Interim report 1 January – 30 September 2022

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Third quarter 2022

  • Order intake increased by 20% to SEK 6,535 million (5,428). For comparable units, it was an increase of 8%.
  • Net sales increased by 27% to SEK 6,707 million (5,290). For comparable units, it was an increase of 14%.
  • EBITA increased by 28% to SEK 1,035 million (810), corresponding to an EBITA margin of 15.4% (15.3%).
  • Profit for the quarter rose 26% to SEK 691 million (550), and earnings per share amounted to SEK 1.90 (1.51).
  • Cash flow from operating activities amounted to SEK 624 million (671).

1 January – 30 September 2022

  • Order intake increased by 20% to SEK 20,649 million (17,181). For comparable units, it was an increase of 9%.
  • Net sales increased by 24% to SEK 19,788 million (15,989). For comparable units, it was an increase of 12%.
  • EBITA increased by 28% to SEK 3,017 million (2,366), corresponding to an EBITA margin of 15.2% (14.8%).
  • Profit for the period rose 27% to SEK 2,004 million (1,573), and earnings per share amounted to SEK 5.50 (4.32).
  • Cash flow from operating activities amounted to SEK 1,522 million (1,952).

CEO’s message

Continued high demand, higher sales growth and record earnings.

Third quarter
The market situation for the third quarter remained strong and order intake increased by 20%, of which 8% was organic, compared to the corresponding period previous year. In total, order intake amounted to SEK 6.5 billion. The majority of our companies reported a positive trend in order intake and seven of the eight business areas grew organically. As in the previous quarter, we saw a variation in demand between various companies, segments and countries. The largest variation that we saw was for companies with customers in infrastructure and construction, along with medical technology and pharmaceuticals, which is partly attributable to strong comparison figures previous year. Overall however, there was a healthy demand in all major customer segments throughout the entire quarter, with the strongest development in the process industry.

Sales growth strengthened during the third quarter and the total growth compared to the corresponding period last year increased by 27%, of which 14% organically. In total, net sales amounted to SEK 6.7 billion. Disruptions in the supply chains continued during the quarter, although some companies experienced a slight improvement in the situation. In all business areas, net sales grew organically with the strongest growth in Flow Technology and Industrial Components.

EBITA increased by 28% from SEK 810 million to SEK 1,035 million, corresponding to a margin of 15.4% – the highest ever! The margin improvement was primarily driven by positive effects from acquisitions and the robust organic growth in net sales. Nonrecurring items are included in the earnings and they pertain to, among other things, revaluation of contingent earn-out payments and had an overall positive effect of SEK 16 (17) million. Excluding nonrecurring items, the EBITA margin amounted to 15.2% (15.0%). The Finland and DACH business areas reported the highest margin ever for a single quarter. The strongest improvement during the quarter was in the Benelux business area. The margin for the UK business area remained below the level of the other business areas, primarily due to a dampened growth trend in net sales combined with higher activity levels and overhead costs.

Delivery disturbances caused a further build-up in inventories for many companies during the third quarter, which weakened the cash flow and working capital efficiency. Net debt increased during the quarter, but the net debt/equity ratio remained relatively low. The Group is maintaining its strong financial position.

Thus far in 2022, we have had a good acquisition pace, welcoming 13 new companies to the Group, with total annual sales of approximately SEK 1,430 million. Five companies were acquired during the third quarter. In July, we welcomed the German company, Beck Sensortechnik, which develops, manufactures, and sells pressure switches and pressure transmitters, along with the Swedish company Primed, which offers professional physiotherapy equipment. Further, three companies in the Netherlands were acquired during the quarter: OCI, a specialist in customised assemblies for energy and water applications, Tebra – one of the largest producers of industrial knives in the Netherlands and CaTec, a specialist in climate measurement technology, offering a broad range of measuring instruments and sensors to customers based in the Benelux region. After the end of the quarter, we signed an agreement to acquire the Danish company BPI, a slightly larger acquisition for us. BPI is a leading manufacturer of customer specific engineered foam solutions. All companies are stable, profitable and leading in their respective niches, which strengthens our position in attractive market segments.

During the quarter, we continued strengthening our acquisition capacity and resources. The market situation and inflow of interesting companies remain strong.

Despite increased uncertainty and some indications of lower activity in some customer segments, the demand situation in general remains good. Many of our companies are also well positioned towards segments with structural growth, with strong underlying market forces, and we have a large order backlog that gives us confidence regarding sales and earnings growth in the near term.

Indutrade continues demonstrating its strength through balanced diversification and decentralised decision-making, which offers our companies flexibility and the ability to effectively handle changed circumstances. By continuously adding new, well-managed, successful companies, we are able to advance our position further, lower the overall economic risks and simultaneously improve the conditions for organic growth. In doing so, we have a stable platform with good prerequisites for continued long-term sustainable and profitable growth.

Bo Annvik, President and CEO

The information in this report is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the agency of the following contact persons on 28 October 2022 at 7.30 CEST.

For further information, please contact:
Bo Annvik, President and CEO, tel.:+46 8 703 03 00,
Patrik Johnson, CFO, tel.: +46 70 397 50 30.

This report will be commented upon as follows:
A webcast of the report will be presented on 28 October at 9.30 CEST via the following link:

To participate in the conference call and to ask questions, please call:
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About Indutrade
Indutrade is an international technology and industrial business group that today consists of more than 200 companies in some 30 countries, mainly in Europe. In a decentralised way, we aim to provide sustainable profitable growth by developing and acquiring successful companies managed by passionate entrepreneurs. Our companies develop, manufacture, and sell components, systems and services with significant technical content in selected niches. Our value-based culture, where people make the difference, has been the foundation of our success since the start in 1978. Indutrade's net sales totalled SEK 21.7 billion in 2021, and the share is listed on Nasdaq Stockholm in Sweden.