LEAX Interim Financial Report Q2 2023

Less volatility and strong customer focus drives improvement

The second quarter in summary

•                           Net Sales increased to SEK 558.6 million (539.8)

•                           Operating profit increased to SEK 32.6 million (24.8)

•                           Earnings before tax (EBT) increased to SEK 29.7 million (21.7)

•                           Net income for the period increased to SEK 25.9 million (18.6)

•                           Cash flow from operating activities amounted to SEK 50.0 million (36.3)

The first half of the year in summary

•                           Net Sales increased to SEK 1,147.2 million (976.6)

•                           Operating profit increased to SEK 52.3 million (19.0)

•                           Earnings before tax (EBT) increased to SEK 43.4 million (13.3)

•                           Net income for the period increased to SEK 37.1 million (11.3)

•                           Cash flow from operating activities amounted to SEK 103.3 million (68.7)

Comments from the Group President and CEO, Tony Nicol;

In Q2 2023, LEAX continued to perform well, with moderate growth and stable profitability in what continues to be a challenging business environment. We improved our net sales by 3.5% to SEK 558.6 million (539.8) compared to the same period last year. The increase was mainly driven by higher sales in Heavy Commercial Vehicles and solid volumes within our General Industry markets.

In the second quarter Operating profit increased to SEK 32.6 million (24.8) which is an increase of 31.5% compared to the same period last year. The increase is mainly due to electricity compensation for record costs in 2022 as well as improved performance and compensation in our associated companies. The company’s financial performance was however adversely affected by higher costs related to the introduction of new business awards.

Operating profit for the first half of the year amounted to SEK 52.3 million (19.0) which is an increase of 175.3% compared to the same period last year. Q2 marks the second consecutive quarter of order board stability and subsequently our results demonstrate our underlying profitability.

Our performance continues to improve through good cost management, on-going recovery of inflationary pressure on our operating costs and less volatility in order patterns from our key customers.

LEAX remains committed to maintaining strong commercial diligence to ensure our margin is sustained while we continue to focus on improved profitability, growth and innovation.

Contact

Tony Nicol, Group President and CEO 
Telephone: +44 (0)755 728 67 67
E-mail: tony.nicol@leax.com
 

About LEAX

LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 1.9 billion in 2022.