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Troax Group — Interim / Quarterly Report 2024
Aug 14, 2024
2986_ir_2024-08-14_94d49eed-4f35-4ff7-b8c9-56bbed570c51.pdf
Interim / Quarterly Report
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INTERIM REPORT 2024
JANUARY – JUNE
TROAX
Troax Group AB (publ)
Hillerstorp, the 14th of August 2024
HIGHLIGHTS
SCHÖTTHEIIH
HIGHLIGHTS
SCHÖTTHEIIH
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
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
INTERIM REPORT JANUARY-JUNE 2024
APRIL - JUNE
- Order intake in the quarter increased by 6 percent compared with the same period last year and amounted to 69,6 (65,4) MEUR. Adjusted for currency and acquisitions the order intake decreased by 3 percent.
- Sales in the quarter increased by 5 percent compared with the same period last year and amounted to 71,9 (68,5) MEUR. Adjusted for currency and acquisitions sales decreased by 4 percent.
- Operating profit before amortizations (EBITA) decreased to 12,1 (13,0) MEUR.
- Operating margin before amortizations (EBITA margin) decreased to 16,8 (19,0) percent.
- Financial net was -1,5 (-0,6) MEUR.
- Profit after tax decreased to 7,5 (9,1) MEUR.
- Adjusted earnings per share after dilution amounted to 0,14 (0,16) EUR.
- Earnings per share after dilution amounted to 0,13 (0,15) EUR.
JANUARY - JUNE
- Order intake in the period increased by 5 percent compared with the same period last year and amounted to 141,9 (135,3) MEUR. Adjusted for currency and acquisitions the order intake decreased by 5 percent.
- Sales in the period increased by 5 percent compared with the same period last year and amounted to 142,8 (136,3) MEUR. Adjusted for currency and acquisitions sales decreased by 5 percent.
- Operating profit before amortizations (EBITA) decreased to 23,1 (25,7) MEUR.
- Operating margin before amortizations (EBITA margin) decreased to 16,2 (18,9) percent.
- Financial net was -2,8 (-1,2) MEUR.
- Profit after tax decreased to 14,2 (18,0) MEUR.
- Adjusted earnings per share after dilution amounted to 0,26 (0,32) EUR.
- Earnings per share after dilution amounted to 0,24 (0,30) EUR.
TROAX GROUP FIGURES
| MEUR | 3 Months
Apr-Jun 2024 | 3 Months
Apr-Jun 2023 | 6 Months
Jan-Jun 2024 | 6 Months
Jan-Jun 2023 | 12 Months
Jan-Dec 2023 | 12 Months
Jan-Dec 2022 | 12 Months
Jul-Jun 2023/2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Order intake | 69,6 | 65,4 | 141,9 | 135,3 | 258,2 | 272,7 | 264,8 |
| Sales | 71,9 | 68,5 | 142,8 | 136,3 | 264,3 | 284,1 | 270,8 |
| Gross profit | 27,2 | 26,1 | 52,9 | 51,6 | 102,0 | 97,3 | 103,3 |
| Gross margin, % | 37,8 | 38,1 | 37,0 | 37,9 | 38,6 | 34,2 | 38,1 |
| EBITA | 12,1 | 13,0 | 23,1 | 25,7 | 51,9 | 51,1 | 49,3 |
| EBITA margin, % | 16,8 | 19,0 | 16,2 | 18,9 | 19,6 | 18,0 | 18,2 |
| EBIT | 11,4 | 12,6 | 21,6 | 24,8 | 50,0 | 49,6 | 46,8 |
| EBIT margin, % | 15,9 | 18,4 | 15,1 | 18,2 | 18,9 | 17,5 | 17,3 |
| Profit after tax | 7,5 | 9,1 | 14,2 | 18,0 | 35,8 | 36,8 | 32,0 |
| EBITDA | 15,0 | 15,4 | 28,9 | 30,6 | 62,2 | 61,2 | 60,5 |
| EBITDA margin, % | 20,9 | 22,5 | 20,2 | 22,5 | 23,5 | 21,5 | 22,3 |
| Net debt / EBITDA | | | | | 0,9 | 0,6 | |
| Adjusted earnings per share after dilution in EUR | 0,14 | 0,16 | 0,26 | 0,32 | 0,63 | 0,64 | 0,58 |
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
CEO COMMENTS
Growth and solid profitability despite market head winds
I am happy to report a continued solid performance despite headwinds in the marketplace. Our order intake grew during the second quarter by 6% in total. Organically, we reported a decline of -3% compensated by acquired growth of 9%. Garantell, our latest acquisition, experiences some headwinds in the market just like the Group overall, but continues to contribute solidly. Overall, we experienced a stable market demand picture compared to Q1, albeit at a lower level than last year.
