Svedbergs i Dalstorp AB (publ)

Good morning and welcome to this presentation of Svedbergs Group's quarterly report for Q1. We are going to present here today me, Per-Johan Andersson, who is the head of the company, as well as Ann-Sofie Davidsson, CFO for Svedbergs Group. Before we go into the results for the first quarter, a few words about Svedbergs Group. We are a company that owns and develops strong brand companies in Europe. Our companies design and sell products for bathrooms. In some cases, we also produce these products. Today, we operate on the Nordic, British and Dutch markets, and our ambition is to grow organically. It is important for us to have growth and to develop existing companies and the expansion and acquisition of well-off companies, mainly entrepreneurial-driven, that complicate our business geographically, product-wise and or broadly. Our ambition is to contribute by consolidating the northern European market for bathroom furniture and shower solutions. In this geography, we see the possibility of developing our consultancy into an even better group of strong local companies. Vi har idag ett antal varumärkesbolag som har starka positioner på respektive marknad. We have a number of companies that have strong positions on the respective markets. Totalet omsatte koncernen senaste verksamhetsåret 2023 drygt 1,8 miljarder svenska kronor, men i bitar på 13,2%. I dessa siffror var T-Balux med en del på drygt en månad. Hade vi haft T-Balux för helåret 2023 hade omsätten uppgått till 2,8 miljarder och en bitar på knappt 320 miljoner kronor. Se vi till fördelningen av försäljningen under Q1 så är RoppeRoads det största segmentet med 58% under totalomsättningen, förutom Svedbergs på 20%, Tebalux på 18%, Makro 7% och Kasse 4%. Nu har vi highlights från Q1. Vi har börjat 2024 starkt, både omsättningsmässigt och resultatmässigt. Vårt senaste förvärv, Tebalux, presenterar bra och RoppeRoads fortsätter att prestera bra med fortsatt omsättningsökning, starkt marginal och ett bra resultat på en nivå bedömd The reason for this is a strong and inexhaustible focus on product development with the new product launches in combination with the organisators' ability to develop the business with new revenue streams. We have had a fluctuating supply development on the Swedish and Finnish markets, which we consider weaker than the rest of the markets in the Nordic countries, primarily in the Svedberg segment. Makodesign and Kasse performed in line with Q1 last year. Vi fortsätter att arbeta med förbättrad effektivitet som bland annat visar sig i en förbättrad bruttomarginal samtidigt som vi kontinuerligt justerar våra kostnader till rådande konjunkturläge. Ett bidrag i detta är naturligtvis till Balux som agerar med en högre marginal. Vi fortsätter att fokusera på att arbeta med hållbarhet in i alla våra verksamheter och vi ser att vi får effekt på vårt klimatavtryck sveg för skog. Our sales in the quarter increased by 20% to 572 million, compared to 476 million in the previous year's Q1. This means an organic growth of minus 4%. A large part of the contribution is naturally to Balux and Trooper Roads. We managed to achieve an increased share of 84 million kronor compared to 64 million kronor and a share of 14.6%, which means that we are approaching our financial goal of 15% in the share. Vårt operativa kassaflöde under kvartalet var negativt, 49 miljoner, svagare än föregående år och det fria kassaflödet var minus 58 miljoner i kvartalet jämfört med föregående år, minus 11 miljoner kronor. Vår nettoskuld i förhållande till EBITDA är 2,7 jämfört med 2,3 föregående år. Detta innefattar även kommande earnouts. Exkluderar vi earnouten uppe på Roadstivalux hamnar vår nettoskuld i förhållande till EBITDA på 2,1. Se vi till försäljningen per segment i geografi. Vår försäljning per land i Q1 ser ut som i översta cirkeldiagrammet där UK står för 48%, Sverige för 20%, Nederländerna för 18%, Danmark och Norge för vardera 4% och Finland för 2% och övriga marknader för 4% gällande segmenterna kommenterade på tidigare bilder men ni ser spridningen på de olika segmenten. Svedbergs experiences a stronger demand for essential sales channels compared to previous years. This is a turnover in the quarter of 113 million against 146 million in previous years. It is an increase of 78. Result-wise, Svedbergs has reached a share of 8 million compared to previous years of 24 million in the quarter. Distribution and sales are visible in the diagram, where Sweden is the largest market, followed by Finland, and the assessment of the Swedish market is harshly affected by higher inflation and higher interest rates. If we look at the macro, we have basically had sales in the quarter in line with the previous year. Sales during the quarter went up to 42 million kronor and can be divided into 4 million. Compared to the previous year, the sales were a little higher, 44 million, and also then it was divided into 4 million. The market design market is mainly Sweden and Norway, where Sweden accounts for 65%. Market Design has, at the end of the previous year, realized that the installation of bathroom furniture has, in this way, increased its margin and at the same time has the opportunity to strengthen customer satisfaction through a consolidated delivery. If we then look at Kasse, they have managed to achieve a high profitability of 19.6% per piece, despite the market situation. It is slightly lower than the previous year, but still at a high level. A sales level with the previous year at 23 million, but in pieces at 4 million. It is very satisfactory that Kasse continues to deliver results at this level. As you can see in the circle diagram, Denmark is the largest market with 91% of total sales. Roperoad is developing, as I mentioned initially, in a very positive way, and in the quarter sales increase to 289 million, an index of 110, and it is trading at 49 million, or 17%. Our assessment is, as I mentioned earlier, that we take market share on the British market by caring for customer relations and continuously developing our assortment together with progressive sales efforts. Storbritannia is the largest market, 95% of the total sales and the invested part of the sales goes to Ireland. Tebalux, which is the largest consumer, came in at the end of November last year. There we have explained the differences in comparison figures. Tebalux is a well-established producer and supplier of bathroom furniture on the Dutch market with some exports to neighboring countries. Through Tebalux we have added two strong brands, PrimaBard and Tebalux to our group. I kvartalet uppgår till försäljningen till 105 miljoner med en ebita på 26 och en ebitaprocent på hela 24,8%. Vi har arbetat ihop ett tag med organisationen i Holland och det har gått mycket bra. Naturligtvis är det en förändring för det här med att gå från ett familieägt bolag till att ingå i en börsnoterad koncern. Nu lämnar jag över ordet till Ann-Sofie.

