Momentum Group Q4 2023: Stable conclusion to a year dominated by strong growth

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  3. Momentum Group Q4 2023: Stable conclusion to a year dominated by strong growth

Momentum Group Q4 2023: Stable conclusion to a year dominated by strong growth

The Group’s operations delivered favourable sales growth, with organic growth of 5% in the quarter. Acquired businesses strengthened this growth, and the Group’s revenue increased by a total of 35% year on year. Revenue growth, combined with effective cost control, led to a 25% increase in EBITA compared with the same quarter last year. In 2023, 11 companies were acquired, of which four in the fourth quarter, adding combined annual revenue of about SEK 610 million.

Fourth quarter 2023

  • Revenue increased by 35% to SEK 667 m (494), of which 5% was attributable to comparable units.
  • Operating profit rose by 17% to SEK 61 m (52), corresponding to an operating margin of 9.1% (10.5).
  • EBITA increased by 25% to SEK 70 m (56), corresponding to an EBITA margin of 10.5% (11.3).
  • Profit for the quarter increased by 13% to SEK 44 m (39), corresponding to earnings per share of SEK 0.85 (0.75).
  • Acquisition of Cobalch, a specialist in pipeline accessories.
  • Acquisition of WEH Sweden, a specialist in CNG/hydrogen refuelling components and gas detection.
  • Acquisition of Swerub, a market leader in Sweden in advanced custom-made rubber products.
  • Acquisition of Finnish company Helsingin Kumi, a specialist in customised rubber products.

Full-year 2023

  • Revenue increased by 32% to SEK 2,298 m (1,739), of which 7% was attributable to comparable units.
  • Operating profit rose by 28% to SEK 237 m (185), corresponding to an operating margin of 10.3% (10.6).
  • EBITA increased by 30% to SEK 265 m (204), corresponding to an EBITA margin of 11.5% (11.7).
  • Profit for the period increased by 24% to SEK 173 m (140), corresponding to earnings per share of SEK 3.45 (2.70).
  • The return on working capital (EBITA/WC) was 59% (61).
  • The equity/assets ratio was 33% (42) at the end of the period.
  • The Board proposes a dividend of SEK 1.10 per share (1.00).
  • As of 31 December 2023, the number of repurchased Class B shares totalled 1,083,026. The change in the fourth quarter was attributable to acquisitions.
  • During Q1 Hydmos Industriteknik, LocTech and Agera were acquired. During Q2 Askalon and Regal were acquired. During Q3 Processkontroll Items and Conclean were acquired. During Q4 Cobalch, WEH Sweden, Swerub and Helsingin Kumi were acquired. In total, the acquisitions generate approximately SEK 610 m in annual revenue.

Events after the end of the period

  • As of 1 January 2024, the business was divided into two business areas: Industry and Infrastructure. For more information, refer to the separate press release.
  • Acquisition of PW Kullagerteknik, a specialist in ball and rolling bearings.

A quarterly presentation is available on the company’s website, momentum.group, where CEO Ulf Lilius and CFO Niklas Enmark present the report and provide an update on operations.

For further information, please contact:

Ulf Lilius, President & CEO
Tel: +46 8 92 90 99
 
Niklas Enmark, CFO
Tel: +46 703 93 66 73
info@momentumgroup.com.se

Ann-Charlotte Svensson, IR
Tel: +46 720 85 72 62
info@momentumgroup.com.se

About Momentum Group

Momentum Group operates, develops and acquires successful sustainable companies in the Nordic region through active ownership with decentralised profit and business responsibility. The Group consists of a number of companies that together constitute one of the Nordic region’s leading suppliers of industrial components, industrial services and other related services in the industrial sector. What the businesses have in common is that they help make customers’ operations easier, safer and more profitable by offering sustainable, long-life products and services with a strong local presence close to customers. The Group generates revenue of approximately SEK 2.3 billion and some 750 employees. Momentum Group's B share is listed on Nasdaq Stockholm. For more information, please visit momentum.group.

This information is information that Momentum Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-15 07:55 CET.