Our sales regions and customer segments are experiencing different levels of development. Impacted by upcoming or already held elections and macroeconomic factors such as interest rates, we see some customers acting with more caution and making decisions slower. Order intake in Continental Europe declined by 4% driven by industry overall. UK and New markets grew by 15% and 9% respectively. Specifically, we noted improvements in China and Japan although from low levels. The Nordic market continued to decline by -12% mainly driven by the construction sector.
In relation to revenue, we noted a relatively similar pattern by region and by segment as for order intake. In total sales grew by 5% whereof negative -4% organically compensated by 8% from acquisitions.
On the cost side, we have had stable input costs and somewhat lower volumes. The gross profit level continued to be solid in line with our informal target. We continued our continuous improvements efforts in our production facilities. However, given the lower demand in Europe, we are impacted by under absorption of our fixed costs. The Group has also been impacted negatively by selling and administration costs of approximately 1 MEUR of one-off-character. As the market continues to be uncertain, we need to sharpen the focus on sales and administration cost control going forward.
All in all, our EBITA margin was 16.8% for the quarter. Comparing 'like-for-like' EBITA-margin (i.e. excluding our most recent acquisition, Garantell) we would have reported 17,5% (19,0% Q2 2023).
Our cash flow continued to be strong during the second quarter and we have continued to reduce our inventories slightly. This puts the Group in a strong stable financial position, where we can continue to invest in both organic and acquisitive growth.
Even though we are experiencing a more challenging period with lower demand, Troax Group has proven that we are a robust, resilient and a growing company. We will continue executing our corporate mission relentlessly and deliver profitable growth - now and for the long-run.
Last, but not least
It is with great pleasure I started as President and CEO for the Troax Group during the second quarter. I would like to thank Thomas Widstrand, my predecessor, for a great handover. Equally, I would like to thank the organization for the warm welcome. Together we will work towards new heights and continue our profitable growth journey!
Thank you for your continued trust in the Troax Group,
Martin Nyström, President and CEO
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
THE GROUP SUMMARY
APRIL – JUNE
The total order intake amounted to 69,6 (65,4) MEUR. An increase by 6 percent compared with the corresponding period last year. Adjusted for currency and acquisitions the order intake decreased by 3 percent. All regions except United Kingdom and New Markets decreased their order intake during the period compared with the corresponding period last year.
Sales amounted to 71,9 (68,5) MEUR, an increase of 5 percent compared with the corresponding period last year. Adjusted for currency and acquisitions, sales decreased by 4 percent. All regions except United Kingdom and New Markets decreased their sales during the period compared with the corresponding period last year.
Operating profit before amortizations (EBITA) amounted to 12,1 (13,0) MEUR, corresponding to an EBITA margin of 16,8 (19,0) percent.
JANUARY – JUNE
The total order intake amounted to 141,9 (135,3) MEUR. An increase by 5 percent compared with the corresponding period last year. Adjusted for currency and acquisitions the order intake decreased by 5 percent. All regions except United Kingdom and New Markets decreased their order intake during the period compared with the corresponding period last year.
