Fourth quarter, October – December 2023
- Net sales amounted to SEK 2,974m (3,040). Sales decreased by 2.2%. Organically, sales decreased by 3.7%. Currency had a positive effect of 1.6%.
- EBITA amounted to SEK 302m (324), corresponding to a margin of 10.1% (10.7).
- Operating income amounted to SEK 261m (284), corresponding to a margin of 8.8% (9.3).
- Income for the period amounted to SEK 168m (204), and earnings per share was SEK 0.59 (0.71).
- Operating cash flow after investments amounted to SEK 570m (533).
- The Board proposes a dividend of SEK 0.80 (0.70) per share.
Alberto Zanata, President, and CEO:
“Step-by-step building a stronger company
During 2023 we took further steps towards our financial targets with increased sales and improved profitability in a continued challenging macroeconomic situation. With the acquisition of Tosei, which was announced in December, we are growing in attractive segments in Asia. It is also encouraging to see that our sustainability work is yielding results – we met our 50% CO2 reduction target for 2025 (compared to 2015) already in 2023 – two years ahead of plan.
The sales decline we saw during the third quarter continued during the fourth quarter but at a lower rate, leading to an organic sales decline of 3.7%. This resulted in a somewhat weaker EBITA of SEK 302m (324), and a margin of 10.1% (10.7), compared to last year.
Sales of Food & Beverage declined organically by 4% compared to last year. EBITA was on the same level as last year, resulting in an EBITA margin of 8.8% (8.5). Sales in our largest market, Europe, were unchanged, while the US declined by 12%. We see signs of recovery in the US, even if we do not expect it to materialize before the second quarter. Order intake for Food & Beverage was somewhat higher than a year ago.
Sales of Laundry declined by 3% organically compared to a sales catch-up in the corresponding quarter of last year, due to component shortages in the second quarter. The EBITA-margin ended at 15.7% (18.4). The decline in margin is mainly due to lower volumes and currency transaction effects. Order intake for Laundry was somewhat higher than a year ago.
Thanks to a better working capital development, operating cash flow after investments continued to be strong, amounting to SEK 570m (533) in the quarter. Hence, we further strengthened our balance sheet, and our net debt EBITDA ratio at the end of 2023 was 0.9x (1.5x).
The new, more decentralized organization that we launched in 2022 to faster drive strategic priorities, establish clear responsibilities and reinforce customer focus is now also visible in the yearly Employee Engagement Survey where the results demonstrate progress and higher engagement across the Group.
On January 10, 2024, we closed the acquisition of Tosei Corporation, a leading Japanese manufacturer of professional laundry equipment and vacuum packing machines for food. The acquisition of Tosei will make us a larger player in the resilient laundry market in Japan which constitutes the second largest laundry market in the world. We plan to utilize Tosei´s leading organization in Food to expand our Food product offering in Japan, as well as expanding the vacuum packing products that are used globally in the fast-growing segment of sous-vide.
I feel confident that step-by-step we are building a stronger company with clear focus on our strategic priorities. Looking into 2024, we expect to continue our improvements step-by-step. We have a healthy order stock, and the signs of lower interest rates and inflation are positive, even if we still see short-term macroeconomic uncertainty. “
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