Organic growth, improved EBITA margin and strong cash flow
·
Net sales increased by 6% to
· Organic growth was 3% (-1)
· The order backlog was 8% higher at
· EBITA increased by 16% to
· The EBITA margin was 5.9% (5.4)
· Profit after tax was
· Cash flow from operating activities was
· Net debt amounted to
· Six acquisitions were completed in the quarter, adding annual sales of approximately
· Basic and diluted earnings per share were
CEO statement
operations have been largely unaffected by the pandemic, but servicing sales have decreased.
The ongoing Covid-19 pandemic has had a bearing on
The level of production within installation has been good, and only a few worksites have been closed because of the pandemic. The servicing business, however, has been negatively affected, as in many cases we have not had access to servicing sites because of precautionary measures in place. In most cases, cancelled servicing jobs have only been postponed and will be carried out at later date.
Organic growth and improved EBITA margin
It is really positive that, despite the Covid-19 pandemic, we have achieved our estimate from 2019 for organic growth in the first half of 2020. Net sales increased by 6 percent in the quarter, which is above
The EBITA margin increased to 5.9 percent in the quarter. Margins improved in
Order intake was slightly lower than last year, which was entirely due to lower activity in the servicing business as well as currency effects. Our strong order backlog, which only contains installation projects, remains solid. The order backlog increased slightly in
Strong cash flow and low debt
Cash flow for the quarter was strong and cash conversion was 149 percent, which is well above our target. Our net debt decreased
in the quarter by
Acquisitions continue to strenghthen
So far this year we have made thirteen acquisitions, six of which were in the second quarter and three were in July. The acquisitions add annual sales of approximately
Sustainability
Minimising occupational injuries is one of our key objectives. Occupational injuries have decreased by 18 percent over the last 12 months and LTIR (lost time injury rate) was 9.6 (11.7). The LTIR is still too high and progress on this differs from country to country. Our ultimate aim is to eliminate occupational injuries, while our medium-term goal is an LTIR of below 5.5.
Outlook
During times of uncertainty like the Covid-19 pandemic, customers prefer to sign service agreements and commission installation projects from reliable suppliers, which could generate good business opportunities for
Market development is uncertain because of the ongoing Pandemic. My expectation over the next few quarters, however, is that the installation business will remain solid and that the servicing business will gradually return to normal levels, as I am confident that our customers see the value in well-maintained properties.
For further information, please contact:
Åsa Neving, CFO. Tel: +46 8 695 22 87
[IRcontact@bravida.com]
This information is information that
The report will be presented at
Link to the webcast:
https://digital.vevent.com/rt/fronto2~bravida-q2-2020
Telephone conference:
SE: 0850692180
US: 16315107495
International Dial-In Number: +44 (0) 2071 928000
Conference ID: 9576695#
https://news.cision.com/bravida-holding-ab/r/interim-report-april-june-2020,c3156194
https://mb.cision.com/Main/8835/3156194/1280911.pdf
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