Sales amounted to 142,8 (136,3) MEUR, an increase of 5 percent compared with the corresponding period last year. Adjusted for currency and acquisitions, sales decreased by 5 percent. Nordic and North American Region decreased their sales during the period compared with the corresponding period last year whereas all other markets increased their sales.
Operating profit before amortizations (EBITA) amounted to 23,1 (25,7) MEUR, corresponding to an EBITA margin of 16,2 (18,9) percent.
FINANCIAL NET
During the second quarter of 2024, financial net amounted to -1,5 (-0,6) MEUR and to -2,8 (-1,2) for the first 6 months of the year.
TAXES
The tax expense was -2,4 (-2,9) MEUR for the second quarter of 2024 and was -4,6 (-5,6) for the first six months of 2024.
NET RESULT
Net result for the second quarter 2024 amounted to 7,5 (9,1) MEUR and to 14,2 (18,0) for the first six months of 2024.
CASH FLOW, WORKING CAPITAL AND NET DEBT
Cash flow from operating activities was 10,2 (13,9) MEUR for the second quarter 2024 and was 14,3 (22,4) for the first six months of 2024. Net debt by the end of the period was 66,1 (40,1) MEUR. Net debt in relation to the 12-month rolling EBITDA was 1,1 (0,7) to be compared with the company's financial target of less than 2,5.
INVESTMENTS
During the second quarter of 2024, investments were 1,5 (2,0) MEUR and were 4,2 (4,3) for the first six months of 2024. The investments mainly relates to machinery in Sweden.
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
Apr-Jun | 3 Months
Apr-Jun | | 6 Months
Jan-Jun | 6 Months
Jan-Jun | | 12 Months
Jan-Dec | 12 Months
Jan-Dec | | 12 Months
Jul-Jun |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MEUR | 2024 | 2023 | Diff | 2024 | 2023 | Diff | 2023 | 2022 | Diff | 2023/2024 |
| Continental Europe | 32,4 | 33,9 | -4% | 66,6 | 69,4 | -4% | 132,5 | 135,1 | -2% | 129,7 |
| Nordic region | 8,6 | 9,8 | -12% | 16,7 | 22,1 | -24% | 37,8 | 41,4 | -9% | 32,4 |
| United Kingdom | 7,5 | 6,5 | 15% | 14,8 | 12,9 | 15% | 25,0 | 30,9 | -19% | 26,9 |
| North America | 9,3 | 9,8 | -5% | 19,5 | 21,5 | -9% | 40,7 | 45,2 | -10% | 38,7 |
| New Markets | 5,9 | 5,4 | 9% | 11,2 | 9,4 | 19% | 22,3 | 20,1 | 11% | 24,1 |
| Total excl Currency | 63,7 | 65,4 | -3% | 128,8 | 135,3 | -5% | 258,3 | 272,7 | -5% | 251,8 |
| Currency effect | 0,2 | 0,0 | 0% | 0,2 | 0,0 | 0% | -4,8 | 0,0 | -2% | -4,6 |
| Order intake acquisitions | 5,7 | 0,0 | 9% | 12,9 | 0,0 | 10% | 4,7 | 0,0 | 2% | 17,6 |
| Total Order intake | 69,6 | 65,4 | 6% | 141,9 | 135,3 | 5% | 258,2 | 272,7 | -5% | 264,8 |
| | 3 Months
Apr-Jun | 3 Months
Apr-Jun | | 6 Months
Jan-Jun | 6 Months
Jan-Jun | | 12 Months
Jan-Dec | 12 Months
Jan-Dec | | 12 Months
Jul-Jun |
| Total Sales | 2024 | 2023 | Diff | 2024 | 2023 | Diff | 2023 | 2022 | Diff | 2023/2024 |
