ViaCon’s second quarter was characterised by continued strong growth, despite geopolitical tension and rising inflation.
- Net sales amounted to SEK 639.9 million (537.5), an increase of 19.1% compared with the same period last year. Organic growth amounted to 20.6%.
- Operating earnings before depreciation (EBITDA) amounted to SEK 82.7 million (72.0), corresponding to an EBITDA margin of 12.9% (13.4).
- Operating earnings (EBIT) amounted to SEK 68.5 million (56.5), corresponding to an EBIT margin of 10.7% (10.5).
- Underlying earnings before depreciation (underlying EBITDA) amounted to SEK 96.5 million (81.4), corresponding to an underlying EBITDA margin of 15.1% (15.1).
- Order intake amounted to SEK 643.3 million (679.5), a decrease of -5.3 % on the same period last year. Organic growth amounted to -9,1%.
- The acquisition of the assets from Bergschenhoek Civiele Techniek B.V. was completed.
- Philip Delborn appointed new Chief Financial Officer (CFO), starting latest mid-October.
JANUARY – JUNE
- Net sales amounted to SEK 1,006.2 million (851.8), an increase of 18.1% compared with the same period last year. Organic growth amounted to 18.2%.
- Operating earnings before depreciation (EBITDA) amounted to SEK 69.7 million (80.0), corresponding to an EBITDA margin of 6.9% (9.4).
- Operating earnings (EBIT) amounted to SEK 39.6 million (51.7), corresponding to an EBIT margin of 3.9% (6.1).
- Underlying earnings before depreciation (underlying EBITDA) amounted to SEK 97.8 million (94.2), corresponding to an underlying EBITDA margin of 9.7% (11.1).
- Order intake amounted to SEK 1,316.1 million (1,070.7), an increase of 22.9 % on the same period last year. Organic growth amounted to 18,9%.
COMMENTS FROM THE CEO
Sales for the quarter totalled SEK 639.9 million (537.5), an increase of 19.1% on the previous year. ViaCon’s acquired operations contributed SEK 33.5 million to sales, although we also chose to leave non-core business with annual sales of around SEK 22.5 million in the corresponding period last year. Organic growth was 20.6% adjusted for divestments and acquisitions, a result of price increases and good underlying demand in all segments. During the first half of the year, demand and order intake have been strong and amounted to 1,316.1 (1,070.7) with an organic growth of 17.4%. However, it has been unevenly distributed between the quarters. During the second quarter, order intake amounted to SEK 643.3 (679.5) million, a decrease of -5.3% compared to the same period last year. The organic growth of order intake amounted to -9.1%. The order intake growth for the first quarter amounted to a total of 72.0% and 67.5% for the organic growth, which is the highest level ever.
Operating earnings for the quarter were affected by a higher cost structure through acquisitions and higher volume, as well as one-off costs. Adjusted for non-recurring items, underlying operating earnings before depreciation and amortisation amounted to SEK 96.5 million (81.4), which resulted in an underlying EBITDA margin of 15.1% (15.1).
Geopolitical tension and rising inflation bring some uncertainty in developments moving forward. The quarter has brought continued disruptions in supply chains, long delivery times and some raw material shortages, but the situation has now stabilised. Cash flow was weak during the first half of the year as a direct result of a continued increase in working capital. The main reason for having to increase our inventories is the longer lead times in the wake of the recent strain on supply chains. We expect this trend to turn around during the autumn, and can already see improvements in the supply level, with shorter lead times and less disruption.
On 2 May 2022, the acquisition of assets from Bergschenhoek Civiele Techniek B.V. (BCT) in the Netherlands was finalised. The acquisition further strengthens ViaCon’s market-leading position in Europe for corrugated steel-based infrastructure solutions, thus establishing an even stronger platform for delivering sustainable, competitive customer solutions. Intensive work is under way to integrate recent acquisitions while we also continue to develop our business long-term, both by progressively broadening our market presence and customer offering, and by increasing our productivity.
ViaCon is determined to be at the forefront in guiding the infrastructure sector in a sustainable direction, an area where we genuinely can make a difference for our customers and our wider environment. It is therefore very pleasing to have received further awards for our sustainability work during the quarter. We won FSN Capital’s ESG Award 2021, a distinction set up by ViaCon’s owners to create strong, more sustainable portfolio companies as part of their efforts to integrate ESG and climate aspects in the entire investment cycle. In addition, we were made Project of the Year winner 2022 by The National Corrugated Steel Pipe Association (NCSPA) in the Going Green category, for our efforts in building a sustainable future. We also won the prestigious prize in the GoGreen class at the IFAT trade fair. We see these awards as firm acknowledgements of our sustainability work and our contribution to building a sustainable future.
Continuing to align with key sustainability goals and leading the charge for positive action toward green development and against climate change, the ViaCon Group has joined the SteelZero initiative, which is focused on increasing market demand for net-zero steel. By joining the initiative, ViaCon makes a commitment to transition to 100% net-zero steel by 2050.
ViaCon is an entrepreneurial company with a history of meeting challenges in a flexible, dynamic way. We will continue to develop our operation by implementing efficiency improvements and further strengthening our team. ViaCon is without a doubt significantly stronger today than it was a year ago. With our strategy, we are confident that we can continue to deliver strong development as the leading European supplier of sustainable solutions in our segments.
President and CEO, ViaCon Group
The report is published at www.viacongroup.com.