Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q3 2023 Earnings Presentation
13 slides from Balco Group Ab's earnings presentation, 2023
Slide 1: Q3 report 2023
Q3 report 2023 January - September CAMILLA EKDAHL, CEO MICHAEL GRINDBORN, CFO BALCO AB / BALCO ALTANER / RK TEKNIK / TBO-HAGLINDS / NMT / STORA FASAD / SÖDERÅSEN
Slide 2: Snapshot of Balco Group
Snapshot of Balco Group 11% 26% The Group 63% • Balco Group was founded in 1987 and consists of the companies Balco AB, Balco Altaner, TBO-Haglinds, RK Teknik, NMT Montageteknik, Stora Fasad and Söderåsens Mur & Kakel. • The head office is in Växjö, and the group has over 500 employees. The Offering
Slide 3: Stable profitability despite lower sales
Q3 2023 Stable profitability despite lower sales Adj. EBITA-margin Stable profitability despite lower sales Net sales amounted to 253 MSEK, adjusted EBITA-margin improved to 6.0 % (5.6). New market – Ireland 6.0 % 5.6 % Jul – Sep 2023 Jul – Dec 2022 In the quarter, Balco took its first order in Irel
Slide 4: Quarterly results
Quarterly results REVENUE AND ADJUSTED OPERATING PROFIT, MSEK Stable profitability despite lower sales 383 351 346 324 311 326 288 243 253 • Net sales amounted to 253 MSEK (311). Net sales YTD amounted to 925 MSEK (950). 10,6% 11,9% 9,3% 8,2% 8,9% 8,7% 8,9% 39 5,6% 34 6,0% 26 27 29 17 28 31 15 • Adj
Slide 5: Renovation
Renovation REVENUE AND EBIT, MSEK Improved profitability 306 327 299 322 284 268 246 213 225 • Net sales in the quarter amounted to 225 MSEK (284), which corresponds to 89 percent of the total net sales. 11,1% 12,4% 10,7% 9,8% 9,4% 8,1% 8,6% 7,1% 24 33 24 25 4,8% 35 26 30 14 16 • Order intake in the
Slide 6: New Build
New Build REVENUE AND EBIT, MSEK Challenging market conditions 56 56 • Net sales in the quarter amounted to 28 MSEK (27), which corresponds to 42 45 11 percent of the total net sales. 30 27 26 28 24 8,1% 7,3% 6,7% 5,9% 5,9% 5,4% 5,2% 5,1% 2 4 2 3 1 3 1 0 1 • Order intake in the quarter amounted to 5
Slide 7: Financial position
Financial Equity ratio and balance OPERATING CASH FLOW, MSEK position sheet strong, prepared for selective acquisitions 126 104 78 24 32 20 -14 -11 -7 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 • At the end of the quarter, the Group’s equity amounted to 758 MSEK (724). Operating cashflow
Slide 8: Financial targets
Financial targets BALCO R12 SEP-23 REVENUE GROWTH Growth “Balco shall achieve growth of 10% per year during a business cycle” 3% EPS GROWTH Profitability “Earnings per share shall grow by 20% per year during a business cycle” -10% “Interest-bearing net debt shall not exceed 2.5 times adjusted earnin
Slide 9: Sustainability update
Sustainability update A prerequisite for long-term profitability • As an important step in our sustainability work and aim to be a leader in climate change in its industry, Balco Group has committed to developing short-term and long-term targets for emission reduction including net zero targets in l
Slide 10: Market update
Market update • Activity in inquiries and discussions around projects has continued to increase in the third quarter. Our customers have started to get used to a higher interest rate, but the process 70 90 leading up to a decision takes longer time than before, due to discussions with banks and year
Slide 11: Acquisition Strategy
Acquisition Strategy Long experience in acquisitions • Acquisitions are an important part of Balco Group's growth strategy. Our experience from previous acquisitions has given us a clear and structured process for the successful integration and development of the acquired companies. What are we look
Slide 12: Concluding remarks
Concluding remarks Summary Balco group has • Net sales of 253 MSEK and adj. EBITA-margin 6.0 percent (5.6). a strong market position with high • New market Ireland – first order worth just over 3 MEUR quality and long • Cooperation agreement signed with a Norwegian company, which works durability. w
Slide 13: Q&A
Q&A