| MEUR | | | | | | | | | | |
| Continental Europe | 32,9 | 34,1 | -4% | 66,5 | 66,0 | 1% | 131,4 | 143,3 | 16% | 131,9 |
| Nordic region | 8,8 | 10,9 | -19% | 16,9 | 21,7 | -22% | 40,2 | 38,4 | 5% | 35,4 |
| United Kingdom | 7,4 | 7,1 | 4% | 13,2 | 13,0 | 2% | 24,6 | 34,7 | -29% | 24,8 |
| North America | 10,4 | 11,6 | -10% | 20,8 | 26,1 | -20% | 46,6 | 49,4 | -6% | 41,3 |
| New Markets | 6,4 | 4,8 | 33% | 12,5 | 9,5 | 32% | 21,8 | 18,3 | 19% | 24,8 |
| Total excl Currency | 65,9 | 68,5 | -4% | 129,9 | 136,3 | -5% | 264,6 | 284,1 | -7% | 258,2 |
| Currency effect | 0,2 | 0,0 | 0% | 0,2 | 0,0 | 0% | -4,9 | 0,0 | -2% | -4,7 |
| Sales acquisitions | 5,8 | 0,0 | 8% | 12,7 | 0,0 | 9% | 4,6 | 0,0 | 2% | 17,3 |
| Total Sales | 71,9 | 68,5 | 5% | 142,8 | 136,3 | 5% | 264,3 | 284,1 | -7% | 270,8 |
- Note that organic growth is reported excluding currency effect.
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
THE GROUP - SUMMARY
INCOME STATEMENT
| MEUR | 3 Months
Apr-Jun 2024 | 3 Months
Apr-Jun 2023 | 6 Months
Jan-Jun 2024 | 6 Months
Jan-Jun 2023 | 12 Months
Jan-Dec 2023 | 12 Months
Jan-Dec 2022 | 12 Months
Jul-Jun 2023/2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Sales | 71,9 | 68,5 | 142,8 | 136,3 | 264,3 | 284,1 | 270,8 |
| Cost of goods sold | -44,7 | -42,4 | -89,9 | -84,7 | -162,3 | -186,8 | -167,5 |
| Gross profit | 27,2 | 26,1 | 52,9 | 51,6 | 102,0 | 97,3 | 103,3 |
| Sales expenses | -10,7 | -8,5 | -20,6 | -16,8 | -33,4 | -30,5 | -37,2 |
| Administrative expenses | -4,6 | -4,2 | -9,3 | -8,5 | -16,9 | -15,9 | -17,7 |
| Other operating income and expenses | 0,2 | -0,4 | 0,1 | -0,6 | 0,2 | 0,2 | 0,9 |
| Operating profit before Amortizations (EBITA) | 12,1 | 13,0 | 23,1 | 25,7 | 51,9 | 51,1 | 49,3 |
| Amortization | -0,7 | -0,4 | -1,5 | -0,9 | -1,9 | -1,5 | -2,5 |
| Operating profit (EBIT) | 11,4 | 12,6 | 21,6 | 24,8 | 50,0 | 49,6 | 46,8 |
| Financial income and expenses | -1,5 | -0,6 | -2,8 | -1,2 | -2,6 | -1,4 | -4,2 |
| Result after financial expenses | 9,9 | 12,0 | 18,8 | 23,6 | 47,4 | 48,2 | 42,6 |
| Taxes | -2,4 | -2,9 | -4,6 | -5,6 | -11,6 | -11,4 | -10,6 |
| Net result for the period | 7,5 | 9,1 | 14,2 | 18,0 | 35,8 | 36,8 | 32,0 |
| Earnings per share before / after dilution | 0,13 € | 0,15 € | 0,24 € | 0,30 € | 0,60 € | 0,61 € | 0,53 € |
| Adjusted earnings per share before / after dilution | 0,14 € | 0,16 € | 0,26 € | 0,32 € | 0,63 € | 0,64 € | 0,58 € |
| Number of shares before / after dilution in thousands | 60 000 | 60 000 | 60 000 | 60 000 | 60 000 | 60 000 | 60 000 |
STATEMENT OF COMPREHENSIVE INCOME
| | 3 Months
Apr-Jun 2024 | 3 Months
Apr-Jun 2023 | 6 Months
Jan-Jun 2024 | 6 Months
Jan-Jun 2023 | 12 Months
Jan-Dec 2023 | 12 Months
Jan-Dec 2022 | 12 Months
