Interim report January – September 2019 Sweco AB (publ)
Continued profitable growth
July – September 2019
- Net sales increased to SEK 4,623 million (4,078)
- EBITA increased to SEK 384 million (263), margin 8.3 per cent (6.5)
- EBIT increased to SEK 361 million (260), margin 7.8 per cent (6.4)
- Profit after tax increased to SEK 249 million (169), corresponding to SEK 2.12 per share (1.43)
January – September 2019
- Net sales increased to SEK 14,938 million (13,623)
- EBITA increased to SEK 1,337 million (1,135), margin 8.9 per cent (8.3)
- EBIT increased to SEK 1,296 million (1,126), margin 8.7 per cent (8.3)
- Profit after tax increased to SEK 921 million (797), corresponding to SEK 7.84 per share (6.71)
- Net debt decreased to SEK 2,511 million (2,650)
- Net debt/EBITDA decreased to 1.2 x (1.4)
Comments from President and CEO Åsa Bergman:
Sweco continues to deliver profitable growth, in line with the trend from recent quarters. In the quarter, EBITA increased around 22 per cent or SEK 58 million and organic growth amounted to around 6 per cent, after adjustment for calendar effects. The improved performance was driven by positive fee development and an increased number of employees, supported by a solid order backlog.
In particular, Finland and Belgium performed strongly, combining good organic growth with profitability improvements. Sweden continues to deliver industry leading profitability, combined with solid organic growth. The acquisitions announced last quarter, MLM Group in the UK and Imp GmbH in Germany, also contributed positively.
On 12 August, Sweco signed an agreement to acquire the rail infrastructure engineering and consulting services business from NRC Group. The Finnish competition authority has approved the acquisition which will be closed on 1 November.
Overall, the market for Sweco’s services is good and largely unchanged compared with 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 is good overall while the residential segment remains weak in several countries.