ViaCon wins order for delivering sustainable infrastructure solutions

ViaCon has won an order for delivering rainwater harvesting tanks for a sustainable solution, along with Gabion Walls solutions for a datacenter project in Sweden. The project value exceeds SEK 40 million.

“I am pleased to share the news that ViaCon Sweden has secured this deal. We were awarded the contract based on our knowledge and experience but also because of our strong sustainability offering, which was an important factor in this customer’s decision-making which this customer placed high demands on their business partner,” says Stefan Nordström, President and CEO of ViaCon.

ViaCon's role in this venture involves delivering a rainwater harvesting system, along with Gabion Wall solutions. The comprehensive Project Scope encompasses design, production, and installation. The production of water tanks takes place in Lycksele in Sweden, while prefilled and machine-vibrated gabions will be produced on-site, maximizing the value add and a best possible sustainable project delivery.

The timeline for this undertaking is demanding, requiring significant effort from our Swedish execution team, commencing from mid-January, and anticipated to conclude within the first half of 2024.

ViaCon’s Interim Report January – September 2023

ViaCon’s best quarter up to now with earnings improvements in all three business units.

THIRD QUARTER

  • Net sales amounted to EUR 57,710 thousand (62,607), a decrease of 7.8% compared with the corresponding period last year. Organic growth amounted to -1.5%.
  • Operating earnings (EBIT) amounted to EUR 8,557 thousand (6,441), corresponding to an EBIT margin of 14.8% (10.3).
  • Operating earnings before depreciation (EBITDA) amounted to EUR 10,246 thousand (7,842), corresponding to an EBITDA margin of 17.8% (12.5).
  • Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 11,492 thousand (8,937), corresponding to an underlying EBITDA margin of 19.9% (14.3).
  • Order intake amounted to EUR 61,205 thousand (55,052), an increase of 11.2% compared with the same period last year. Organic growth amounted to 26.8%.
  • During the quarter, the operating earnings were affected by the strong sales development in the Bridges & Culverts business unit, as well as by the ongoing efficiency improvement work in all three business units.


JANUARY – SEPTEMBER

  • Net sales amounted to EUR 138,319 thousand (158,657), a decrease of 12.8% compared with the corresponding period last year. Organic growth amounted to -8.2%.
  • Operating earnings (EBIT) amounted to EUR 7,559 thousand (10,221), corresponding to an EBIT margin of 5.5% (6.4).
  • Operating earnings before depreciation (EBITDA) amounted to EUR 12,374 thousand (14,496), corresponding to an EBITDA margin of 8.9% (9.1).
  • Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 15,147 thousand (18,275), corresponding to an underlying EBITDA margin of 11.0% (11.5).
  • Order intake amounted to EUR 157,760 thousand (180,683), a decrease of 12.7% compared with the same period last year. Organic growth amounted to -6.1%.
  • The year’s operating earnings have been negatively affected by lower sales mainly due to delays in customers’ financing of their projects during the first half of the year. The situation improved during the third quarter, with increased order intake and earnings improvement.
  • As of January 1, 2023, the accounting currency and presentation currency is Euro.

COMMENTS FROM THE CEO

During the third quarter, activity increased in most of ViaCon’s markets compared to the first half of the year. This is reflected in the group’s sales, results and order intake. The situation with delays in ViaCon’s customers’ financing solutions, which had a negative impact on the first and second quarters, improved in the third quarter. In addition, the intensified efficiency work launched at the end of the second quarter has had a positive effect on our costs during the period.

Sales for the quarter amounted to EUR 57,710 thousand (62,607), a decrease of 7.8% on the previous year. The sales development was related to GeoTechnical Solutions and StormWater Solutions, where we still have some effects from delays in customers financing solutions. Bridges & Culverts Solutions had a very good organic growth of 27.6%. ViaCon has chosen to leave, and divest, non-core operations with sales of around EUR 972 thousand in the corresponding period previous year. By continuing to leave product groups with low profitability, we increase our product margins. Organic growth amounted to -1.5% adjusted for currency effects, divestments and acquisitions.

