Quarterly Report • Oct 27, 2022
Quarterly Report
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The challenging operating environment is continuing to impact the Group's performance, through inflationary effects with higher manufacturing costs for materials, energy and labor, as well as lower demand from Eastern Europe, which continues to be affected by Russia's invasion of Ukraine. Adjusted for currency, net sales decreased by 24% in the third quarter to SEK 2,626 million, with an EBITA margin of 8.1%.
Adjusted for currency, Medical Solutions sales increased by 13%, due primarily to the charging on of cost increases and healthy growth in the surgery segment. The EBITA margin decreased to
8.4%. This development was due to a change in the sales mix, a time lag in charging on higher manufacturing costs, and the capacity investments we made last year are not yet being fully utilized.
Adjusted for currency, Integrated Solutions sales decreased by some 60%, which was in line with what we previously communicated. The EBITA margin was 10.3% and was impacted by lower volumes. Demand for Vaporiser Heating Products (VHP) in Eastern Europe continues to be adversely affected following Russia's invasion of Ukraine.
Our interim report for the first quarter of this year explained that our customer in the VHP segment was assessing its sourcing strategy, and this has now led to us sharing the manufacture of new products. In addition, in October the Chinese authorities introduced new regulatory requirements for the manufacture of VHP products in China. The processing of licenses has been ongoing since spring 2022. Like several other companies, Nolato has not yet received any such license. We have consequently not manufactured VHP products in China in the current month (see also our press release of October 21). The EMC business is continuing to perform well. Nolato estimates this business area's total sales in the fourth quarter will be in the region of half a billion kronor.
Industrial Solutions volumes increased slightly. Organic growth, however, was 9%, due to the charging on of cost increases. Demand remains healthy but with some negative tendencies, particularly in the consumer discretionary segment. However, the EBITA margin decreased to 5.2% as a result of a continued component shortage, particularly in the automotive segment, leading to volatile production planning from the customers.
Overall, as a global strategic partner with a large number of customers and a strong financial position, we can look ahead with confidence, despite a range of external challenges.
| SEK million unless otherwise specified | Note | Q3 2022 |
Q3 2021 |
Q1 - Q3 2022 |
Q1 - Q3 2021 |
Rolling 12 months |
Full year 2021 |
|---|---|---|---|---|---|---|---|
| Net sales | 1 | 2,626 | 3,033 | 8,410 | 8,464 | 11,556 | 11,610 |
| Operating profit (EBITDA) | 343 | 450 | 1,115 | 1,356 | 1,564 | 1,805 | |
| Operating profit (EBITA) | 214 | 339 | 745 | 1,033 | 1,081 | 1,369 | |
| EBITA margin, % | 8.1 | 11.2 | 8.9 | 12.2 | 9.4 | 11.8 | |
| Operating profit (EBIT) | 2 | 205 | 331 | 715 | 1,007 | 1,041 | 1,333 |
| Profit after financial income and expense | 2 | 197 | 322 | 689 | 968 | 1,122 | 1,401 |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 | |
| Basic earnings per share, SEK | 3 | 0.59 | 0.96 | 2.05 | 2.89 | 3.48 | 4.32 |
| Diluted earnings per share, SEK | 3 | 0.59 | 0.95 | 2.05 | 2.88 | 3.48 | 4.32 |
| Cash flow after investm., excl. acquis. and disposals | 166 | 116 | 143 | 533 | 56 | 446 | |
| Net investm. affecting cash flow, excl. acq. and disp. | 109 | 245 | 352 | 577 | 557 | 782 | |
| Cash conversion, % | — | — | — | — | 5 | 35 | |
| Return on capital employed, % | — | — | 16.7 | 20.6 | 16.7 | 22.8 | |
| Return on shareholders' equity, % | — | — | 19.2 | 25.1 | 19.2 | 28.0 | |
| Equity/assets ratio, % | — | — | 51 | 45 | 51 | 47 | |
| Net financial liabilities (−), excluding pension- & lease | |||||||
| liabilities | — | — | – 580 | – 72 | – 580 | – 51 |
See definitions of IFRS measures and alternative performance measures on page 22.
Including a non-recurring item of SEK 50 million in operating profit and profit after tax in Q2 2021 and full year 2021 and SEK 115 million in profit after financial income and expense in Q4 2021 and full year 2021, which in total impacted profit after tax with SEK 165 million, for full year 2021.
This document is a translation from Swedish. In the event of any difference between this version and the Swedish original, the latter shall prevail.
Christer Wahlquist, President and CEO, Nolato AB
Consolidated sales totaled SEK 2,626 million (3,033). Adjusted for currency, this was a decrease of 24%.
Medical Solutions sales amounted to SEK 1,245 million (977); adjusted for currency, sales increased by 13%. The charging on of higher costs contributed to the increase in sales. The surgery area saw good growth in the quarter, while in vitro diagnostics (IVD) volumes were low during the period due to pandemic-related inventory adjustments, which continued to affect the third quarter.
Integrated Solutions sales totaled SEK 745 million (1,519). Adjusted for currency, this was a decrease of some 60%. Demand for Vaporiser Heating Products (VHP) in Eastern Europe has been adversely affected following Russia's invasion of Ukraine. Nolato believes that the VHP segment will continue to be impacted by the situation in Eastern Europe and by the effects of dual sourcing. In addition, Nolato has not manufactured any VHP products in China in October because of new regulatory requirements relating to VHP products established by Chinese authorities. Licensing by a Chinese authority has been ongoing in 2022, but Nolato has not yet received the relevant license. The license did not affect the third quarter, as it applies to production as of October. See also our press release of 21 October. The EMC segment is continuing to perform well, with sales increasing to SEK 185 million (145). Nolato estimates this business area's total sales in the fourth quarter will be in the region of half a billion kronor.
Industrial Solutions sales amounted to SEK 638 million (540); adjusted for currency, sales increased by 9%. Volumes increased slightly from the same quarter last year, while the charging on of cost increases, in particular, contributed positively to sales. Demand remained healthy in most market areas, but there were some indications of reduced demand. It is expected that the economic situation, with high inflation and cost increases, will lead to lower demand, primarily in the consumer discretionary segment.
Inflationary effects and lower volumes are having an adverse effect on earnings performance
The Group's operating profit (EBITA) was SEK 214 million (339).
Operating profit (EBITA) was SEK 104 million (100) for Medical Solutions, SEK 77 million (200) for Integrated Solutions and SEK 33 million (42) for Industrial Solutions.
The EBITA margin for Medical Solutions was 8.4% (10.2). The combination of a change in the sales mix, with a greater proportion from the surgery area and a lower proportion from IVD, had a negative impact on the margin. It has not yet been possible to fully charge on inflationary effects and higher production costs, the greatest impact from which has been in the US. Investments in capacity made in 2021 are still not being fully used and are consequently having a negative impact on the margin.
For Integrated Solutions, the margin was 10.3% (13.2). Lower VHP volumes had an adverse effect.
The EBITA margin for Industrial Solutions was 5.2% (7.8). A component shortage, particularly in automotive but in other areas too, has continued to impact the demand that our customers are experiencing and has led to fluctuating production planning for Nolato. This has resulted in lower production efficiency, which, together with a time lag in the charging on of cost increases, has adversely affected the margin.
Overall, the Group's EBITA margin was 8.1% (11.2).
Operating profit (EBIT) was SEK 205 million (331).
Profit after net financial income/expense was SEK 197 million (322).
Profit after tax was SEK 160 million (257). Diluted earnings per share were SEK 0.59 (0.95). Adjusted earnings per share after dilution, but excluding amortization of intangible assets arising from acquisitions, amounted to SEK 0.62 (0.98).
Profit • Adjusted diluted earnings per share
| Sales | Sales | EBITA | EBITA | EBITA marg. | EBITA marg. | |
|---|---|---|---|---|---|---|
| SEK million | Q3/2022 | Q3/2021 | Q3/2022 | Q3/2021 | Q3/2022 | Q3/2021 |
| Medical Solutions | 1,245 | 977 | 104 | 100 | 8.4% | 10.2% |
| Integrated Solutions | 745 | 1,519 | 77 | 200 | 10.3% | 13.2% |
| Industrial Solutions | 638 | 540 | 33 | 42 | 5.2% | 7.8% |
| Intra-Group adj., Parent Co | – 2 | – 3 | — | – 3 | — | — |
| Group total | 2,626 | 3,033 | 214 | 339 | 8.1% | 11.2% |
Operating profit (EBITA): Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.
