Interim Report October–December 2022

Continued strong growth with maintained margins 

• Net sales increased by 28 percent to SEK 7,945 million (6,218)
• The order backlog was SEK 16,881 million (16,519)
• EBITA rose by 7 percent to SEK 669 million (625)
• The EBITA margin was 8.4 percent (10.1)
• The EBITA margin was 8.4 (8.5) percent excluding an item affecting comparability related to
  repayment of a health insurance surplus
• Profit after tax was SEK 501 million (468)
• Cash flow from operating activities was SEK 1,110 million (1,115)
• Net debt amounted to SEK -1,304 million (-1,003)
• Basic earnings per share were SEK 2.43 (2.32) and diluted earnings per share were SEK 2.42 (2.31)

CEO statement
Total net sales increased by 28 percent, with 16 percent being organic growth. Earnings per share increased by 10 percent in 2022, despite major investments being made in the business. The Board proposes that the dividend is raised by approximately 8 percent, to SEK 3.25 per share. My assessment is that Bravida is well positioned for the coming quarter with a large service share and a good order backlog.

Net sales and EBITA
I am very pleased with the growth during the quarter and especially with the high organic growth of 16 percent. We continue to see good activity for service, which grew by 26 percent, and installation, which grew by 30 percent. Order intake rose in Sweden, Denmark and Finland. The reduced order intake in Norway is explained by a strong comparative figure. The Group’s order backlog remains stable. EBITA increased by SEK 44 million to SEK 669 million, giving an EBITA margin in line with the previous year excluding the repayment of the surplus from the 2021 health insurance. 

Growth was good in all countries during the quarter, both organically and through acquisitions, for both service and installation activities. Organic growth was particularly strong in the Danish and Norwegian businesses, and it is pleasing that Finland also grew organically in this quarter. 

The total EBITA margin was 8.4 percent. The fact that we can perform at the same level as last year despite having a lower margin in Norway and costs for investments in IT systems and new business areas demonstrates the strength of our business. Sweden significantly improved its EBITA margin, excluding the above-mentioned repayment. The business in Norway had a more challenging quarter, and the EBITA margin there was negatively impacted by write downs in some projects. The Finnish business had a slightly lower margin in the quarter, but profitability improved for the year as a whole.

I am proud to say that in 2022, after the pandemic, and despite rising material prices and logistics challenges, we achieved 20 percent growth and still maintained our margin.

Strong cash flow and proposed higher dividend
Cash flow from operating activities was stable and in line with the previous year. Cash conversion improved slightly compared to 2021 and amounted to 87 (83) percent; average cash conversion over the last three years is above 100 percent. Debt levels remained low, at 0.6 (0.5). Bravida’s Board of Directors proposes increasing the dividend by SEK 0.25 per share to SEK 3.25 per share, which corresponds to 52 percent of earnings per share.

Acquisitions
A total of 21 acquisitions were made during the year, adding approximately SEK 1,565 million in sales. After a high pace of acquisition in the first half of the year, it was quite natural that the second half of the year was quieter. Bravida has completed several acquisitions in early 2023. We continue to work on potential acquisitions and also on expanding the number of acquisition candidates. We continue to see good opportunities to acquire companies, and this will be reflected in 2023.

Sustainability
Our employees’ working environment is always our top priority, so it is very gratifying that LTIFR decreased by no less than 19 percent in 2022.

To reduce Bravida’s direct carbon footprint, we continue to rapidly convert our fleet to fossil-free vehicles. At year-end, 11 percent of Bravida’s 8,300 vehicles were fully electric, and this figure will increase in 2023 as the ordering rate for electric vehicles is high. In 2022, 73 percent of the vehicles that were ordered were electric.

During the quarter, we continued to improve our services within energy efficiency and experienced an increased demand for our GreenHub concept - fossil free deliveries of real estate services in the city centers. Read more in the case section of the report.

Outlook
Macroeconomic factors such as high inflation, higher interest rates and a deteriorating economy make the market difficult to assess going forwards. For Bravida, however, I believe that the demand for service will remain good. Demand for installation work is more influenced by the macroeconomic environment, for example high interest rates and high inflation can postpone investment decisions. 

Demand for installation work in new buildings is likely to decline, mainly because of a falling demand for newbuild residentials. New constructions of housing accounts for about 9 percent of Bravida’s sales. However, I expect installation work in other types of properties to remain stable over the next few quarters. 

The green transition is also creating opportunities for us. Electrification, digitalisation and the need for energy efficiency in buildings are creating a demand for our services, which means Bravida is well positioned for the future.

Mattias Johansson
Stockholm, February 2023

The report will be presented at 09:30 CET by CEO and Group President Mattias Johansson and CFO Åsa Neving. The presentation will be held in English and can be followed on the web or on the phone. There will be room for questions in the telephone conference.

Link to webcast
https://ir.financialhearings.com/bravida-q4-2022/register

Telephone conference dial-in number
SE: +46-8-5051-6386
UK: +44-20-319-84884
US: +1-412-317-6300
Pin code: 8586127#

The report and presentation will be available on www.bravida.com/investors

For further information, please contact:
Peter Norström, Head of Investor Relations
peter.norstrom@bravida.se
+46 8 695 20 07

This disclosure contains information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 14 February 2023, 07:30 CET.

Good properties make a difference – that’s why Bravida exists. As the Nordic region’s leading supplier of end-to-end technical solutions in service and installation, we help our customers create effective and sustainable properties. 

Bravida’s long-term goal is to be carbon-neutral throughout the value chain by 2045. We have 13,000 employees and a presence in over 180 locations in Sweden, Norway, Denmark and Finland. Bravida’s shares are listed on Nasdaq Stockholm. www.bravida.com