First quarter, January-
- Higher delivery precision and productivity improves profitability
-
Net sales decreased by 1% to
SEK 2,225 m (2,253) -
Operating profit (EBIT) increased by 15% to
SEK 223 m (194) -
Profit before tax (EBT) increased by 20% to
SEK 221 m (184) - Profit margin before tax (EBT %) was 9.9% (8.2)
-
Profit after tax amounted to
SEK 185 m (159) -
Cash flow from operating activities amounted to
SEK 244 m (225) -
Earnings per share before dilution amounted to
SEK 10.06 (8.61) - Equity ratio was 64% (55)
-
The Board of Directors proposes a dividend of
SEK 6.66 /share (3.33) and a 5:1 share split
A word from the CEO
AQ 30 years of growth, profit and fun
The year has started well. We improve our delivery precision and focus on helping our customers. Sales are still high. We are quick to adapt our capacity and cost base which, together with productivity improvements, gives a good result in the first quarter.
Improved delivery precision
During the first quarter, we started series production of wiring systems in our new premises in Łódź,
Market
In the quarter, we had a negative organic growth of 2% compared to the same quarter previous year. This is partly because we delivered several large energy storage projects in the corresponding quarter of the previous year, but we also see a slowdown in components for off-road equipment, trucks, and frequency converters.
A positive thing is that during the quarter we have been selected as the supplier of balancing units to market-leading robot manufacturer, we have won new products for several electric truck models, and we have won several major projects in electrical automation of harbor cranes. It should also be mentioned that our engineering company sees great demand in
Our market segments in electrification, defense industry, marine and railway are growing. Our companies within inductive components have great demand both for the design of new products and for the delivery of existing products. In the transition that is now underway to create, control and store renewable energy, inductive components are a necessary "gatekeeper" that ensures that electrical energy remains clean and fine.
Acquisitions
During the month of March, we agreed with the owners of JIT Mech to acquire their two production units in Robertsfors and Örnsköldsvik. It gives AQ unique competence in welding and processing of large complex components for electrification, defense industry and forestry automation. The closing takes place during the second quarter.
Cash flow and balance sheet
Our cash flow from operating activities is in line with our profit. We continue to be rigorous and disciplined in our efforts to reduce our inventory and purchasing costs. Purchasing is an incredibly important part of our mission to be competitive with our customers and we pride ourselves on being thrifty even with small expenses. Our net debt is low, which means that we have plenty of dry powder to use when the right opportunity presents itself to grow organically and through acquisitions.
AQ 30 years of growth, profit and fun
In 2024, AQ as a company celebrates 30 years. We want to do that by once again showing that we are hardworking entrepreneurs who, guided by our core values, can grow, show good results and have fun together along the way. So, in 2024 we will carry out several activities together with our employees, customers and partners where we celebrate that for 30 years, we have helped our demanding industrial customers to be successful and where we have given a good return to our shareholders.
Finally, as usual, I would like to thank our employees who do a fantastic job of satisfying our demanding customers.
James Ahrgren
CEO
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This disclosure contains information that
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,
www.aqgroup.com
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