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Troax Group Interim / Quarterly Report 2023
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Interim / Quarterly Report
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YEAR-END REPORT 2023
JANUARY - DECEMBER
TROAX
Troax Group AB (publ)
Hillerstorp, the 9th of February 2024
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
TROAX EQUALS
SAFETY
A SAFE FUTURE STARTS EVERY DAY
Safety means everything to us. We keep people, property and processes safe. It is our reason for being and the very purpose of this company. Our products are made of high-quality steel to keep what matters most out of harm's way.
Troax is the global market leader in metal-based mesh solutions for machine guarding, warehouse partitioning and property protection. We protect people from injuries and machinery as well as goods from getting damaged in everyday work.
Troax Group AB (publ), Reg. No. 556916-4030, is a global organization with an unparalleled sales force and an efficient logistics setup, enabling local presence and short delivery times. We are represented in 45 countries and employ around 1 200 people. Our headquarters are located in Hillerstorp, Sweden. In 2023, Troax net sales amounted to 264 MEUR.
Stay safe with Troax, today and tomorrow.
troax.com
troaxgroup.org
2
YEAR-END REPORT JANUARY-DECEMBER 2023
OCTOBER - DECEMBER
- Order intake in the quarter decreased by 5 percent compared with the same period last year and amounted to 60,6 (63,6) MEUR. Adjusted for currency and acquisitions the decrease was 6 percent.
- Sales in the quarter increased by 2 percent compared with the same period last year and amounted to 66,6 (65,3) MEUR. Adjusted for currency and acquisitions sales increased by 1 percent.
- Operating profit before amortizations (EBITA) increased to 13,4 (11,1) MEUR.
- Operating margin before amortizations (EBITA margin) increased to 20,1 (17,0) percent.
- Financial net was -0,7 (-0,7) MEUR.
- Profit after tax increased to 8,9 (7,1) MEUR.
- Adjusted earnings per share after dilution amounted to 0,16 (0,13) EUR.¹
- Earnings per share after dilution amounted to 0,15 (0,12) EUR.
JANUARY - DECEMBER
- Order intake in the period decreased by 5 percent compared with the same period last year and amounted to 258,2 (272,7) MEUR. Adjusted for currency and acquisitions the decrease was 5 percent.
- Sales in the period decreased by 7 percent compared with the same period last year and amounted to 264,3 (284,1) MEUR. Adjusted for currency and acquisitions the decrease was 7 percent.
- Operating profit before amortizations (EBITA) increased to 51,9 (51,1) MEUR.
- Operating margin before amortizations (EBITA) increased to 19,6 (18,0) percent.
- Financial net was -2,6 (-1,4) MEUR.
- Profit after tax decreased to 35,8 (36,8) MEUR.
- Adjusted earnings per share after dilution amounted to 0,63 (0,64) EUR.¹
- Earnings per share after dilution amounted to 0,60 (0,61) EUR.
- The Board of Directors suggests a dividend of 0,34 (0,32) EUR per share.
TROAX GROUP FIGURES
| MEUR | 3 Months | 3 Months | 12 Months | 12 Months | 12 Months |
|---|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
| Order intake | 60,6 | 63,6 | 258,2 | 272,7 | 275,8 |
| Sales | 66,6 | 65,3 | 264,3 | 284,1 | 252,3 |
| Gross profit | 26,0 | 22,7 | 102,0 | 97,3 | 95,2 |
| Gross margin, % | 39,0 | 34,8 | 38,6 | 34,2 | 37,7 |
| EBITA | 13,4 | 11,1 | 51,9 | 51,1 | 53,4 |
| EBITA margin, % | 20,1 | 17,0 | 19,6 | 18,0 | 21,2 |
| EBIT | 12,9 | 10,5 | 50,0 | 49,6 | 52,4 |
| EBIT margin, % | 19,4 | 16,1 | 18,9 | 17,5 | 20,8 |
| Profit after tax | 8,9 | 7,1 | 35,8 | 36,8 | 39,7 |
| EBITDA | 16,2 | 13,8 | 62,2 | 61,2 | 62,3 |
| EBITDA margin, % | 24,3 | 21,1 | 23,5 | 21,5 | 24,7 |
| Net debt / EBITDA | 0,9 | 0,6 | 0,8 | ||
| Adjusted earnings per share after dilution in EUR 1) | 0,16 | 0,13 | 0,63 | 0,64 | 0,68 |
| Closing rate SEK/EUR | 11,49 | 11,12 | 11,49 | 11,12 | 10,22 |
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
CEO COMMENTS
As previously reported, Troax's order intake stabilized during the third quarter. In the fourth quarter however, we experienced a further reduction in order intake, this is attributable to weaker order intake levels in our North American business as well as a negative impact in the Nordic region due to a reduction within the new construction sector. We also note that a number of customers are cautious and have postponed major investments until the interest rate situation is more favourable. Previously, we have also reported that the activity of our customers within automated warehousing is expected to slowly increase towards the end of 2024 or the beginning of 2025, we still believe this to be the case. In summary, most customer segments have continued stable positive development during the quarter with the exception of a weak development in North America within the automotive sector and a generally continued lower activity within the automated warehouse segment. The order intake from automotive in Europe was improved this quarter and more projects look like they will be commenced in the future. Commentators from various organisations claim that we are in a recession, therefore we continue to be prepared to act depending on how the economy develops going forward. The full year 2023 is characterized by reduced activity and orders within automated warehouses, but the group has compensated for this in terms of results, through cost reductions and focus on other areas.
