FIRST QUARTER - STRENGTHENED PROFITABILITY AND HIGH PACE OF ACQUISITIONS 

Overall, the new financial year is off to a good start, with high levels of activity and strengthened profitability across the board. Despite a certain uncertainty in the market, sales increased by 7 percent, 2 percent of which was organic. It is satisfying to see that our long-term initiatives to increase the value added in our offering, to strengthen the product mix and, not least, to increasingly focus on profitable acquisitions, gives effect with EBITA increasing 19 percent with a continued strong margin of 15.3 percent (13.7). Our international expansion is continuing as planned and the rate of acquisitions in the beginning of the year has been high with a total of seven acquisitions, of which five took place outside the Nordic region. Our entrepreneurial-driven companies are demonstrating their strength again, continuing to generate profitable growth in a challenging market.

MARKET TREND

At an overarching level, the business situation remained stable at high levels in most of our key customer segments and geographies. Demand for infrastructure products for national and regional grids, and for components to manufacturing companies in the defence and process industries remained strong. The market situation in the medical technology, engineering and special vehicle segments was overall stable, although we perceived a certain weakening in construction equipment. The weaker business situation in electronics and in building and installation persisted, and the low demand for new projects in the sawmill industry remained. From a geographical perspective, the market situation remained stable in Sweden and Norway, improved in Denmark and was weak in Finland. In our main markets outside the Nordic region, the business situation was weak in the DACH region, while it was generally favourable in other countries. 

ACQUISITIONS

During the quarter, we continued to deliver on our strategy to use our own cash flow to acquire well-run companies with high value generation. A total of four acquisitions were completed, followed by three more after the end of the period, contributing a total annual sales of about SEK 855 million. In Italy, NES was acquired, a supplier of materials for high-voltage networks and, in the UK, Cell Pack was acquired, a supplier of battery solutions, both serving as clear evidence of how we are methodically strengthening our positions in strategically selected niches without seeing geography as a limitation given that the companies concerned are high performers and a good cultural match. Overall, we view the acquisition market positively and, based on our relationship-based process and strong balance sheet, we are working actively to fill our pipeline with attractive acquisition candidates, both in the Nordic region and in selected markets and niches outside the Nordic region.