Interim report Q2
Growth and margin improvement trends continue in the second quarter The companies in Christian Berner Tech Trade are showing strong development, and customer confidence is evident in increased order intake, increased turnover and improved results. EBITA increased in the second quarter by more than 50 percent, compared to the previous year, to SEK 17.5 million, and with SEK 32 million for the half-year, an improvement of more than 80 percent.
Second quarter in brief 2023
• Order intake totaled SEK 284.8 (261.8) million, an increase of 8.8 percent.
• Net revenue for the second quarter was SEK 245.9 (213.8) million, an increase of 15.0 percent, of which organic growth amounts to 14.9 percent.
• EBITA was SEK 17.5 (11.6) million, an increase of 51.1 percent. The EBITA margin was 7.1 (5.4) percent.
• Earnings per share before and after dilution were SEK 0.60 (0.38).
• Cash flow from operating activities was SEK 3.3 (-18.8) million. Total cash flow for the period was SEK -11.0 (-41.1) million.
Summary of the first half of the year
• Order intake totaled SEK 522.5 (476.8) million, an increase of percent.
• Net revenue for the first quarter was SEK 484.2 (395.1) million, an increase of 22.6 percent, of which organic growth amounts to 22.5 percent.
• EBITA was SEK 31.8 (17.8) million, an increase of 79.4 percent. The EBITA margin was 6.5 (4.5) percent.
• Earnings per share before and after dilution were SEK 1.07 (0.55).
• Cash flow from operating activities was SEK 18.0 (-15.6) million. Total cash flow for the period was SEK -5.0 (-45.1) million.
Significant events during the second quarter
• The company held its annual general meeting on April 27, 2023. The AGM decided on a dividend of SEK 0.60 per share, totaling SEK 11.3 million to the shareholders, with SEK 0.30 being paid during the quarter and the remainder expected to be paid in the fourth quarter.
• Managing director of the Norwegian subsidiary Christian Berner AS, Even Magnus Moholdt, took office on April 17.
• During the quarter, work to implement a new business system in parts of the Technology & Distribution business area was completed. Three of the group’s operating companies started using the new system during the period.
• During the period, Zander & Ingeström signed an agreement with NCC Sweden for the delivery of equipment for the Käppala Association’s wastewater treatment plant. The project will run for 2.5 years.
Significant events after the end of the reporting period
• There were no significant events after the end of the reporting period.
MESSAGE FROM THE CEO
Attractive businesses within sustainable areas
The second quarter continues to show a trend towards higher earnings for the Group and more consistent development. EBITA increased by more than 50 percent compared to the previous year. The Energy & Environment business area, in particular had a very strong quarter, with a fivefold increase in EBITA. During the quarter, we won several important business deals that support the development towards a more sustainable society.
The Group achieved EBITA of SEK 17.5 million in the second quarter. This means a 1.7 percentage point increase in the margin compared to the previous year, to 7.1 percent. The Group’s activities cover many different areas and provide excellent opportunities to counteract fluctuations in the various underlying markets. We also see that order intake remains at high levels. Despite strong comparative figures, order intake increased by 9 percent in the quarter, compared to the same period last year. As order intake again exceeds sales, order books are growing.
Businesses that support responsible use of our resources
Our activities are at the heart of the transition to a more sustainable society. For example, during the quarter the subsidiary Zander & Ingeström received an important order for equipment for the Käppala Association’s wastewater treatment. The order is a great example of the Group’s work, where our experienced teams can put together complex, customized solutions that meet high standards. In this case, not only does it meet more stringent wastewater treatment emission requirements and an increasing load in the form of a growing population, but it also does so with lower energy consumption. We are pleased to make a concrete contribution to a cleaner Baltic Sea. During the quarter, the subsidiary Zander & Ingeström also celebrated its 125-year anniversary together with customers and suppliers, the subsidiary Bullerbekämparen celebrated 50 years, and later this year, our Finnish subsidiary Christian Berner Oy will celebrate 100 years. We are proud to build on generations of engineering expertise and take on the challenges facing our societies.
Continued efforts to improve efficiency
hree of the companies in the Technology & Distribution business area started using a new business system during the quarter, which temporarily used some resources and affected the business area at the beginning of the quarter. We are now looking forward to the improved efficiency made possible with a more modern business support system, through reduced internal administration and increased transparency. In short, we are finishing up a first half of the year in which we are starting to see the effects of our concerted efforts over the past year to unleash the power in our competent employees through increased decentralization. We are proud, but not satisfied. We know that we can do more.
CEO, Christian Berner Tech Trade AB
For full details, please see attached pdf-file.