Jul-Jun 2023/2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Net result for the period | 7,5 | 9,1 | 14,2 | 18,0 | 35,8 | 36,8 | 32,0 |
| Other comprehensive income: | | | | | | | |
| Items that may be reclassified to the income statement | | | | | | | |
| Translation differences | 1,9 | -3,2 | -1,1 | -5,1 | 0,9 | -7,8 | 4,9 |
| Tax related to items that may be reclassified | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| | 1,9 | -3,2 | -1,1 | -5,1 | 0,9 | -7,8 | 4,9 |
| Items that will not be reclassified to the income statement | | | | | | | |
| Actuarial gains and losses on defined-benefit pension comm | 0,0 | 0,0 | 0,0 | 0,0 | -0,2 | 1,3 | -0,2 |
| Tax related to items that may be reclassified | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | -0,2 | 0,0 |
| | 0,0 | 0,0 | 0,0 | 0,0 | -0,2 | 1,1 | -0,2 |
| Other comprehensive income, net of tax | 1,9 | -3,2 | -1,1 | -5,1 | 0,7 | -6,7 | 4,7 |
| Total comprehensive income for the period | 9,4 | 5,9 | 13,1 | 12,9 | 36,5 | 30,1 | 36,7 |
| EBITDA | 3 Months
Apr-Jun 2024 | 3 Months
Apr-Jun 2023 | 6 Months
Jan-Jun 2024 | 6 Months
Jan-Jun 2023 | 12 Months
Jan-Dec 2023 | 12 Months
Jan-Dec 2022 | 12 Months
Jul-Jun 2023/2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Operating result (EBIT) | 11,4 | 12,6 | 21,6 | 24,8 | 50,0 | 49,6 | 46,8 |
| Amortizations | 0,7 | 0,4 | 1,5 | 0,9 | 1,9 | 1,5 | 2,5 |
| Adjusted operating result (EBITA) | 12,1 | 13,0 | 23,1 | 25,7 | 51,9 | 51,1 | 49,3 |
| Depreciations | 2,9 | 2,4 | 5,8 | 4,9 | 10,3 | 10,1 | 11,2 |
| EBITDA | 15,0 | 15,4 | 28,9 | 30,6 | 62,2 | 61,2 | 60,5 |
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
STATEMENT OF FINANCIAL POSITION
| 2024 | 2023 | 2023 | 2022 | |
|---|---|---|---|---|
| MEUR | 30-jun | 30-jun | 31-dec | 31-dec |
| Assets | ||||
| Intangible assets | 115,1 | 94,7 | 115,2 | 98,6 |
| Tangible assets | 79,5 | 59,2 | 82,1 | 60,0 |
| Financial fixed assets | 6,7 | 6,0 | 6,9 | 6,3 |
| Total fixed assets | 201,3 | 159,9 | 204,2 | 164,9 |
| Inventories | 30,9 | 28,5 | 30,8 | 32,3 |
| Current receivables | 63,5 | 59,7 | 55,9 | 55,4 |
| Cash and cash equivalents | 16,0 | 24,1 | 33,2 | 37,5 |
| Total current assets | 110,4 | 112,3 | 119,9 | 125,2 |
| TOTAL ASSETS | 311,7 | 272,2 | 324,1 | 290,1 |
| Equity and liabilities | ||||
| Equity | 163,1 | 148,5 | 172,3 | 154,9 |
| Long-term liabilities | 96,4 | 77,7 | 99,2 | 89,4 |
| Current liabilities | 52,2 | 46,0 | 52,6 | 45,8 |
| TOTAL EQUITY AND LIABILITIES | 311,7 | 272,2 | 324,1 | 290,1 |
| Net debt | 66,1 | 40,1 | 53,4 | 38,2 |
| STATEMENT OF CHANGES IN EQUITY ATTRIBUTABLE | 2024 | 2023 | 2023 | 2022 |
| TO THE PARENT COMPANY'S SHAREHOLDERS | 30-jun | 30-jun | 31-dec | 31-dec |
| Opening balance | 172,3 | 154,9 | 154,9 | 142,6 |
| Dividends | -20,3 | -19,3 | -19,3 | -18,0 |
