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Interim Report Jan-Jun 2015

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Reporting period January – June

  • Net sales increased by 19.1% to MSEK 3,870 (3,248). Organically, net sales grew by 6.1%

  • EBITA increased by 25.2 % to MSEK 583 (465)

  • EBITA margin increased to 15.1% (14.3%)

  • Earnings before tax grew by 28.3% to MSEK 537 (418)

  • Earnings after tax increased by 26.6% to MSEK 397 (314)

  • Earnings per share increased by 27.1% to SEK 4.31 (3.39)

Reporting period April – June

  • Net sales increased by 24.1 % to MSEK 2,122 (1,710). Organically, net sales grew by 12.3%

  • EBITA increased by 35.4 % to MSEK 341 (252)

  • EBITA margin increased to 16.1% (14.7%)

  • Earnings before tax grew by 43.4% to MSEK 314 (219)

  • Earnings after tax increased by 39.8% to MSEK 232 (166)

  • Bond loans in a total amount of MSEK 1,050 were issued

  • After the end of the period Lifco acquired dental company J.H. Orsing AB

Summary of financial performance

SIX MONTHS SECOND QUARTER LAST 12 MONTHS FULL YEAR
MSEK 2015 2014 change 2015 2014 change change 2014
Net sales 3,870 3,248 19.1% 2,122 1,710 24.1% 7,424 9.1% 6,802
EBITA 583 465 25.2% 341 252 35.4% 1,083 12.2% 966
EBITA margin 15.1% 14.3% 0.8 16.1% 14.7% 1.4 14.6% 0.4 14.2%
Profit before tax 537 418 28.3% 314 219 43.4% 882 15.5% 763
Net profit 397 314 26.6% 232 166 39.8% 653 14.7% 570
Earnings per share[1] 4.31 3.39 27.1% 2.50 1.79 39.7% 7.08[2] 14.9% 6.17
Return on capital employed[3] 18.9% 19.4% -0.5 18.9% 19.4% -0.5 18.9% - 18.8%
Return on capital em­ployed, excl. goodwill[4] 116% 92.2% 24.0 116% 92.2% 24.0 116% - 105%

COMMENTS FROM THE CEO
Net sales increased by 19.1% to MSEK 3,870 (3,248) in the first half of 2015. All three business areas reported growing sales driven by organic growth, acquisitions and changes in exchange rates in the first six months of the year. Organic growth was strong in the Demolition & Tools and Systems Solutions business areas. The market situation was generally good in all business areas. EBITA increased by 25.2 % to MSEK 583 (465) in the first half of the year and the EBITA margin expanded by 0.8 percentage points over the same period to 15.1% (14.3%). In the second half of 2014 IPO-related costs of MSEK 110 were charged to consolidated earnings, which have affected the rolling twelve-month profit before tax. Excluding the costs of the IPO, rolling twelve-month earnings per share were SEK 8.03.

The Dental business area had a stable performance in terms of sales and profitability over the first six months. Profitability in Demolition & Tools and Systems Solutions increased sharply in the second quarter after a weak first quarter. We work continuously to improve our product portfolio, strengthen distribution systems and raise the productivity of our companies. Although we would like to see greater stability in the earnings impact of these measures in Demolition & Tools and Systems Solutions, we probably need to expect that earnings in these business areas will fluctuate from one quarter to the next.

In the first three months of the year we made four acquisitions, one each in Dental and Demolition & Tools and two in Systems Solutions. Dental acquired a company in the United Kingdom and thus gained a foothold in the UK market. The company also has disinfection products in its portfolio, a product category which has not previously existed in Dental. Demolition & Tools strengthened its offering by adding earth drills to its product portfolio. In business area Systems Solutions the Environmental Technology division added granulators for plastic production waste to its portfolio and the Interiors for Service Vehicles division acquired a Danish business.

After the end of the period Lifco acquired dental company J.H. Orsing AB, which manufactures saliva ejectors and saliva adaptors.

In the first half of the year Lifco issued bonds totalling MSEK 1,050 in two offerings. The bonds have a maturity of three years and are listed on Nasdaq Stockholm.

Overall, demand was good in all three business areas and in the markets in which we operate. We maintain our strategy of investing in market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows.

FURTHER INFORMATION

Media and investor relations: Åse Lindskog, ir@lifco.se, telephone +46 (0)730 24 48 72

TELECONFERENCE

Media and analysts are welcome to call in to a teleconference, where CEO Fredrik Karlsson, CFO Thérèse Hoffman and Head of Business Area Dental Per Waldemarson will present the interim report. The presentation is expected to take around 20 minutes, after which participants will be invited to ask questions.

Time: 7 p.m. Thursday 16 July

Link to the presentation: http://cloud.magneetto.com/wonderland/2015_0716_Lifco_Q2_Report/view

Telephone numbers:

Sweden +46 8 566 427 01

UK +44 203 428 14 09

US +1 855 753 22 35

LIFCO IN BRIEF

Lifco acquires and develops market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows. The Group has three business areas: Dental, Demolition & Tools and Systems Solutions. Lifco is guided by a clear philosophy centred on long-term growth, a focus on profitability and a strongly decentralised organisation. The Lifco Group comprises 106 companies in 28 countries. In 2014 the Group reported EBITA of MSEK 966 on net sales of around SEK 6.8 billion. The EBITA margin was 14.2 %. Read more at www.lifco.se

This information is released at 7:30 a.m. CET on 16 July in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act and/or the regulations of Nasdaq Stockholm.

[1] Attributable to Parent Company shareholders.

[2] Costs of MSEK 110 for the initial public offering were recognized in the second half of 2014.

[3] Refers to rolling twelve months.

[4] Refers to rolling twelve months.      

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