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Interim report January – June 2022

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Stable profitability and strong order backlog

April – June 2022

  • Net sales increased by 34.2 percent and amounted to SEK 3,102 (2,311) million. Organic growth, adjusted for currency effects, amounted to 6.2 (12.0) percent.
  • Operating profit before amortization of acquisition-related intangible assets (EBITA) increased by 25.6 percent and amounted to SEK 250 (199) million corresponding to an EBITA margin of 8.1 (8.6) percent.
  • Depreciation/amortisation of property, plant and equipment and intangible assets increased by SEK 43 million and amounted to SEK 87 (44) million.
  • Operating profit (EBIT) amounted to SEK 215 (197) million.
  • Cash flow from operating activities amounted to SEK 151 (104) million.
  • Earnings per share before dilution amounted to SEK 0.67 (0.58).
  • Four acquisitions were made during the quarter, which on an annual basis contribute an estimated total sales of SEK 574 million.

January – June 2022

  • Net sales increased by 33.7 percent and amounted to SEK 5,685 (4,253) million. Organic growth, adjusted for currency effects, amounted to 6.8 (5.3) percent.
  • Operating profit before amortisation of acquisition-related intangible assets (EBITA) increased by 20.7 percent and amounted to SEK 423 (351) million, which corresponds to an adjusted EBITA margin of 7.4 (8.2) percent.
  • Depreciation/amortisation of property, plant and equipment and intangible assets increased by SEK 76 million and amounted to SEK 159 (83) million.
  • Operating profit (EBIT) amounted to SEK 367 (347) million.
  • Cash flow from operating activities for the period was SEK 361 (269) million.
  • Earnings per share before dilution for the period amounted to SEK 1.05 (0.99).
  • A total of 7 acquisitions were made during the period, which on an annual basis contribute an estimated total sales of SEK 726 million.

Comments from CEO Robin Boheman:

Net sales for the quarter increased by 34.2 percent, driven by stable organic growth and prior high-quality acquisitions. Profitability also improved compared to the first quarter and the EBITA margin increased to 8.1 percent. It is thus back at the Instalco level.

We are extremely proud of being able to deliver a margin at this strong level. Our companies have managed to deal with the increasing inflationary pressure in a satisfying way and we have been able to defend our operating margins.

We achieved a major milestone by, for the first time in Instalco’s history, surpassing net sales of SEK 10 billion on a 12-month rolling basis.

Continued improvements in Rest of Nordic
One of our priority areas is to grow the Rest of Nordic segment. We want to expand our base of companies in Norway and Finland so that we can more easily create business synergies between our subsidiaries, which is one of the pillars of the Instalco model. In line with our strategy, we are thus continuing to increase the percentage of acquisitions in Rest of Nordic. During the quarter, we supplemented and strengthened the organization by making four acquisitions, of which four in Rest of Nordic, which contribute annual sales of around SEK 574 million.

We continue pursuing our action plan to raise profitability in the Rest of Nordic segment. We see good results from our efforts, although the situation and market, primarily in Finland, remains quite challenging for our companies.

Acquisitions is an important cornerstone of our strategy. The pace of acquisitions this year is strong, which is reflected in the growth we are delivering. Over the short term, the increasing pace of acquisitions results in a somewhat higher level of indebtedness, together with the decision of not using equity as payment method for our recent acquisitions. We are comfortable with the rate of acquisitions and we are maintaining both a sound level of indebtedness and strong balance sheet.

Record-high order backlog
Despite an uncertain macro situation, willingness to invest among our customers has remained high during the quarter and our observation is that demand is stable. Our order backlog has grown to its highest level ever of SEK 8.1 billion, which corresponds to 78 percent of annual sales.

For quite some time, Instalco has been one of ­Sweden’s leading hospital contractors for electrical, Heating & Plumbing and ventilation installations. During the quarter, we solidified our position even more by signing agreements for two major hospital assignments. The first is our subsidiary APC, which has been contracted for electrical installations at Linköping University Hospital. The second is Ventpartner, which will be doing comprehensive ventilation work in conjunction with the expansion of Västervik Hospital.

Strong sustainability offering
One of our sustainability targets is generating benefits to society. We do that each and every day not only through our energy-saving installations, but also through various types of collaboration. During the quarter, within the scope of our Sustainability Program, Instalco began collaborating with Universeum, which is the national science centre of Sweden, located in Gothenburg. The collaboration is aimed at developing sustainability knowledge and strengthening our position in the area.

Sustainability and energy conversion are strong driving forces in the installation area. Adaptations to climate change and smart building solutions are strong trends on our industry. Instalco is well-­positioned for offering customers the option of installing climate smart and energy optimization, all hand-in-hand with our sustainability offer.

I look with confidence to the future. Our assessment is that the market is stable and demand high, despite the challenging and uncertain macro situation.

Report presentation
Instalco’s CEO Robin Boheman and CFO Christina Kassberg will present the report in a conference call/audiocast today 25 August at 14.00 CET. Dial-ins for participants:

SE: +46 8 505 583 69
UK: +44 333 300 92 70
US: +1 646 722 4 956

The presentation can also be followed at https://tv.streamfabriken.com/instalco-q2-2022


This information is information that Instalco is required to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was made public by the contact person listed below, on 25 August 2022 at 11:00 CET.



For further information:
Robin Boheman, CEO
Christina Kassberg, CFO, christina.kassberg@instalco.se
Fredrik Trahn, IR, fredrik.trahn@instalco.se +46-70-913 67 96

Instalco is one of the leading installation companies in the Nordic region, active in the areas of heating, plumbing, electricity, cooling, industrial solutions and technical consulting. We offer project planning, installation, service and maintenance of systems installed at properties and facilities throughout Sweden, Norway and Finland. The operations are conducted through approximately 120 leading and highly specialised local companies, with the support of a small central organisation. Instalco is listed at Nasdaq Stockholm under the ticker INSTAL. For further information, visit www.instalco.se

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