Sweco AB (publ) Interim report January-September 2016
Strong performance and integration ahead of plan
July – September 2016
- Net sales increased to SEK 3,723 million (2,024), acquired growth was 77 per cent
- EBITA excluding extraordinary items increased to SEK 266 million (139), margin 7.2 per cent (6.9)
- EBITA increased to SEK 252 million (109), margin 6.8 per cent (5.4)
- EBIT increased to SEK 228 million (94), margin 6.1 per cent (4.7)
- Profit after tax increased to SEK 166 million (61), corresponding to SEK 1.38 per share (0.61)
January – September 2016
- Net sales increased to SEK 12,111 million (7,039), acquired growth was 69 per cent
- EBITA excluding extraordinary items increased to SEK 1,004 million (601), margin 8.3 per cent (8.5)
- EBITA increased to SEK 941 million (541), margin 7.8 per cent (7.7)
- EBIT increased to SEK 871 million (501), margin 7.2 per cent (7.1)
- Profit after tax increased to SEK 655 million (354), corresponding to SEK 5.47 per share (3.67)
- Net debt increased to SEK 2,315 million (1,741)
- Net debt/EBITDA decreased to 1.6 times (1.8). Net debt/EBITDA pro forma and excluding extraordinary items was 1.4 times
Comments from President and CEO Tomas Carlsson:
This was another record-breaking quarter for Sweco, with the highest third quarter profit to date. EBITA improved 35 per cent year-on-year, pro forma and excluding extraordinary items, due mainly to synergies from the Grontmij-acquisition.
One year has passed since the closing of the Grontmij-acquisition and we have conducted a thorough review of status against the initial integration plan. We will overachieve the initial financial estimates. Synergies are now estimated to be 20 per cent higher, extraordinary items 11 per cent lower and full impact realised in half the time. The acquisition is expected to be EPS-accretive as early as 2016, one year earlier than initially estimated.
Overall, the market for Sweco’s services is good. The Swedish market is strong. The markets in Norway, Denmark, Western Europe and Central Europe are generally good. The markets in Finland and the Netherlands remain challenging.