Alligo Ab Class B · OMXSTO:ALLIGO_B
Alligo Ab Class B — Q1 2025 Earnings Presentation
35 slides from Alligo Ab Class B's earnings presentation, Apr 25, 2025
Slide 1: Interim report Q1 2025
Interim report Q1 2025 1 January – 31 March Friday, April 25, 2025 1
Slide 2: Today's presenters
Today’s presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • This is Alligo • Highlights Q1 2025 • Update • Prioritised growth areas 2025 - Services - ReCare • Status Turnaround Project Tools FI • Financials • Summary and outlook • Q&A
Slide 4: This is Alligo
This is Alligo (ss AlLiGo *
Slide 5: Alligo – a leading player in workwear, personal protection, tools and supplies
Alligo – a leading player in workwear, personal protection, tools and supplies in the Nordic region 9,396 2,543 243 MSEK Revenue Employees Stores Revenue EBITA Revenue per geographic area R12 per geographic area R12 per brand category R12 43 stores 18% 8% 18% 59 17% stores 141 stores 75% 27% 55% 82%
Slide 6: An integrated business with a scalable platform
An integrated business with a scalable platform - represents 87% of total sales • 2 strong concept brands in 3 markets Sales per channel 2024 48% Stores 39% Direct sales incl webb, on-site • Common Nordic functions ̶ Shared functions (assortment, procurement, logistics, finance, IT, sales) 13% Non-i
Slide 7: Non-integrated companies add strategic value
Non-integrated companies add strategic value - represents 13% of total sales Product Media Welding Battery Other areas • 13 profile and product • 6 welding specialists located • Batterilagret – a battery • 8 companies in the Nordics media specialists located in Sweden and Finland specialist in Swede
Slide 8: Acquisitions are an integral part of Alligo's growth strategy
Acquisitions are an integral part of Alligo’s growth strategy - value creation 2024 Acquisitions signed Stores 9 (6) 42 (8) Acquired growth Employees 4.5 % (3.5) 200 (80) Annual revenue New technology areas Battery ~750 MSEK (330) Welding 8
Slide 9: Highlights Q1 2025
Highlights Q1 2025 9
Slide 10: Q1 2025 business conditions
Q1 2025 business conditions Market situation Proactive management Delivery capacity Macroeconomic factors • Continued delay in • Driving sales • Good and stable in • Continued economic Sweden and Finland uncertainty in the market recovery • Cost reductions business cycle • Vestby performance - Weak
Slide 11: Q1 2025 in brief
Q1 2025 in brief – Focus on sales and further cost adjustments Revenue Organic growth Operating cash flow Signs of recovery +2.9% in Finland, Oil & Gas in Norway -2.5% Acquisition- driven growth of 7.8 % -38 remains stable MSEK (128) Adjusted EBITA Adjusted EBITA margin Gross margin 1 less trading d
Slide 12: Q1 2025 highlights
Q1 2025 highlights Sales Acquisitions Operations • Continued focus on sales • Acquisition of Batterilagret • Implemented additional and product initiatives with completed February 5 cost adjustments of approx clear potential 100 MSEK • Successful launch of ReCare - impact from mid-year - a new servi
Slide 13: Update
Update • Prioritised growth areas 2025 Services ReCare • Turnaround Project Tools FI 13
Slide 14: Prioritised growth areas 2025 - apply across all our markets
Prioritised growth areas 2025 - apply across all our markets Services In-store sales Construction industry Own brands Develop further in Develop our store sales in Establish a strong Expand our own brands services, conceptualise line with best practice position in construction our offering within th
Slide 15: ReCare – washing, repair, and reuse of workwear
ReCare – washing, repair, and reuse of workwear • Aims to strengthen Alligo’s long-term Cost savings for customers* competitiveness and profitability ̶ ̶ Launched in Sweden in Q1 2025 Several signed customers 30% ̶ Strong pipeline ̶ Transparent pricing Traceability (RFID) • The ambition is to launch
Slide 16: Turnaround Project Tools FI
Turnaround Project Tools FI • Aims to strengthen Alligo’s long-term Adjusted EBITA-margin that competitiveness and profitability needs to be reached in FI* • On-going actions ̶ Profitability improvement initiatives 6-8% (2.4) targeting larger industrial customers Share of own brands Q1 ̶ Review of t
Slide 17: Financials
Financials 17
Slide 18: Acquisition driven growth counteracts weak organic sales
