** Orders received increased 15% to MSEK 15 436 (13 377), supported by acquisitions. The organic decline was -1%.
** Revenues increased 34% to MSEK 15 910 (11 868), organic increase of 17%.
** Operating profit increased 43% to MSEK 3 413 (2 381), including items affecting comparability of MSEK -16 (-420).*
** Operating margin was 21.5% (20.1), and the adjusted operating margin was 21.6% (23.6).
** Basic earnings per share were
** Operating cash flow was MSEK 1 549 (1 462).
** One acquisition completed in the quarter that strengthens the offering within low-profile underground equipment.**
CEO comments
Record quarter
The order intake increased by 15% to record-high MSEK 15 436, with strong contribution from acquisitions. The customer activity remained high, especially in mining. We won several large equipment orders, albeit not at the same high level as in Q2 last year. The service business continued to perform well, supported by larger rebuilds of customers' equipment.
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
Our revenues increased 34% to record-high MSEK 15 910, driven by organic growth, particularly for equipment, as well as from acquisitions. I am pleased to see that our recent acquisitions have achieved higher revenues than anticipated. We had an especially strong development for automation solutions.
The operating profit, EBIT, increased by 43% to MSEK 3 413. The adjusted operating margin was 21.6% (23.6), with strong organic contribution, while currency and acquisitions impacted negatively. The dilution from acquisitions was 0.9 percentage points on the Group margin.
Cash flow
The operating cash flow increased to MSEK 1 549 (1 462). The long period of strong growth and higher equipment volumes in combination with supply-chain challenges, mainly for outbound transport, led to higher working capital, particularly in inventory. We are taking measures to optimize and reduce inventories and expect that inventory ratios will improve throughout the year.
Eventful quarter
The "Epiroc World Expo", which we hosted in May in Örebro,
Climate leader
In an annual ranking of 500 companies conducted by the
Long track record of profitable growth
While our roots trace back 150 years to 1873, in June, we celebrated our fifth birthday as a stand-alone company. We have several milestones to be proud of. We have successfully established the Epiroc brand, innovation is thriving, we have set ambitious sustainability goals for 2030 - which have been validated as science based targets - and we launched our new vision, Dare to think new.
In Q2 2018, our rolling twelve months revenues were BSEK 34 and now, we are at BSEK 57. This corresponds to an increase of 65% and an annual growth rate of 11%. At the same time, our adjusted EBIT has grown even more, almost doubling from BSEK 6.7 to BSEK 13.0, corresponding to an annual growth rate of 14%. That is a strong achievement that we can be proud of.
The best is yet to come
As a team, we have demonstrated great strength and resilience amid major and unforeseen challenges during the past years. Automation, digitalization, and electrification are transforming the industry, but it is the people that actually make it happen. At
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on
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This information is information that
https://news.cision.com/epiroc/r/epiroc-interim-report-q2-2023,c3806581
https://mb.cision.com/Main/16899/3806581/2194382.pdf
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