Interim report first quarter 2015

First quarter 2015 – Continued Growth

  • Order intake rose 25% to SEK 2,926 million (2,349). The increase for comparable units was 7%.
  • Net sales rose 16% to SEK 2,601 million (2,250). For comparable units, net sales decreased by 1%.
  • Operating profit before amortisation of intangible non-current assets attributable to acquisitions (EBITA) rose 25% to SEK 280 million (224), corresponding to an EBITA margin of 10.8% (10.0%).
  • Profit after tax rose 31% to SEK 165 million (126).
  • Earnings per share grew 31% to SEK 4.13 (3.15).
  • Cash flow from operating activities was SEK 100 million (90).

CEO's message

Indutrade’s model of acquiring and developing stable and profitable companies in selected niches, continues to generate profitable growth.

Following a somewhat weak start to the year, the first quarter ended on a strong note, and Indutrade can once again report order intake, sales and earnings at new, record high levels for the comparable quarter.

Demand continues to vary between product segments, geographical markets and companies, and during the past year we have also noted major currency movements. The Group’s mix of companies along with a long-term, concerted effort to increase the share of proprietary products with an international base has strengthened our ability to deal with changed market conditions and thereby also create greater stability and profitability.

First quarter

During the quarter, order intake grew by 25%, invoicing by 16%, and earnings per share by 31% compared with the same quarter a year ago. Growth is being driven above all by completed acquisitions, but we also saw positive performance for most comparable units during the quarter.

Our businesses that supply components, systems and services to a range of different segments are generally experiencing increased market activity and improved demand, which is also reflected in order intake for the quarter.

Order intake has strengthened above all in Special Products and in the new Measurement & Sensor Technology business area. Growth is coming primarily from companies with proprietary products and own manufacturing that work in an international market.

Flow Technology, Fluids & Mechanical Solutions and Measurement & Sensor Technology reported higher sales and improved margins compared with a year ago. Engineering & Equipment, which conducts business mainly in Finland, managed to strengthen its profitability despite continued weak domestic demand. Industrial Components includes a number of companies in which the gross margin has been hurt by the past year’s currency movements, as higher purchasing costs could not fully be compensated for.

For Special Products, the monthly and quarterly variation in order intake and sales remains large. During the quarter, a temporary dip in invoicing for companies with large project-related business had a negative impact on sales as well as earnings and margins. This has been countered by continued acquisitions of companies with good profitability.


We carried out seven acquisitions during the quarter plus an additional two after the end of the quarter. Together these companies represent annual sales of nearly SEK 840 million. Expansion outside Sweden continues, both in the form of traditional trading companies and of companies with proprietary products and own manufacturing. There is still a good availability of companies for sale, which is why we expect to make additional acquisitions during the year.


Our fundamental principles of decentralisation, entrepreneurship and profitable growth have been instrumental since Indutrade’s start. Apart from attracting smaller companies in search of a new, long-term owner that can help them further develop their business, these concepts are central for the company’s governance. Decentralisation contributes to responsibility, and through the years Indutrade’s companies have also shown an ability to swiftly adapt to prevailing demand. It is my unwavering conviction that our business model – even in the prevailing, volatile market conditions – creates conditions for the companies and the Indutrade Group as a whole to continue to perform well.

Johnny Alvarsson, President and CEO

This report will be commented upon as follows: