Green Landscaping Group Interim Report January-March 2022

May 5, 202207:00 CEST

High growth and significantly improved profitability

January – March 2022

  • Total revenue for the quarter amounted to SEK 886 (669) million, an increase of 32.5%*.
  • Organic growth was 6.7%. Adjusted for currency effects, organic growth was 5.1%.
  • EBITA amounted to SEK 61 (15 million. This corresponds to an increase of 318 (-) percent.
  • The EBITA margin amounts to SEK6.9 (2.2) percent. This corresponds to an increase of 4.7 percentage points. With these results, the financial objective of an EBITA margin of at least 8% has been achieved, based on the last 12-month period.
  • Cash flow from operating activities amounted to SEK 78 (37) million.
  • Basic earnings per share were SEK0.27 (-0.14).
  • Diluted earnings per share were SEK0.27 (-0.13)

* 30.6%, excluding currency effects.

CEO Johan Street Northöm comments on the quarter:

The Group got off to a good start this year. Sales are up sharply, as are earnings, which are driven by improvements in our existing companies as well as the performance of profitable new companies that have joined the Group. An important part of the Group’s efforts is to put in place the right preconditions for the success of our businesses and entrepreneurs. I am proud to report that our strategy is bearing fruit.

Strong growth with improved margin

We continue to grow strongly and total revenue increased by 32.5% for SEK 886 (669) million during the quarter. The positive point is that organic growth amounted to 6.7%. EBITA improved further and stands at SEK 61 (15) million, which corresponds to an increase of 318 percent. The strong earnings trend is fueled by higher profitability in our existing companies and high margins in the companies we have acquired. Thanks to these efforts, we were able to achieve an EBITA margin for the quarter of 6.9 (2.2) percent.

Basic earnings per share were SEK0.27 (-0.14) million and cash flow from operating activities amounted to SEK 78 (37) million.

Our improved profitability in the first quarter means that we now have a trailing 12-month EBITA margin of 8.2 (5.5)% and have thus met our financial target of an EBITA margin of at least 8.0. %. The debt ratio (measured in net debt/EBITDA pro forma RTM) is 2.3 (2.9) times. The growth rate for the last 12 months was 40%, compared to the growth target of 10%.

Over the past three years, our compound annual growth rate (CAGR) has been 34% for sales and 123% for EBITA.

Russia invasion of Ukraine is an abuse of a sovereign state and we have great sympathy for those affected by war. We take care as far as possible not to do business with companies linked to Russian interests. Through activities in our companies, we support Ukraine in various ways. Among others, one of our subsidiaries in Finland employed people who fled the war.

Our business is affected by rising input costs and we are actively working to limit the effect of cost increases. Many of the Group’s contracts extend over many years and contain indexation clauses to adjust prices. Other project activities are carried out under contracts lasting less than one year, which allows them to be adapted if necessary to rising costs. The situation is being carefully monitored and the CEOs of our subsidiaries are proactively working on it.

New acquisitions strengthen our position

The Group acquired four new companies during the first quarter (their estimated annual turnover is shown in brackets): Markbygg Anläggning Väst AB (280 million Swedish crowns) in SwedenHallandsåsens Utemiljö AB (30 million Swedish crowns) in SwedenGlenn Syvertsen AS (35 million Swedish crowns) in Norway and Rain Oy (SEK 40 million) in Finland. In addition, after the end of the quarter, we signed an agreement to acquire all shares of Aktiv Veidrift AS (annual sales of approximately NOK 240 million) in Norway. Through these acquisitions, we strengthen our position in the Norwegian market and benefit from the additional skills and expertise that these new entrepreneurs and dedicated employees bring, making us all stronger.

The potential market for potential companies that could become part of the Group is high and we constantly come across exciting companies. Interest in the Group is growing and we note that our offer to entrepreneurs is attractive. We have a long-term approach and believe in the power of local entrepreneurship, which is why we ensure that there is a good cultural fit between the Group and the companies we acquire. During the acquisition process, we therefore attach great importance to getting to know the new entrepreneurs well.

Local entrepreneurship is fundamental to our strategy and our success

The Group now has 42 subsidiaries in Sweden, Norway and Finland. They are all independent companies that have the autonomy to make decisions adapted to local conditions, in a decentralized context. We can best meet the needs of our customers and suppliers by adapting to local conditions and opportunities. With this in mind, we place great importance on putting in place the right preconditions for our businesses to operate and thrive.

As a group, we also work in a structured way to make the most of the expertise that exists in local subsidiaries and support them in their development. We do this, for example, by using business development/LEAN methods and various initiatives associated with digitization.

I am proud of what we have accomplished so far in our journey to consolidate the Nordic floor care and landscaping market. I consider the results of the last quarter as proof that our strategy is both viable and solid.

Presentation of the report:

Green landscaping group CEO Johan Street Northöm and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on May 5 at 10:00 a.m. EST. The presentation will be in English.

Telephone: SE: +46850558369 UK: +443333009265 USA: +1 6319131422 PIN: 11221528#
Webcast: https://financialhearings.com/event/44141

This disclosure contains information that Green Landscaping Group AB (pub) is required to make public under the EU Market Abuse Regulation (EU 596/2014). The information has been submitted for publication, through the contact person, the 05-05-2022 07:00 CET.

For more information:

Johan Nordström, CEO, AB Green Landscaping Group
+46 70 838 58 12, [email protected]

Carl-Fredrik MeijerCFO & IR, AB Green Landscaping Group
+46 70 108 70 19, [email protected]

Green Landscaping Group AB (pub) works with outdoor environments and infrastructure. Through subsidiaries, we offer the most comprehensive portfolio of services on the market, aimed at making outdoor environments more sustainable and safer. Our business concept is to improve the customer’s outdoor environment by providing services focused on high customer value, long-term sustainability and quality. The Company has approximately 1,600 employees and its sales amount to approximately 3.2 billion Swedish crowns. The Company’s shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information, visit www.glgroup.se.

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(c) Decision 2022. All rights reserved., sources Press Releases – English

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