The operating earnings (EBIT) amounted to EUR 8,557 thousand (6,441), corresponding to an EBIT margin of 14.8% (10.3). The adjusted operating earnings amounted to EUR 9,802 thousand (7,537), corresponding to an adjusted EBIT margin of 17.0% (12.0). The operating earnings have been affected by the strong sales development in the Bridges & Culverts business unit as well as by the ongoing efficiency work in all three business units. Cash flow for the quarter was positive, mainly driven by operating profit and changes in working capital.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an ageing infrastructure in many countries. Order intake during the quarter was strong and amounted to EUR 61,205 thousand (55,052), corresponding to an organic growth of 26.8%. Our expectation is that order intake will remain at a good level during the autumn.

In June, we decided to intensify the efficiency work initiated in 2022 with the aim of slimming the organization for increased agility and efficiency, which means that ViaCon will reduce the workforce by approximately 180 positions. During the quarter,

the initiative progressed according to plan and by the end of September, the reduction of most of these positions was completed. The reduction of the remaining positions will be implemented during the fourth quarter. During the third quarter, the initiative has reduced our costs excluding non-recurring items, compared to the costs we had planned for, by approximately EUR 2.7 million. For the full year 2023, the initiative is expected to contribute to cost savings excluding non-recurring items of approximately EUR 6 million. At the end of the fourth quarter, we expect this initiative to result in sustainable efficiencies corresponding to approximately EUR 10 million on an annual basis. The non-recurring items linked to this initiative are expected to amount to EUR 2.5-3.0 million, of which EUR 1.2 million have burdened the result in the third quarter. These measures will strengthen ViaCon both in the short and in the long term.

With an increasing order intake and with the ongoing streamlining work, we confidently look forward to a good end to the year.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: November 17, 2023
Time: 10:00 -11:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q3-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.

Invitation to presentation of ViaCon’s Q3 report 2023

The ViaCon Group invites you to a webcast presenting 2023’s third quarter results.

Date: November 17, 2023
Time: 10:00-11:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: ViaCon Group Q3 presentation – Finwire (https://www.finwire.tv/webcast/viacon-group/q3-2023/)

On November 17, 2023 at 10:00 CET, ViaCon’s CEO, Stefan Nordström, and CFO, Philip Delborn, will present financial results and development for the third quarter 2023. The presentation will be held in English and includes a Q&A session.

The Q3 report will be published on November 16.

The report and the presentation will be available on ViaCon's website after they are released: Reports – Viacon Group.

ViaCon’s Interim Report January – June 2023

Efficiency work accelerated, after a quarter affected by delays in customers’ financing solutions in connection with infrastructure projects.

SECOND QUARTER

  • Net sales amounted to EUR 50,075 thousand (61,091), a decrease of 18.0% compared with the corresponding period last year. Organic growth amounted to -14.3%.
  • Operating earnings (EBIT) amounted to EUR 2,603 thousand (6,536), corresponding to an EBIT margin of 5.2% (10.7).
  • Operating earnings before depreciation (EBITDA) amounted to EUR 4,151 thousand (7,898), corresponding to an EBITDA margin of 8.3% (12.9).
  • Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 5,398 thousand (9,209), corresponding to an underlying EBITDA margin of 10.8% (15.1).
  • Order intake amounted to EUR 53,225 thousand (61,412), a decrease of 13.3% compared with the same period last year. Organic growth amounted to -10.2%.
  • ViaCon intensified the efficiency work initiated in 2022. The initiative is expected to result in reduced costs, excluding non-recurring items, of approximately EUR 5-6 million in 2023, compared to the planned costs for the year.


JANUARY – JUNE 2023

  • Net sales amounted to EUR 80,609 thousand (96,050), a decrease of 16.1% compared with the corresponding period last year. Organic growth amounted to -12.6%.
  • Operating earnings (EBIT) amounted to
  • EUR -998 thousand (3,779), corresponding to an EBIT margin of -1.2% (3.9).
  • Operating earnings before depreciation (EBITDA) amounted to EUR 2,128 thousand (6,655), corresponding to an EBITDA margin of 2.6% (6.9).
  • Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 3,655 thousand (9,339), corresponding to an underlying EBITDA margin of 4.5% (9.7).
  • Order intake amounted to EUR 96,555 thousand (125,631), a decrease of 23.1% compared with the same period last year. Organic growth amounted to -20.5%.
  • As of January 1, 2023, the accounting currency and presentation currency is Euro.