Consolidated sales totaled SEK 8,410 million (8,464). Adjusted for currency, this was a decrease of 10%.
Sales for Medical Solutions rose by 18% to SEK 3,547 million (3,004), while for Integrated Solutions they decreased by 23% to SEK 2,904 million (3,750) and increased for Industrial Solutions by 15% to SEK 1,967 million (1,715).
The Group's operating profit (EBITA) was SEK 745 million (SEK 983 million excluding a non-recurring item). Overall, the Group's EBITA margin was 8.9% (11.6% excluding a non-recurring item).
Operating profit (EBIT) amounted to SEK 715 million (SEK 957 million excluding a non-recurring item).
Profit after net financial income and expense was SEK 689 million (SEK 918 million excluding a non-recurring item).
Profit after tax amounted to SEK 551 million (SEK 724 million excluding a non-recurring item). Diluted earnings per share were SEK 2.05 (SEK 2.70 excluding a non-recurring item). Adjusted earnings per share after dilution but excluding amortization of intangible assets arising from acquisitions amounted to SEK 2.13 (SEK 2.77 excluding a non-recurring item). The effective tax rate was 20.0% (20.0).
Return on capital employed was 16.7% for the last 12 months (22.8% for the 2021 calendar year). Return on equity was 19.2% for the last 12 months (28.0% for the 2021 calendar year).
| Sales and profit 9 months (SEK million) | 2022 | 2021 |
|---|---|---|
| Sales | 3,547 | 3,004 |
| Operating profit (EBITA) | 331 | 345 |
| EBITA margin (%) | 9.3 | 11.5 |
| Operating profit (EBIT) | 309 | 326 |
Medical Solutions sales amounted to SEK 3,547 million (3,004); adjusted for currency, sales increased by 7%. The charging on of higher costs contributed to the increase in sales. The surgery area saw good growth, while in vitro diagnostics (IVD) volumes were low due to pandemic-related inventory adjustments, which have continued to have an impact.
Operating profit (EBITA) was SEK 331 million (345).
The EBITA margin decreased to 9.3% (11.5). The combination of a change in the sales mix, with a greater proportion from the surgery area and a lower proportion from IVD, had a negative impact on the margin. A time lag in the charging on of cost increases also had an effect. Investments in capacity made in 2021 are still not being fully used and are consequently having a negative impact on the margin.
| Sales and profit 9 months (SEK million) | ||
|---|---|---|
| Sales | 2,904 | 3,750 |
| Operating profit (EBITA) | 309 | 479 |
| EBITA margin (%) | 10.6 | 12.8 |
| Operating profit (EBIT) | 308 | 478 |
Integrated Solutions sales totaled SEK 2,904 million (3,750). Adjusted for currency, sales decreased by 33%. Demand for Vaporiser Heating Products (VHP) in Eastern Europe has been adversely affected following Russia's invasion of Ukraine. Nolato believes that the VHP area will continue to be impacted by the situation in Eastern Europe and by the effects of dual sourcing in the second half of the year. In addition, Nolato has not manufactured any VHP products in China in October because of new regulatory requirements relating to VHP products established by Chinese authorities. Licensing by a Chinese authority has been ongoing in 2022, but Nolato has not yet received the relevant license. The EMC business is continuing to perform well. Nolato estimates this business area's total sales in the fourth quarter will be in the region of half a billion kronor.
Operating profit (EBITA) was SEK 309 million (479).
The EBITA margin was 10.6% (12.8). Lower VHP volumes had an adverse effect.
Medical Solutions sales
• Medical Solutions operating profit (EBITA) & EBITA margin %
2022 2021 Integrated Solutions sales
| Sales and profit 9 months (SEK million) | 2022 | 2021 |
|---|---|---|
| Sales | 1,967 | 1,715 |
| Operating profit (EBITA) | 110 | 170 |
| EBITA margin (%) | 5.6 | 9.9 |
| Operating profit (EBIT) | 103 | 164 |
Industrial Solutions sales amounted to SEK 1,967 million (1,715); adjusted for currency, sales increased by 8%. Volumes were more or less unchanged from the same period last year, while the charging on of cost increases contributed positively to sales. Demand remained good in most market areas, but there were some indications of reduced demand in the third quarter. It is expected that the economic situation, with high inflation and cost increases, will lead to lower demand, primarily in the consumer discretionary segment.
Operating profit (EBITA) was SEK 110 million (170).
The EBITA margin decreased to 5.6% (9.9). A component shortage, particularly in automotive but in other areas too, has continued to impact the demand that our customers are experiencing and has led to fluctuating production planning for Nolato. This has resulted in lower production efficiency, which, together with a time lag in the charging on of cost increases, has adversely affected the margin.
Industrial Solutions sales
• Industrial Solutions operating profit (EBITA) & EBITA margin %
Cash flow after investments in the third quarter amounted to SEK 166 million (116). During the quarter, tied-up working capital increased marginally by SEK 5 million (15). Net investments affecting cash flow decreased in the quarter to SEK 109 million (245).
Accumulated after nine months, cash flow after investments was SEK 143 million (533). Cash flow from operating activities before changes in working capital decreased to SEK 833 million (1,089), primarily impacted by lower earnings. The working capital requirement increased by SEK 338 million (decreased by SEK 21 million during the same period last year) and is adversely affecting cash flow. Among other things, the use of supplier finance for trade receivables has decreased. The net investments affecting cash flow decreased to SEK 352 million (577). Cash conversion for the last 12 months was 5% (35% for the 2021 calendar year). A dividend totaling SEK 512 million (428) was paid to shareholders in the second quarter.
Interest-bearing assets decreased to SEK 1,193 million (1,400), and interestbearing financial liabilities rose to SEK 1,773 million (1,472). Net financial liabilities consequently totaled SEK 580 million (72). Higher working capital requirements and the higher dividend have increased financial liabilities and, consequently, net debt too. There are also interest-bearing pension liabilities of SEK 170 million (259) and interest-bearing lease liabilities of SEK 317 million (306). Shareholders' equity rose to SEK 5,398 million (4,280). The equity/assets ratio was 51% (45).
| SEK million | 30/09/2022 | 30/09/2021 | 31/12/2021 |
|---|---|---|---|
| Interest-bearing liabilities, credit institutions | – 1,773 | – 1,472 | – 1,499 |
| Cash and bank | 1,193 | 1,400 | 1,448 |
| Net financial liabilities (–) | – 580 | – 72 | – 51 |
| Interest-bearing pension liabilities | – 170 | – 259 | – 247 |
| Net financial liabilities (–), incl. pension liabilities | – 750 | – 331 | – 298 |
| Lease liabilities | – 317 | – 306 | – 295 |
| Net financial liabilities (–), including pension- & lease liabilities | – 1,067 | – 637 | – 593 |
| Working capital | 899 | 230 | 480 |
| As a percentage of sales (average) (%) | 4.9 | 2.1 | 3.7 |
| Capital employed | 7,659 | 6,318 | 6,809 |
| Return on capital employed (average) (%) | 16.7 | 20.6 | 22.8 |
| Shareholders' equity | 5,398 | 4,280 | 4,768 |
| Return on shareholders' equity (average) (%) | 19.2 | 25.1 | 28.0 |
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Net sales | 1 | 2,626 | 3,033 | 8,410 | 8,464 | 11,556 | 11,610 |
| Gross profit excl. depreciation/amortization | 464 | 563 | 1,485 | 1,668 | 2,067 | 2,250 | |
| As a percentage of net sales | 17.7 | 18.6 | 17.7 | 19.7 | 17.9 | 19.4 | |
| Costs | – 121 | – 113 | – 370 | – 312 | – 503 | – 445 | |
| As a percentage of net sales | 4.6 | 3.7 | 4.4 | 3.7 | 4.4 | 3.8 | |
| Operating profit (EBITDA) | 343 | 450 | 1,115 | 1,356 | 1,564 | 1,805 | |
| As a percentage of net sales | 13.1 | 14.8 | 13.3 | 16.0 | 13.5 | 15.5 | |
| Depreciation and amortization | – 129 | – 111 | – 370 | – 323 | – 483 | – 436 | |
| Operating profit (EBITA) | 214 | 339 | 745 | 1,033 | 1,081 | 1,369 | |
| As a percentage of net sales | 8.1 | 11.2 | 8.9 | 12.2 | 9.4 | 11.8 | |
| Amortization of intangible assets arising fr. acquis. | – 9 | – 8 | – 30 | – 26 | – 40 | – 36 | |
| Operating profit (EBIT) | 2 | 205 | 331 | 715 | 1,007 | 1,041 | 1,333 |
| Financial income and expense | 2 | – 8 | – 9 | – 26 | – 39 | 81 | 68 |
| Profit after financial income and expense | 2 | 197 | 322 | 689 | 968 | 1,122 | 1,401 |
| Tax | – 37 | – 65 | – 138 | – 194 | – 185 | – 241 | |
| As a perc. of profit after financial inc. and exp. | 18.8 | 20.2 | 20.0 | 20.0 | 16.5 | 17.2 | |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 |
The average number of employees during the period was 7,004 people (8,325). The decrease in the number of employees is mainly attributable to Integrated Solutions' operations in China.
