no guarantee that the information is comparable with other companies' key performance indicators of the same name. Hence, these financial key performance indicators must not be viewed as a replacement for those measures calculated in accordance with IFRS.
| EBITA MSEK |
2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Operating profit | 268 | 194 | 669 | 427 |
| Items affecting comparability | ||||
| Restructuring costs | 15¹ | 0 | 191.2 | 1083 |
| Divestment of operations | - | 37 | - | 37 |
| Split and listing expenses | - | 3 | 5 | 10 |
| Amortisation and impairment of intangible assets in connection with corporate acquisitions | 15 | 16 | 63 | 63 |
| EBITA | 298 | 250 | 756 | 645 |
| Operating profit excl. IFRS 16 | 264 | 191 | 653 | 413 |
| Amortisation and impairment of other intangible non-current assets | 9 | 10 | 35 | 42 |
| Depreciation and write-downs of tangible non-current assets | 18 | 16 | 70 | 74 |
| EBITDA excl. IFRS 16 | 321 | 273 | 845 | 747 |
1) Costs for organisational changes in connection with establishing new sales organisations as well as rental costs for the coordination of logistics.
2) Severance costs in connection with a change of management.
3) Restructuring costs in connection with relocation of the Swedish logistics operations of Tools to Alligo's central warehouses in Örebro.
| WORKING CAPITAL MSEK |
2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Average operating assets | ||||
| Average inventories | 2,068 | 1,722 | 2,068 | 1,722 |
| Average accounts receivable | 1,164 | 1,050 | 1,164 | 1,050 |
| Total average operating assets | 3,231 | 2,772 | 3,231 | 2,772 |
| Average operating liabilities | ||||
| Average accounts payable | -1,015 | -973 | -1,015 | -973 |
| Total average operating liabilities | -1,015 | -973 | -1,015 | -973 |
| Average working capital | 2,216 | 1,799 | 2,216 | 1,799 |
| EBITA | 756 | 645 | ||
| Return on working capital (EBITA/WC), % | 34 | 36 |
| CAPITAL EMPLOYED MSEK |
2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Average balance sheet total | 8,054 | 8,217 | 8,054 | 8,217 |
| Average non-interest-bearing liabilities and provisions | ||||
| Average non-interest-bearing non-current liabilities | -400 | -371 | -400 | -371 |
| Average non-interest-bearing current liabilities | -1,665 | -1,615 | -1,665 | -1,615 |
| Total average non-interest-bearing liabilities and provisions | -2,065 | -1,986 | -2,065 | -1,986 |
| Average capital employed | 5,989 | 6,231 | 5,989 | 6,231 |
| Operating profit | 669 | 427 | ||
| Financial income | 4 | 3 | ||
| Total operating profit + financial income | 673 | 430 | ||
| Return on capital employed, % | 11 | 7 |
| RETURN ON EQUITY MSEK |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|
| Average equity3 | 3,236 | 3,218 |
| Profit/loss for the period3 | 508 | 429 |
| Return on equity, % | 16 | 13 |
3) Refers to equity or profit attributable to the parent company's shareholders.
| NET FINANCIAL LIABILITIES MSEK |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|
| Non-current interest-bearing liabilities | 2,410 | 2,095 |
| Current interest-bearing liabilities | 352 | 463 |
| Cash and cash equivalents | -215 | -286 |
| Net financial liabilities | 2,547 | 2,272 |
| NET OPERATIONAL LIABILITIES MSEK |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|
| Net financial liabilities | 2,547 | 2,272 |
| Financial lease liabilities | -1,013 | -1,013 |
| Net provisions for pensions | 0 | 0 |
| Net operational liabilities | 1,534 | 1,259 |
| EBITDA excl. IFRS 16, rolling 12 months | 845 | 747 |
| Ratio of net operational liabilities to EBITDA excl. IFRS 16 | 1.8 | 1.7 |
| EQUITY/ASSETS RATIO MSEK |
2022 OCT–DEC |
2021 OCT–DEC |
2022 JAN–DEC |
2021 JAN–DEC |
|---|---|---|---|---|
| Balance sheet total (closing balance) | 8,364 | 8,679 | 8,364 | 8,679 |
| Equity3 | 3,408 | 3,429 | 3,408 | 3,429 |
| Equity/assets ratio, % | 41 | 40 | 41 | 40 |
3) Refers to equity or profit attributable to the parent company's shareholders.
Alligo's strategic map is based on our mission and values and it guides us towards our vision of becoming unbeatable as a partner to our customers, as an employer for our employees, as a partner to our suppliers and as a leader in sustainable development in our industry.
If we do our job right, our customers will have what they need to do their job right – both as companies and as employees. They have tools and consumables where they need them, when they need them. They have workwear and personal protective equipment that protects them against the weather and against hazards. With our expertise, we can help customers to develop their business and make it safer and more efficient.
Alligo's values are based on three pillars that together define who we are and how we interact with our customers and other stakeholders.
| ❚ | ❚ | ❚ |
|---|---|---|
| Commitment | Collaboration | Competence |
Our vision describes what we want to achieve in the longer term. We must not be satisfied with being one of the leaders in the industry, we must be unbeatable. To achieve this, we must meet – and exceed – the expectations of our stakeholders. If we are the best partner for our customers, this will drive our sales. To make positive contributions to our customers, we need to have committed and skilled employees. To be able to provide our customers with the best offering, we need to have good relationships with the best suppliers. To be able to contribute to a sustainable society – as well as being relevant to our customers and employees – we must take sustainability issues seriously.
Alligo's strategies are connected to four strategic objectives that, in turn, are connected to our vision. These strategic objectives give our business a common direction and are all designed to deliver profitable growth.
We provide our customers with what they need in a friendly way
We are the workplace where the best people want to work and we help them grow
We have our industry's most efficient operations and reliable processes
We are known as the leader in sustainable development in our industry
Alligo supports Agenda 2030 and aims to achieve the UN Global Goals for Sustainable Development. The goals where we have the biggest impact and can make the greatest difference are connected with our material sustainability issues that clearly go hand in hand with our vision.
During the fourth quarter of 2022, we reviewed the link between our material sustainability issues and the UN Global Goals in order to make Alligo's sustainable development work even clearer. By working with sustainability as an integrated part of our strategy and business planning, we aim to become the unrivalled leader of sustainable development in our sector.
| Annual Report and Sustainability Report 2022 5 April 2023 | |
|---|---|
| Interim Report Q1 Jan–Mar 2023 | 28 April 2023 |
| Annual General Meeting 2023 24 May 2023 | |
| Interim Report Q2 Jan–Jun 2023 . | 18 July 2023 |
| Interim Report Q3 Jan–Sep 2023 | 26 October 2023 |
Financial reports, press releases, share information and other relevant company information can be found on the Group's website. You will also find a subscription service here where you can subscribe to press releases and financial reports.
CLEIN JOHANSSON ULLENVIK Group President and CEO +46 70 558 84 17 [email protected]
IRENE WISENBORN BELLANDER CFO +46 72 452 60 40 [email protected]
Postal address: Box 631 135 26 Tyresö, Sweden Visiting address: Vindkraftsvägen 2 135 70 Stockholm Tel.: +46 8 727 27 20 Co. reg. no.: 559072-1352 IR contact: [email protected]
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