Subdued quarter due to harsh weather and weaker demand in Finland and Norway


  • Consolidated net sales decreased to SEK 804 m (911), of which acquisitions 1 percent, currency effects 0 percent and organic development -13 percent
  • Net sales in Product & Solutions amounted to SEK 627 m (701) and in Installation Services to SEK 202 m (239)
  • Gross profit decreased to SEK 191 m (201), gross margin increased to 23.7% (22.1%)
  • EBITDA decreased to SEK 17 m (30), EBITDA margin decreased to 2.1% (3.3%)
  • Operating profit (EBIT) decreased to SEK -21 m (-11), EBIT margin decreased to 2.6% (-1.3%)
  • ROCE amounted to 10.0 percent (10.2)
  • Cash flow from operating activities amounted to SEK -83 m (-58)
  • Earnings per share before and after dilution were SEK -1.04 (-0.84) and SEK -1.04 (-0.83), respectively

Consolidated net sales in the first quarter decreased to SEK 804 million from SEK 911 million last year. Impact from acquisitions was 1 percent and organic development was -13 percent composed of -11 percent in Products & Solutions and -21 percent in Installation Services.
EBIT for the first quarter accordingly decreased to SEK -21 million, compared to SEK -11 million last year.
ROCE now stands at 10.0 percent (10.2). Cash flow from operating activities amounted to SEK -83 M (-58), in line with an increase in working capital.
Our expectation for commercial new build and renovation demand remains neutral with the exception of Finland where a down-turn should be expected. Residential new build will remain depressed in the foreseeable future. A number of cost reductions programs are being carried out throughout our Group to adapt to the current business climate.

The Products & Solutions operating segment decreased Net Sales by -11 percent (-9), all due to organic development.
The Bitumen-based waterproofing business in Sweden was able to maintain last year’s Net Sales while the other three Nordic markets saw a negative development. We succeeded in maintaining our sales prices on most of the markets compared to last year.
SealEco, our synthetic rubber waterproofing business, achieved overall sales on par with last year, with Distri Pond seeing a positive development.
In our prefabricated wooden elements business, Taasinge Denmark managed to hold sales at last year’s level while Norway had a negative sales development. Kerabit Kattoelementit in Finland achieved a positive sales development. The Taasinge group in total has improved margins, albeit still at an unsatisfactory level. Order books are on good levels in Denmark and Finland.
Sales development of our green infrastructure businesses, sold under the brand Veg Tech, had a negative development in a seasonally low quarter.

The Installation Services operating segment decreased by -16 percent (40) to SEK 202 M. The impact from acquisitions was 5 percent (30) and currency translation effects were 0 percent (5), organic development was -21 percent (6).
In Finland, which represents the largest part of our Installation Services, we saw lower margins as a consequence of inefficiencies due to the winter conditions as well as due to the weaker market situation.
In Norway we had a negative development in volume and an operational result on par with last year.
In Denmark, our franchise companies reported lower operating profit compared to a strong previous year while maintain a strong order book.
The entities in Sweden had a minor negative operating result in the quarter.

The first quarter had challenging weather conditions for most of our entities. In view of demand levels continuing to be challenged by stubbornly high interest rates we are carrying out cost reductions programs throughout our Group.
We continue to be well positioned with a solid balance sheet. As and when opportunities emerge, we shall be able to further expand the Group in accordance with our strategic plan.

Helsingborg, 25 April 2024

Martin Ellis,
President and CEO

Conference call
A conference call for investors, analysts and media will be held today, 25 April 2024, at 10:00 am CET and can be joined online at Presentation materials will be available on one hour before the call.
To participate from computer, use link above or via MS Teams with meeting id 345 343 566 96 and passcode: Mtptqc.
To participate via phone, please use conference id 981 248 676# on any of below numbers:
From Sweden: +46 8 502 428 90
From Denmark: +45 32 72 66 61
From United Kingdom: +44 20 7660 8326
From Finland: +358 9 85 626 548