Interim Report January – September 2016
· The order intake was MSEK 3,438.2 (3,015.3), which is an increase of 11.3% after adjustment for currency effects of MSEK -153.1 and acquisitions of MSEK 234.0
· Net sales were MSEK 3,317.0 (2,876.3), which is an increase of 12,0% after adjustment for currency effects of MSEK -147.7 and acquisitions of MSEK 243.0
· The operating profit was MSEK 404.3 (287.5), representing an operating margin of 12.2 (10.0)%
· Earnings after tax were MSEK 298.3 (203.3), an increase of 46.7%
· Earnings per share were SEK 7.87 (5.37)
· Cash flow from operating activities was MSEK 137.0 (217.9)
Comments from CEO Johan Hjertonsson:
- The Group’s strategy of innovation and internationalisation continues ahead of plan whilst at the same time delivering strong results.
- Order intake at MSEK 3,438.2 is 11.3% ahead of last year and net sales at MSEK 3,317.0 is 12.0% ahead of last year, adjusted for currency effects and acquisitions. The increase in order intake is above the market growth rate and demonstrates the continued gain in market share.
- The operating profit at MSEK 404.3 is 40.6% ahead of 2015.
- The third quarter results of order intake MSEK 1,088.7 (948.6), net sales MSEK 1,144.4 (1,011.8) and operating profit MSEK 165.4 (126.6) all compare well to the third quarter of 2015 with the net sales and operating result setting new quarterly records.
- The MSEK 98.0 (88.3) cash flow from operating activities for Q3 results in the year to date cash flow of MSEK 137.0 (217.9), the Group delivering a second strong quarter in succession.
- Earnings per share at SEK 7.87 was strongly ahead of the 5.37 for the prior year.
- Sales growth in LED luminaires across the Group remains favourable with the LED share of net sales in the period at over 70%. The capital and revenue investments to support the LED technology shift continue and at an increased level compared to the prior period.
- As we enter the last quarter of the year, the order backlog remains at a healthy level, despite record net sales in the quarter.
- Net sales across all business areas for the year to date are ahead of prior year and all product areas deliver quarterly as well as year to date growth compared to 2015.
- The recent coup attempt in Turkey has affected our domestic business but we have managed to increase our export sales to compensate.
- We have seen no significant negative impact at the operational level due to Brexit.
Fagerhult is one of Europe’s leading lighting groups with approximately 2,700 employees and operations in more than 20 countries. We create modern products and exciting, energy-efficient and environmentally-adapted lighting installations, successfully integrated into their individual environments. The Group includes such strong brands as Fagerhult, Ateljé Lyktan, LTS, Whitecroft Lighting, Designplan Lighting, Eagle Lighting, I-Valo, Arlight, Lighting Innovation and LED Linear. AB Fagerhult is listed on the Nasdaq OMX Nordic Exchange in Stockholm.