Q2 report Apr-Jun 2024
JONAS GUSTAVSSON, PRESIDENT & CEO
BO SANDSTRÖM, CFO
JULY 16, 2024
Q2: Improved profitability in a stable quarter
SEQUENTIALLY IMPROVED GROWTH
- Total growth of 4.7% and 2.2% adj. organic
- Continued mixed market
- Stable order stock of SEK 20 billion
IMPROVED PROFITABILITY
- EBITA was SEK 572 million (421) and the EBITA margin was 8.0% (6.1)
- Margin was higher than LY, even adjusted for calendar effects
- EBITA improvement in the quarter was largely driven by Infrastructure
CONTINUED EXECUTION OF IMPROVEMENT MEASURES
- Improvement programme in Infrastructure according to plan
- Capacity adjustments in Process Industries
- Focus on utilisation and flexibility to meet changes in the market
7,191
Net sales, SEK million
4.7
Total growth, %
572
EBITA, SEK million
8.0
EBITA margin, %
Note: EBITA and EBITA margin excluding items affecting comparability
Market update
INDUSTRIAL SECTOR
- Mixed market as experienced in previous quarters
- Stable demand in several segments, such as automotive, life science & defence
- Weak demand in pulp & paper, as well as telecom and IT consultants
ENERGY SECTOR
- Strong demand driven by energy transition
INFRASTRUCTURE SECTOR
- Public investments in infrastructure and transport at a stable level
- Continued weak real estate segment
Divisional overview
Strengthen position | |
and profitability | |
in infrastructure | |
Scale globally in | Grow Nordic |
decarbonisation, | industrial and digital |
energy and | portfolio, expand |
biobased materials | internationally |
in niches |
Process | Energy | Management | Infrastructure | Industrial |
Industries | Consulting | & Digital Solutions |
ADJ ORG GROWTH
EBITA MARGIN
COMMENTS
-5.9%
9.3%
Weaker results due to low demand pulp & paper
8.8% | 11.5% | 3.7% | 1.8% |
9.8% | 15.7% | 7.7% | 6.4% |
Strong growth | Strong growth | Improved margin, | Stable development in |
and results | and results | improvement programme | quarter with a mixed |
according to plan | market |
Advisor to the public | Technical analysis for | Partner to the foodtech |
service company NRK | Vattenfall's pumped | company cReal for new |
for a new headoffice | power station, Juktan, | production facility in |
and media house in | in Sweden | Sweden |
Norway | ||
Financial overview
NET SALES; QUARTERLY AND R12; SEK MILLION
25 692 | 27 276 | |||||||
21 573 | ||||||||
6 869 | 7 191 | |||||||
5 975 | ||||||||
Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
EBITA; QUARTERLY AND R12; SEK MILLION; EXCL. IAC
2 072 | 2 085 | |||||||
1 787 | ||||||||
572 | ||||||||
451 | 421 | |||||||
Q2 22 | Q3 22 | Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | Q2 24 |
Net Sales
NET SALES; SEK MILLION
+2.2% | +4.7% | ||||
33 | 7,191 | ||||
7,023 | 135 | ||||
6,869 | 154 | ||||
Q2 2023 | Price/ Volume | Adj. Org | Calendar | Fx/ Structural | Q2 2024 |
COMMENTS
-
Price development in quarter compensating for lower number of
FTE's, reductions since mid 2023 - Calendar effect of 9 hours more, corresponding to SEK 135 million on net sales
Growth development
ADJUSTED ORGANIC GROWTH; YoY; %
10.8
8.9
5.9
INFRASTRUCTURE
3.2 | 3.7 |
Q1 2024 | Q2 2024 |
INDUSTRIAL & | ||
DIGITAL | ||
SOLUTIONS | 0.4 | 1.8 |
Q1 2024 | Q2 2024 |
PROCESS
INDUSTRIES
-3.9 | -5.9 |
Q1 2024 | Q2 2024 |
2.2
0.5
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 |
COMMENTS
- All divisions reported positive adjusted organic growth except Process Industries
- Sequential improvement on adjusted organic growth, driven by primarily Energy and Infrastructure
ENERGY
8.8 | |||
1.3 | |||
Q1 2024 | Q2 2024 |
MANAGEMENT
CONSULTING
11.5 | |
7.4 | |
Q1 2024 | Q2 2024 |
Order stock
ORDER STOCK; SEK BILLION
-3.2% | |||||
19.9 | 20.6 | 20.4 | 19.3 | 20.4 | 19.9 |
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 |
COMMENTS
- Order stock decreased sequentially, partly driven by FX movements but also Process industries
- Energy order stock remains at a high level
- Process Industries declined both sequentially and compared to previous year
INFRASTRUCTURE
8.8 | 8.5 |
Q2 2023 | Q2 2024 |
INDUSTRIAL &
DIGITAL
SOLUTIONS
2.73.0
Q2 2023 | Q2 2024 |
PROCESS
INDUSTRIES
3.62.6
Q2 2023 | Q2 2024 |
ENERGY
4.95.3
Q2 2023 | Q2 2024 |
MANAGEMENT
CONSULTING
0.50.5
Q2 2023 | Q2 2024 |
EBITA development
EBITA; SEK MILLION; EXCL. IAC
+47 | ||||
525 | 572 | |||
421 | 104 | |||
Q2 2023 | Calendar effect | Cal. Adj. Q2 2023 | Q2 2024 | |
EBITA | 6.1% | 7.5% | 8.0% | |
margin | ||||
COMMENTS |
- Margin higher than last year, even when adjusting for calendar effect
- Profit improvement in the quarter largely driven by Infrastructure
- Process Industries had weaker profitability due to lower demand
Note: EBITA and EBITA margin excluding items affecting comparability
EBITA MARGIN; %
INFRASTRUCTURE
4.07.7
Q2 2023 | Q2 2024 |
INDUSTRIAL &
DIGITAL
SOLUTIONS
5.86.4
Q2 2023 | Q2 2024 |
PROCESS
INDUSTRIES
11.5 | 9.3 |
Q2 2023 | Q2 2024 |
ENERGY
9.09.8
Q2 2023 | Q2 2024 |
MANAGEMENT
CONSULTING
12.315.7
Q2 2023 | Q2 2024 |
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Afry AB published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 07:01:05 UTC.