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Lagercrantz Interim Report 2018/19 Q3

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Third quarter 1 October – 31 December 2018

  • Net revenue increased by 14 percent to MSEK 1,011 (888). Organically, net revenue increased by 7 percent.
  • Operating profit (EBITA) increased by 23 percent to MSEK 137 (111), equivalent to an operating margin of 13.6 percent (12.5).
  • Profit after financial items increased by 25 percent to MSEK 114 (91).
  • Profit after taxes increased by 26 percent to MSEK 88 (70). Earnings per share for the latest 12-month period increased by 18 percent to SEK 4.82 (4.07).
  • Return on equity was 24 percent (23). The equity ratio at the end of the period was 39 percent (36).
  • Cash flow from operating activities for the latest 12-month period amounted to MSEK 430, compared to MSEK 282 for the 2017/18 financial year.
  • During the quarter, a purchase agreement was signed to acquire just over 90 percent of the shares in Schmitztechnik GmbH, with annual revenue of about MEUR 6.7. The shares were taken into possession on 8 January 2019.

The first nine months (1 April – 31 December 2018)

  • Net revenue for the first nine months of the financial year increased by 16 percent to MSEK 2,854 (2,457), of which 6 percent organic.
  • Operating profit (EBITA) increased by 18 percent to MSEK 366 (309), equivalent to an operating margin of 12.8 percent (12.6).
  • Profit after financial items increased by 20 percent to MSEK 301 (250) and profit after taxes amounted to MSEK 238 (197).

STATEMENT OF THE CHIEF EXECUTIVE

“A successful quarter” sums up the period from October to December 2018. The organic growth in net revenue was 7 percent, which represented a further improvement from before. The Group’s main markets in the Nordic countries continued to perform well and we did not notice any clear signs of an economic downturn in our businesses. In addition, several of our companies achieved success with their niche offerings in terms of exports outside the Nordic countries. The profit for the Group increased by 25 percent and reached a new all-time-high of MSEK 408 on a moving 12-month basis and the return on equity increased to 24 percent. Cash flow was also strong and reached an excellent MSEK 430 (282) from operating activities.

Operationally, we can confirm that strong performances were seen across the board in our more than 50 companies today. All four divisions reported operating margins of well over 10 percent during the quarter and at a unit level, 29 of our more than 50 companies now generate a profit after financial items in excess of 10 percent of sales on an annual basis. Our business concept, with a decentralised organisation and many capable employees once again is proving to be effective.

To conclude a good quarter, we also carried out a further acquisition. The product company Schmitztechnik GmbH, which is located in Mönchengladbach in Germany, generates annual revenue of MEUR 6.7, and is a leader in its technology niche, highly profitable and is therefore a good fit for our Group. It will be an important addition in order to further boost the Electronics division and is a key step in broadening the Group from being a mostly Nordic organisation to increasingly becoming a North European one.


Jörgen Wigh
President and CEO


Stockholm 29 January 2019

Lagercrantz Group AB (publ)

For further information please contact:
Jörgen Wigh, President and CEO, Lagercrantz Group AB, telephone +46 8 700 66 70
Thomas Alkbrant, Chief Financial Officer, Lagercrantz Group AB, telephone +46 8 700 66 70
or visit our website www.lagercrantz.com

This information is information that LAGERCRANTZ GROUP AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 29 January 2019 at 08:00 CET.

LAGERCRANTZ GROUP IN BRIEF
Lagercrantz Group is a technology group that offers world-leading, value-creating technology, using either proprietary products or products from leading suppliers. The Group is comprised of some 50 companies, each with a focus on a specific sub-market – a niche. High value-creation is common to all the companies, including a high degree of customisation, support, service and other services. Lagercrantz Group is active in nine countries in Northern Europe, in China, India and in the USA. The Group has approximately 1,400 employees and annual revenue of approximately MSEK 3,800. The Company is listed on Nasdaq Stockholm since 2001.

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Interim report CFO Lagercrantz Jörgen Wigh

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