• Order intake increased by 14% to SEK 8,076 million (7,085). For comparable units, it was an increase of 3%.
• Net sales increased by 26% to SEK 8,063 million (6,398). For comparable units, it was an increase of 13%.
• EBITA increased by 28% to SEK 1,225 million (959), corresponding to an EBITA margin of 15.2% (15.0%).
• Profit for the quarter rose 18% to SEK 752 million (638), and earnings per share amounted to SEK 2.06 (1.75).
• Cash flow from operating activities amounted to SEK 632 million (276).

CEO's message

New record quarter with continued profitable growth

First quarter
Demand during the first quarter remained high and stable. Order intake was on par with invoicing and increased by 14% compared to the corresponding period previous year, of which 3% was organic. Order intake increased for the majority of companies during the quarter, with the strongest demand in companies with customers in the energy segment, engineering and process industries. Demand was also at a stable and high level in the medical technology and pharmaceutical customer segment. There was still, however, large variation in the demand between various companies, with the overall weakest development in infrastructure and construction.

Net sales increased by 26%, of which 13% organically and was, for the first time ever, above SEK 8 billion for a single quarter. Net sales increased organically in all business areas, with the strongest growth in the Benelux and Flow Technology business areas, where the majority of companies developed positively. Many companies experienced a continued easing of the disruptions in supply chains during the quarter, which had a positive impact on invoicing. Overall, however, delivery times are still long and some of the disruptions remain.

There was a continued positive trend in profitability during the first quarter and EBITA increased by 28% to SEK 1.2 billion, corresponding to an EBITA margin of 15.2% (15.0%), which is a new record for a first quarter. The improvement was driven by the strong organic growth in combination with a high, stable gross margin and positive contributions from newly acquired companies. The best performance came from the Flow Technology and Benelux business areas, which is primarily attributable to the robust growth in sales.

Good order intake, in combination with long lead times and further price increases from suppliers resulted in some additional inventory build-up during the quarter. On the other hand, cash flow improved significantly compared to the corresponding period previous year thanks to the high earnings and a lower increase in working capital. Despite the high acquisition pace, our financial position remains strong, with room for additional, value-creating acquisitions and organic growth initiatives.

We are continuously working on several initiatives and activities that strengthen our strategic platform. This includes investments in leadership and competence development as well as strengthening our resources in the business areas with the purpose of supporting our companies for organic growth. In this context, sustainability is a prioritised area where we are, for example, working on the development of a climate training for all companies. Intensive work is also ongoing to ensure that our targets meet all the criteria in SBTi.

Acquisitions
Three companies were acquired early in the first quarter. We welcomed Sax Lift in Denmark, which specialises in scissor lift tables, and we continued strengthening our position in Germany via the acquisition of Hobe, a niche manufacturer of micro precision tools for the shaping of interior profiles. Lastly, we acquired the Dutch company, SKS, with annual sales of approximately SEK 390 million. It offers a diversified portfolio of high-quality, innovative and durable flow technology components to the food & beverage and pharmaceutical process industries.

Subsequent to the end of the quarter, we acquired yet another company - the Danish filter specialist, Safematic. Total annual sales for the companies acquired thus far in 2023 amount to SEK 655 million and all of them are stable and profitable, with good prerequisites for generating continued sustainable, profitable growth. Despite uncertainties about the economic situation, the inflow of interesting, well-managed and stable companies remains at a good level. We have discussions underway with several of them and I am looking forward to welcoming additional successful companies to Indutrade during the year.

Outlook
Overall, the market situation and demand were stable and positive throughout the entire first quarter. We did, however, notice some variation between companies and major uncertainties remain about the general economic outlook. Nevertheless, in several segments, the long-term outlook for our companies is favourable, which is linked to major investment programs in green technology, among others. During the second quarter, we will be faced with challenging comparison figures, but we still have a large, high quality order backlog, which gives us confidence for a positive sales and earnings trend in the near future.

Going forward, the Indutrade model will remain a strength and we have a stable platform that we are continuously developing and improving so that we can keep delivering sustainable, profitable growth.

Bo Annvik, President and CEO

Note
The information in this report is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the agency of the following contact persons on 27 April 2023 at 7.30 CEST.

For further information, please contact:
Bo Annvik, President and CEO, tel. +46 8 703 03 00,
Patrik Johnson, CFO, tel. +46 70 397 50 30

This report will be commented upon as follows:
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About Indutrade
Indutrade is an international technology and industrial business group that today consists of approximately 200 companies in some 30 countries, mainly in Europe. In a decentralised way, we aim to provide sustainable profitable growth by developing and acquiring successful companies managed by passionate entrepreneurs. Our companies develop, manufacture, and sell components, systems and services with significant technical content in selected niches. Our value-based culture, where people make the difference, has been the foundation of our success since the start in 1978. Indutrade's net sales totalled SEK 27 billion in 2022, and the share is listed on Nasdaq Stockholm in Sweden.