Interim Report January – March 2018
· Order intake was MSEK 1,428.1 (1,314.0), which is an overall growth of 8.7% adjusted to 0.3% for acquisitions of MSEK 100.4 and currency effects of MSEK 9.7
· Net sales were MSEK 1,270.7 (1,244.3), which is an overall growth of 2.1% adjusted to an organic decline of 6.1% for acquisitions of MSEK 93.6 and currency effects of MSEK 8.6
· Operating profit was MSEK 138.6 (153.4), representing a 9.6% decrease with an operating margin of 10.9 (12.3)%
· Earnings after tax were MSEK 97.0 (107.9), a decrease of 10.1%
· Earnings per share were SEK 0.85 (0.95)
· Cash flow from operating activities was MSEK -87.3 (126.3)
Comments from CEO Johan Hjertonsson:
- Besides the order intake growth for the quarter at 8.7% overall and 0.3% organic, the headline numbers do not reflect the steady performance of the Group during the quarter.
- The first quarter of 2017, i.e. the prior year comparison period, was an exceptionally strong period where operating profits were at a level more associated with either a second or third quarter, helped significantly by MSEK 93 sales in the UK on two major projects to a large retailer and Crossrail.
- We are pleased with the organic growth in the order backlog position in the quarter, some MSEK 108 compared to a year ago and MSEK 178 compared to the end of 2017, a book-to-bill ratio in the quarter of 112%.
- The unusually severe adverse weather conditions across most of Europe combined with the liquidation of a major UK contractor and Easter partly coming back into Q1 have all affected net sales in the quarter.
- As the Outlook refers to, in some markets we have seen a flat demand and we will continue to increase market shares in the months and quarters ahead.
- Operating profit at MSEK 138.6 is the second highest first quarter on record and the operating margin at 10.9% is strong for a first quarter.
- The Group’s LED share of net sales continues to progress, the low level of the installed base continues to provide opportunities and for the Group the share of net sales of connected luminaires is approximately 9% in the quarter and will be a key focus for the future.
- We are pleased to confirm that the acquisition of Veko Lightsystems International was completed on 20 April 2018 and we welcome all members of Veko to the Group. The Veko product offering will provide good synergies in many of our markets for an important new sub-sector for the Group. In 2017 Veko had sales of 37 MEUR and an operating margin significantly higher than the Group average.
Disclosures may be submitted by
Johan Hjertonsson CEO tel: 46 36 10 85 00 mobile: 46 70 229 77 93 e-mail: email@example.com
Michael Wood CFO tel: 46 36 10 85 00 mobile: 46 73 087 46 47 e-mail: firstname.lastname@example.org
This information is inside information that AB Fagerhult (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that AB Fagerhult (publ) is obliged to make public pursuant to the Securities Markets Act.
The information was submitted for publication, through the agency of the contact person set out above, at 14.00 CET on 23rd April 2018.
Fagerhult is one of Europe’s leading lighting groups with approximately 3,450 employees and operations in more than 25 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, LED Linear, WE-EF and Veko. AB Fagerhult is listed on the Nasdaq Nordic Exchange in Stockholm.