Zengun Group AB (publ) Interim Report January - June 2024
“Zengun posted a strong performance and healthy orders received for the second quarter. We have a high rate of production and a stable cash position. Turnover in the quarter totalled MSEK 736 with an EBITDA of MSEK 44.” Mick Salonen, President and CEO
Second quarter
• Net turnover amounted to MSEK 735.9 (693.2)
• EBITDA totalled MSEK 44.4 (28.0), corresponding to an EBITDA margin of 6.0% (4.0)
• Earnings before tax amounted to MSEK 29.5 (11.9)
• Operating cash flow amounted to an outflow of MSEK 76.9 (inflow: 30.1)
• Orders received totalled MSEK 617.7 (389.7)
• The order book amounted to MSEK 3,029.5 (3,178.7)
First six months
• Net turnover amounted to MSEK 1,439.6 (1,381.8)
• EBITDA totalled MSEK 81.9 (59.9), corresponding to an EBITDA margin of 5.7% (4.3)
• Earnings before tax amounted to MSEK 43.3 (28.3)
• Operating cash flow was MSEK 3.2 (63.0)
• Orders received totalled MSEK 1 677.4 (927.3)
Statement by the CEO
Zengun posted a strong performance and healthy orders received for the second quarter. We have a high rate of production and a stable cash position. Turnover in the quarter totalled MSEK 736 with an EBITDA of MSEK 44.
World-class projects
The circular Forskaren building, which was constructed by Zengun on behalf of Vectura, was inaugurated in Hagastaden in the beginning of May. The event had a royal sheen thanks to the presence of the heads of state of Sweden and Denmark, along with tenants, representatives from the life science sector, academia and politicians. Music written specifically for the occasion was performed by the Swedish Radio Symphony Orchestra and the Royal Stockholm Philharmonic Orchestra. All of us at Zengun were excited to see Forskaren receive such a warm welcome from Stockholm, Sweden and the world.
At Sundbyberg, we took the next step together with Fastighets AB Förvaltaren through a phase-2 agreement for the Kvarnstugan block in Ursvik. The building’s design includes a frame built partially of timber. In addition to 113 rental apartments, there will be a café, restaurant and cultural facilities. Despite a challenging market that in many ways has complicated housing construction, Zengun and Förvaltaren can now enrich Sundbyberg with a highly anticipated residential quarter.
In Uppsala, we handed over the final stage of Campus Kronåsen in collaboration with Hemsö. This reuse project resulted in an impressively low carbon footprint. The municipality of Uppsala and the school “Lundellska” have now moved into the historic premises.
During the quarter we also completed the renovation of Fisksätra Centrum for Stena Fastigheter. The shopping mall and its surroundings have now received a major upgrade in terms of appearance and technical installations. Together with our partner we have created a more comfortable and pleasant mall, to the delight of all of Fisksätra’s residents and visitors.
During the spring, Fabege also opened Stockholm’s first reuse park in Arenastaden. The planking around the park consists of reused timber and was built together with students from the vocational college Yrkesgymnasiet in Solna. Zengun is proud of helping make this excellent, sustainable park a reality.
Focus on employee health
This quarter’s excellent performance would not have been possible without our skilled employees. To reach our goal of being Sweden’s most active and healthy company, we launched an individual health initiative together with IMR during the second quarter that is based on each employee’s individual goals and conditions.
Fair competition in the entire construction sector
Through control over our entire supply chain, from procurement and registration to production, we support fair competition within the construction sector. We also continued our structured workplace checks during the quarter, which is part of counteracting all forms of workplace crime. This is an initiative that is appreciated by our production managers as well as our subcontractors and customers.
Mick Salonen
President and CEO
For further information, please contact:
Mick Salonen, President & CEO, +46 (0) 70 569 66 73
Oskar Björklund, CFO, +46 (0) 79 072 84 57
This information is information that Zengun Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted through the agency of the above contacts for publication on 29 August 2024 at 8:00 a.m. (CEST).
Driving projects drives Zengun. We operate in Stockholm and Uppsala, in close collaboration with customers and always with the project and people in focus. We help property owners improve their property portfolios in each project by offering know-how and skills as a collaboration and sustainability partner throughout the entire lifespan of the project. We build commercial properties, with a mix of select public-sector properties and residential projects. We take the long term into consideration for our employees, customers and surroundings, and are constantly developing to make each project a reference project. In 2023, Zengun had sales of approximately SEK 2.8 billion and approximately 150 employees. #zengunbyggerstaden