COMMENTS FROM THE CEO

Interest rate increases and high inflation during the first half of the year have entailed delays in ViaCon’s customers’ financing solutions for infrastructure projects. This shift in the customers’ projects has had a negative impact on the quarter’s turnover and results. Demand for ViaCon’s solutions is still high and during the summer months ViaCon has had a clearly increasing order intake. To ensure that 2023 will also be a strong year, ViaCon has, during the quarter, intensified the efficiency work initiated in 2022.

Sales for the quarter amounted to EUR 50,075 thousand (61,091), a decrease of 18.0% on the previous year. The sales development was related to Bridges & Culverts Solutions and GeoTechnical Solutions. StormWater Solutions had a good organic growth of 8.7%. ViaCon’s acquired operations have contributed to a turnover of EUR 229 thousand, but we have also chosen to leave, and divest, non-core operations with a turnover of around EUR 1,148 thousand in the corresponding period previous year. By continuing to leave product groups with low profitability, we increase our product margins. Organic growth amounted to -14.3% adjusted for divestments and acquisitions.

The operating earnings (EBIT) amounted to EUR 2,603 thousand (6,536), corresponding to an EBIT margin of 5.2% (10.7). The adjusted operating earnings amounted to EUR 3,850 thousand (7,848), corresponding to an adjusted EBIT margin of 7.7% (12.8). The operating earnings were affected by the lower sales, mainly as a result of delays in customer financing solutions. The quarter’s cash flow was improved compared to the corresponding period last year, where mainly the efficiency work with improving the working capital contributed positively.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an ageing infrastructure in many countries. Order intake during the quarter amounted to EUR 53,225 thousand (61,415), corresponding to an organic growth of -10.2 percent. Demand and order intake for 2022 was high, but unevenly distributed between the quarters.

In June, we decided to intensify the efficiency work initiated in 2022 with the aim of slimming the organization for increased agility and efficiency, which means that ViaCon will reduce the workforce by approximately 180 positions. Through this initiative we expect to reduce our costs, excluding non-recurring items, compared to the costs we had planned for in 2023 by approximately EUR 5-6 million in 2023. The savings will be visible to some extent already in the third quarter and at the end of the fourth quarter, we expect this initiative to result in sustainable efficiencies corresponding to approximately EUR 10 million on an annual basis. The non-recurring items linked to this initiative are expected to amount to EUR 2.5-3.0 million, of which EUR 1.0 million will be charged to the result in the second quarter and the remaining costs will be charged to the third and fourth quarter of 2023. These measures will strengthen ViaCon both in the short and long term.

The increase in order intake we saw during the summer combined with the ongoing efficiency work means that we, with confidence, look forward to a continued good development as the leading European supplier with more sustainable solutions compared to alternative types of materials.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: August 30, 2023
Time: 14:00 -15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q2-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.

Invitation to presentation of ViaCon’s Q2 report 2023

The ViaCon Group invites you to a webcast presenting 2023’s second quarter results.

Date: August 30, 2023
Time: 14:00-15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: ViaCon Group Q2 presentation – Finwire (https://www.finwire.tv/webcast/viacon-group/q2-2023/)

On August 30, 2023 at 14:00 CET, ViaCon’s CEO, Stefan Nordström, and CFO, Philip Delborn, will present financial results and development for the second quarter 2023. The presentation will be held in English and includes a Q&A session.

The Q2 report will be published on August 30 in advance of the webcast.

The report and the presentation will be available on ViaCon's website after they are released: Reports – Viacon Group.

ViaCon Group accelerates its efficiency work, with short term effects supporting also the future development

On June 20, 2023, the Board of Directors of ViaCon Group AB (publ) has approved an accelerated deployment of the efficiency work initiated by ViaCon in 2022. As an immediate consequence in order to slim down the organisation for agility and increased efficiency, ViaCon will reduce its workforce by approximately 180 positions. The reductions are planned to be implemented from Q3 2023. Provisions for costs linked to the reductions will be made during Q2 and Q3 2023.

“ViaCon has had great results and development over the past three years, and we want to ensure that we can deliver yet another good year. In Q1 and Q2 2023 we have seen a continued active market but the recent inflation and interest rate rises create some uncertainties and delays in customers’ financing solutions for infrastructure projects. By taking action now, we take more control over the trajectory of our results with the aim to make also 2023 a strong year. The improved internal efficiency will also support the future development of ViaCon when serving a growing infrastructure market” explained ViaCon CEO Stefan Nordström.

