Presentation
Interim report January-June 2024
12 July 2024
THE GROUP'S FINANCIAL PERFORMANCE
SECOND QUARTER | SIX MONTHS | |||||
MSEK | 2024 | 2023 | Change | 2024 | 2023 | Change |
Net sales | 6,725 | 6,206 | 8.4%1 | 12,731 | 12,165 | 4.6%2 |
EBITA3 | 1,608 | 1,487 | 8.1% | 2,886 | 2,817 | 2.5% |
EBITA margin3 | 23.9% | 24.0% | -0.1 | 22.7% | 23.2% | -0.5 |
Profit before tax | 1,234 | 1,176 | 5.0% | 2,175 | 2,233 | -2.6% |
Net profit for the period | ||||||
914 | 870 | 5.0% | 1,615 | 1,663 | -2.9% | |
Operating cash flow | 1,090 | 793 | 37.5% | 1,721 | 1,524 | 12.9% |
Earnings per share | 1.98 | 1.88 | 5.3% | 3.50 | 3.60 | -2.8% |
Return on capital employed | ||||||
21.6% | 22.6% | -1.0 | 21.6% | 22.6% | -1.0 | |
Return on capital employed, excl. goodwill | 134% | 133% | 1.0 | 134% | 133% | 1.0 |
- Organic growth of -0.1% in Q224.
- Organic growth of -3.9% in January-June 2024.
3 Before acquisition costs.
2
THE BUSINESS AREAS' FINANCIAL PERFORMANCE
DENTAL | SECOND QUARTER | SIX MONTHS | ||||
MSEK | 2024 | 2023 | Change | 2024 | 2023 | Change |
Net sales | ||||||
1,639 | 1,504 | 9.0% | 3,208 | 3,029 | 5.9% | |
EBITA | 364 | 302 | 20.4% | 691 | 630 | 9.7% |
EBITA margin | ||||||
22.2% | 20.1% | 2.1 | 21.5% | 20.8% | 0.7 | |
DEMOLITION & TOOLS | SECOND QUARTER | SIX MONTHS | |||||||
MSEK | 2024 | 2023 | Change | 2024 | 2023 | Change | |||
Net sales | 1,744 | 1,889 | -7.7% | 3,235 | 3,699 | -12.5% | |||
EBITA | |||||||||
453 | 533 | -15.0% | 757 | 979 | -22.6% | ||||
EBITA margin | 26.0% | 28.2% | -2.2 | 23.4% | 26.5% | -3.1 | |||
SYSTEMS SOLUTIONS | SECOND QUARTER | SIX MONTHS | |||||
MSEK | 2024 | 2023 | Change | 2024 | 2023 | Change | |
Net sales | |||||||
3,342 | 2,813 | 18.8% | 6,288 | 5,437 | 15.6% | ||
EBITA | 838 | 691 | 21.1% | 1,526 | 1,285 | 18.7% | |
EBITA margin | |||||||
25.1% | 24.6% | 0.5 | 24.3% | 23.6% | 0.7 | ||
EBITA is calculated excluding acquisition costs. |
3
ACQUIRED VS ORGANIC EBITA GROWTH
MSEK | Average | |||||||||
2015-2023 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
EBITA | 5,664 | 4,662 | 3,709 | 2,702 | 2,523 | 2,168 | 1,732 | 1,377 | 1,186 | |
EBITA from | 536 | 401 | 488 | 222 | 221 | 197 | 198 | 152 | 118 | |
acquisitions | ||||||||||
EBITA growth from | 12% | 12% | 11% | 18% | 9% | 10% | 11% | 14% | 13% | 12% |
acquisitions | ||||||||||
Organic EBITA | 8% | 6% | 11% | 21% | 0% | 3% | 10% | 10% | 3% | 8% |
growth | ||||||||||
FX EBITA growth | 2% | 4% | 4% | -2% | -2% | 3% | 4% | 1% | 0% | 3% |
Total EBITA | 22% | 22% | 26% | 37% | 7% | 16% | 25% | 26% | 16% | 23% |
growth | ||||||||||
EBITA is defined as operating profit before amortization and impairment of intangible assets arising from acquisitions.
