Balco Group Ab · OMXSTO:BALCO
Balco Group Ab — Q1 2023 Earnings Presentation
14 slides from Balco Group Ab's earnings presentation, 2023
Slide 1: Q1 report 2023
Q1 report 2023 January - March 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, Stora Fasad and Söderåsens Mur & Kakel. • The head office is in Växjö, and the group has over 500 employees. The Offering Sweden Other
Slide 3: Good net sales growth and stable profitability
Q1 2023 Good net sales growth and stable profitability Revenue Net sales increase 326 MSEK 288 MSEK Net sales increased 13 percent to 326 MSEK. Jan – Mar 2023 Jan – Mar 2022 Cost saving program to strengthen profitability Due to pending order intake even during the first quarter, lower profitability
Slide 4: Quarterly results
Quarterly results REVENUE AND ADJUSTED OPERATING PROFIT, MSEK Good net sales growth and stable profitability 383 351 304 324 311 326 288 250 243 • Net sales increased by 13 percent to 326 MSEK (288). Acquired growth was 3 percent, currency effect was 1 percent and organic growth was 9 percent. 11,5%
Slide 5: Renovation
Renovation REVENUE AND EBIT, MSEK Strong growth in Net sales 306 327 299 284 267 268 246 199 213 • Net sales in the quarter increased by 21 percent to 299 MSEK (246), which corresponds to 92 percent of the total net sales. 11,5% 11,1% 12,4% 10,7% 9,1% 9,8% 8,1% 8,6% 31 24 33 24 25 4,8% 35 26 18 14 •
Slide 6: New Build
New Build REVENUE AND EBIT, MSEK Good order intake in UK 56 56 52 • Net sales in the quarter amounted to 26 MSEK (42), which corresponds to 42 45 36 8 percent of the total net sales. 30 27 26 10,0% 7,5% 8,1% 7,3% 6,7% 5,9% 5,9% 5,4% 5,2% 4 4 2 4 2 3 1 3 1 • Order intake in the quarter amounted to 46
Slide 7: Financial position
Financial Equity ratio and balance OPERATING CASH FLOW, MSEK position sheet strong, prepared for more acquisitions 126 104 384% 78 24 32 174% 67% 82% 26% -42% -38% -28% -99% -14 -11 -41 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 • At the end of the quarter, the Group’s equity amounted to 746 MS
Slide 8: Financial targets
Financial targets BALCO LTM MAR-23 REVENUE GROWTH Growth “Balco shall achieve growth of 10% per year” 18% EPS GROWTH Profitability “Earnings per share shall grow by 20% per year” -16% “Interest-bearing net debt shall not exceed 2.5 times adjusted earnings before interest, taxes, NET DEBT/ adj. EBITD
Slide 9: Sustainability update
Sustainability update A prerequisite for long-term profitability • Balco has improved its ESG risk rating from 20.8 to 18.7, now ranked as a low-risk company among the 20% of all companies in the world with the lowest ESG risk. • We have reduce our environmental impact according to scope 1 measure i
Slide 10: Market update
Market update • We notice that our customers are to some extent getting used to a higher interest rate level, 70 90 but uncertainty about when the inflation will stabilize and when Riksbanken will be ready with years years its interest rate increases, continues to keep customers waiting in our main
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: Acquisition of NMT Montageteknik i Norden AB
Acquisition of NMT Montageteknik i Norden AB The acquisition strengthens and complements Balco Group's market position in northern Sweden • Founded in 2016, NMT Montageteknik i Norden AB offers turnkey contracts in balcony renovation in northern Sweden. The customers consist mainly of tenant-owned h
Slide 13: Concluding remarks
Concluding remarks Summary Balco group has • The turnover is the best ever for a first quarter and increased by 13 percent a strong market to 326 MSEK and the adjusted profit margin was 8.7 percent. position with high • In order to improve profitability and adapt to the new market conditions, we hav
Slide 14: Q&A
Q&A