Nolato has appointed Anders Björklund as the new President of the Industrial Solutions business area and a member of Nolato's Group management. Over the past decade, Anders Björklund has held a number of senior management positions in the Sandvik Group and was most recently managing director of Kanthal, now part of Alleima. Anders has also previously worked at Gunnebo Industries, Volvo Construction Equipment and Ericsson. He will begin in his new role no later than the turn of the year. The former business area President Johan Arvidsson decided in April to take up a new position outside Nolato. Group President Christer Wahlquist will be acting President of Industrial Solutions until Anders Björklund assumes the role.
The Group and parent company's business risks and risk management, as well as the management of financial risks, are described on pages 59–61 and in Note 30 on pages 89–92 of the 2021 annual accounts.
High inflation, geopolitical effects of the invasion of Ukraine and Covid-19 naturally also affect Nolato's operations and its customers. At present, it is not possible to predict the duration or scope and thus not quantify these effects for the Group.
No other events of material significance occurred in the period that materially affect or change these descriptions of the Group and parent company's risks and their management.
Nolato does not experience any significant seasonal variations. However, in the third quarter sales within Industrial Solutions, and to a certain degree Medical Solutions, can be negatively affected by the fact that the holiday period falls in this quarter both for Nolato and its customers.
In connection with the interim report, Nolato will hold a webcast conference call in English at 2.45 p.m. CET. Nolato will be represented by President and CEO Christer Wahlquist and CFO Per-Ola Holmström, who will present the interim report and answer questions. Information regarding telephone numbers and website is available at
https://financialhearings.com/ event/43264. The presentation will be available at www.nolato.com/ir after publication of the interim report. The webcast will be available at the same address after the live broadcast.
High inflation, geopolitical impact from the invasion of Ukraine and the Covid-19 pandemic are, of course, also affecting Nolato's business and its customers. It is not currently possible to foresee the extent of this or how long it is likely to continue, nor is it possible to quantify its effects on the Group. Nolato has not yet received a license to manufacture VHP products in China on the basis of new regulatory requirements as of October. See also our press release of 21 October. No other significant events have occurred since the end of the period.
Nolato AB (publ), with Swedish corporate identity number 556080-4592, is the parent company of the Nolato Group.
Nolato's Class B shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.
There were 17,188 shareholders at 30 September. The largest shareholders are the Jorlén family, the Boström family and the Hamrin family with 9% each, Lannebo Fonder with 7%, Första AP-fonden with 6% and Andra AP-fonden with 4% of capital.
For the parent company, which has no operating activities, sales amounted to SEK 53 million (53). Profit after financial income and expense amounted to SEK 44 million (257).
Contingent liabilities amounted to SEK 322 million (316).
Nolato's consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU.
The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. Publication of this interim report is subject to the Swedish Securities Market Act.
The consolidated accounts have been prepared according to the same principles as in the most recent annual accounts, as set out in the Annual Report 2021.
IASB and the IFRS Interpretations Committee have issued new standards and statements that apply to financial years starting January 1, 2022, or later. There are no plans for the early application of new or amended standards for future application. None of the standards or interpretations published by IASB are expected to have a material impact on the Group or Parent Company's financial statements.
The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act.
Prior to publication this information constituted inside information that Nolato AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the above contact persons, at 1:45 p.m. CET on 27 October 2022.
This report has not been audited by the Company's auditors.
In accordance with a decision at Nolato's AGM on May 3, 2022, the largest shareholders in terms of the number of votes at the end of September 2022 have appointed the following individuals to be included in Nolato's Nomination Committee ahead of the 2023 AGM: Henrik Jorlén, chairman (Jorlén family), Gun Boström (Boström family), Lovisa Hamrin (Hamrin family), Hjalmar Ek (Lannebo Fonder) and Ossian Ekdahl (AP1 Fund).
Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by email at [email protected] or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.
The Annual General Meeting will be held on May 3, 2023.
Torekov, 27 October 2022 Nolato AB (publ) Christer Wahlquist, President and CEO
Nolato is a global, advanced high-tech cooperation partner and manufacturer of polymer products and systems for leading customers in well-defined market areas such as medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.
With its many years of experience, in-depth materials and processes expertise, early involvement in customer projects, advanced project management and detailed knowledge of each customer's specific requirements, Nolato is an effective and innovative partner.
Our business model is based on three decentralised business areas, which with their own decision-making and shared ambitions endeavour to fulfil our vision and financial targets.
The sharing of experience between our business areas, leading-edge technology, wide-ranging development and design know-how, advanced project management and efficient production allow us to establish long-term, innovative cooperation with our customers and partners and generate added value for both them and our shareholders.
Our shared values of being professional, well organised and responsible are reflected in everything we do.
Nolato is a Swedish group with operations in Europe, Asia and North America.
We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors.