| Received option premiums | 0,0 | 0,0 | 0,2 | 0,2 |
| Re-purchase of shares | -2,0 | 0,0 | 0,0 | 0,0 |
| Total comprehensive income for the period | 13,1 | 12,9 | 36,5 | 30,1 |
| Closing balance | 163,1 | 148,5 | 172,3 | 154,9 |
CASH FLOW STATEMENT
| 3 Months | 3 Months | 6 Months | 6 Months | 12 Months | 12 Months | |
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | 2022 | |
| MEUR | 30-jun | 30-jun | 30-jun | 30-jun | 31-dec | 31-dec |
| Operating profit before Amortizations (EBITA) | 12,1 | 13,0 | 23,1 | 25,7 | 51,9 | 51,1 |
| Depreciations, interest received and paid, tax paid and adjus | -0,4 | -2,6 | -0,6 | -3,1 | -9,4 | -6,8 |
| Changes in working capital | -1,5 | 3,5 | -8,2 | -0,2 | 7,8 | 5,6 |
| Cash flow from operating activities | 10,2 | 13,9 | 14,3 | 22,4 | 50,3 | 49,9 |
| Investments | -1,5 | -2,0 | -4,2 | -4,3 | -41,1 | -14,4 |
| Cash flow after investing activities | 8,7 | 11,9 | 10,1 | 18,1 | 9,2 | 35,5 |
| Financing activities | -23,2 | -20,4 | -27,3 | -31,5 | -13,7 | -32,5 |
| Cash flow for the period | -14,5 | -8,5 | -17,2 | -13,4 | -4,5 | 3,0 |
| Cash and cash equivalents at the start of the period | 30,5 | 32,6 | 33,2 | 37,5 | 37,5 | 35,2 |
| Translation difference in cash and cash equivalents | 0,0 | 0,0 | 0,0 | 0,0 | 0,2 | -0,7 |
| Cash and cash equivalents at the end of the period | 16,0 | 24,1 | 16,0 | 24,1 | 33,2 | 37,5 |
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
PARENT COMPANY– SUMMARY
| INCOME STATEMENT | 3 Months | 3 Months | 6 Months | 6 Months | 12 Months | 12 Months |
|---|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | Jan-Dec | |
| MEUR | 2024 | 2023 | 2024 | 2023 | 2023 | 2022 |
| Sales | 0,3 | 0,2 | 0,5 | 0,5 | 1,0 | 0,9 |
| Cost of goods sold | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Gross profit | 0,3 | 0,2 | 0,5 | 0,5 | 1,0 | 0,9 |
| Administrative expenses | -1,1 | -0,9 | -2,1 | -2,0 | -3,7 | -2,2 |
| Other operating income and expenses | -0,2 | 0,2 | -0,2 | 0,1 | 0,1 | -0,3 |
| Operating profit before Amortizations (EBITA) | -1,0 | -0,5 | -1,8 | -1,4 | -2,6 | -1,6 |
| Financial income and expenses | -0,3 | 25,2 | -0,2 | 24,4 | 29,7 | 28,0 |
| Result after financial expenses | -1,3 | 24,7 | -2,0 | 23,0 | 27,1 | 26,4 |
| Year-end appropriations | 0,0 | 0,0 | 0,0 | 0,0 | 0,6 | 1,3 |
| Profit before tax | -1,3 | 24,7 | -2,0 | 23,0 | 27,7 | 27,7 |
| Taxes | 0,3 | 0,0 | 0,4 | 0,4 | -0,6 | -3,4 |
| Net result for the period | -1,0 | 24,7 | -1,6 | 23,4 | 27,1 | 24,3 |
STATEMENT OF COMPREHENSIVE INCOME
| Net result for the period | -1,0 | 24,7 | -1,6 | 23,4 | 27,1 | 24,3 |
|---|---|---|---|---|---|---|
| Other comprehensive income, net of tax | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Total comprehensive income for the period | -1,0 | 24,7 | -1,6 | 23,4 | 27,1 | 24,3 |