From a geographical perspective, we note during the quarter a stable order intake in Continental Europe and New Markets compared to 2022. A smaller number of major projects in 2023 means that order intake in the UK is still lower than in 2022. Order intake was weak in the quarter also in North America and the Nordic region, where during this quarter we received fewer large project orders than usual. Overall for the fourth quarter, order intake is 6% lower than in 2022, when we exclude acquired companies and currency effects. For the whole of 2023, we show a reduction in order intake by 5%.
Sales are 1% higher than the previous year, which indicates a stable development without any major surprises during the quarter. For the full year, we report a decrease of 7%, excluding currency and acquisitions.
The gross margin has gradually improved during 2023 and is now at the level of the group's internal target of 39–40%. Behind this is the fact that purchasing costs of various kinds have been relatively stable and declining during the period (with the exception of energy costs) while the volumes, with the exception of North America, continued at approximately the planned level. Capacity reductions have continued mainly in North America and in Poland. The improved gross margin is achieved even though it is still negatively affected by lower volumes compared to 2022 and thus under-absorbed costs. In Poland, the last of our acquired factories in 2020 will be closed in March/April this year and operations will be moved to our new factory in Sroda outside Poznan.
The improved gross margin can also be seen in an improved EBITA margin, where, despite volume reductions in our factories, we have exceed the margin for the same period last year. In absolute terms, EBITA is also higher than in 2022 and the EBITA margin has increased in the quarter from 17,0% to 20,1% in 2023, despite the volume reduction. For the full year 2023, the EBITA margin amounts to 19,6% compared to 18,0% for 2022.
The cash flow has remained strong during the fourth quarter and was positively affected by a stable result. However, we have increased debt in the period due to our major acquisition as of December 1st. Despite this acquisition, Troax has a stable financial situation and is still interested in making complementary acquisitions.
As of December 1st, we acquired Garantell AB, a Swedish-based company, mainly trading within the European market and which produces and sells shelves and anti-collapse systems for warehouses. The company has had good growth and development over several years and complements Troax in a positive way, both in terms of product and sales channel. Although we are currently in a recession for warehouse investments, we believe that this market will continue to grow long term, which is why we see this as an important and strategic investment. A pro forma for 2023, where Garantell is included throughout the financial year, would give the group a turnover of approximately EUR 294 million and an EBITA of approximately EUR 55 million or 19% in EBITA margin. The Garantell acquisition adds approximately 100 employees to the group.
Thomas Widstrand, President and CEO
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
THE GROUP SUMMARY
OCTOBER – DECEMBER
The total order intake developed negatively in the quarter. Order intake amounted to 60,6 (63,6) MEUR, a decrease by 5 percent compared with the corresponding period last year. Adjusted for currency and acquisitions the order intake decreased by 6 percent compared to the same period last year. All regions except Continental Europe and New Markets decreased their order intake compared with the corresponding period last year.
Sales amounted to 66,6 (65,3) MEUR, an increase by 2 percent compared with the corresponding period last year. Adjusted for currency and acquisitions sales increased by 1 percent. All regions except Continental Europe and New Markets decreased their sales during the period compared with the corresponding period last year.
Operating profit before amortizations (EBITA) amounted to 13,4 (11,1) MEUR, corresponding to an EBITA margin of 20,1 (17,0) percent.