Acquisition driven growth counteracts weak organic sales – Slightly decreased contribution margin due to negative mix effects and margin pressure in NO Revenues and EBITA Highlights Q1 2025 • Revenue increased by 2.9% 2025 2024 2024 ̶ Organic growth of -2.5% MSEK Jan-Mar ∆, % Jan-Mar R12 Jan-Dec ̶ A
Slide 19: The decline in EBITA was caused by weak sales and lower gross margin
The decline in EBITA was caused by weak sales and lower gross margin – Results from acquisitions and cost-savings counteract EBITA bridge Q1 2025 Highlights Q1 2025 84 • Weaker volumes and adverse mix 20 74 effects explain the decreased gross profit. 17 -33 • Decreased other operating 2 income -15 -
Slide 20: Increased share of own brands and SME in the integrated SE business
Increased share of own brands and SME in the integrated SE business Sweden Norway Finland SALES PER CHANNEL SALES PER CHANNEL SALES PER CHANNEL 24% (15) Non- 2% (1) Non- 25% (15) integrated 53% (55) Store 20% (21) integrated 48% (47) Non-integrated companies channel (SME) Store channel companies Sto
Slide 21: Improved contribution margin in Sweden due to increased share of SME
Improved contribution margin in Sweden due to increased share of SME – Continued challenges related to customer segment mix and general price pressure in Norway Sweden Norway Finland Standard assortment Own brands Mix Store channel/SME Group GM% +0.3 p.p Mix Customer segment mix Group GM% -0.2 p.p P
Slide 22: Sweden Norway Finland
Sweden Norway Finland MSEK MSEK MSEK 800 6 500 6 1 500 8 7 5 400 4 600 6 4 1 000 5 300 2 4 400 3 3 200 0 500 2 2 200 100 -2 1 1 0 0 0 0 0 -4 Q1 2023 Q1 2024 Q1 2025 Q1 2023 Q1 2024 Q1 2025 Q1 2023 Q1 2024 Q1 2025 Revenue, MSEK Non-integrated Revenue, MSEK Non-integrated Adj.EBITA% Revenue, MSEK Non-
Slide 23: Operating cash flow in Q1 is lower than last year
Operating cash flow in Q1 is lower than last year – Lower EBITDA, inventory build-up of own brands and challenges in the invoicing process in NO Cash flow Highlights Q1 2025 2025 2024 2024 • Lower cash flow from operating activities MSEK ∆ R12 Jan-Mar Jan-Mar Jan-Dec due to lower EBITDA, inventory b
Slide 24: Temporary increased leverage
Temporary increased leverage – higher acquisition pace and weaker EBITDA Overview of the financial position Highlights Q1 2025 31 Mar 31 Mar 31 Dec • Ratio of net operational liabilities MSEK 2025 2024 2024 to EBITDA (excl. IFRS 16) of 2.9 Non-current interest 3,058 2,978 3,121 ̶ 2.7 reported to Han
Slide 25: Summary & outlook
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Slide 26: Q1 2025 in summary
Q1 2025 in summary • Continued focus on sales and product initiatives with clear potential, while maintaining strong cost control • Successful launch of ReCare in Sweden ̶ a full-service workwear solution ̶ positive response from customers • Implemented additional cost reductions of approximately 10
Slide 27: Outlook 2025
Outlook 2025 • Sales is the top strategic priority for 2025 ̶ New sales and marketing initiatives are underway to better reach new and existing customers • Alligo’s knowledge and commitment are critical to driving strong performance in a weaker market • We continue to refine our offering and explore
Slide 28: Q&A
Q&A 28
Slide 29: Appendix
Appendix 29
Slide 30: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2025 2024 2024 2023 MSEK Jan-Mar Jan-Mar Jan-Dec Jan-Dec IFRS 16 effects on cash flow 90 81 405 365 from operations IFRS 16 effects on cash flow -90 -81 -405 -365 from financing activities 30
Slide 31: 2024: nine signed acquisitions adding ≈750 MSEK in annual revenues
2024: nine signed acquisitions adding ≈750 MSEK in annual revenues ...as well as 200 employees and 42 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Hämeen Teollisuuspalvelu Oy Industrial Components/Tools/Workwear/ April 2024 87 18 1 Protective Equipment Ind
Slide 32: Performance in 2024 in relation to financial targets
Performance in 2024 in relation to financial targets 32
Slide 33: Performance in 2024 in relation to sustainability targets
Performance in 2024 in relation to sustainability targets 33
Slide 34: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Market Scalable Own brands Sustainable Leader in the growth and platform a increase enterprise consolidation resilient foundation competitiveness an integrated process on customer for continued and part of the the Nordic segments growth profitability busine
Slide 35: Read more at alligo.com/en/report/q1-2025
Read more at alligo.com/en/report/q1-2025