In This Article:
Continued strong growth and improved margin
Second quarter 2018
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Net sales rose by 19 percent to SEK 980 million (823). Organic growth was 9 percent
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Order intake increased 18 percent and was in line with net sales
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Operating profit (EBITA) rose to SEK 98 million (78) and the operating margin to 10.0 percent (9.5)
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Earnings per share were SEK 1.78 (1.41)
January - June 2018
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Net sales rose by 18 percent to SEK 1,925 million (1,638). Organic growth was 10 percent
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Order intake was in line with net sales
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Operating profit (EBITA) rose to SEK 204 million (170) and the operating margin was 10.6 percent (10.4)
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Earnings per share rose to SEK 3.77 (3.05)
The Group in brief
| Quarter 2 | D | Jan-June | D | 12-months | Full year | ||||||||||
| SEK million | 2018 | 2017 | % | 2018 | 2017 | % | 2017/18 | 2017 | |||||||
| Order intake | 979 | 833 | 18 | 1,923 | 1,644 | 17 | 3,535 | 3,256 | |||||||
| Net sales | 980 | 823 | 19 | 1,925 | 1,638 | 18 | 3,488 | 3,201 | |||||||
| Gross profit | 282 | 232 | 22 | 559 | 471 | 19 | 1,005 | 917 | |||||||
| % | 28.8 | 28.2 | 29.0 | 28.7 | 28.8 | 28.6 | |||||||||
| Operating expenses | -184 | -154 | 19 | -355 | -301 | 18 | -660 | -606 | |||||||
| % | 18.8 | 18.7 | 18.4 | 18.4 | 18.9 | 18.9 | |||||||||
| Operating profit (EBITA) | 98 | 78 | 26 | 204 | 170 | 20 | 344 | 310 | |||||||
| % | 10.0 | 9.5 | 10.6 | 10.4 | 9.9 | 9.7 | |||||||||
| Operating profit | 96 | 77 | 25 | 200 | 167 | 20 | 337 | 304 | |||||||
| % | 9.8 | 9.4 | 10.4 | 10.2 | 9.7 | 9.5 | |||||||||
| Profit after tax | 67 | 54 | 24 | 142 | 116 | 22 | 239 | 213 | |||||||
| Earnings per share, SEK | 1.78 | 1.41 | 26 | 3.77 | 3.05 | 24 | 6.33 | 5.61 | |||||||
CEO`s overview
The favourable performance that marked the beginning of the year continued during the second quarter. Solid growth at 19 percent was driven by acquisitions, increased market shares and favourable underlying growth, but also by positive calendar effects.
Segment International accelerated the excellent earnings trend that we have witnessed in recent years. Through strengthened market shares in most markets and through successful acquisitions, we achieved growth of 25%. The gross margin improved significantly due to currency effects and price increases that exceeded the material-driven cost increases. It was also satisfying that the growth did not cause a corresponding rise in operating expenses. In total, operating profit grew by more than 50 percent. These successes give us confidence and scope for continued investment in the segment.
On the other hand, Segment Sweden experienced a poorer earnings trend during the quarter. Growth was good, but the gross margin was lower than earlier in the year and in 2017. This means that we have not fully succeeded in offsetting the continued negative trend for the SEK and raw materials prices through price increases to customers. However, work continues aiming at a strong and stable gross margin over time, regardless of external factors. In addition, the segment`s cost level for the quarter was too high, partly due to adjustment of a and currency effects. Overall, operating profit declined, a development with which we cannot be satisfied.