JANUARY – DECEMBER
The total order intake developed negatively in the period. Order intake amounted to 258,2 (272,7) MEUR, a decrease by 5 percent compared with the corresponding period last year. Adjusted for currency and acquisitions the decrease was 5 percent. All regions except New Markets decreased their order intake during the period compared with the corresponding period last year.
Sales amounted to 264,3 (284,1) MEUR, a decrease by 7 percent compared with the corresponding period last year. Adjusted for currency and acquisitions the decrease was 7 percent. All regions except Nordic and New Markets decreased their sales during the period compared with the corresponding period last year.
Operating profit before amortizations (EBITA) amounted to 51,9 (51,1) MEUR, corresponding to an EBITA margin of 19,6 (18,0) percent.
FINANCIAL NET
During the fourth quarter of 2023, financial net amounted to -0,7 (-0,7) MEUR and to -2,6 (-1,4) for the year 2023.
TAXES
The tax expense was -3,3 (-2,7) MEUR for the fourth quarter of 2023 and -11,6 (-11,4) MEUR for the year 2023.
NET RESULT
Net result for the fourth quarter 2023 amounted to 8,9 (7,1) MEUR and to 35,8 (36,8) MEUR for the year 2023.
CASH FLOW, WORKING CAPITAL AND NET DEBT
Cash flow from operating activities was 15,4 (20,0) MEUR for the fourth quarter and was 50,3 (49,9) MEUR for the year 2023. Net debt was 53,4 (38,2) MEUR at the end of the year. Net debt in relation to the 12-month rolling EBITDA was 0,9 (0,6) to be compared with the company's financial target of less than 2,5.
INVESTMENTS
During the fourth quarter 2023, investments were 35,2 (2,7) MEUR and were 41,1 (14,4) MEUR for the year 2023. This year's investments mainly relates to acquisitions of subsidiaries, an expansion of the building in Sweden and to investments in machinery in Sweden and Poland.
REGIONAL DEVELOPMENT
Troax operations are reported as one segment. As secondary information Order intake and Sales are reported based on geographical regions.
Nordic – Sweden, Denmark, Norway and Finland
Continental Europe – Europe excluding Nordic and United Kingdom
United Kingdom – Great Britain and Ireland
North America – US and Canada
New Markets – rest of the world including all distributors directly connected to Sweden
| Order intake | 3 Months
Oct-Dec | 3 Months
Oct-Dec | | 12Months
Jan-Dec | 12Months
Jan-Dec | | 12 Months
Jan-Dec | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MEUR | 2023 | 2022 | Diff | 2023 | 2022 | Diff | 2021 | Diff |
| Continental Europe | 32,5 | 30,0 | 8% | 132,5 | 135,1 | -2% | 136,6 | -1% |
| Nordic region | 8,7 | 11,1 | -22% | 37,8 | 41,4 | -9% | 32,2 | 29% |
| United Kingdom | 4,6 | 5,9 | -22% | 25,0 | 30,9 | -19% | 30,6 | 1% |
| North America | 7,1 | 11,0 | -35% | 40,7 | 45,2 | -10% | 58,7 | -23% |
| New Markets | 7,0 | 5,6 | 25% | 22,3 | 20,1 | 11% | 17,7 | 14% |
| Total excl Currency | 59,9 | 63,6 | -6% | 258,3 | 272,7 | -5% | 275,8 | -1% |
| Currency effect | -1,1 | 0,0 | -2% | -4,8 | 0,0 | -2% | 0,0 | 0% |
| Order intake acquisitions | 1,8 | 0,0 | 3% | 4,7 | 0,0 | 2% | 0,0 | 0% |
| Total Order intake | 60,6 | 63,6 | -5% | 258,2 | 272,7 | -5% | 275,8 | -1% |
| | 3 Months
Oct-Dec | 3 Months
Oct-Dec | | 12Months
Jan-Dec | 12Months
Jan-Dec | | 12 Months
Jan-Dec | |
| Total Sales | 2023 | 2022 | Diff | 2023 | 2022 | Diff | 2021 | Diff |
| MEUR | | | | | | | | |
| Continental Europe | 35,4 | 33,9 | 4% | 131,4 | 143,3 | -8% | 123,6 | 16% |
| Nordic region | 10,4 | 10,7 | -3% | 40,2 | 38,4 | 5% | 30,0 | 28% |
| United Kingdom | 4,9 | 5,8 | -16% | 24,6 | 34,7 | -29% | 30,9 | 12% |
| North America | 9,3 | 10,2 | -9% | 46,6 | 49,4 | -6% | 51,0 | -3% |
| New Markets | 5,7 | 4,7 | 21% | 21,8 | 18,3 | 19% | 16,8 | 9% |
| Total excl Currency | 65,7 | 65,3 | 1% | 264,6 | 284,1 | -7% | 252,3 | 13% |
| Currency effect | -0,9 | 0,0 | -1% | -4,9 | 0,0 | -2% | 0,0 | 0% |
| Sales acquisitions | 1,8 | 0,0 | 3% | 4,6 | 0,0 | 2% | 0,0 | 0% |
| Total Sales | 66,6 | 65,3 | 2% | 264,3 | 284,1 | -7% | 252,3 | 13% |
- Note that organic growth is reported excluding currency effect.