| 30-jun | 30-jun | 31-dec | 31-dec | |||
| --- | --- | --- | --- | --- | ||
| MEUR | 2024 | 2023 | 2023 | 2022 | ||
| Assets | ||||||
| Shares in subsidiaries | 87,7 | 87,7 | 87,7 | 87,7 | ||
| Receivables to subsidiaries | 24,3 | 23,9 | 23,6 | 24,4 | ||
| Other long-term receivables | 0,8 | 0,8 | 0,8 | 0,8 | ||
| Total fixed assets | 112,8 | 112,4 | 112,1 | 112,9 | ||
| Receivables to subsidiaries | 0,0 | 0,0 | 18,6 | 5,4 | ||
| Current receivables | 0,4 | 0,0 | 2,6 | 0,0 | ||
| Cash and cash equivalents | 0,3 | 8,7 | 11,2 | 9,8 | ||
| Total current assets | 0,7 | 8,7 | 32,4 | 15,2 | ||
| TOTAL ASSETS | 113,5 | 121,1 | 144,5 | 128,1 | ||
| Equity and liabilities | ||||||
| Equity | 29,7 | 49,7 | 53,5 | 45,6 | ||
| Untaxed reserves | 5,1 | 5,7 | 5,1 | 5,7 | ||
| Long-term liabilities | 70,8 | 50,0 | 70,9 | 60,7 | ||
| Current liabilities | 7,9 | 15,7 | 15,0 | 16,1 | ||
| TOTAL EQUITY AND LIABILITIES | 113,5 | 121,1 | 144,5 | 128,1 |
CASH FLOW STATEMENT
| 3 Months | 3 Months | 6 Months | 6 Months | 12 Months | 12 Months | |
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | 2022 | |
| MEUR | 30-jun | 30-jun | 30-jun | 30-jun | 31-dec | 31-dec |
| Operating profit before financial items | -1,0 | -0,5 | -1,8 | -1,4 | -2,6 | -1,6 |
| Interest paid and received, taxes, adjustments | -0,2 | 25,6 | -0,5 | 25,1 | 20,5 | 23,5 |
| Change in working capital | 12,5 | -5,5 | 13,7 | 4,5 | -7,2 | 3,1 |
| Cash flow from continuing operations | 11,3 | 19,6 | 11,4 | 28,2 | 10,7 | 25,0 |
| Investments | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Cash flow from investment activities | 11,3 | 19,6 | 11,4 | 28,2 | 10,7 | 25,0 |
| Cash flow from financing activities | -20,3 | -19,3 | -22,3 | -29,3 | -9,3 | -28,0 |
| Cash flow for the period | -9,0 | 0,3 | -10,9 | -1,1 | 1,4 | -3,0 |
| Cash and cash equivalents at the beginning of the period | 9,3 | 8,4 | 11,2 | 9,8 | 9,8 | 12,8 |
| Translation difference | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Cash and cash equivalents at the end of the period | 0,3 | 8,7 | 0,3 | 8,7 | 11,2 | 9,8 |
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
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 2023 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 Apr-Jun | 3 Months Apr-Jun | 6 Months Jan-Jun | 6 Months Jan-Jun | 12 Months Jan-Dec | 12 Months Jan-Dec |
|---|---|---|---|---|---|---|
| MEUR | 2024 | 2023 | 2024 | 2023 | 2023 | 2022 |
| Organic sales / growth | 65,9 | 68,5 | -4% | 129,9 | 136,3 | -5% |
| Currency effect | 0,2 | 0,0 | 0% | 0,2 | 0,0 | 0% |
| Sales from acquisitions | 5,8 | 0,0 | 8% | 12,7 | 0,0 | 9% |
| Total Sales | 71,9 | 68,5 | 5% | 142,8 | 136,3 | 5% |
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 earnings 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.
