Year-end report 2019 Sweco AB (publ)
Solid quarter concludes best year so far
October – December 2019
- Net sales increased to SEK 5,692 million (5,112)
- EBITA increased to SEK 532 million (494), margin 9.4 per cent (9.7)
- EBIT increased to SEK 596 million (491), margin 10.5 per cent (9.6)
- Profit after tax increased to SEK 472 million (459), corresponding to SEK 4.01 per share (3.89)
January – December 2019
- Net sales increased to SEK 20,629 million (18,735)
- EBITA increased to SEK 1,869 million (1,629), margin 9.1 per cent (8.7)
- EBIT increased to SEK 1,892 million (1,618), margin 9.2 per cent (8.6)
- Profit after tax increased to SEK 1,393 million (1,256), corresponding to SEK 11.85 per share (10.59)
- Net debt increased to SEK 2,114 million (1,849)
- Net debt/EBITDA was unchanged at 1.0 x (1.0)
- The Board of Directors proposes a dividend distribution of SEK 6.20 per share (5.50)
Comments from President and CEO Åsa Bergman:
A solid fourth quarter concludes another record year for Sweco. In the quarter, EBITA increased 13 per cent or
SEK 64 million and organic growth amounted to 5 per cent, after adjustment for calendar effects. The improved performance was driven by positive fee development, positive project adjustments and an increased number of employees, supported by a solid order backlog.
In particular, the UK and Denmark improved profitability considerably. In both countries this is driven by increased average fees and positive project adjustments. In the UK, the MLM acquisition also contributed positively. Sweden continues to deliver industry leading profitability, combined with solid organic growth. Finland also contributed in the quarter and achieved a full-year EBITA margin of 12 per cent. In addition to MLM, the acquisitions of Imp GmbH in Germany and the design operations of NRC Group in Finland, also contributed positively.
With a strong financial position, solid increase in earnings per share and a positive market outlook, the Board of Directors proposes to increase the dividend to SEK 6.20 per share.
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.