Fourth quarter, October-
- Strong cash flow and the board proposes a doubled dividend
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Net sales increased by 12% to
SEK 2,221 m (1,974) -
Operating profit (EBIT) increased by 30% to
SEK 193 m (148) -
Profit before tax (EBT) increased by 33% to
SEK 182 m (137) - Profit margin before tax (EBT %) was 8.2% (6.9)
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Profit after tax amounted to
SEK 134 m (134) -
Cash flow from operating activities amounted to
SEK 239 m (140) -
Earnings per share before dilution amounted to
SEK 7.32 (7.27)
Full year 2023 in brief
- Net sales increased by 27% to
SEK 8,968 m (7,053) -
Operating profit (EBIT) increased by 61% to
SEK 792 m (491) -
Profit before tax (EBT) increased by 57% to
SEK 757 m (482) - Profit margin before tax (EBT %) was 8.4% (6.8)
-
Profit after tax increased by 54% to
SEK 636 m (413) -
Cash flow from operating activities amounted to
SEK 980 m (208) -
Earnings per share before dilution amounted to
SEK 34.57 (22.43) - Equity ratio was 63% (56)
-
The Board of Directors proposes a dividend of
SEK 6.66 /share (SEK 3.33 /share)
A word from the CEO
Strong cash flow and high turnover despite production disruptions
This year we broke our records again in terms of turnover and profitability. This year was also the best in terms of operating cash flow. We've shown growth 28 out of 29 years and been profitable every quarter since we were founded in 1994. That's 117 quarters in a row. It is an achievement in our contract manufacturing world where we are constantly exposed to tough competition from talented competitors. Our most important competitive advantage is our employees who work with the customer in focus in accordance with our core values where we let the individual take great responsibility and have great freedom to influence.
Production disruptions
During 2023, we have grown turnover by almost
For one of our customers in battery systems, we have had quality problems at the end of 2023. We have a close dialogue with the customer but right now we do not see any further projects in 2024. The projects we had were completed at the end of the fourth quarter with good quality. During 2023, the turnover related to this customer amounted to
These disruptions affect our profitability in the fourth quarter. Mainly caused by higher production costs but also quality costs. Therefore, the result in the quarter is disappointing even though we exceed our target with a profit before tax above 8%.
Market and acquisitions
We look positively on the development for our customers in 2024. We are a small part of the transition towards a more electrified society and there is good growth there. We also see strong growth in the defense industry, and we feel we are gaining market share in commercial vehicles. We also have a nice list of potential acquisitions that we want to complete. All in all, we remain positive about AQ's development in 2024.
Cash flow and balance sheet
During the year we improved the inventory turnover rate from 2.3 to 3.2 times/year. This results in a significantly better cash flow from operating activities, which was
2023 was great, aiming for new records 2024
2023 was financially our best year ever. There is good basis for next year to be even better. We are still a relatively small company that, through entrepreneurship and determination, will continue to be able to grow our turnover and profit by 15% per year, as we have done for the past 10 years.
AQ's fantastic employees are ready to help our customers deliver world-leading products that are critical to our transition towards a better society. We are proud that we can contribute with our excellence in how to manufacture these components and systems in the most resource-efficient way possible. It makes me full of confidence that we will continue to grow, make a profit and have fun!
James Ahrgren
CEO
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This disclosure contains information that
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For further information, please contact:
James Ahrgren, CEO, +46 76 052 58 88 or CFO,
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AQ is a global manufacturer of components and systems to demanding industrial customers and is listed on Nasdaq Stockholm's main market.
The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås,
In 2023 AQ had net sales of
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