Comments on the report
The Group’s consolidated net sales increased by 15 percent during the period compared to last year and amounted to SEK 1,111 M (968). The increase is explained by an organic growth of 4 percent, positive price and mix effects of 6 percent and currency effects of 5 percent. The positive price effect is due to higher steel prices compared to last year.
Gross profit increased to SEK 151 M (134), with a gross margin in line with last year of 13.6 percent (13.8). Operating result increased to SEK 33 M (19), corresponding to an operating margin of 3.0 percent (2.0). Adjusted for inventory gains of SEK 7 M (-3), the underlying operating result amounted to SEK 26 M (22). The underlying operating margin during the period amounted to 2.4 percent (2.2).
First nine months
During the first nine months, the Group’s net sales increased by 12 percent compared to last year and amounted to SEK 3,649 M (3,253). Tonnage in business area Sweden & Poland exceeded last year by 9 percent, while Finland & Baltics delivered 1 percent less than last year. Higher average steel prices and mix effects had a positive impact of 5 percent on net sales. The price trend also led to inventory gains of SEK 26 M (21).
Gross profit amounted to SEK 517 M (467), with a gross margin of 14.2 percent (14.4). The operating result was impacted by one-off costs of SEK -28 M (-42) relating to the plan for exit of the remaining unprofitable operation in Prerov, Czech Republic, and adjustment of inventory and bad debt in the Baltics.
The operating result increased to SEK 110 M (52) which is mainly explained by maintained gross margin at the same time as we have grown organically from a tonnage perspective by 4 percent and increased net sales by 12 percent. Sales and administration costs are at the same level as last year. Adjusted for items affecting comparability and inventory gains and losses, the underlying operating result increased to SEK 100 M (73). Operating margin amounted to 3.0 percent (1.6) and the underlying operating margin amounted to 2.7 percent (2.2).
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