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.