Nolato's shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million | Note | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Net sales | 1 | 2,626 | 3,033 | 8,410 | 8,464 | 11,556 | 11,610 |
| Cost of goods sold | – 2,285 | – 2,577 | – 7,290 | – 7,115 | – 9,968 | – 9,793 | |
| Gross profit | 341 | 456 | 1,120 | 1,349 | 1,588 | 1,817 | |
| Other operating income | 15 | 1 | 41 | 55 | 56 | 70 | |
| Selling expenses | – 53 | – 44 | – 157 | – 131 | – 204 | – 178 | |
| Administrative expenses | – 98 | – 84 | – 289 | – 260 | – 386 | – 357 | |
| Other operating expenses | — | 2 | — | – 6 | – 13 | – 19 | |
| – 136 | – 125 | – 405 | – 342 | – 547 | – 484 | ||
| Operating profit | 2 | 205 | 331 | 715 | 1,007 | 1,041 | 1,333 |
| Financial income and expense | 2 | – 8 | – 9 | – 26 | – 39 | 81 | 68 |
| Profit after financial income and expense | 2 | 197 | 322 | 689 | 968 | 1,122 | 1,401 |
| Tax | – 37 | – 65 | – 138 | – 194 | – 185 | – 241 | |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 | |
| All earnings are attrib. to the Parent Co.'s shareh. | |||||||
| Depreciation/amortization reg. non-current assets | 138 | 119 | 400 | 349 | 523 | 472 | |
| Basic earnings per share, SEK | 3 | 0.59 | 0.96 | 2.05 | 2.89 | 3.48 | 4.32 |
| Diluted earnings per share, SEK | 3 | 0.59 | 0.95 | 2.05 | 2.88 | 3.48 | 4.32 |
| 269,377,080 | 269,282,080 | 269,377,080 | 269,282,080 | 269,377,080 | 269,377,080 | ||
| Number of shares at the end of the period, bef. dil. | 269,377,080 | 269,323,327 | 269,377,080 | 269,323,327 | 269,377,080 | 269,379,505 | |
| Number of shares at the end of the period, after dil. | 269,377,080 | 269,098,330 | 269,377,080 | 268,270,205 | 269,358,080 | 268,491,580 | |
| Average number of shares, before dilution | 269,377,080 | 269,227,427 | 269,377,080 | 268,629,519 | 269,366,814 | 268,779,516 | |
| Average number of shares, after dilution |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. For more information please see Note 3 Earnings per share on page 16.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 |
| Other comprehensive income | ||||||
| Items that cannot be transferred to profit for the period | ||||||
| Revaluations of defined benefit pension plans | 9 | 1 | 96 | 22 | 115 | 41 |
| Tax attrib. to items that cannot be transf. to profit for the per. | – 1 | — | – 15 | – 3 | – 18 | – 6 |
| 8 | 1 | 81 | 19 | 97 | 35 | |
| Items that have been conv. or can be conv. into prof. for the per. | ||||||
| Transl. diff. for the period on transl. of foreign operations | 229 | 54 | 516 | 117 | 594 | 195 |
| Changes in the fair value of cash flow hedges for the period | 2 | – 1 | – 9 | 9 | – 9 | 9 |
| Tax attrib. to changes in the fair value of cash flow hedges | 1 | — | 3 | – 2 | 3 | – 2 |
| 232 | 53 | 510 | 124 | 588 | 202 | |
| Other comprehensive income, net of tax | 240 | 54 | 591 | 143 | 685 | 237 |
| Total comp. inc. for the per. attrib. to the Parent Co.'s shareh. | 400 | 311 | 1,142 | 917 | 1,622 | 1,397 |
Financial instruments are measured at fair value in the statement of financial position, pursuant to measurement hierarchy Level 2.
| SEK million | 30/09/2022 | 30/09/2021 | 31/12/2021 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible non-current assets | 2,598 | 2,182 | 2,234 |
| Property, plant and equipment | 3,235 | 2,739 | 2,868 |
| Non-current financial assets | 2 | 2 | 2 |
| Other non-current receivables | 1 | 2 | 2 |
| Deferred tax assets | 76 | 54 | 69 |
| Total fixed assets | 5,912 | 4,979 | 5,175 |
| Current assets | |||
| Inventories | 1,266 | 1,194 | 1,340 |
| Accounts receivable | 1,658 | 1,422 | 1,574 |
| Other current assets2) | 606 | 547 | 518 |
| Cash and bank | 1,193 | 1,400 | 1,448 |
| Total current assets | 4,723 | 4,563 | 4,880 |
| Total assets | 10,635 | 9,542 | 10,055 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 5,398 | 4,280 | 4,768 |
| Long-term liabilities and provisions1) | 2,173 | 2,058 | 1,921 |
| Deferred tax liabilities1) | 264 | 205 | 254 |
| Current liabilities and provisions1) 3) | 2,800 | 2,999 | 3,112 |
| Total liabilities and provisions | 5,237 | 5,262 | 5,287 |
| Total shareholders' equity and liabilities | 10,635 | 9,542 | 10,055 |
| 1) Interest-bearing/non-interest-bearing liabilities and provisions: | |||
| Interest-bearing liabilities and provisions | 2,260 | 2,037 | 2,041 |
| Non-interest-bearing liabilities and provisions | 2,977 | 3,225 | 3,246 |
| Total liabilities and provisions | 5,237 | 5,262 | 5,287 |
Financial instruments are measured at fair value in the statement of financial position,
pursuant to measurement hierarchy Level 2.
2) Derivative assets are included in other current assets at
3) Derivative liabilities are included in current liabilities and provisions at 83 44 5
| 1 | 1 | 1 |
|---|---|---|
| Q1 - Q3 | Q1 - Q3 | Full year | |
|---|---|---|---|
| SEK million | 2022 | 2021 | 2021 |
| Shareholders' equity at the beginning of the period | 4,768 | 3,699 | 3,699 |
| Total comprehensive income for the period | 1,142 | 917 | 1,397 |
| Dividends | – 512 | – 428 | – 428 |
| Share warrants included in incentive programmes | — | — | 3 |
| Exercise of warrants included in incentive programmes | — | 92 | 97 |
| Shareholders' equity at the end of period attrib. to Parent Co's shareh. | 5,398 | 4,280 | 4,768 |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023 and Series 2021/2024 has redemptions from 01/05/2024 to 15/12/2024. The subscription price is SEK 92.88 for Series 2020/2023 and SEK 140.20 for Series 2021/2024. In Incentive Programme 2022/2028, Series 2022/2026 has redemptions from 15/12/2025 to 15/06/2026, Series 2023/2027 has redemptions from 15/12/2026 to 15/06/2027 and Series 2024/2028 has redemptions from 15/12/2027 to 15/06/2028. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 8,524,500 new class B shares.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Cash fl. from oper. activities bef. changes in work. cap. | 280 | 376 | 833 | 1,089 | 1,146 | 1,402 |
| Changes in working capital | – 5 | – 15 | – 338 | 21 | – 533 | – 174 |
| Cash flow from operating activities | 275 | 361 | 495 | 1,110 | 613 | 1,228 |
| Cash flow from investment activities | – 109 | – 245 | – 352 | – 577 | – 557 | – 782 |
| Cash flow before financing activities | 166 | 116 | 143 | 533 | 56 | 446 |
| Cash flow from financing activities | – 131 | – 4 | – 539 | – 711 | – 462 | – 634 |
| Cash flow for the period | 35 | 112 | – 396 | – 178 | – 406 | – 188 |
| Cash and cash equiv. at the beginning of the period | 1,115 | 1,248 | 1,448 | 1,487 | — | 1,487 |
| Exchange rate difference in liquid assets | 43 | 40 | 141 | 91 | — | 149 |
| Cash and cash equivalents at the end of the period | 1,193 | 1,400 | 1,193 | 1,400 | — | 1,448 |
| Q1 - Q3 - 2022 | Q1 - Q3 - 2021 | Full year - 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Med. | Integr. | Indust. | Med. | Integr. | Indust. | Med. | Integr. | Indust. | ||||
| SEK million | Sum | Sol. | Sol. | Sol. | Sum | Sol. | Sol. | Sol. | Sum | Sol. | Sol. | Sol. |
| Sweden | 711 | 103 | 26 | 582 | 689 | 90 | 20 | 579 | 914 | 117 | 29 | 768 |
| Other Europe | 4,558 | 1,688 | 1,808 | 1,062 | 4,105 | 1,498 | 1,732 | 875 | 5,839 | 1,998 | 2,638 | 1,203 |
| North America | 1,918 | 1,517 | 139 | 262 | 1,515 | 1,200 | 119 | 196 | 2,083 | 1,668 | 154 | 261 |
| Asia | 1,103 | 127 | 924 | 52 | 2,008 | 115 | 1,834 | 59 | 2,588 | 153 | 2,352 | 83 |
| Rest of world | 128 | 112 | 7 | 9 | 152 | 101 | 45 | 6 | 193 | 131 | 53 | 9 |
| Elimination internal sales | – 8 | – 5 | – 7 | |||||||||
| Tot. revenues fr. customer contracts | 8,410 | 3,547 | 2,904 | 1,967 | 8,464 | 3,004 | 3,750 | 1,715 | 11,610 | 4,067 | 5,226 | 2,324 |
The above table essentially covers products transferred at a specific date.
For the first nine months of the year, the Group recognised increased provision of impaired trade receivables of SEK 11 million. Impairment losses are recognised in the cost of goods sold.
| Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 12 months | 2021 |
| Operating profit (EBIT) | ||||
| Medical Solutions | 309 | 326 | 413 | 430 |
| Integrated Solutions | 308 | 478 | 500 | 670 |
| Industrial Solutions | 103 | 164 | 139 | 200 |
| Group adjustments, Parent Company | – 5 | 39 | – 11 | 33 |
| Consolidated operating profit (EBIT) | 715 | 1,007 | 1,041 | 1,333 |
| Financial income and expense (not distributed by business areas) | – 26 | – 39 | 81 | 68 |
| Consolidated profit before tax | 689 | 968 | 1,122 | 1,401 |
Including a non-recurring item of SEK 50 million in operating profit in Q2 2021. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.
