Interim report 1 April - 30 June 2018

First quarter

• Net sales increased by 21 percent and amounted to SEK 2,395 million (1,979).
• Operating profit before amortisation of intangible non-current assets (EBITA) increased by 22 percent and amounted to SEK 260 million (214 including items affecting comparability of SEK +12 million) corresponding to an EBITA-margin of 10.9 percent (10.8).
• Operating profit increased by 22 percent and amounted to SEK 221 million (181) corresponding to an operating margin of 9.2 percent (9.1).
• Profit after tax increased by 13 percent and amounted to SEK 162 million (143) and earnings per share before dilution amounted to SEK 2.35 (2.10). For the most recent 12-month period, earnings per share before dilution amounted to SEK 7.95 (7.05).
• Return on working capital (P/WC) amounted to 53 percent (53).
• Return on equity amounted to 27 percent (28).
• The equity ratio amounted to 39 percent (39).
• Cash flow from operating activities amounted to SEK 52 million (85). For the most recent 12-month period, cash flow per share from operating activities amounted to SEK 7.55 (7.95).
• During the period, we have completed four acquisitions with total annual sales of about SEK 230 million. 
• In July we have completed six acquisitions with total annual sales of about SEK 500 million.

Ceo's comments

First quarter – a very good start to the 2018/2019 financial year
The market performed very strongly during the quarter and the Group recorded an organic increase of 9 percent in sales. Combined with the effect of several completed acquisitions, the overall profit growth was 22 percent. The operating margin continued to improve, especially in view of the positive non-recurring impact we recorded in the first quarter of last year. It is very positive that all four business areas generated an EBITA margin of more than 10 percent.

Market development
Sales of production components to manufacturing companies continued to increase, especially in customer segments such as special vehicles, machinery production, electronics and marine vessels. Demand was also firm from customers in medical technology and wind power, but weak in telecom. From a low level, the oil & gas customer segment in Norway showed an improvement. There was also a positive upswing in demand for aftermarket products for the manufacturing industry and for the forest and process industry. Sales of infrastructure products to power grid companies in the Nordic region increased slightly overall, while demand from construction and installation customers for electricity-related products had good development.

From a geographical perspective, the best market conditions overall were in Sweden and Finland. Our sales in Denmark increased slightly, while our businesses outside the Nordic region recorded strong demand. Thanks to bigger investment in oil & gas, as well as in infrastructure, sales also rose in Norway.

Acquisitions
In the early part of the financial year, our pace of acquisitions was high in all business areas. During the quarter, we completed four acquisitions that, in all, bring annual sales of around SEK 230 million to the Group. At the start of July, we made six additional acquisitions with total annual sales of approximately SEK 500 million.

Over and out, after just over a decade as CEO of this Group I am now writing my final CEO comment. What a journey it has been. First and foremost, I would like to thank everyone with whom I’ve had the pleasure to work, through good and bad economic times. Customers, suppliers, investors, the Board of Directors and – most importantly – all our employees who together maintain and enhance the outstanding corporate culture that makes Addtech unique and successful. Thanks to you all. As of our annual general meeting, I will be handing the reins to Niklas Stenberg with the utmost confidence.

Stockholm, 13 July 2018

Johan Sjö
President and CEO

This information is information that Addtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 8.15 a.m CET on 13 July 2018.

For further information, please contact:
Johan Sjö, President and CEO, +46 8 470 49 00
Malin Enarson, CFO, +46 8 470 49 00

Addtech in brief
Addtech is a technology trading group that provides technological and economic value added in the link between manufacturers and customers. Addtech operates in selected niches in the market for advanced technology products and solutions. Its customers primarily operate in the manufacturing industry and infrastructure. Addtech has about 2,300 employees in approximately 130 subsidiaries that operate under their own brands. The Group has annual sales of over SEK 8 billion. Addtech is listed on the Nasdaq Stockholm.