Du är här

2016-05-12

Lifco AB: INTERIM REPORT JANUARY - MARCH 2016

Reporting period January - March

· Net sales increased by 17.3 per cent to SEK 2,051 (1,748) million.
Net sales grew organically by 8.9 per cent

· EBITA increased by 13.3 per cent to SEK 274 (242) million
· The EBITA margin increased to 13.4 (13.8) per cent
· Profit before tax grew by 8.8 per cent to SEK 243 (223) million
· Net profit increased by 10.3 per cent to SEK 182 (165) million
· Earnings per share increased by 9.6 per cent to SEK 1.99 (1.81)
· Cash flow from operating activities was continuously strong and
increased by 25.6%

to SEK 144 (115) million
· During the quarter seven operations were acquired with total sales
of

approximately SEK 870 million
Summary of financial performance

QUARTER Rolling FULL
1 12 YEAR
months
SEK million 2016 2015 change 2016 change 2015
Net sales 2,051 1,748 17.3% 8,204 3.8% 7,901
EBITA 274 242 13.3% 1 218 2.7% 1,186
EBITA margin 13.4% 13.8% -0.4 14.8% -0.2 15.0%
Profit before tax 243 223 8.8% 1 102 1.8% 1,082
Net profit 182 165 10.3% 842 2.1% 825
Earnings per 1.99 1.81 9.6% 9.09 2.0% 8.91
share[1] (http://file:///C:/U
sers/Admin/Documents/Klienter
/Lifco/Rapporter/Q116/Interim
%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn1)

Return on capital 19.6% 17.8% 1.8 19.6% -0.3 19.9%
employed[2] (http://file:///C
:/Users/Admin/Documents/Klien
ter/Lifco/Rapporter/Q116/Inte
rim%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn2)

Return on capital employed, 128% 112% 16,0 128% 5,0 123%
excl.
goodwill[3] (http://file:///C
:/Users/Admin/Documents/Klien
ter/Lifco/Rapporter/Q116/Inte
rim%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn3)

COMMENTS FROM THE CEO
Sales increased by 17.3 per cent to SEK 2,051 (1,748) million in the
first quarter, driven by both organic growth and acquisitions. The
organic growth amounted to 8.9 per cent. Sales increased in the
Demolition & Tools and Systems Solutions business areas, while the
Dental business area was somewhat affected by Easter falling in the
first quarter this year. The market situation continued to be
generally good for all business areas.

EBITA increased by 13.3 per cent to SEK 274 (242) million and the
EBITA margin was 13.4 (13.8) per cent. Earnings per share increased
by 9.6 per cent during the quarter and amounted to SEK 1.99 (1.81).

The Dental business area had a somewhat weaker first quarter in terms
of profit, mainly due to Easter falling during the period.
Profitability in the Demolition & Tools and Systems Solutions
business areas increased significantly during the quarter.

Cash flow from operating activities was continuously strong and
increased by 25.6 per cent during the period to SEK 144 (115)
million.

We have continued to deliver our strategy of investing in
market-leading niche businesses with the potential to deliver
sustainable profit growth and robust cash flows. During the first
quarter Lifco has consolidated seven new operations with total sales
of approximately SEK 870 million. For more information, see pages 7
and 14. Together the acquisitions will have a positive impact on
Lifco's profit and financial position during the current year. Even
after these acquisitions, we have significant financial scope for new
acquisitions as net debt in relation to EBITDA is at the lower end of
the range of our objective, which is a net debt of two to three times
EBITDA.

Fredrik Karlsson

CEO

DEVELOPMENT OF THE GROUP JANUARY - MARCH

Sales increased by 17.3 per cent to SEK 2,051 (1,748) million, driven
by organic growth and acquisitions. Acquisitions accounted for 9.8
per cent, organic growth for 8.9 per cent and changes in exchange
rates had a negative impact of 1.4 per cent. Organic growth was
strong in the Demolition & Tools and Systems Solutions business
areas. During the quarter seven new operations were consolidated.

EBITA increased by 13.3 per cent to SEK 274 (242) million and the
EBITA margin was 13.4 (13.8) per cent. EBITA was positively impacted
by organic growth and acquisitions. Changes in exchange rates had a
slightly negative impact on the EBITA margin of 1.3 percentage
points. During the quarter, 40 per cent of the EBITA was generated in
EUR, 26 per cent in SEK, 10 per cent in NOK, 9 per cent in DKK, 6 per
cent in GBP, 3 per cent in USD and 6 per cent in other currencies.

Net financial items were SEK -8 (2) million.

Profit before tax increased by 8.8 per cent to SEK 243 (223) million.
Net profit increased by 10.3 per cent to SEK 182 (165) million

Average capital employed excluding goodwill decreased by SEK 14
million from 31 December 2015 to SEK 952 (966) million. EBITA in
relation to average capital employed excluding goodwill increased to
128 (123) per cent at the end of the quarter. The improvement was due
chiefly to higher profits and good control of capital employed.