Including a non-recurring item of SEK 115 million in financial income and expense in Q4 2021. The non-recurring item has been recognised at Group level and has therefore not affected the earnings of the business areas.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 |
| Average number of shares, before dilution | 269,377,080 | 269,098,330 | 269,377,080 | 268,270,205 | 269,358,080 | 268,491,580 |
| Basic earnings per share (SEK) | 0.59 | 0.96 | 2.05 | 2.89 | 3.48 | 4.32 |
| Non-recurring items | — | — | — | – 50 | – 115 | – 165 |
| Profit after tax excl. non-recurring items | 160 | 257 | 551 | 724 | 822 | 995 |
| Basic earnings per share excl. non-recurring items (SEK) | 0.59 | 0.96 | 2.05 | 2.70 | 3.48 | 3.71 |
| Dilutive shares from Series 2018/2021 incentive progr. with | ||||||
| exercise price SEK 50.20 per share; total 1,935,000 warrants | — | 119,506 | — | 359,314 | 8,249 | 287,451 |
| Dilutive shares from Series 2020/2023 incentive progr. with | ||||||
| exercise price SEK 92.88 per share; total 287,500 warrants | — | 9,591 | — | — | 485 | 485 |
| Average number of shares, after dilution | 269,377,080 | 269,227,427 | 269,377,080 | 268,629,519 | 269,366,814 | 268,779,516 |
| Diluted earnings per share (SEK) | 0.59 | 0.95 | 2.05 | 2.88 | 3.48 | 4.32 |
| Diluted earnings per share excl. non-rec. items (SEK) | 0.59 | 0.95 | 2.05 | 2.70 | 3.05 | 3.70 |
| Numb. of shares at the end of the per., before dilution | 269,377,080 | 269,282,080 | 269,377,080 | 269,282,080 | 269,377,080 | 269,377,080 |
| Numb. of shares at the end of the period, after dilution | 269,377,080 | 269,323,327 | 269,377,080 | 269,323,327 | 269,377,080 | 269,379,505 |
At the end of the period, the Group had two incentive programmes: Incentive Programme 2019/2024 and Incentive Programme 2022/2028. In Incentive Programme 2019/2024, Series 2020/2023 has redemptions from 01/05/2023 to 15/12/2023 and Series 2021/2024 has redemptions from 01/05/2024 to 15/12/2024. The subscription price is SEK 92.88 for Series 2020/2023 and SEK 140.20 for Series 2021/2024. In Incentive Programme 2022/2028, Series 2022/2026 has redemptions from 15/12/2025 to 15/06/2026, Series 2023/2027 has redemptions from 15/12/2026 to 15/06/2027 and Series 2024/2028 has redemptions from 15/12/2027 to 15/06/2028. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 8,524,500 new class B shares.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 |
| Adjusted earnings: | ||||||
| Amort. of intangible assets arising from acquisitions | 9 | 8 | 30 | 26 | 40 | 36 |
| Tax on amortization | – 2 | – 1 | – 6 | – 5 | – 8 | – 7 |
| Adjusted earnings | 167 | 264 | 575 | 795 | 969 | 1,189 |
| Average number of shares, before dilution | 269,377,080 | 269,098,330 | 269,377,080 | 268,270,205 | 269,358,080 | 268,491,580 |
| Adjusted basic earnings per share (SEK) | 0.62 | 0.98 | 2.13 | 2.96 | 3.60 | 4.43 |
| Non-recurring items | — | — | — | – 50 | – 115 | – 165 |
| Adjusted earnings after tax, excl. non-recurring items | 167 | 264 | 575 | 745 | 854 | 1,024 |
| Adj. basic earnings per share excl. non-rec. items (SEK) | 0.62 | 0.98 | 2.13 | 2.78 | 3.17 | 3.81 |
| Average number of shares, after dilution | 269,377,080 | 269,227,427 | 269,377,080 | 268,629,519 | 269,366,814 | 268,779,516 |
| Adjusted diluted earnings per share (SEK) | 0.62 | 0.98 | 2.13 | 2.96 | 3.60 | 4.42 |
| Adj. diluted earn. per share excl. non-rec. items (SEK) | 0.62 | 0.98 | 2.13 | 2.77 | 3.17 | 3.81 |
| IFRS measures | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| Operating profit (EBIT) (SEK million) | 1,333 | 1,048 | 887 | 941 | 749 |
| Basic earnings per share (SEK) | 4.32 | 3.03 | 2.66 | 2.74 | 2.17 |
| Diluted earnings per share (SEK) | 4.32 | 3.02 | 2.66 | 2.74 | 2.17 |
| Alternative performance measures | |||||
|---|---|---|---|---|---|
| Net sales (SEK million) | 11,610 | 9,359 | 7,919 | 8,102 | 6,720 |
| Operating profit (EBITA) (SEK million) | 1,369 | 1,066 | 895 | 949 | 763 |
| EBITA margin (%) | 11.8 | 11.4 | 11.3 | 11.7 | 11.4 |
| Profit after financial income and expense (SEK million) | 1,401 | 1,014 | 857 | 921 | 731 |
| Profit after tax (SEK million) | 1,160 | 806 | 703 | 722 | 572 |
| Cash flow after investments, excl. acq. and disposals (SEK million) | 446 | 905 | 800 | 593 | 496 |
| Cash conversion (%) | 35 | 87 | 88 | 60 | 66 |
| Return on capital employed (%) | 22.8 | 20.7 | 23.1 | 29.7 | 26.6 |
| Return on shareholders' equity (%) | 28.0 | 23.9 | 25.5 | 30.4 | 29.4 |
| Net financial liabilities (–) / assets (+), excl. pension- & lease liabilities (SEK million) |
– 51 | – 298 | 666 | 341 | 31 |
| Equity/assets ratio (%) | 47 | 43 | 48 | 50 | 45 |
| Adjusted basic earnings per share (SEK) | 4.43 | 3.08 | 2.68 | 2.77 | 2.22 |
| Adjusted diluted earnings per share (SEK) | 4.42 | 3.08 | 2.68 | 2.76 | 2.22 |
| Dividend per share (SEK) | 1.90 | 1.60 | — | 1.40 | 1.25 |
| Average number of employees | 8,669 | 6,721 | 5,941 | 6,449 | 7,249 |
Including any non-recurring items.