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
THE GROUP - SUMMARY
INCOME STATEMENT
| 3 Months | 3 Months | 12 Months | 12 Months | 12 Months | |
|---|---|---|---|---|---|
| MEUR | Oct-Dec 2023 | Oct-Dec 2022 | Jan-Dec 2023 | Jan-Dec 2022 | Jan-Dec 2021 |
| Sales | 66,6 | 65,3 | 264,3 | 284,1 | 252,3 |
| Cost of goods sold | -40,6 | -42,6 | -162,3 | -186,8 | -157,1 |
| Gross profit | 26,0 | 22,7 | 102,0 | 97,3 | 95,2 |
| Sales expenses | -8,9 | -7,5 | -33,4 | -30,5 | -28,0 |
| Administrative expenses | -4,6 | -4,2 | -16,9 | -15,9 | -14,1 |
| Other operating income and expenses | 0,9 | 0,1 | 0,2 | 0,2 | 0,3 |
| Operating profit before Amortizations (EBITA) | 13,4 | 11,1 | 51,9 | 51,1 | 53,4 |
| Amortization | -0,5 | -0,6 | -1,9 | -1,5 | -1,0 |
| Operating profit (EBIT) | 12,9 | 10,5 | 50,0 | 49,6 | 52,4 |
| Financial income and expenses | -0,7 | -0,7 | -2,6 | -1,4 | -1,0 |
| Result after financial expenses | 12,2 | 9,8 | 47,4 | 48,2 | 51,4 |
| Taxes | -3,3 | -2,7 | -11,6 | -11,4 | -11,7 |
| Net result for the period | 8,9 | 7,1 | 35,8 | 36,8 | 39,7 |
| Earnings per share before / after dilution | 0,15 € | 0,12 € | 0,60 € | 0,61 € | 0,66 € |
| Adjusted earnings per share before / after dilution | 0,16 € | 0,13 € | 0,63 € | 0,64 € | 0,68 € |
| Number of shares before / after dilution in thousands | 60 000 | 60 000 | 60 000 | 60 000 | 60 000 |
STATEMENT OF COMPREHENSIVE INCOME
| 3 Months | 3 Months | 12 Months | 12 Months | 12 Months | |
|---|---|---|---|---|---|
| Oct-Dec 2023 | Oct-Dec 2022 | Jan-Dec 2023 | Jan-Dec 2022 | Jan-Dec 2021 | |
| Net result for the period | 8,9 | 7,1 | 35,8 | 36,8 | 39,7 |
| Other comprehensive income: | |||||
| Items that may be reclassified to the income statement | |||||
| Translation differences | 3,4 | -4,1 | 0,9 | -7,8 | 1,1 |
| Tax related to items that may be reclassified | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| 3,4 | -4,1 | 0,9 | -7,8 | 1,1 | |
| Items that will not be reclassified to the income statement | |||||
| Actuarial gains and losses on defined-benefit pension commitment | -0,2 | 1,3 | -0,2 | 1,3 | -0,3 |
| Tax related to items that may be reclassified | 0,0 | -0,2 | 0,0 | -0,2 | 0,0 |
| -0,2 | 1,1 | -0,2 | 1,1 | -0,3 | |
| Other comprehensive income, net of tax | 3,2 | -3,0 | 0,7 | -6,7 | 0,8 |
| Total comprehensive income for the period | 12,1 | 4,1 | 36,5 | 30,1 | 40,5 |
| EBITDA | 3 Months | 3 Months | 12 Months | 12 Months | 12 Months |
| --- | --- | --- | --- | --- | --- |
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
| 2023 | 2022 | 2023 | 2022 | 2021 | |
| Operating result (EBIT) | 12,9 | 10,5 | 50,0 | 49,6 | 52,4 |
| Amortizations | 0,5 | 0,6 | 1,9 | 1,5 | 1,0 |
| Adjusted operating result (EBITA) | 13,4 | 11,1 | 51,9 | 51,1 | 53,4 |
| Depreciations | 2,8 | 2,7 | 10,3 | 10,1 | 8,9 |
| EBITDA | 16,2 | 13,8 | 62,2 | 61,2 | 62,3 |
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
STATEMENT OF FINANCIAL POSITION
| MEUR | 2023 | 2022 | 2021 |
|---|---|---|---|
| 31-dec | 31-dec | 31-dec | |
| Assets | |||
