Year-end Report 2022

“We ended the last quarter of the year with more than a 50 percent increase in both turnover and profit and an improved EBITA margin. Responsive to the fluctuations of the market, we have adjusted our costs and strengthened the cash flow.”

Fourth quarter

  • Net sales amounted to SEK 438,4 M (280,6), an increase of 56 percent, of which -9 percent was organic growth
  • EBITA amounted to SEK 54,2 M (32,7), corresponding to a margin of 12.4 percent (11.7)
  • EBIT amounted to SEK 47,7 M (13,6), corresponding to a margin of 10.9 percent (4.9)
  • Items affecting comparability amounted to SEK -4,7 M (-16,9)
  • Profit before tax amounted to SEK 38,7 M (-1,3)
  • Earnings per share was 0.85 (-0.18)
  • Free cash flow amounted to SEK 99,8 M (22,4)

Full year

  • Net sales amounted to SEK 1 832,9 M (868,7), an increase of 110 percent, of which 3 percent was organic growth
  • EBITA amounted to SEK 251,1 M (119,3), corresponding to a margin of 13.7 percent (13.7)
  • EBIT amounted to SEK 234,4 M (95,1), corresponding to a margin of 12.8 percent (10.9)
  • Items affecting comparability amounted to SEK -7,3 M (-18,6)
  • Profit before tax amounted to SEK 206,0 M (79,4)
  • Earnings per share was SEK 4.90 (2.25)
  • Free cash flow amounted to SEK 210,7 M (80,7)
  • The board proposes a dividend of SEK 1.50 (-)
Quarterly data Oct-Dec 2022 Oct-Dec 2021 Jan-Dec 2022 Jan-Dec 2021
Net sales, SEK m 438,4 280,6 1 832,9 868,7
EBITA, SEK m 54,2 32,7 251,1 119,3
EBITA-margin, % 12.4 11.7 13.7 13.7
EBITDA, SEK m 66,8 39,9 298,0 145,6
EBITDA-margin, % 15.2 14.2 16.3 16.8
Earnings per share, SEK 0.85 -0.18 4.90 2.25
Free cash flow, SEK m 99,8 22,4 210,7 80,7

CEO comment
We are pleased to be able to report a fourth quarter that shows important progress towards our goal of becoming the leading bathroom group in Northern Europe. By further strengthening our customer offering, continuing to develop our sales strategies, and maintaining a focus on efficiency, we have demonstrated our ability to adapt to changing macroeconomic conditions. A major contribution to our results in the fourth quarter and in 2022 is all our talented employees, to whom I would like to express a big thank you. Thanks!

Strong profit development and growth
We present a strong result for the fourth quarter. The turnover increased by 56 percent to SEK 438,4 M and the EBITA result increased by 66 percent to SEK 54,2 M, compared to the same period previous year. The increase can be attributed to structural growth with the acquisition of Roper Rhodes in December 2021. In the quarter, we had negative organic growth of 9 percent, excluding acquisitions and currency effects, affected by all brand companies and markets except Roper Rhodes and the UK.
Both in the quarter and on a full-year basis, Roper Rhodes has shown good development, which has strengthened our position in the UK. In the Danish market, we have observed that the sales trend from previous quarters has started to flatten out. The weaker demand on the Nordic markets can be derived from a more challenging market situation.
The EBITA margin increased to 12.4 percent, which is mainly explained by cost adjustments in sales and administration as well as implemented price increases. We can also see that shipping prices have returned to the same levels as before the outbreak of the corona pandemic. Despite the uncertain macroeconomic situation in 2022, we managed to keep the EBITA margin stable at 13.7 percent for the full year compared to last year.
Overall, the result shows that our proactive sales efforts in a handful of sales channels combined with continuous investment in product development have been positive, even under uncertain macroeconomic conditions.

Mix of sales channels
Overall, we can define that sales in the quarter were driven by demand for bathroom renovations, maintenance, and improvements. The price increases that were carried out in late summer 2022 have been implemented in the respective sales channels during the fourth quarter and will have full effect in the full year of 2023.

Reaches milestone in sustainability work
I am proud of that we have achieved our previously communicated goal of completing the Greenhouse Gas Protocol (GHG) scope 3 reporting standard during the fourth quarter. The reporting is an important control tool in our work to reduce our CO2 emissions and an important part of our sustainability strategy. It shows our commitment and continuous work towards reducing our environmental impact and contributes to strengthening our corporate culture.

Robust cash flow and increased earnings per share
On a full-year basis, we have shown strong cash flow and an increase in earnings per share of more than 100 percent from 2.25 to 4.90 despite a rights issue in March 2022. We have also reduced our net debt through robust cash flow, which demonstrates our ability to effectively run the business and strengthen our position for the future.

Future prospects
We still have a long way to go on our journey towards our goal of becoming the leading bathroom group in Northern Europe. By maintaining our focus on sales and product innovation, while taking advantage of the synergies that our business model offers, we are ready to develop our position and our margins. We continue to pay attention to the global situation, including high inflation. We have continuously adjusted our cost mass and are still prepared to adapt further to the needs of the market. Through our ongoing work, we have managed to improve our cost side, and this now gives us the conditions we need to continue developing the group. Our strength is that we are fast and adaptable, and we will continue to act proactively on changes in the market.