| 2022 258 252 205 — — Operating profit (EBIT) (SEK million) 2 2021 299 377 331 326 1,333 2 2020 225 267 282 274 1,048 2022 0.75 0.71 0.59 — — Basic earnings per share (SEK) 3 2021 0.85 1.09 0.96 1.43 4.32 3 2020 0.67 0.78 0.79 0.79 3.03 2022 0.75 0.71 0.59 — — Diluted earnings per share (SEK) 3 2021 0.84 1.08 0.95 1.43 4.32 3 2020 0.67 0.78 0.79 0.79 3.02 Q1 Q2 Q3 Q4 Full year Alternative performance measures Note 2022 2,879 2,905 2,626 — — Net sales (SEK million) 1 2021 2,645 2,786 3,033 3,146 11,610 1 2020 2,065 2,307 2,500 2,487 9,359 2022 386 386 343 — — Operating profit (EBITDA) (SEK million) 2021 414 492 450 449 1,805 2020 319 360 388 389 1,456 2022 267 264 214 — — Operating profit (EBITA) (SEK million) 2021 308 386 339 336 1,369 2020 227 269 287 283 1,066 2022 9.3 9.1 8.1 — — EBITA margin (%) 2021 11.6 13.9 11.2 10.7 11.8 2020 11.0 11.7 11.5 11.4 11.4 2022 251 241 197 — — Profit after financial income and exp. (SEK million) 2 2021 286 360 322 433 1,401 2 2020 221 257 267 269 1,014 2022 201 190 160 — — Profit after tax (SEK million) 2021 226 291 257 386 1,160 2020 177 207 211 211 806 2022 89 131 275 — — Cash flow from operating activities (SEK million) 2021 249 500 361 118 1,228 2020 – 3 748 76 343 1,164 2022 0.33 0.49 1.02 — — Cash fl. from operations per share bef. dilution (SEK) 2021 0.93 1.86 1.34 0.44 4.58 2020 – 0.01 2.82 0.29 1.28 4.37 2022 – 41 18 166 — — Cash flow after investments, excluding acquisitions 2021 71 346 116 – 87 446 and disposals (SEK million) 2020 – 73 685 82 211 905 2022 – 0.15 0.07 0.62 — — Cash flow after investments, excl. acquisitions and 2021 0.27 1.29 0.43 – 0.32 1.66 disposals per share before dilution (SEK) 2020 – 0.27 2.58 0.31 0.79 3.40 2022 0.77 0.74 0.62 — — Adjusted basic earnings per share (SEK) 3 2021 0.87 1.11 0.98 1.46 4.43 3 2020 0.67 0.78 0.81 0.82 3.08 2022 19 19 20 — — Shareholders' equity per share, before dilution (SEK) 2021 15 15 16 18 18 2020 12 13 14 14 14 2022 14.8 13.3 11.6 — — Return on total capital (%) 2021 14.0 14.6 14.3 15.7 15.7 2020 15.7 15.8 14.8 14.3 14.3 |
IFRS measures | Note | Q1 | Q2 | Q3 | Q4 | Full year |
|---|---|---|---|---|---|---|---|
| Alternative performance measures | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Return on capital employed (%) | 2022 | 21.6 | 19.4 | 16.7 | — | — |
| 2021 | 20.2 | 21.0 | 20.6 | 22.8 | 22.8 | |
| 2020 | 23.2 | 23.4 | 21.8 | 20.7 | 20.7 | |
| Return on operating capital (%) | 2022 | 25.3 | 21.8 | 18.3 | — | — |
| 2021 | 28.0 | 28.5 | 26.8 | 27.1 | 27.1 | |
| 2020 | 31.2 | 33.1 | 30.9 | 29.2 | 29.2 | |
| Return on shareholders' equity (%) | 2022 | 25.8 | 22.5 | 19.2 | — | — |
| 2021 | 23.8 | 25.1 | 25.1 | 28.0 | 28.0 | |
| 2020 | 26.0 | 25.9 | 25.0 | 23.9 | 23.9 | |
| Closing share price Nolato B (Nasdaq Stockholm) | 2022 | 70.00 | 55.00 | 50.85 | — | — |
| 2021 | 77.80 | 84.20 | 104.70 | 107.90 | 107.90 | |
| 2020 | 44.94 | 62.80 | 87.30 | 83.20 | 83.20 |
Including a non-recurring item of SEK 50 million in operating income and profit after tax in Q2 2021 and a non-recurring item of SEK 115 million in profit after financial income and expense and profit after tax in Q4 2021.
Including a non-recurring item of SEK −17 million in operating profit in Q3 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −14 million.
Including a non-recurring item of SEK −14 million in operating profit in Q1 2020 and tax effects of SEK +3 million, which impacted profit after tax by SEK −11 million.
| Alternative performance measures | |||||||
|---|---|---|---|---|---|---|---|
| Net sales (SEK million) | Note | Q1 | Q2 | Q3 | Q4 | Full year | |
| Medical Solutions | 1 | 2022 | 1,088 | 1,214 | 1,245 | — | — |
| 1 | 2021 | 1,006 | 1,021 | 977 | 1,063 | 4,067 | |
| 2020 | 642 | 700 | 796 | 951 | 3,089 | ||
| Integrated Solutions | 1 | 2022 | 1,140 | 1,019 | 745 | — | — |
| 1 | 2021 | 1,045 | 1,186 | 1,519 | 1,476 | 5,226 | |
| 2020 | 854 | 1,149 | 1,158 | 907 | 4,068 | ||
| Industrial Solutions | 1 | 2022 | 653 | 676 | 638 | — | — |
| 1 | 2021 | 595 | 580 | 540 | 609 | 2,324 | |
| 2020 | 570 | 459 | 547 | 629 | 2,205 | ||
| Group adjustments, Parent Company | 1 | 2022 | – 2 | – 4 | – 2 | — | — |
| 1 | 2021 | – 1 | – 1 | – 3 | – 2 | – 7 | |
| 2020 | – 1 | – 1 | – 1 | — | – 3 | ||
| Group total | 1 | 2022 | 2,879 | 2,905 | 2,626 | — | — |
| 1 | 2021 | 2,645 | 2,786 | 3,033 | 3,146 | 11,610 | |
| 2020 | 2,065 | 2,307 | 2,500 | 2,487 | 9,359 |
| Alternative performance measures | |||||||
|---|---|---|---|---|---|---|---|
| Operating profit (EBITA) (SEK million) | Q1 | Q2 | Q3 | Q4 | Full year | ||
| Medical Solutions | 2022 | 106 | 121 | 104 | — | — | |
| EBITA margin (%) | 9.7 | 10.0 | 8.4 | — | — | ||
| 2021 | 121 | 124 | 100 | 112 | 457 | ||
| EBITA margin (%) | 12.0 | 12.1 | 10.2 | 10.5 | 11.2 | ||
| 2020 | 87 | 100 | 103 | 112 | 402 | ||
| EBITA margin (%) | 13.6 | 14.3 | 12.9 | 11.8 | 13.0 | ||
| Integrated Solutions | 2022 | 123 | 109 | 77 | — | — | |
| EBITA margin (%) | 10.8 | 10.7 | 10.3 | — | — | ||
| 2021 | 125 | 154 | 200 | 192 | 671 | ||
| EBITA margin (%) | 12.0 | 13.0 | 13.2 | 13.0 | 12.8 | ||
| 2020 | 111 | 166 | 160 | 111 | 548 | ||
| EBITA margin (%) | 13.0 | 14.4 | 13.8 | 12.2 | 13.5 | ||
| Industrial Solutions | 2022 | 40 | 37 | 33 | — | — | |
| EBITA margin (%) | 6.1 | 5.5 | 5.2 | — | — | ||
| 2021 | 66 | 62 | 42 | 38 | 208 | ||
| EBITA margin (%) | 11.1 | 10.7 | 7.8 | 6.2 | 9.0 | ||
| 2020 | 47 | 11 | 48 | 62 | 168 | ||
| EBITA margin (%) | 8.2 | 2.4 | 8.8 | 9.9 | 7.6 | ||
| Group adjustments, Parent Company | 2022 | – 2 | – 3 | — | — | — | |
| 2021 | – 4 | 46 | – 3 | – 6 | 33 | ||
| 2020 | – 18 | – 8 | – 24 | – 2 | – 52 | ||
| Group total | 2022 | 267 | 264 | 214 | — | — | |
| EBITA margin (%) | 9.3 | 9.1 | 8.1 | — | — | ||
| 2021 | 308 | 386 | 339 | 336 | 1,369 | ||
| EBITA margin (%) | 11.6 | 13.9 | 11.2 | 10.7 | 11.8 | ||
| 2020 | 227 | 269 | 287 | 283 | 1,066 | ||
| EBITA margin (%) | 11.0 | 11.7 | 11.5 | 11.4 | 11.4 |
Including a non-recurring item of SEK 50 million in operating profit in Q2 2021. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.
Including a non-recurring item of SEK −17 million in operating profit in Q3 2020. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.