The Group's net interest-bearing debt increased by SEK 413 million
from 31 March 2015 to SEK

2,779 (2,366) million. The net debt/equity ratio was 0.7 (0.7) at the
end of the quarter, and the ratio of net debt to EBITDA was 2.1
(2.2).

Cash flow from operating activities improved to SEK 144 (115) million.
The continuously strong cash flow was due chiefly to higher profits
and good control of capital employed. Cash flow from investing
activities was SEK -971 (-433) million, which is mainly attributable
to acquisitions.

FINANCIAL PERFORMANCE - BUSINESS AREAS

Dental

QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2016 2015 change 2016 change 2015
Net sales 868 894 -2.9% 3,410 -0.7% 3,435
EBITA 155 170 -8.6% 600 -2.4% 614
EBITA margin 17.9% 19.0% -1.1 17.6% -0.3 17.9%

The companies in the Dental business area are leading suppliers of
consumables, equipment and technical services for dentists across
Europe. Lifco sells dental technology to dentists in the Nordic
countries and Germany, and develops and sells medical record systems
in Denmark and Sweden. A number of smaller manufacturing companies
are also included in the business area, which produce such items as
disinfectant fluids, saliva ejectors and endodontic products.

Dental's sales decreased by 2.9 per cent to SEK 868 (894) million
during the quarter. The change was due to Easter falling earlier in
2016 than in 2015, and because NetDental was sold in the second
quarter of 2015. Sales were boosted in the quarter by the
acquisitions in 2015 of Top Dental,

J.H. Orsing, Smilodent and Preventum Partner.
EBITA amounted to SEK 155 (170) million during the quarter and the
EBITA margin was 17.9 (19.0) per cent.

The dental market is generally stable. The results for individual
companies in Lifco's Dental business may, in any individual quarter,
be influenced by significant fluctuations in exchange rates, calendar
effects (such as Easter), won or lost consumables contracts in
procurements for the public sector or major private sector customers,
as well as fluctuations in the delivery of equipment. During the
quarter, the fact that Easter was early in 2016 had a certain
negative impact on sales and profits.

Lifco announced two acquisitions within Dental during the first
quarter: the German dental technology laboratory Dens Esthetix and
the German dental company Praezimed. Dens Esthetix had sales of
approximately EUR 1.4 million in 2015 and has 14 employees. Praezimed
conducts servicing and repairs dental instruments used by dentists
and dental laboratories in Germany. Praezimed had sales of
approximately EUR 2.5 million in 2015 and has 15 employees. Both
operations were consolidated in February. The acquisition of
endodontic products which was announced in December 2015 was
consolidated in January. Endodontic products had sales of
approximately SEK 10 million in 2015.

Demolition & Tools

QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2015 2015 change 2016 change 2015
Net sales 384 329 16.6% 1,628 3.5% 1,574
EBITA 79 66 18.9% 408 3.2% 396
EBITA margin 20.6% 20.2% 0.4 25.1% 0.0 25.1%

Demolition & Tools develops, manufactures and sells equipment for the
construction and demolition industry. Lifco is the world's leading
supplier of demolition robots and crane attachments. The Company is
also one of the leading global suppliers of excavator attachments.
The operations are divided into two divisions - Demolition Robots and
Crane & Excavator Attachments - which are of roughly equal size in
terms of sales.

Net profit increased by 16.6 per cent to SEK 384 (329) million during
the quarter due to strong organic growth. The market situation was
generally good and sales increased in the majority of markets.
Germany and China experienced the most substantial growth among the
Company's major markets.

EBITA increased by 18.9 per cent to SEK 79 (66) million during the
quarter. The EBITA margin improved by 0.4 percentage points, to 20.6
(20.2) per cent. Lifco works continuously to improve its product
portfolios, strengthen its distribution systems and improve
productivity in the Group's companies. The impact of such measures on
profit will fluctuate from one quarter to the next, however.

Systems Solutions

QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2015 2015 change 2016 change 2015
Net sales 799 525 52.2% 3,166 9.5% 2,892
EBITA 64 27 134% 300 13.8% 263
EBITA margin 8.0% 5.2% 2.8 9.5% 0.4 9.1%

Through its operating entities, Systems Solutions is active in
industries offering systems solutions. Systems Solutions is divided
into five divisions: Interiors for Service Vehicles, Contract
Manufacturing, Environmental Technology, Sawmill Equipment and
Construction Materials. The divisions are leading players in their
geographic markets. Following the acquisition of Cenika in January
2016, Relining changed its name to Construction Materials.

Sales in Systems Solutions increased by 52.2 per cent to SEK 799 (525)
million during the quarter due to organic growth and acquisitions.
All divisions saw increased sales during the period.

EBITA increased by 134 per cent to SEK 64 (27) million during t...

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.