Interim report 2022, July – September

Third quarter

  •     Net sales amounted to SEK 435.0 M (167.2), an increase of 160 percent, of which 6 percent was organic growth
  •     EBITA amounted to SEK 58.9 M (24.8), corresponding to a margin of 13.5 percent (14.8)
  •     EBIT amounted to SEK 52.5 million (24.3), corresponding to a margin of 12.1 percent (14.5)
  •     Items affecting comparability amounted to SEK -1.3m (0.6)
  •     Profit before tax amounted to SEK 49.9 M (24.0)
  •     Earnings per share amounted to 1.14 (0.89)
  •     Free cash flow amounted to SEK 26.8 M (28.7)

First nine months

  •     Net sales amounted to SEK 1,394.5m (588.1), an increase of 137 percent, of which 8 percent was organic growth
  •     EBITA amounted to SEK 196.9 M (86.6), corresponding to a margin of 14.1 percent (14.7)
  •     EBIT amounted to SEK 179.1 million (81.5), corresponding to a margin of 12.8 percent (13.9)
  •     Items affecting comparability amounted to SEK -2.6m (-1.8)
  •     Profit before tax amounted to SEK 159.7 million (81.0)
  •     Earnings per share amounted to SEK 3.68 (3.00)
  •     Free cash flow amounted to SEK 97.3 M (60.7)

Significant events during the quarter

  •     The group has invested SEK 6m in solar cells at Roper Rhodes’ warehouse in Portbury UK. The subsidiary thus becomes self-sufficient in energy.


CEO comment

We continue the journey of developing Svedbergs from a leading bathroom company in Sweden to a leading bathroom group in Northern Europe. We are focused on, on the one hand, developing all units for strengthened competitiveness, both on our own merits and together under the motto “cooperation without confusion”, while on the other hand we are looking for suitable additional acquisitions, taking the market situation and the company’s financial position into account. Our latest acquisition Roper Rhodes is developing well and delivering a strong result well in line with our expectations. As we communicated at the time of the acquisition, 1 December last year, we have more than doubled our business through the consolidation.

Standing strong

We have delivered a third quarter which shows that we are standing strong. I am very proud of everyone’s efforts!

Both turnover and the EBITA result have more than doubled. Turnover increased by 160 percent to SEK 435 million at the same time as the EBITA result rose by 138 percent to SEK 58.9 million. Organic growth (excluding acquisitions and currency) amounted to 6 percent. The EBITA margin decreased slightly to 13.5 percent, which is mainly explained by currency effects and increased material prices. Inflation has challenged us, and we have gradually had to increase the prices of our products. Pending orders, especially on the contract side, delay the effect to some extent. But thanks to good cooperation with customers, all brand companies have received an affirmative acceptance.

During the quarter, we also feel that the market picture is gradually being challenging. Svedbergs grows organically through contracts where the business also has a strong positioning. Structurally, Roper Rhodes then adds on to it. We follow the global situation carefully and all companies have prepared to be able to reduce costs and take measures to continue to stand strong.

Continued strong focus on development

The availability of components is now more normal again. The ability to deliver has been and always is a priority. We want to be a reliable supplier to our customers. In addition, together with our partners, we want to continue to develop the offer. Here, design and product development are driving factors.

In Norway, Macro Design carried out a successful range change of shower cabins during the quarter, which has been well received by customers. Svedbergs installed the first part of the new wood processing line at the production facility in Dalstorp. Through this, both capacity and capability increase, which provides new product development opportunities going forward. The full-scale line is expected to be in full operation in the summer of 2023 and is a central investment in our growth journey and future-proofing production in Dalstorp. We will continue to prioritise investments in product innovation and customer relations, all brand companies are now planning and preparing the upcoming product launches until 2023.

Important steps in our sustainability work

Sustainability is and has always been a natural part of Svedberg Group’s operations, and we are continuing that work, among other things, by starting Roper Rhodes’ installation of solar panels on the large roof of the logistics centre in Bristol during the quarter. The solar panels make the subsidiary self-sufficient in green energy, which is an important part of our sustainability work. Furthermore, work continued mapping the reporting according to the global reporting standard Greenhouse Gas Protocol (GHG). In 2021, we completed GHG reporting according to scope 1 and 2, and our ambition in 2022 is to include scope 3. The reporting is an important control tool in our work with reduction plans to reduce our emissions of greenhouse gases.

Future prospects

The global situation remains uncertain with high inflation levels, rising interest rates, increased electricity prices and the continuing terrible war in Ukraine. We follow developments very closely and we prepare forward with great sensitivity and good cost control.

The new macroeconomic terrain has strengthened our focus to deliver on our strategy where customer focus and product innovation are at the centre to create profitable and sustainable growth. Through continuous development and refinement of the existing product range, close collaboration throughout the value chain and proactive sales efforts, we are well positioned for the future. With successful acquisitions behind us, we are also looking for further growth opportunities in the future, naturally considering the market situation and the company’s financial position.

Per-Arne Andersson

For more information contact:

Per-Arne Andersson, CEO, +46(0)706 38 50 12

Mats Lundmark, CFO, +46 (0)70677 05 83

This is information that Svedbergs i Dalstorp AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. This information was submitted for publication on 21 October 2022 at 08:30 (CET).

Svedbergs Group operates in the Nordic region and in the UK. The Group’s companies develop, design, and sell bathroom furniture and related products. Under the motto collaboration without confusion, the Group’s companies continuously develop their product range for the entire bathroom. Through close cooperation with partners, the consumer’s desires are satisfied. The Group operates under the brands Svedbergs, Macro Design, Cassøe, Roper Rhodes, Tavistock and R2. The parent company Svedbergs i Dalstorp AB conducts its operations in Dalstorp outside of Ulricehamn and its subsidiary companies Macro Design in Laholm, Cassøe A/S in Herning Denmark and Roper Rhodes, including Tavistock and R2, in Bath, England.