Continued healthy growth and strong EBIT
(Interim Report second quarter of 2017 distributed as an appendix to this press release)
- Net sales increased 21% to MSEK 192.0 (159.1).
- EBIT rose 22% to MSEK 22.5 (18.5).
- EBIT margin amounted to 11.7% (11.6).
- Net income was MSEK 17.9 (15.4).
- Earnings per share totaled SEK 1.79 (1.54).
- The equity ratio was 47.1% (48.4).
Stefan Jonsson, President and CEO:
The second quarter trended in line with our expectations. Net sales increased 21% to MSEK 192.0 driven by strong growth in GARO Sweden and a favorable trend for construction-related product areas. A lower number of trading days during the quarter negatively affected net sales by five percentage points.
EBIT rose 22% to MSEK 22.5. The fewer number of sales days had approximately MSEK 3 negative impact on EBIT. The EBIT margin amounted to 11.7% compared with 11.6% the previous year. Results during the quarter were also negatively impacted by temporary costs for supply-capacity extension.
Our market assessment remains firm. In the market for charger products, we have noted a continuing strong trend and the expansion of charging infrastructure is ongoing in all markets. The construction sector continued to be robust in Sweden and Ireland, and demand is healthy in Norway and Finland. Overall, we have a positive outlook for 2017.
As announced previously, Carl-Johan Dalin has been appointed as the new President and CEO for GARO. He will take up his position on 4 September. I will be supporting Carl-Johan during the introduction period and would like to welcome him to the company.
Gnosjö, 25 August, 2017
For more information, please contact:
Stefan Jonsson, President and CEO: +46 70 588 66 73
Lars Kvarnsund, CFO: +46 070 516 59 98
Patrik Linzenbold, IR Director: +46 708 25 26 30
This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact persons on 25 August, 2017, at 07.30 a.m.
GARO develops, manufactures and supplies innovative products and systems for the electrical installations industry under its own brand. The company has operations in Sweden, Norway, Finland, Ireland and Poland and the Group is organized in two business segments GARO Sweden and GARO Other markets. GARO has a broad product assortment and is a market leader within several product areas. The Group had sales of MSEK 658 in 2016 and has approximately 330 employees. Its head office is located in Gnosjö.
The business concept is “with a focus on innovation, sustainability and design, GARO provides profitable complete solutions for the electrical industry”.