Third quarter, July – September 2022
- Net sales amounted to SEK 2,782m (1,935). Sales increased by 43.8%. Organically sales increased by 15.8%. The acquisition of Unified Brands contributed with 20.4%. Currency had a positive effect of 8.9%, and the divestment of the Russian business had an effect of –1.3%.
- EBITA amounted to SEK 317m (199), corresponding to a margin of 11.4% (10.3).
- Operating income amounted to SEK 277m (183), corresponding to a margin of 10.0% (9.5).
- Operating cash flow after investments amounted to SEK 56m (412).
- Income for the period amounted to SEK 195m (135), and earnings per share was SEK 0.68 (0.47).
Alberto Zanata, CEO and President:
“Continued growth and higher EBITA – preparing for different scenarios
The recovery of the hospitality industry continued during the third quarter, resulting in the sixth consecutive quarter of sales growth for us.
Sales in the quarter increased organically by 15.8% compared to last year and grew 43.8% in total, including the recently acquired Unified Brands business and the positive impact from currency. Organic sales growth was strong in all regions, but particularly strong in the Americas.
EBITA for the third quarter increased almost 60% and amounted to SEK 317m (199) with a corresponding margin of 11.4% (10.3). The higher EBITA was primarily driven by price, and the contribution from Unified Brands, whereas some continued inefficiencies and cost increases in the supply chain have burdened.
Costs for raw material are now being compensated by prior price increases and is foreseen to remain so in the fourth quarter. However, the general cost pressure is becoming substantial and needs to be compensated for. This means that the temporary surcharges that we implemented during the second quarter are being transformed into permanent price increases. In addition we are also, selectively, implementing additional price increases from January.
Sales of Food & Beverage had an organic growth of 8.7%, with an EBITA margin of 10.5% (10.5). Organic growth was particularly strong in Americas and in Asia, with the exception of China. Unified Brands continue to have a good sales growth with an underlying EBITA margin being accretive to the Group margin.
Sales of Laundry was strong with an organic growth of 28.1%. The growth was driven by a continued good demand and, as previously mentioned, a shift of sales from the second quarter to the third quarter. The component shortages that we experienced in the second quarter are solved and should not have an impact in the coming months. Order intake for Laundry increased confirming a good order trend. The EBITA margin for Laundry was 17.3% (15.2).
During the quarter order intake was on pre-pandemic levels, but we see softening demand in Food & Beverage in Europe. Order stock is still higher than last year, in particular in Laundry and in North America which gives confidence short term. However, the general economic uncertainty and negative consumer sentiment, gives reason to be careful. We are therefore preparing for different scenarios.”
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Media contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33