Including a non-recurring item of SEK −14 million in operating profit in Q1 2020. The non-recurring item has been recognized at Group level and has therefore not affected the earnings of the business areas.
| Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|
| 2022 | 69 | 74 | 79 | — | — |
| 2021 | 61 | 61 | 63 | 64 | 249 |
| 2020 | 41 | 41 | 48 | 63 | 193 |
| 2022 | 15 | 17 | 16 | — | — |
| 2021 | 15 | 16 | 15 | 16 | 62 |
| 2020 | 17 | 16 | 15 | 15 | 63 |
| 2022 | 43 | 43 | 43 | — | — |
| 2021 | 39 | 38 | 41 | 42 | 160 |
| 2020 | 36 | 36 | 43 | 36 | 151 |
| 2022 | 1 | — | — | — | — |
| 2021 | — | — | — | 1 | 1 |
| 2020 | — | — | — | 1 | 1 |
| 2022 | 128 | 134 | 138 | — | — |
| 2021 | 115 | 115 | 119 | 123 | 472 |
| 2020 | 94 | 93 | 106 | 115 | 408 |
| IFRS measures Note |
Q3 2022 |
Q3 2021 |
Q1 - Q3 2022 |
Q1 - Q3 2021 |
Rolling 12 months |
Full year 2021 |
|
|---|---|---|---|---|---|---|---|
| Basic earnings per share (SEK) | 3 3 |
0.59 0.59 |
0.96 0.95 |
2.05 2.05 |
2.89 2.88 |
3.48 3.48 |
4.32 4.32 |
| Diluted earnings per share (SEK) Alternative performance measures |
|||||||
| Net sales (SEK million) | 1 | 2,626 | 3,033 | 8,410 | 8,464 | 11,556 | 11,610 |
| Sales growth (%) | – 13 | 21 | – 1 | 23 | 6 | 24 | |
| Percentage of sales outside Sweden (%) | 92 | 94 | 92 | 92 | 92 | 92 | |
| Operating profit (EBITDA) (SEK million) | 343 | 450 | 1,115 | 1,356 | 1,564 | 1,805 | |
| Operating profit (EBITA) (SEK million)1) | 214 | 339 | 745 | 1,033 | 1,081 | 1,369 | |
| EBITA margin (%)1) | 8.1 | 11.2 | 8.9 | 12.2 | 9.4 | 11.8 | |
| Profit after financial income and exp. (SEK million) | 2 | 197 | 322 | 689 | 968 | 1,122 | 1,401 |
| Profit margin (%)1) | 7.5 | 10.6 | 8.2 | 11.4 | 9.7 | 12.1 | |
| Profit after tax (SEK million) | 160 | 257 | 551 | 774 | 937 | 1,160 | |
| Return on total capital (%)1) | — | — | 11.6 | 14.3 | 11.6 | 15.7 | |
| Return on capital employed (%)1) | — | — | 16.7 | 20.6 | 16.7 | 22.8 | |
| Return on operating capital (%)1) | — | — | 18.3 | 26.8 | 18.3 | 27.1 | |
| Return on shareholders' equity (%)1) | — | — | 19.2 | 25.1 | 19.2 | 28.0 | |
| Equity/assets ratio (%) | — | — | 51 | 45 | 51 | 47 | |
| Debt/equity (%) | — | — | 42 | 48 | 42 | 43 | |
| Interest coverage ratio (times) | 13 | 30 | 17 | 30 | 23 | 34 | |
| Net investments affecting cash flow, excl. acquisitions | |||||||
| and disposals (SEK million) | 109 | 245 | 352 | 577 | 557 | 782 | |
| Cash flow after investments, excl. acquisitions and disposals (SEK million) |
166 | 116 | 143 | 533 | 56 | 446 | |
| Cash conversion (%)1) | — | — | — | — | 5 | 35 | |
| Net financial liabilities, excl. pension- & lease liabilities (SEK million) |
— | — | – 580 | – 72 | – 580 | – 51 | |
| Adjusted basic earnings per share (SEK) | 3 | 0.62 | 0.98 | 2.13 | 2.96 | 3.60 | 4.43 |
| Adjusted diluted earnings per share (SEK) | 3 | 0.62 | 0.98 | 2.13 | 2.96 | 3.60 | 4.42 |
| Cash flow from operations per share, before dilution (SEK) |
1.02 | 1.34 | 1.84 | 4.14 | 2.28 | 4.58 | |
| Cash flow from operations per share, after dilution (SEK) |
1.02 | 1.34 | 1.84 | 4.13 | 2.28 | 4.57 | |
| Cash flow after investments excluding acquisitions and disposals, per share, before dilution (SEK) |
0.62 | 0.43 | 0.53 | 1.99 | 0.21 | 1.66 | |
| Cash flow after investments excluding acquisitions and disposals, per share, after dilution (SEK) |
0.62 | 0.43 | 0.53 | 1.98 | 0.21 | 1.66 | |
| Shareholders' equity per share, before dilution (SEK) | — | — | 20 | 16 | — | 18 | |
| Shareholders' equity per share, after dilution (SEK) | — | — | 20 | 16 | — | 18 | |
| Average number of employees | — | — | 7,004 | 8,325 | — | 8,669 |
See definitions of IFRS measures and alternative performance measures on page 22.
1) KPIs calculated as specified on pages 23 and 24.
Including a non-recurring item of SEK 50 million in operating profit and profit after tax in Q2 2021 and full year 2021 and SEK 115 million in profit after financial income and expense in Q4 2021 and full year 2021, which in total impacted profit after tax with SEK 165 million, for full year 2021.
Earnings for the period that are attributable to the parent company's owners divided by the average number of outstanding shares.
Earnings before financial income and expense and taxes.
Nolato presents certain financial measures in this report that are not defined according to IFRS. Nolato considers that these measures provide valuable supplementary information for investors and company management, as they enable an assessment of trends and the company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not therefore be regarded as substitutes for measures defined according to IFRS.
Profit after tax, excluding amortization of intangible assets arising from acquisitions, divided by the average number of shares.
The average basic number of shares comprises the parent bearing assets. company's weighted average number of outstanding shares during the period. After dilution, a weighted average of the shares that may be issued under the ongoing share warrant programme is added, if they are in-the-money, but only insofar as the average listed share price for the period exceeds the subscription price of the warrants.
Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items, if any.
Cash flow after investments, excl. acquisitions and disposals per share
Cash flow after investing activities excl. acquisitions and disposals, divided by the average number of shares.
Cash flow from operating activities, divided by the average number of shares.
Interest-bearing liabilities and provisions divided by
Shareholders' equity as a percentage of total capital in the balance sheet.
Profit after financial income and expense, plus financial expenses, divided by financial expenses.
Interest-bearing liabilities from credit institutions less interest-
Earnings before financial income and expense, taxes and amortization of intangible assets arising from acquisitions.
Earnings before financial income and expense, taxes and depreciation/amortization.
Profit after financial income and expense as a percentage of net sales.
Profit after financial income and expense, plus financial expenses as a percentage of average capital employed. Capital employed consists of total capital less non-interest-bearing liabilities and provisions.
Operating profit as a percentage of average operating capital. Operating capital consists of total capital less non-interestbearing liabilities and provisions, less interest-bearing assets.
EBITA margin Return on total capital shareholders' equity. Profit after tax as a percentage of average shareholders' equity.
Operating profit (EBITA) as a percentage of net sales. Profit after financial income and expense, plus financial expenses as a percentage of average total capital in the balance sheet.
Some of the items reported relate to future events and actual outcomes may differ materially. In addition to those factors explicitly commented on, other factors may also materially affect the actual outcome, such as economic conditions, exchange rates and interest rate levels, political risks, competition and pricing, product development, commercialisation and technical difficulties, supply problems and customer credit losses.