4
DEVELOPMENT 2015-2023
CAGR 2015- | ||||||||||
MSEK | 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
EBITA | 22% | 5,664 | 4,662 | 3,709 | 2,702 | 2,523 | 2,168 | 1,732 | 1,377 | 1,186 |
EPS1 | ||||||||||
19% | 7.21 | 6.13 | 5.26 | 3.67 | 3.31 | 3.06 | 2.39 | 2.00 | 1.78 | |
Interest-bearing | ||||||||||
17% | 6,849 | 5,590 | 4,603 | 3,242 | 4,040 | 3,170 | 3,536 | 3,018 | 1,950 | |
net debt | ||||||||||
Interest-bearing | ||||||||||
net | N/A | 1.1 | 1.1 | 1.1 | 1.1 | 1.4 | 1.4 | 1.9 | 2.0 | 1.5 |
debt/EBITDA | ||||||||||
Operating cash | 21% | 4,458 | 3,069 | 2,938 | 2,812 | 1,990 | 1,533 | 1,326 | 1,084 | 948 |
flow | ||||||||||
Dividend paid | 17% | 818 | 681 | 545 | 477 | 418 | 363 | 318 | 273 | 236 |
during the year | ||||||||||
Acquisition | ||||||||||
spend (cash | N/A | 3,718 | 2,295 | 2,990 | 1,056 | 1,781 | 500 | 1,378 | 1,608 | 573 |
flow effect) | ||||||||||
during the year | ||||||||||
EV of acquired | ||||||||||
entities during | N/A | 4,335 | 2,247 | 3,496 | 1,194 | 2,161 | 695 | 1,584 | 1,649 | 527 |
the year2 | ||||||||||
Full year EBITA | ||||||||||
estimate of | N/A | 659 | 353 | 595 | 154 | 287 | 110 | 223 | 204 | 107 |
acquired | ||||||||||
entities2 | ||||||||||
1 Number of shares adjusted for split in 2021. | ||||||||||
2 For acquisitions consolidated during the year (data from "Acquisitions" in Q4 reports) - purchase consideration adjusted for cash in acquired companies. |
STRONG GROWTH IN CASH FLOW PER SHARE SINCE IPO
Free cash flow per share after capex and before dividends and acquisitions
10 | 9.2 | |
9 | 8.8 | |
8 | ||
7 | 6.1 | |
6 | 5.6 | 5.8 |
5 | ||
4 | 3.8 | |
3.0 | ||
3 | 2.6 | |
2.1 |
1.9
2
1.1
1
0
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 LTM |
6
NET DEBT DEVELOPMENT AND BALANCE SHEET
Net debt development
Balance sheet
MSEK | Times |
12000 | |
10000 | 3,5 |
3 | |
8000 | 2,5 |
6000 | 2 |
4000 | 1,5 |
1 | |
2000 | 0,5 |
MSEK | 30 Jun | 31 Dec | 30 Jun |
2024 | 2023 | 2023 | |
Intangible fixed assets | 23,524 | 21,927 | 21,247 |
Tangible fixed assets | 2,931 | 2,723 | 2,698 |
Financial assets | 411 | 380 | 393 |
Inventory | 4,298 | 3,906 | 4,248 |
Accounts receivable | 3,514 | 2,940 | 3,297 |
Other receivables | 1,078 | 824 | 859 |
Cash and cash equivalents | 1,707 | 1,591 | 1,587 |
Total assets | 37,462 | 34,291 | 34,329 |
Shareholders' equity | 16,431 | 15,332 | 14,718 |
Interest-bearing liabilities | 10,990 | 9,619 | 10,288 |
Other liabilities and provisions | 5,157 | 5,101 | 4,732 |
Accounts payable | 1,773 | 1,396 | 1,755 |
Other short-term liabilities | 3,112 | 2,844 | 2,836 |
Total equity and liabilities | 37,462 | 34,291 | 34,329 |
0 | 0 |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
30 | June | |||||||||||
Net debt | Net debt/EBITDA | Target range |
As from 2019 net debt/EBITDA includes leasing according to IFRS 16.
