The best quarter to date

January – March 2019

• Net sales increased to SEK 5,101 million (4,628)
• EBITA increased to SEK 531 million (408), margin 10.4 per cent (8.8)
• EBIT increased to SEK 537 million (407), margin 10.5 per cent (8.8)
• Net debt decreased to SEK 1,706 million (1,902)
• Net debt/EBITDA amounted to 0.8 times (1.1)
• Profit after tax increased to SEK 391 million (298), corresponding to SEK 3.34 per share (2.50)

Comments from President and CEO Åsa Bergman:

Sweco’s first quarter of 2019 is the best to date. EBITA amounted to SEK 531 million, surpassing 500 MSEK for the first time in Sweco’s history. EBITA increased approximately SEK 70 million and organic growth amounted to approximately 5 per cent, adjusting for calendar effects. The improved performance is driven by positive fee development and an increased number of employees, supported by a solid order backlog.

Four of eight Business Areas delivered double digit margins in the quarter. Developments in Finland, Norway and Belgium are particularly positive, with a combination of organic growth and improvements in profitability, while Sweden continues to deliver industry-leading profitability. Denmark and the Netherlands are also increasing EBITA.

Early May, Sweco acquired MLM group, adding 460 experts within buildings and infrastructure in the UK. The acquisition is in line with Sweco’s strategy to develop local market leadership in all eight key countries in Northern Europe. Sweco has a strong financial position and we will continue to strengthen our market position through acquisitions and organic growth. As of January, Sweco has adjusted the business area structure to emphasize the focus on UK, Germany and Belgium, alongside Sweco’s five other key countries. Our focus remains on customers, internal efficiency and having the best people in the business, supported by decentralised organisation.

Overall, the market for Sweco’s services remains good, with variations between countries and segments. 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.