Tack så mycket.

Om vi börjar titta på försäljningen och tillväxt så ser vi en fin utveckling i kvartalet. Vi ser en tillväxt som är förvärvad med 22% och vi har en negativ organisk tillväxt på minus 4%. Valutan påverkar försäljningen positivt med cirka 2%. Jämför vi med kvartal 1 föregående år som var ett relativt starkt kvartal för alla våra segment så är det en mer blandad bild i år. Förvärvet av Tebalux och den starka utvecklingen för RopeRoads påverkar nettomsättningen positivt medan efterfrågan på de nordiska marknaderna påverkas negativt av det allmänna The next picture shows sales development since Q1 2020. If we follow the curve for rolling 12, we see a significant increase during 2021-2022. Strong demand and acquisition of Rupert Roads affected sales positively at that time. And after that, the sale has been in a trend of around 1.8 billion kronor. Now we see that the curve is rising again to get closer to a whole year's income of over 2 billion kronor. As previously mentioned, the acquisition of TVA Lux, the strong development of Rope Rose and the currency has positively affected the sale.

If we look at the profit and loss result in the quarter, it is still at a high and stable level.

Jämfört med samma kvartal föregående år ökade bruttomarginalen med 3,2%. Rullande 12 taktar vi på en bruttomarginal på cirka 44,5% vilket är en förbättring jämfört med förra kvartalet med cirka en procentenhet. Vi har fortsatt en bra balans mellan prissättningen och ökade kostnader för inköpmaterial samtidigt som vi har en fin kostnadskontroll. Som en följd av en stark bruttomarginal så ökade EBITDA-resultatet med cirka 20 miljoner jämfört med samma period föregående år och summerades upp till cirka 84 miljoner kronor. Detta motsvarande EBITDA-marginal på 14,6 procent och en ökning av rullande 12 med några punkter. I kvartalet var kastarflödet på den löpande verksamheten negativ. Ökade kundfodringar och utbetalningar av kundbonussar innebar en negativ förändring av rörelsekapitalet som summerade upp till minus 49 miljoner kronor att jämföra med föregående år på minus 3 miljoner kronor. Årets investeringar summerade upp till 9 miljoner kronor, vilket var i nivå med föregående år och investeringarna är huvudsakligen härfördeliga till investeringar i produktionsutrustning och produktutveckling. When the investments were included, the free cash flow was minus 58 million kronor compared to the same period in the previous year at about 11 million kronor. If we then look at the key figures, the solidity went up to about 49% compared to about 43% in the same period in the previous year. The positive development is mainly due to strengthened own capital in connection with the performance emissions at the beginning of the quarter. Avkastning på sysselsatt kapital uppgick till drygt 14%, vilket var i nivå med föregående år. Avkastning på eget kapital var något lägre jämfört med föregående år och summerade upp till 11,7%. Resultatet efter skatt rullande 12 har ju sjunkit något jämfört med samma period föregående år, främst på grund av ökade kostnader för räntor och högre skatt i Storbritannien och Holland. Dessutom har eget kapital ökat i samband med företragsadmissionen, vilket drar ner avkastningen.

Hur ser då den finansiella ställningen ut?

