Interim Report | Financials | 22 Aug, 2018 | 11:51 | Regulatory
Interim Report January – June 2018
Comments from CEO Johan Hjertonsson:
- After a challenging first quarter for us and the industry generally, we are pleased that the Group delivered a robust half year result.
- The second quarter was strongly ahead on overall order intake at +10.4%, net sales at +9.3% and we achieved an operating profit +4.2% ahead of the prior year. The Group continues to invest in many medium term growth activities.
- The organic performance of the Group in the second quarter improved from the first quarter with a continued slight growth in order income and a more or less flat net sales.
- The organic book-to-bill ratio in the second quarter was a significant at +7.5% and results in the closing order backlog at the end of the half year being +13.1% ahead of the prior year.
- The robustness of the second quarter reduced by almost half the Q1 comparable net sales decline and with a healthy order backlog position we look forward to the third and fourth quarters.
- For most business areas we see a good level of activity with increased orders and sales, the exception being the United Kingdom where new business opportunity remains good but we now detect a lack of confidence leading to some project delays, we assume Brexit driven.
- Operating profit at 166.6 (159.9) MSEK is the highest second quarter on record with a steady organic performance boosted by the addition of Veko part way through the quarter.
- As the new CEO, Bodil Sonesson, takes office on the 8th October, this will be my last report for the Fagerhult Group. I wish Bodil much success in a Group that is fantastic to work for and filled with many rewarding relationships.