| Intangible assets | 115,2 | 98,6 | 95,6 |
| Tangible assets | 82,1 | 60,0 | 60,3 |
| Financial fixed assets | 6,9 | 6,3 | 5,9 |
| Total fixed assets | 204,2 | 164,9 | 161,8 |
| Inventories | 30,8 | 32,3 | 35,5 |
| Current receivables | 55,9 | 55,4 | 57,5 |
| Cash and cash equivalents | 33,2 | 37,5 | 35,2 |
| Total current assets | 119,9 | 125,2 | 128,2 |
| TOTAL ASSETS | 324,1 | 290,1 | 290,0 |
| Equity and liabilities | |||
| Equity | 172,3 | 154,9 | 142,6 |
| Long-term liabilities | 99,2 | 89,4 | 101,9 |
| Current liabilities | 52,6 | 45,8 | 45,5 |
| TOTAL EQUITY AND LIABILITIES | 324,1 | 290,1 | 290,0 |
| Net debt | 53,4 | 38,2 | 52,1 |
| STATEMENT OF CHANGES IN EQUITY ATTRIBUTABLE | 2023 | 2022 | 2021 |
| TO THE PARENT COMPANY'S SHAREHOLDERS | 31-dec | 31-dec | 31-dec |
| Opening balance | 154,9 | 142,6 | 114,0 |
| Dividends | -19,3 | -18,0 | -12,0 |
| Received option premiums | 0,2 | 0,2 | 0,1 |
| Re-purchase of shares | 0,0 | 0,0 | 0,0 |
| Total comprehensive income for the period | 36,5 | 30,1 | 40,5 |
| Closing balance | 172,3 | 154,9 | 142,6 |
CASH FLOW STATEMENT
| MEUR | 3 Months
2023
31-dec | 3 Months
2022
31-dec | 12 Months
2023
31-dec | 12 Months
2022
31-dec | 12 Months
2021
31-dec |
| --- | --- | --- | --- | --- | --- |
| | | | | | |
| Operating profit before Amortizations (EBITA) | 13,4 | 11,1 | 51,9 | 51,1 | 53,4 |
| Depreciations, interest received and paid, tax paid and adjustments | -6,2 | -3,3 | -9,4 | -6,8 | 0,1 |
| Changes in working capital | 8,2 | 12,2 | 7,8 | 5,6 | -21,3 |
| Cash flow from operating activities | 15,4 | 20,0 | 50,3 | 49,9 | 32,2 |
| Investments | -35,2 | -2,7 | -41,1 | -14,4 | -14,6 |
| Cash flow after investing activities | -19,8 | 17,3 | 9,2 | 35,5 | 17,6 |
| Financing activities | 18,9 | -11,1 | -13,7 | -32,5 | -15,3 |
| Cash flow for the period | -0,9 | 6,2 | -4,5 | 3,0 | 2,3 |
| Cash and cash equivalents at the start of the period | 33,9 | 32,0 | 37,5 | 35,2 | 32,5 |
| Translation difference in cash and cash equivalents | 0,2 | -0,7 | 0,2 | -0,7 | 0,4 |
| Cash and cash equivalents at the end of the period | 33,2 | 37,5 | 33,2 | 37,5 | 35,2 |
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
PARENT COMPANY– SUMMARY
| INCOME STATEMENT | 3 Months | 3 Months | 12 Months | 12 Months | 12 Months |
|---|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
| MEUR | 2023 | 2022 | 2023 | 2022 | 2021 |
| Sales | 0,2 | 0,2 | 1,0 | 0,9 | 0,9 |
| Cost of goods sold | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Gross profit | 0,2 | 0,2 | 1,0 | 0,9 | 0,9 |
| Administrative expenses | -1,0 | -0,5 | -3,7 | -2,2 | -2,5 |
| Other operating income and expenses | 0,1 | -0,1 | 0,1 | -0,3 | 0,0 |
| Operating profit before Amortizations (EBITA) | -0,7 | -0,4 | -2,6 | -1,6 | -1,6 |
| Financial income and expenses | 5,1 | 12,9 | 29,7 | 28,0 | 16,3 |
| Result after financial expenses | 4,4 | 12,5 | 27,1 | 26,4 | 14,7 |
| Year-end appropriations | 0,6 | 1,3 | 0,6 | 1,3 | 0,0 |
| Profit before tax | 5,0 | 13,8 | 27,7 | 27,7 | 14,7 |
| Taxes | -1,0 | -3,0 | -0,6 | -3,4 | -1,4 |