ViaCon’s Interim Report January – March 2023

Good demand, however, with lower sales related to GeoTechnical Solutions’ sales development compared to the previous year, resulting in a volume- and inflation-driven weaker operating earnings.

FIRST QUARTER

  • As of January 1, 2023, the accounting currency and presentation currency is Euro.
  • Net sales amounted to EUR 30,534 thousand (34,959), a decrease of 12.7% compared with the same period last year. Organic growth amounted to -9.6%.
  • Operating earnings (EBIT) amounted to EUR -3,600 thousand (-2.757), corresponding to an EBIT margin of -11.8% (-7.9).
  • Operating earnings before depreciation (EBITDA) amounted to EUR -2,023 thousand (-1,243), corresponding to an EBITDA margin of -6.6% (-3.6).
  • Underlying earnings before depreciation (underlying EBITDA) amounted to EUR -1,742 thousand (130), corresponding to an underlying EBITDA margin of -5.7% (0.4).
  • Order intake amounted to EUR 43,330 thousand (64,219), a decrease of 32.5% compared with the same period last year. Organic growth amounted to -30.3%.

COMMENTS FROM THE CEO

ViaCon has a clear seasonal variation throughout the year that follows weather conditions, which vary between quarters and between years. The first quarter of the year followed a more normal seasonal pattern with a long winter that has affected the quarter negatively. Compared to the first quarter 2022, with a record high order intake driven by concerns for material availability and the invasion of Ukraine, the year 2023 started in line with our expectation and demand was good for the season and the prevailing economic situation.

Sales for the quarter amounted to EUR 30,534 thousand (34,959), a decrease of 12.7% on the previous year. The sales development was mainly related to GeoTechnical Solutions with an organic growth of -24.0%, while Bridges & Culverts Solutions and StormWater Solutions had good organic growth of 5.1% and 10.6% respectively. ViaCon’s acquired operations have contributed to a turnover of EUR 496 thousand, but we have also chosen to leave, and divest, non-core operations with a turnover of around EUR 650 thousand in the corresponding period of the previous year. By continuing to leave product groups with low profitability, we increase our product margins. Organic growth amounted to -9.6% adjusted for divestments and acquisitions.

The operating earnings (EBIT) amounted to EUR -3,600 thousand (-2,757), corresponding to an EBIT margin of -11.8% (-7.9). The adjusted operating earnings amounted to EUR -3,320 thousand (-1,384), corresponding to an adjusted EBIT margin of -10.9% (-4.0). The operating earnings were affected by the lower sales as a result of the quarter’s unfavourable weather conditions and high inflation. The quarter’s cash flow was affected by the quarter’s results and seasonal build-up of working capital.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an ageing infrastructure in many countries. Order intake during the quarter amounted to EUR 43,330 thousand (64,219), of which organic growth was -30.3%. Demand and order intake for 2022 was high, but unevenly distributed between the quarters.

The availability and pricing of input goods has stabilized and efficiency activities are underway to offset the gradually realized inflationary pressure. Given the geopolitical and macroeconomic situation, uncertainty remains high and the caution of some of our customers remains.

ViaCon is an entrepreneurial company with a history of meeting challenges in a flexible, dynamic way. This is also made possible by our strong market position, and the solid, long-term customer relationships we have in the markets where we operate.

There are a large number of projects underway in Europe that aim to strengthen the economy and improve an infrastructure that is neglected. Our strategy gives us confidence in being able to deliver continued good development as the leading European provider, with more sustainable solutions compared to alternative types of materials. This, combined with gradually broadening our market presence and our customer offering, means that we aim to grow faster than the market. ViaCon is determined to be at the forefront of contributing to sustainable development in the infrastructure sector, an area where we can make a difference for our customers and our environment.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: May 24, 2023
Time: 14:00 -15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q1-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.

Invitation to presentation of ViaCon’s Q1 2023 report

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The ViaCon Group invites you to a webcast presenting 2023’s first-quarter results.

Date: 24 maj 2023
Time: 14:00-15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: ViaCon Group Q1 presentation – Finwire (https://www.finwire.tv/webcast/viacon-group/q1-2023/)

On May 24, 2023 at 14:00 CET, the ViaCon Group will present its 2023 first-quarter results.