Net debt
Net debt/EBITDA Interest-bearing net debt/EBITDA
Capital employed excl. goodwill and other intangible assets
ROCE excl. goodwill and other intangible assets
Capital employed incl. goodwill and other intangible assets
ROCE incl. goodwill and other intangible assets
11,915 10,633 10,960
1.9x 1.7x 1.9x
1.3x 1.1x 1.3x
4,291 4,088 3,952
134% 139% 133%
26,486 25,007 23,162
21.6% 22.6% 22.6%
7
ONE TARGET: TO INCREASE PROFITS EVERY YEAR
.3% | ||||||||||||||||||||||||||||
13 | ||||||||||||||||||||||||||||
2024 | LTM | .3% | ||||||||||||||||||||||||||
18 | ||||||||||||||||||||||||||||
- | LTM | |||||||||||||||||||||||||||
costsacquisitionbeforeEBITAand (MSEK)itemsrecurring-non | 2006 | 2024 | ||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||
CAGR | 2006 | |||||||||||||||||||||||||||
EBITA | ||||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | LTM | ||
EBITA margin | 2024 | |||||||||||||||||||||||||||
14.2% 15.0% 15.3% 17.3% 18.1% 18.2% 19.6% 21.2% 21.6% 23.2% 22.9% | ||||||||||||||||||||||||||||
Dental | Demolition & Tools | Systems Solutions |
Note: IFRS accounting since 2012, prior years Swedish GAAP. | 8 |
CAPITAL EMPLOYED
ROCE including goodwill and other intangible assets
ROCE excluding goodwill and other intangible assets
25 | 22.6% | 22.6% | 21.6% | 160 | |
135% | |||||
140 | |||||
20 | 120 | ||||
15 | 100 | ||||
12.5% | 80 | ||||
10 | 60 | ||||
5 | 40 | ||||
20 | |||||
0 | 0 | 2022 | |||
2022 | 2023 | 2024 LTM |
Target ranges
139% 134%
50%
2023 | 2024 LTM |
9
MANAGEMENT AND CHAIRMAN
Per Waldemarson
CEO
Started at Lifco 2006
Born: 1977
Education
- MSc in Business Administration, Stockholm School of Economics
Experience
- Management Consultant at Bain & Co 2002−2006
- MD of Brokk 2006−2009
- President of the Dental business area since 2009
Own and related parties' holdings
513,500 Class B shares,
205,000 Class B shares through Pension Scheme and
87,412 synthetic call options
Therése Hoffman
CFO
Started at Lifco 2007
Born: 1971
Education
- International Marketing, Mälardalens Högskola
Experience
- CFO Nordenta 2007−2011
- CFO of Lifco since 2011
Own and related parties' holdings
1,500 Class B shares and
10,926 synthetic call options
Martin Linder
Head of Business Area Systems Solutions
Started at Lifco 2009
Born: 1972
Education
-
MSc in Material physics and PhD in Solid state electronics,
KTH Royal Institute of Technology
Experience
- CEO Proline Group 2016−2019
- CEO Leab Group 2008−2016
- Various management positions in Note 2003−2008
Own and related parties' holdings
203,000 Class B shares, 57,250 Class B shares through
Pension Scheme and 43,706
synthetic call options
Carl Bennet
Chairman
Born: 1951
Other assignments
- Deputy Chairman and main owner of Arjo, Elanders and Getinge
- Member of the Board of Holmen and L E Lundbergföretagen
Holdings via companies
30,379,850 Class A shares
197,502,023 Class B shares
10
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Disclaimer
Lifco AB (publ) published this content on 12 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2024 05:52:02 UTC.