| Net result for the period | 4,0 | 10,8 | 27,1 | 24,3 | 13,3 |
STATEMENT OF COMPREHENSIVE INCOME
| Net result for the period | 4,0 | 10,8 | 27,1 | 24,3 | 13,3 |
|---|---|---|---|---|---|
| Other comprehensive income, net of tax | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Total comprehensive income for the period | 4,0 | 10,8 | 27,1 | 24,3 | 13,3 |
STATEMENT OF FINANCIAL POSITION
| 31-dec | 31-dec | 31-dec | |
|---|---|---|---|
| MEUR | 2023 | 2022 | 2021 |
| Assets | |||
| Shares in subsidiaries | 87,7 | 87,7 | 87,7 |
| Receivables to subsidiaries | 23,6 | 24,4 | 23,0 |
| Other long-term receivables | 0,8 | 0,7 | 0,8 |
| Total fixed assets | 112,1 | 112,8 | 111,5 |
| Receivables to subsidiaries | 18,6 | 5,5 | 7,0 |
| Current receivables | 2,6 | 0,0 | 0,4 |
| Cash and cash equivalents | 11,2 | 9,8 | 12,8 |
| Total current assets | 32,4 | 15,3 | 20,2 |
| TOTAL ASSETS | 144,5 | 128,1 | 131,7 |
| Equity and liabilities | |||
| Equity | 53,5 | 45,6 | 39,0 |
| Untaxed reserves | 5,1 | 5,7 | 7,0 |
| Long-term liabilities | 70,9 | 60,7 | 70,8 |
| Current liabilities | 15,0 | 16,1 | 14,9 |
| TOTAL EQUITY AND LIABILITIES | 144,5 | 128,1 | 131,7 |
| 3 Months | 3 Months | 12 Months | |
| --- | --- | --- | --- |
| 2023 | 2022 | 2023 | |
| MEUR | 31-dec | 31-dec | 31-dec |
| Operating profit before financial items | -0,7 | -0,4 | -2,6 |
| Interest paid and received, taxes, adjustments | -3,0 | 13,3 | 20,5 |
| Change in working capital | -12,3 | 6,9 | -7,2 |
| Cash flow from continuing operations | -16,0 | 19,8 | 10,7 |
| Investments | 0,0 | 0,0 | 0,0 |
| Cash flow from investment activities | -16,0 | 19,8 | 10,7 |
| Cash flow from financing activities | 20,0 | -10,0 | -9,3 |
| Cash flow for the period | 4,0 | 9,8 | 1,4 |
| Cash and cash equivalents at the beginning of the period | 7,2 | 0,0 | 9,8 |
| Translation difference | 0,0 | 0,0 | 0,0 |
| Cash and cash equivalents at the end of the period | 11,2 | 9,8 | 11,2 |
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
FINANCIAL TARGETS
Troax Group's financial targets connected to the company's strategic initiatives are presented below. All expressed opinions in this part are future orientated.
| Growth | Troax's objective is to grow in its current markets, both organically and by selective acquisitions |
|---|---|
| Profitability | Troax's target is to have an operating margin (EBITA) in excess of 20 per cent. |
| Financial structure | Net debt in relation to the 12-month rolling EBITDA, excluding temporary deviations, shall not exceed 2,5 times. |
| Dividend policy | Troax's target is to pay approximately 50 per cent of its net profit in dividends. The dividend proposal shall consider Troax's long-term development potential, its financial position and its investment needs. |
The financial targets represent future oriented information. Future oriented information shall not be considered as guarantees for future result or development. The actual result may and can materially vary from what is expressed in the future oriented information.