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024
OTHER INFORMATION (CONT.)
Net debt / EBITDA
Troax' 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 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.
| MEUR | 30-jun 2024 | 30-jun 2023 | 31-dec 2023 | 31-dec 2022 | |
|---|---|---|---|---|---|
| Short term loans | 1,1 | 0,0 | 4,0 | 0,0 | |
| Long term loans | 70,0 | 50,0 | 70,0 | 60,0 | |
| Liabilities for leases (IFRS 16) | 11,0 | 14,2 | 12,6 | 15,8 | |
| Total debt | 82,1 | 64,2 | 86,6 | 75,8 | |
| cash | 16,0 | 24,1 | 33,2 | 37,5 | |
| Net debt incl IFRS 16 | 66,1 | 40,1 | 53,4 | 38,3 | |
| 12 month rolling EBITDA incl IFRS 16 | 60,4 | 60,1 | 61,2 | 61,2 | |
| Net debt / EBITDA incl IFRS 16 | 1,1 | 0,7 | 0,9 | 0,6 | |
| Net debt excl IFRS 16 | 55,1 | 25,9 | 40,8 | 22,5 | |
| 12 month rolling EBITDA excl IFRS 16 | 56,0 | 55,3 | 57,8 | 56,3 | |
| Net debt / EBITDA excl IFRS 16 | 1,0 | 0,5 | 0,7 | 0,4 |
RISKS AND RISK MANAGEMENT
Exposure to risks is a natural part of business operations and this reflects Troax' 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 2023.
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.
RE-PURCHASE OF SHARES
As of the 30th of June, 2024, Troax Group AB (publ) owned 154,668 own shares.
EMPLOYEES
At the end of the period the Group had 1 219 (1 119) employees.
OTHER EVENTS AFTER THE QUARTER
After the second quarter of 2024, the Group acquired all shares in Troax CZ s.r.o., one of Troax distributors located in Czech republic. The annual turnover of the acquired company amounts to approximately 3,0 MEUR.
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 Q3 2024, 29th of October 2024
Interim report Q4 2024, 7th of February 2025
TEAMS WEBINAR
Invitation to presentation of the latest quarter result:
Martin Nyström, CEO, and Anders Eklöf, CFO, will present the results at a Teams webinar on the 14th of August 2024 at 16:30 CET. The conference will be held in English. For more information, please refer to https://www.troax.com/investors/press-releases/
INTERIM REPORT 2024
JANUARY – JUNE
TROAX
Hillerstorp 2024-08-14
Martin Nyström
President & CEO
Anders Mörck
Chairman
Thomas Widstrand
Marie Landfors
Anna Stålenbring
Eva Nygren
Bertil Persson
Fredrik Hansson
Stefan Lundgren
Employee repr.
MARTIN NYSTRÖM
President and CEO
Phone +46 (0)370-828 31
[email protected]
Troax Group AB (publ)
Hillerstorp, 14th of August 2024
ANDERS EKLÖF
CFO
Phone +46 (0)370-828 25
[email protected]
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 and the Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 14th of August 2024.
TROAX GROUP AB (PUBL) INTERIM REPORT, JANUARY-JUNE 2024