Interim report January – June 2019 Sweco AB (publ)
Continued positive development
April – June 2019
- Net sales increased to SEK 5,214 million (4,916)
- EBITA decreased to SEK 422 million (464), margin 8.1 per cent (9.4)
- EBIT decreased to SEK 398 million (459), margin 7.6 per cent (9.3)
- Profit after tax decreased to SEK 281 million (330), corresponding to SEK 2.39 per share (2.78)
January – June 2019
- Net sales increased to SEK 10,315 million (9,544)
- EBITA increased to SEK 953 million (872), margin 9.2 per cent (9.1)
- EBIT increased to SEK 935 million (866), margin 9.1 per cent (9.1)
- Profit after tax increased to SEK 672 million (628), corresponding to SEK 5.73 per share (5.28)
- Net debt decreased to SEK 2,324 million (2,588)
- Net debt/EBITDA decreased to 1.2 x (1.4)
Comments from President and CEO Åsa Bergman:
Sweco continues to develop positively, in line with the trend from recent quarters. EBITA increased around SEK 54 million and organic growth amounted to around 5 per cent, both after adjustment for calendar effects. The improved performance is driven by positive fee development and an increased number of employees, supported by a solid order backlog. Nominally, reported EBITA and net sales were negatively impacted by approximately SEK 97 million due to less available calendar hours compared to last year.
In particular, Finland, Belgium and Norway performed strongly, combining good organic growth with profitability improvements. At the same time, Sweden continues to deliver industry leading profitability, combined with solid organic growth.
Sweco announced two strategically important add-on acquisitions during the quarter. MLM Group in the UK, adding 460 experts primarily within the building and infrastructure sectors. Imp GmbH in Germany, adding 380 experts primarily within power transmission. Both acquisitions are in line with our strategy of developing local market leadership in our eight core markets in Northern Europe.
Sweco is Europe’s market leading architecture and engineering consultancy. Together with our clients, we plan and design sustainable communities and cities of the future. Customer focus, internal efficiency and having the best people is at the core of Sweco’s decentralised operating model. We aim to continue our trajectory of profitable growth, both organically and through add-on acquisitions.
Overall, the market for Sweco’s services is good and largely unchanged to recent quarters. Essentially all Business Areas are experiencing a good market for Sweco’s services in the infrastructure, water and industry segments. Demand for services in the real estate segment remains good in most countries, with the exception of the UK and residential construction in the Nordics, where demand remains weak.