OTHER INFORMATION
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2, Accounting for Legal Entities. The Accounting principles that have been applied coincide with those accounting principles used for preparing the latest Annual Report. The Annual Report for 2022 is available on www.troax.com.
ALTERNATIVE KEY RATIOS
In this interim report, Troax presents certain financial measures that are not defined by IFRS, so-called alternative key ratios. The Group believes that these measures provide valuable supplementary information to investors as they enable an evaluation of the company's results and position. Since not all companies calculate financial measurements in the same way, these are not always comparable to those used by other companies. Investors should consider these financial measures as a complement rather than an IFRS financial statement. Troax uses the following alternative key figures:
Organic growth
As a large proportion of the Group's sales take place in currencies other than the reporting currency (Euro), the Group's sales are evaluated on the basis of its organic sales growth, which enables separate evaluations of the effect of acquisitions / divestments and currency effects.
| Total Sales | 3 Months Oct-Dec 2023 | 3 Months Oct-Dec 2022 | Diff | 12 Months Jan-Dec 2023 | 12 Months Jan-Dec 2022 | Diff | 12 Months Jan-Dec 2021 | Diff |
|---|---|---|---|---|---|---|---|---|
| MEUR | ||||||||
| Organic sales / growth | 65,7 | 65,3 | 1% | 264,6 | 284,1 | -7% | 252,3 | 12% |
| Currency effect | -0,9 | 0,0 | -1% | -4,9 | 0,0 | -2% | 0,0 | 0% |
| Sales from acquisitions | 1,8 | 0,0 | 3% | 4,6 | 0,0 | 2% | 0,0 | 0% |
| Total Sales | 66,6 | 65,3 | 2% | 264,3 | 284,1 | -7% | 252,3 | 13% |
Operating profit before amortizations (EBITA)
Earnings before interest, tax, depreciation on acquisition-related intangible fixed assets, acquisition-related costs and income and items affecting comparability.
Adjusted earning per share after dilution
Profit after tax excluding amortizations of fixed assets related to surplus values from acquisitions, acquisition-related costs and income and items affecting comparability in relation to the weighted average number of outstanding shares. None of the group's outstanding call option programs are deemed to result in significant future dilution.
Net debt / EBITDA
Troax's definition of net debt is the sum of interest-bearing liabilities (including leasing liabilities according to IFRS 16 but excluding pension liabilities) less cash and cash equivalents. Net debt is used by Group management to monitor and analyze the debt development in the Group and evaluate the Group's
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
refinancing needs. Net debt compared with EBITDA provides a key figure for net debt in relation to cash-generating operating results, which gives an indication of the business' ability to pay its debts.
OTHER INFORMATION (CONT.)
| MEUR | 31-dec 2023 | 31-dec 2022 | 31-dec 2022 | 31-dec 2021 |
|---|---|---|---|---|
| Short term loans | 4,0 | 0,0 | 0,0 | 0,0 |
| Long term loans | 70,0 | 60,0 | 60,0 | 70,0 |
| Liabilities for leases (IFRS 16) | 12,6 | 15,8 | 15,8 | 17,3 |
| Total debt | 86,6 | 75,8 | 75,8 | 87,3 |
| cash | 33,2 | 37,5 | 37,5 | 35,2 |
| Net debt incl IFRS 16 | 53,4 | 38,3 | 38,3 | 52,1 |
| 12 month rolling EBITDA incl IFRS 16 | 62,2 | 61,2 | 61,2 | 62,3 |
| Net debt / EBITDA incl IFRS 16 | 0,9 | 0,6 | 0,6 | 0,8 |
| Net debt excl IFRS 16 | 40,8 | 22,5 | 22,5 | 34,8 |
| 12 month rolling EBITDA excl IFRS 16 | 57,8 | 56,3 | 56,3 | 58,5 |
| Net debt / EBITDA excl IFRS 16 | 0,7 | 0,4 | 0,4 | 0,6 |
RISKS AND RISK MANAGEMENT
Exposure to risks is a natural part of business operations and this reflects Troax's approach to risk management. This aims to identify and prevent the occurrence of risks and to limit any damage from these risks. The most significant risks to which the Group is exposes are related to the cyclical impact on demand. For further information, see the Management Report and Note 27 in the Annual Report 2022.
