Interim Report Q1 1 April - 30 June 2017

FIRST QUARTER

• Net sales increased by 12 percent and amounted to SEK 1,979 million (1,760).
• Operating profit before amortisation of intangible non-current assets (EBITA) increased by 19 percent and amounted to SEK 214 million (179) corresponding to an EBITA-margin of 10.8 percent (10.2). The profit includes items affecting comparability amounting to a net total of SEK +12 million, and adjusted EBITA amounted to SEK 202 million (179), corresponding to an EBITA margin of 10.2 percent (10.2).
• Operating profit increased by 18 percent and amounted to SEK 181 million (153) corresponding to an operating margin of 9.1 percent (8.7).
• Profit after financial items increased by 22 percent and amounted to SEK 177 million (145).
• Profit after tax increased by 26 percent and amounted to SEK 143 million (113) and earnings per share before dilution amounted to SEK 2.10 (1.65). For the most recent 12-month period, earnings per share before dilution amounted to SEK 7.05 (5.30).
• Return on working capital (P/WC) amounted to 53 percent (47).
• Return on equity amounted to 28 percent (22).
• The equity ratio amounted to 39 percent (40).
• Cash flow from operating activities amounted to SEK 85 million (104). For the most recent 12-month period, cash flow per share from operating activities amounted to SEK 7.95 (7.70).
• During the period, we have completed three acquisitions with total annual sales of about SEK 225 million.

CEO'S COMMENTS

A GOOD START TO 2017/2018
The first quarter of the year produced good growth with a retained operating margin, even in comparison with a strong quarter in the preceding year. The 4 percent organic growth in sales generated good profit growth, and the contribution made by our completed acquisitions fulfilled expectations.

Addtech enjoyed good demand, and the economy in the markets where we operate remains positive. Sales of production components to manufacturing companies improved, and the largest growth in demand comes from manufacturers of special vehicles in segments such as forklift trucks, mining, the forest industry and contracting machinery. Other customer segments such as machinery manufacture, medical technology, wind power and electronics experienced a favourable business climate. The market for products to customers in telecom as well as oil and gas remained weak, however.

Infrastructure investments among Nordic electricity network companies grew additionally somewhat from an already high level. In this market, demand from electricity transmission customers increased, while sales to electricity distribution customers stayed at a continued high and stable level. The market for electricity-related products in building and installation was positive.

Sales of products to the industrial aftermarket, such as mechanical industry and the forest and process industries, increased somewhat, while demand from the shipping market was very good during the quarter.

ACQUISITIONS
During the start of the financial year we have completed three acquisitions which add sales of about SEK 225 million on an annual basis. With a strong balance sheet, we have good possibilities of completing additional acquisitions during the year. 

Stockholm, 14 July 2017

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 8.30 a.m CET on 14 July 2017.

For further information, please contact:
Johan Sjö, President and CEO, +46 8 470 49 00
Christina Kassberg, 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 2,200 employees in approximately 120 subsidiaries that operate under their own brands. The Group has annual sales of over SEK 7 billion. Addtech is listed on the Nasdaq Stockholm.