Interim report 1 January – 30 September 2024

Third quarter 2024

• Order intake increased by 4% to SEK 7,537 million (7,262). For comparable units, the increase was 2%.

• Net sales increased by 2% to SEK 7,973 million (7,851). For comparable units, there was no change.

• EBITA decreased by 1% to SEK 1,182 million (1,190), corresponding to an EBITA margin of 14.8% (15.2%).

• Profit for the quarter increased by 3% to SEK 700 million (680) and earnings per share amounted to SEK 1.92 (1.87).

• Cash flow from operating activities amounted to SEK 1,019 million (1,227).

CEO’s message

Third quarter
Overall, demand was stable at high levels in the third quarter. Order intake amounted to SEK 7.5 billion (7.3), an increase of 4% compared with the corresponding period in the previous year. Organic order intake growth was 2% and was strongest at companies with customers in the process industry and the energy segment. Four out of five business areas had positive organic order intake growth, but there were variations between companies, segments and geographies. Demand was overall subdued for companies with customers in infrastructure and construction and in engineering.

Net sales amounted to SEK 8.0 billion (7.9). For comparable units, net sales were in line with the corresponding period in the previous year. The Life Science business area reported the strongest growth, thanks partly to further deliveries to customers in pharmaceuticals production in Denmark and distribution of medical technology products in the Nordic countries. The Technology & Systems Solutions business area had the weakest organic development, mainly as a result of strong comparative figures in a few companies.

EBITA was in line with the previous year and amounted to SEK 1.2 billion (1.2), corresponding to an EBITA margin of 14.8% (15.2%). The margin was dampened by the organic sales development and slightly higher expense levels, partly offset by positive effects from newly acquired companies and divestments. The gross margin remained at high levels following further successful work on pricing in many companies.

We continued to reduce our inventories during the quarter, and total working capital for comparable units was lower than in the corresponding period in the previous year. Cash flow from operating activities was strong and amounted to SEK 1,019 million (1,227). The debt ratios are still well balanced, and the Group's financial position remains strong.

Acquisitions
During the third quarter, we welcomed on board Miclev, a Swedish technology trading company specialising in high-quality products for identifying, eliminating and protecting against micro-organisms. Since the end of the quarter, we have acquired the Danish company Geoteam, which offers instruments, systems and software for geospatial and precision agriculture solutions. So far this year, we have acquired 13 companies with combined annual sales in excess of SEK 1.2 billion.

We have gradually increased our acquisition capability, including strengthening our resources both centrally and in the various business areas and geographies. The inflow of interesting, well-run and stable acquisition candidates remains at a high level. We are in ongoing discussions with a number of these and look forward to welcoming additional successful companies to Indutrade during the remainder of the year.

Outlook
Overall, demand remained stable and strong in the third quarter. There is still uncertainty about the general state of the economy in the coming quarters, but our diversified structure contributes to resilience in a weaker business climate. In addition, our companies are good at quickly adjusting their operations to changes in customer needs and market conditions. Many of Indutrade’s companies also benefit from structural investments in many industries, among others connected to electrification and the green transition.

The implementation of our new Group structure is proceeding according to plan, and our companies see clear benefits in being organised together with other companies in the same customer segments. One key element of the new Group structure is the establishment of business segments within each business area. We now have more than 30 segment leaders with responsibility for their respective clusters of companies and a clear role to support organic development and drive acquisitive growth in their segment. This will enhance the Group's scalability and increase our capacity to generate sustainable profitable growth over time.

Bo Annvik, President and CEO

For further information, please contact:
Bo Annvik, President and CEO, tel. +46 8 703 03 00,
Patrik Johnson, CFO, tel. +46 70 397 50 30.

This report will be commented upon as follows:
A webcast of the report will be presented on 25 October at 09.30 a.m. CEST via the following link:
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