SEASONAL VARIATIONS
Seasonal variations have some impact on Troax business. Sales are normally in general stable between the quarters but can fluctuate between the months in the quarter. Sales can be somewhat lower in the summer months (July-August) and from December to January. In periods of high production, the company normally ties up more money in Working Capital. Cash is then released from working capital after a high season when manufactured goods are installed and the customer's receivables paid.
TRANSACTIONS WITH RELATED PARTIES
No significant transactions with related parties have taken place during the period.
CALL OPTION PROGRAM FOR SENIOR EXECUTIVES AND OTHER KEY PERSONNEL
Outstanding share-based incentive programs for the CEO, senior executives and certain other key personnel within the Group are set out in Note 1 of the Annual Report for 2022. At the Annual General Meeting for 2023, the Board was instructed to issue additional call options corresponding to a maximum of 300 000 shares, corresponding to a maximum of 0,5 percent of the total number of shares and votes in the company. An offer to subscribe for call options took place during the third quarter of 2023, in which 110 000 options were subscribed for at the option premium of SEK 17,07 SEK and at a subscription price amounting to 229,33 SEK per share.
RE-PURCHASE OF SHARES
On the 12th of September, 2023, the Board of Directors resolved on a repurchase program of a maximum of 100,000 shares, supported by authorization from the Annual General Meeting on the 26th of April, 2023. As of the 31st of December, 2023, Troax Group AB (publ) owned 54,668 own shares.
ACQUISITIONS
On December 1st 2023, Troax acquired the Swedish company Garantell AB for approximately 33,4 MEUR. Garantell AB specializes in the design, manufacturing and distribution of customized mesh shelves, mesh panels and security solutions primarily for industrial and commercial applications. The company has just over 100 employees and a turnover of approx. 30 MEUR. The acquired company's net assets at the time of acquisition were:
| MEUR | Fair value reported in the Group |
|---|---|
| Acquired net assets | 10,5 |
| Purchase price paid | 33,0 |
| Surplus value intangible fixed assets and goodwill | 15,9 |
| Surplus value material fixed assets | 8,3 |
| Deferred tax | -1,7 |
OTHER EVENTS DURING THE QUARTER
No other significant information to report for the quarter.
EMPLOYEES
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
At the end of the period the Group had 1 217 (1 112) employees.
OTHER INFORMATION (CONT.)
OTHER EVENTS AFTER THE QUARTER
There is no significant information to report after the quarter.
DEVELOPMENT IN THE PARENT COMPANY
There is no significant information to report for the quarter.
AUDIT
This report has not been reviewed by the auditors.
NEXT REPORTS
- Interim report Q1 2024, 22nd of April 2024
- Interim report Q2 2024, 14th of August 2024
- Interim report Q3 2024, 29th of October 2024
- Interim report Q4 2024, 7th of February 2025
DIVIDEND
The board suggest a dividend of 0.34 (0.32) EUR per share to the shareholders. Total suggested dividend, 20.4 (19.2) MEUR, represents 54% (50%) of the Net income in 2023 excluding the cost from amortizations. The proposed reconciliation date for the dividend is the 24th of April 2024.
SHAREHOLDERS MEETING
The Annual General Meeting will be held at Troax in Hillerstorp on the 22nd of April 2024, at 15:00hrs. Shareholders who wish to add topics to be handled during the Shareholders Meeting can send their suggestions to the Chairman, Troax Group AB, attention "Topic for the Shareholders Meeting", Box 89, 335 04 Hillerstorp, Sweden. The topics must arrive at least seven weeks prior to the meeting, and by the 4th of March 2024 at the latest.
TELEPHONE CONFERENCE
Invitation to presentation of the fourth quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 9th of February 2024 at 16:00 CET. The conference will be held in English. For more information, please refer to https://www.troax.com/global/en/press
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023
YEAR-END REPORT 2023
JANUARY – DECEMBER
TROAX
THOMAS WIDSTRAND
President and CEO
Phone +46 (0)370-828 31
[email protected]
ANDERS EKLÖF
CFO
Phone +46 (0)370-828 25
[email protected]
Troax Group AB (publ)
Hillerstorp, 9th of February 2024
Headquarters:
Troax AB
Box 89, SE-335 04 Hillerstorp, Sweden
Phone: +46 (0)370-828 00
Fax +46 (0)370-824 86
www.troax.com
This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014). The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 9th of February 2024.
TROAX GROUP AB (PUBL) YEAR-END REPORT, JANUARY-DECEMBER 2023