Skuldsättningen har minskat sedan årsskiftet. I samband med företrädesemissionen så reglerades en del av koncernens skuldsättning i samband med förvärvet av Tebalux. Nettskulden på den 31 mars uppgick till 855 miljoner kronor i år att jämföra med föregående år på cirka 654 miljoner kronor. Och ökningen är då främst härförbar till förvärvet av Tebalux. Nettoskulden inkluderar bedömd tilläggsköterskilling för Roperoads och Tebaluk som cirka 196 miljoner kronor att jämföra med samma period föregående år på cirka 160 miljoner kronor. Och som Pia tidigare sa, nettoskulden i förhållande till EBITDA uppgår vid kvartalets slut till 2,7. Samma period föregående år var nettoskulden i förhållande till EBITDA 2,3.

Och då lämnar jag över ordet till Paran.

Thank you for that, Anne-Sofie. We start 2024 with a strong quarter, and we put that as a basis for the rest of 2024. We also summarize the quarter and look a little forward, so we continue the close cooperation with Tebalux so that they can get into the company in the best way possible. We have the quarter and will continue to strive to strengthen our market position by actively focusing on product innovation and proactive sales in the best possible way. Our focus and work with sustainability continues with great engagement throughout the company. Vi har under kvartal lanserat ett antal nya miljödeklarationer, så kallade EPD. Vi fortsätter också vårt söken efter att hitta potentiella bolag och förvärvas passa bra in i vår koncern och vår struktur. Vi kommer nu att svara på frågor och för att delta i frågestunden nu 10.20 så följ länken i pressreleasen från den 15 april. Ett stort tack för att ni tog er tid att lyssna.

Despite the fact that the market might do that, right?

Yes, it is difficult to look forward to leaving no prognosis. There are so many things happening in our environment that something can happen in the next hour. But what is given and what we know now is that we want to have strong, good companies that have a strong position in the market and drive the development with product innovation and products. And they are good there too. Nothing is so good that it can't get better.

Exactly, and on that point, 25% in the marginals also looks strong. That's basically what they did with LTM when you first recognized this acquisition. Now they are spending some time on integration, which may take away some focus from running the business, but they still perform 25%. Can you get any more flavor on that? Is it seasonally a very strong quarter or something like that?

Yes, I think they follow season variation as we do in the rest of the companies. There is not much difference on the Dutch market. It is of course a part of the integration time. There are a lot of things that we take, so it can be so that we take on a little extra cost, a little more cost than it is, because we want to get some parts of the business in, maybe strengthen some parts of the organization. But somewhere it will also generate an upside in one way or another. Vi räknar med att de ska ligga någonstans där, ish, 25%. Vi har ju förvärvat dem på den, och det är ju det vi vill att de ska försvara.

Det är klart. Jag har några till, men jag tänker att jag kan släppa in någon annan om det är någon som vill ge mig en liten paus från att prata.

Yes, hej. Mark Sandrud här. Ja, har du mig?

Jajamän, jajamän.

Yes, I also have a few questions. I can continue with Teba Lux and start there. I can talk a little more about the status quo, yes, but if you say that they were somewhere around 3, just under 400 in revenue for the entire year 23, and now it is 105 million in revenue. Do you have visibility on a quarterly basis backwards as well? How is the distribution of the quarter growth in terms of revenue? Is it with such a trend or if you can discuss a little bit without giving some direct figures?

We can look at it from the market, then it is our understanding that I usually have related to that the Swedish market maybe is twice as hard or damaged as other markets in Europe and maybe not in it. And then we can say that Holland is in line with the English market and we say that it is down somewhere 10% in it. And then our understanding is that they are better than that. So to speak, they do not lose 10% in that case. Then we have a little different segment and how it goes in different parts, but they are a... My opinion is that when I make that assessment, it is of course difficult to validate because we do not have a clear market statistics. But my assessment is that we definitely keep our market position in the Dutch market. It is possible that we are a little strong, but carefully expressed, we keep our market position.

Yes, okay. If you look at the Swedish-Finnish market, minus 22% is Svedbergs. If I try to look sequentially or see what happens to the market in terms of direction, is it a deterioration from what we've seen in previous years if you just look sequentially, question-wise, or are we on the same level and that we have a year-on-year-like situation?

If you look at the history, we are meeting Swedenbergs segment, the strongest quarter ever, Q1 2023. Of course, the comparison has been very strong, but our assessment is that it is not worse now than it has been before. This is the big part of the Svedberg segment, the project market. It's where we've had the biggest drop. It depends on the fact that no housing is being built.

That's right, but it's fair to say that compared to the second half of 2023, it hasn't gotten worse.