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | ||
|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Operating profit (EBITDA) | 343 | 450 | 1,115 | 1,356 | 1,564 | 1,805 | |
| Non-recurring items | — | — | — | – 50 | — | – 50 | |
| Adjusted operating profit (EBITDA) | 343 | 450 | 1,115 | 1,306 | 1,564 | 1,755 | |
| Operating profit (EBIT) | 2 | 205 | 331 | 715 | 1,007 | 1,041 | 1,333 |
| Reversal of amort. of intangible assets arising | |||||||
| in connection with acquisitions | 9 | 8 | 30 | 26 | 40 | 36 | |
| Operating profit (EBITA) | 214 | 339 | 745 | 1,033 | 1,081 | 1,369 | |
| Non-recurring items | — | — | — | – 50 | — | – 50 | |
| Adjusted operating profit (EBITA) | 214 | 339 | 745 | 983 | 1,081 | 1,319 | |
| EBITA margin (%) | 8.1 | 11.2 | 8.9 | 12.2 | 9.4 | 11.8 | |
| Adjusted EBITA margin (%) | 8.1 | 11.2 | 8.9 | 11.6 | 9.4 | 11.4 | |
| Profit after financial income and expense | 2 | 197 | 322 | 689 | 968 | 1,122 | 1,401 |
| Non-recurring items | — | — | — | – 50 | – 115 | – 165 | |
| Adjusted profit after financial income and expense | 197 | 322 | 689 | 918 | 1,007 | 1,236 | |
| Profit margin (%) | 7.5 | 10.6 | 8.2 | 11.4 | 9.7 | 12.1 | |
| Adjusted profit margin (%) | 7.5 | 10.6 | 8.2 | 10.8 | 8.7 | 10.6 | |
| Profit after tax | 160 | 257 | 551 | 774 | 937 | 1,160 | |
| Non-recurring items | — | — | — | – 50 | – 115 | – 165 | |
| Tax on non-recurring items | — | — | — | — | — | — | |
| Adjusted profit after tax | 160 | 257 | 551 | 724 | 822 | 995 | |
| Cash fl. after investm., excl. acquisitions and dispos. | — | — | — | — | 56 | 446 | |
| Non-recurring items (affecting cash flow) | — | — | — | — | — | — | |
| Adj. cash fl. after investments, excl. acq. and disp. | — | — | — | — | 56 | 446 | |
| Operating profit (EBIT) | 2 | — | — | — | — | 1,041 | 1,333 |
| Non-recurring items | — | — | — | — | — | – 50 | |
| Adjusted operating profit (EBIT) | — | — | — | — | 1,041 | 1,283 | |
| Cash conversion (%) | — | — | — | — | 5 | 35 |
Including a non-recurring item of SEK 50 million in operating profit and profit after tax in Q2 2021 and full year 2021 and SEK 115 million in profit after financial income and expense in Q4 2021 and full year 2021, which in total impacted profit after tax with SEK 165 million. The nonrecurring items have been recognised at Group level and have therefore not affected the earnings of the business areas.
| Alternative performance measures | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
|---|---|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 |
| Profit after financial income and exp., rolling 12 months | 1,122 | 1,247 | 1,367 | 1,401 | 1,238 | ||||
| Financial expense, rolling 12 months | 51 | 46 | 43 | 43 | 44 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 1,173 | 1,293 | 1,410 | 1,444 | 1,282 | ||||
| Total capital, at the end of period | 10,635 | 10,220 | 9,984 | 10,056 | 9,542 | 8,784 | 9,191 | 8,482 | 8,899 |
| Average total capital, last 5 quarters | 10,087 | 9,717 | 9,511 | 9,211 | 8,980 | ||||
| Return on total capital (%) | 11.6 | 13.3 | 14.8 | 15.7 | 14.3 | ||||
| Adj. profit after financial inc. and exp., rolling 12 months | 1,173 | 1,293 | 1,410 | 1,444 | 1,282 | ||||
| Capital employed, at the end of period | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 | 5,984 | 6,479 | 6,116 | 6,167 |
| Average capital employed, last 5 quarters | 7,016 | 6,681 | 6,533 | 6,341 | 6,213 | ||||
| Return on capital employed (%) | 16.7 | 19.4 | 21.6 | 22.8 | 20.6 | ||||
| Operating profit (EBIT), rolling 12 months | 1,041 | 1,167 | 1,293 | 1,333 | 1,281 | ||||
| Capital employed, at the end of period | 7,659 | 7,220 | 7,074 | 6,809 | 6,318 | 5,984 | 6,479 | 6,116 | 6,167 |
| Cash and bank, at the end of period | – 1,193 – 1,115 – 1,408 – 1,448 – 1,400 – 1,248 – 1,563 – 1,487 | – 1,438 | |||||||
| Operating capital, at the end of period | 6,466 | 6,105 | 5,666 | 5,361 | 4,918 | 4,736 | 4,916 | 4,629 | 4,729 |
| Average operating capital, latest 5 quarters | 5,703 | 5,357 | 5,119 | 4,912 | 4,786 | ||||
| Return on operating capital (%) | 18.3 | 21.8 | 25.3 | 27.1 | 26.8 | ||||
| Profit after tax, rolling 12 months | 937 | 1,034 | 1,135 | 1,160 | 985 | ||||
| Shareholders' equity, at the end of period | 5,398 | 4,998 | 5,010 | 4,768 | 4,280 | 3,951 | 4,025 | 3,699 | 3,653 |
| Average shareholders' equity, latest 5 quarters | 4,891 | 4,601 | 4,407 | 4,145 | 3,922 | ||||
| Return on shareholders' equity (%) | 19.2 | 22.5 | 25.8 | 28.0 | 25.1 |
| Q3 | Q3 | Q1 - Q3 | Q1 - Q3 | Rolling | Full year | |
|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | 12 months | 2021 |
| Net sales | 16 | 16 | 53 | 53 | 69 | 69 |
| Selling expenses | – 1 | – 1 | – 5 | – 5 | – 8 | – 8 |
| Administrative expenses | – 14 | – 13 | – 44 | – 40 | – 61 | – 57 |
| Other operating income | 1 | 1 | 3 | 9 | 4 | 10 |
| Other operating expenses | – 16 | – 8 | – 48 | – 28 | – 58 | – 38 |
| Operating profit | – 14 | – 5 | – 41 | – 11 | – 54 | – 24 |
| Profit from participations in Group companies | 26 | 64 | 141 | 233 | 598 | 690 |
| Financial income | 12 | 14 | 46 | 54 | 66 | 74 |
| Financial expenses | – 43 | – 8 | – 102 | – 19 | – 136 | – 53 |
| Profit after financial income and expense | – 19 | 65 | 44 | 257 | 474 | 687 |
| Appropriations | — | — | — | — | 255 | 255 |
| Tax | 2 | 6 | 15 | 9 | – 74 | – 80 |
| Profit after tax | – 17 | 71 | 59 | 266 | 655 | 862 |
| Depreciation/amortization | — | — | — | — | — | — |
| SEK million | 30/09/2022 | 30/09/2021 | 31/12/2021 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | — | 1 | — |
| Property, plant and equipment | 1 | 1 | 1 |
| Financial assets | 4,096 | 3,671 | 3,821 |
| Deferred tax assets | 21 | 16 | — |
| Total fixed assets | 4,118 | 3,689 | 3,822 |
| Other receivables | 608 | 360 | 1,104 |
| Cash and bank | — | 130 | 60 |
| Total current assets | 608 | 490 | 1,164 |
| Total assets | 4,726 | 4,179 | 4,986 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 2,654 | 2,503 | 3,107 |
| Untaxed reserves | 285 | 269 | 285 |
| Deferred tax liabilities | — | — | 17 |
| Other provisions | 7 | 8 | 6 |
| Long-term liabilities | 1,571 | 1,232 | 1,275 |
| Current liabilities | 209 | 167 | 296 |
| Total shareholders' equity and liabilities | 4,726 | 4,179 | 4,986 |
| Transactions with related parties | Period | Services sold |
Services bought |
Interest income |
expenses | Interest Result from shares in |
Rec fr rel part on bal |
Liab to rel part on bal |
|---|---|---|---|---|---|---|---|---|
| SEK million | Group com | sheet date | sheet date | |||||
| Subsidiary | Q1 - Q3 2022 | 53 | – 17 | 46 | — | 141 | 1,563 | 140 |
| Subsidiary | Q1 - Q3 2021 | 53 | – 18 | 54 | — | 233 | 2,013 | 143 |
None of the company's Board members or senior executives currently have, or have previously had, any direct or indirect involvement in any business transaction with the company which is, or was, of an unusual character in terms of its conditions. Nor has the Group issued any loans, pledged any guarantees or entered into any surety arrangements for any of the company's Board members or senior executives.
Nolato AB (publ), Nolatovägen 32, SE-269 78 Torekov, Sweden • Tel. +46 431 442290 • Fax +46 431 442291 • Corp. id. number 556080-4592 • E-mail [email protected] • Website www.nolato.com
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