ViaCon’s CEO, Stefan Nordström, and CFO, Philip Delborn, will present financial results and development and will be available to answer questions at the end of the session.

The presentation will be in English. The session will be recorded and available to watch on demand via ViaCon Group Q1 presentation – Finwire.

The Q1 report will be published on May 24 in advance of the webcast. All information about the results and presentation will be available on ViaCon's website: Reports – Viacon Group.

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Press release from the Annual General Meeting of ViaCon Group AB (publ) on May 16, 2023

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ViaCon Group AB (publ) held the Annual General Meeting on Thursday, May 16, 2023. Below is a summary of the resolutions at the meeting, all made by the required majority and in accordance with proposals presented to the meeting.

Determination of the income statement and balance sheet, as well as the consolidated income statement and consolidated balance sheet and discharge from liability

At the Annual General Meeting, the income statement and balance sheet as well as the consolidated income statement and consolidated balance sheet for 2022 were adopted. The Annual General Meeting granted each of the Board members and the CEO during the year discharge from liability for the 2022 financial year.

Decision on disposition of the company's profits

The Annual General Meeting resolved in accordance with the Board of Directors’ proposal, to distribute in total SEK 4,208,400 (EUR 378,392) of the company's profit of SEK 162,048,350 (EUR 14,570,335) available to the meeting, to the shareholders, equivalent to a dividend of total SEK 84 (EUR 7.55) per share, and to balance SEK 157,839,950 (EUR 14,191,943).

Election of Board members, Chairman of the Board and re-election of auditor

The Board of Directors shall consist of six (6) members elected by the Annual General Meeting and one (1) deputy. The AGM resolved on the re-election of the board members Patrik Nolåker, Krzysztof Andrulewicz, Ulrik Smith, Niclas Thiel, Moritz Madlener, Elke Eckstein and Gunilla Spongh as ordinary board members and Philip Delborn as a deputy board member for the period until the next Annual General Meeting. For the same period, Patrik Nolåker was re-elected as Chairman of the Board.

The company must have an auditor. The Annual General Meeting resolved to re-elect the auditing company Ernst & Young AB as the company's auditor for the period up to the end of the 2024 AGM. Authorized Public Accountant Staffan Landén will remain as the principal auditor.

Determination of fees to the Board members and the auditor

The Annual General Meeting resolved that fees to the Board members shall be paid in a total of SEK 1,550,000, of which SEK 500,000 shall be paid to the Chairman of the Board, Patrik Nolåker, SEK 350,000 shall be paid to each of Gunilla Spongh, Elke Eckstein and Krzysztof Andrulewicz. A prerequisite for payment is that a member is a board member who is appointed by the Annual General Meeting and is not employed by FSN Capital, the company or subsidiaries.

Furthermore, the Annual General Meeting decided that fees should be paid to the auditor according to approved invoice.

The decision in its entirety

The decisions as a whole are available at www.viacongroup.com.

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ViaCon’s Annual Report with Sustainability Report for 2022

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The Annual Report with Sustainability Report for 2022 for ViaCon Group AB (publ) has today been published on the company’s website.

The report, together with the appendix "ViaCon Emissions Data Report 2022" are available for download from https://viacongroup.com/portfolio/reports/.

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About us

ViaCon constructs connections. Consciously.

We combine more than three decades of experience with today's cutting-edge technology and vital sustainable goals. ViaCon is a pioneer in the field of Bridges & Culverts-, GeoTechnical- and StormWater Solutions.

About us

ViaCon constructs connections. Consciously.

We combine more than three decades of experience with today's cutting-edge technology and vital sustainable goals. ViaCon is a pioneer in the field of Bridges & Culverts-, GeoTechnical- and StormWater Solutions.

About us

ViaCon constructs connections. Consciously.

We combine more than three decades of experience with today's cutting-edge technology and vital sustainable goals. ViaCon is a pioneer in the field of Bridges & Culverts-, GeoTechnical- and StormWater Solutions.

About us

ViaCon constructs connections. Consciously.

We combine more than three decades of experience with today's cutting-edge technology and vital sustainable goals. ViaCon is a pioneer in the field of Bridges & Culverts-, GeoTechnical- and StormWater Solutions.