Interim report January – March 2023

NET ASSET VALUE AND THE LATOUR SHARE

• The net asset value rose to SEK 186 per share, compared with SEK 159 per share at the start of the year. This is an increase of 17.2 per cent. By comparison, the Stockholm Stock Exchange’s Total Return Index (SIXRX) increased by 8.7 per cent. The net asset value was SEK 186 per share at 27 April.¹
• The total return on the Latour share was 6.9 per cent during the period measured against the SIXRX, which rose 8.7 per cent.

INDUSTRIAL OPERATIONS

• The industrial operations’ order intake rose 8 per cent to SEK 6,320 m (5,840 m). Adjusted for foreign exchange effects, this represents a decrease of 4 per cent for comparable entities.
• The industrial operations’ net sales rose 27 per cent to SEK 6,372 m (5,019 m). Adjusted for foreign exchange effects, this equates to growth of 13 per cent for comparable entities.
• The industrial operations’ operating profit increased by 48 per cent to SEK 989 m (669 m), which equates to an operating margin of 15.5 (13.3) per cent.
• Swegon completed its acquisition of the UK company Dalair on 3 January.

THE GROUP

• Consolidated net sales totalled SEK 6,372 m (5,019 m), and profit after financial items was SEK 2,224 m (1,264 m).
• In the period, earnings was affected by write-downs and reversals of write-downs of listed holdings with a net positive contribution of SEK 472 m (-176 m).
• Consolidated profit after tax was SEK 2,033 m (1,131 m), which equates to a share price of SEK 3.18 (1.77).
• The Group reported net debt of SEK 13,285 m (9,840 m). Net debt, excluding lease liabilities recognised under IFRS 16, was SEK 11,877 m (8,610 m) and is equivalent to 9 (7) per cent of the market value of total assets.

INVESTMENT PORTFOLIO

• During the quarter, the value of the investment portfolio increased by 14.8 per cent adjusted for changes in the portfolio. The benchmark index (SIXRX) rose 8.7 per cent.
• In March, Latour participated in the issue of new shares by Alimak Group, pro rata to its holding, purchasing 16,016,809 shares in the company for SEK 747 m. In the same month, Latour participated in the issue of preference shares by CTEK, pro rata to its holding, purchasing 6,112,324 shares in the company for approximately SEK 107 m.

EVENTS AFTER THE REPORTING PERIOD

• There were no material events subsequent to the end of the reporting period. 

¹ The calculation of the net asset value on 27 April was based on the value of the investment portfolio at 1 p.m. on 27 April and the same values as at 31 March were used for the unlisted portfolio.

Comments from the CEO
“The year started very strong for Latour’s industrial operations and we are pleased to report yet another record-breaking quarter. We see that underlying demand remains good in most markets. General cost inflation and currency fluctuations place high demands on our businesses, and are overall managed well. We are maintaining strong focus on providing our customers with a high level of service. This is reflected in reduced backlog of orders compared to year end and thereby also strong development of net sales.

During the first quarter, total order intake grew by 8 per cent. Adjusted for acquisitions and currency effects it corresponds to a decrease of 4 per cent. At a first glance, the trend in order intake may seem weak, but in the corresponding period last year, Caljan had an unusually high order intake. When taking this into account, we can state that all other business areas show organic growth, and that too compared to a high order intake corresponding quarter last year. Net sales grows by 27 per cent, of which 13 per cent organically. Operating profit is very strong and is up 48 per cent to SEK 989 m (669 m) and the operating margin reached 15.5 (13.3) per cent. This is our best quarter to date, which is very gratifying and builds strength and positive momentum for the rest of the year.

The geopolitical situation remains concerning and we are addressing this by ensuring that we are well prepared to respond and adapt to any changes that may occur. We are still experiencing disruptions in the supply chain, although the situation has improved and our capacity to deliver is strong. With a substantial order backlog for delivery, we expect to see invoiced sales remaining at a high level in the next quarters.

Latour is financially strong and we are investing continuously in our companies to promote long-term sustainable growth. Investments in sustainability continue in as well as product development as to reduce our own footprint.

We have temporarily eased our pace of acquisition activity after an intensive year of acquisitions in 2022. During the quarter, we concluded an acquisition through Swegon, which acquired the UK company Dalair at the beginning of January. More details can be found on page 4. In the listed portfolio we have invested our share in the rights issues carried out in Alimak Group and in CTEK during the first quarter.

Following considerable economic uncertainty and falling stock markets last year, the performance over the first quarter has been positive. Latour’s net asset value has risen 17.2 per cent to SEK 186 per share and our listed investment portfolio has increased by 14.8 per cent. By comparison, the benchmark index SIXRX has increased by 8.7 per cent. To date, half of our listed holdings have published their first-quarter results, all of them reporting good growth, with some performing exceptionally well.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Anders Mörck, CFO, Tel. +46 706-46 52 110

Conference call
President and CEO Johan Hjertonsson and CFO Anders Mörck present the report and answers to questions in a webcasted teleconference today at 10.00 AM (CEST). The conference call will be held in English.

Webcast
Via the webcast you are able to ask written questions.
If you wish to participate via webcast, please use the link:
https://ir.financialhearings.com/latour-q1-2023

Teleconference
You can ask questions verbally via the teleconference.
If you wish to participate via teleconference, please register on the link below.
After registration you will be provided phone numbers and a conference ID to access the conference.
https://conference.financialhearings.com/teleconference/?id=2001172

The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 28 April 2023 at 08.30 CEST.