Yes, I can say that. In that case it is. What is in it, if we look at it, we say that we usually have, I have related to some time earlier, the design index and the construction start index from the forecast center. And there we have a delay when you start a project. When we say construction start, there is a delay somewhere, maybe in some cases up to 12 months even before we get there. And of course, here you can just follow that it has gone down for It's been quite a few months since then, so there may have been something under 2023, but now it's been at a very low level for more than 12 months, so maybe up to 18 months. So there's no, I don't see any drama in it. It's a challenging market, but it's not worse than it was the second half of 2023.

Yes, perfect. Skullsättningen, tänkte jag, det är ju fyra månaders Tebalux i det här. Kan du säga någonting om vilken nivå vi ligger på nätet? Om Tebalux skulle vara del hela året?

Vi har tidigare sagt att det är strax under två år. and get the prognosis or the assessment of the form as we have done before, it still holds.

Yes, perfect. Thank you very much.

Thank you, I'll move on. It's hard to say, especially about the future, it's a complicated quote. We have thought a little bit about the project leg there. I understand that you can't say when the construction market is in full swing, Men kanske kan prata om nutid i alla fall. Får ni några apropå er som byggherrar? Får ni några inkommande samtal på den typen av projekt nu?

Yes, there are. For example, when the government comes in, housing rights associations and larger housing, there are also a lot of smaller projects being built. So it's not like it's completely zero, so to speak, in that part. But of course, it's a relative. If it's full speed and it's 100, then maybe it's 10 now.

And again, that is also constant compared to H2-23.

Yes, roughly. That's where we are. Then, as I mentioned, we have a certain project sales, or it becomes indirect in Europa Roads UK. And there, when we follow, according to the CPA statistics over there, and how much is being built and how the market has developed, then Europa Roads has also been more successful there than what the market in general is. So if you look at it as a group, we hold our positions well there. What we ended up with is Sweden and the Swedenberg segment.

I want to remind you that you once communicated a project exposure figure for the group of about 15%. Can you say anything about how much of the Swedenberg brand that is

You wish you could have had a clear division on the market, because that's the first definition of what a project is, when it comes to new construction. But let's say it's 30-40% or something like that. Then, when we see this, and that's how the market works, we can in some cases take a project via a trade union. It can be a smaller project, but it can still be a large one. Say there are 150 apartments, it can go via a trade union that works with an installer of that part. And it can still go directly via us. So there are different ways to get out. And from there it is difficult for us to see how much exactly it is. But it is our assessment that it is affected in that way.

Yes, it is understood. This may be a little more of a detailed question, but non-recurring items, 400 000, 0.4 million, what is that? Is it tabellux related or something else?

Yes, it is tabellux related.

Yes, thank you. And then the last question for me, cash flow, you are talking about customer bonuses, among other things, in the context of warehouse construction. Can you say something about what customers this is and for what period do they get a bonus? Is it related to 2023 or is it Q1, so to speak?

No, it's like this, that when you finish the previous year, you know what the bonus is, so it mostly includes 2023.

Yes, I understand. And then I guess maybe it's okay too.

Yes, it's the whole consumer.

Okay, great. Those were the questions I had today. Thank you.

Thank you. Do we have any more questions? I would like to follow up with a question on the cash flow. The currency capital change there, you are building currency capital. Räknar man kunna reversera det eller är det på grund av de högre volymerna i vissa marknader, till exempel Storbritannien?

Vi ska kunna reversera det ju. Detta är ju nu unikt för Q1 2024.

Ja, så normalisering under året är vad jag kan räkna med. Perfekt, tack så mycket.

Tack. Någon ytterligare fråga?

Jag kanske kan få ställa en sista fråga som är relaterad till tilläggsköpesskyldningen. Ni har ju de här, jag tror det var 196 miljoner som ligger kvar nu under long term. Men min uppfattning har varit att viss av de delarna ska betalas ut nu under 2024. Finns det någon anledning till varför de inte allokerade under short term? Eller hur ser ni på den uppdelningen i balansräkningen?

Nej, men alltså, det är ingenting som kommer att betalas ut under 2024.

Okej, så då är delen som är kvar i Roppo Rodes, den betalas ut 2025 då och resterande del för Teppalux 2026 eller 2027, för perioden sträckte sig fram till 2026, om inte jag missminner mig.

Korrekt.

Okej, ja tack.

Och den största delen av det kommer i 2025. Igen, bara bookkeeping.

Japp, japp. Toppen. Ytterligare frågor?

Om det inte finns några frågor ytterligare så får vi tacka för visat intresse och önskar alla en bra dag.

Tack så mycket.

We have also received a question from Marcus Ramström. We read your Q1 and saw the description below that the tax in the Q1 is affected by high taxes in Great Britain. Is there any one-off effect here, or is this tax rate reasonable to calculate even in the future? The answer is no, there are no one-off effects here, but there is a level difference. In Q1 2023, tax rates were 19% in Great Britain. Kuret 2024 var skattesatsen 25 %.