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Saxlund Group Interim report January - March 2022

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 Interim report

January - March 2022 

  • Sales for the quarter increased by 74 percent to approximately SEK 85 million
  • Continued positive earnings trend
  • EBITDA approximately SEK 3 million

First quarter 2022

  • Net sales amounted to SEK 84.6 (48.7) million
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK 2.9 (1.6) million
  • Operating profit (EBIT) for the period amounted to SEK 2.0 (0.8) million
  • Profit after tax amounted to SEK 0.9 (0.1) million
  • Earnings per share amounted to SEK 0.02 (0.00) before and after dilution


Significant events in the first quarter

  • Saxlund Group AB acquires IMUS for a purchase price of approximately SEK 7 million, which corresponds to approximately SEK 3.6 million on a cash and debt free basis.
  • Saxlund receives award decision within the framework agreement with Sinfra for a bioenergy plant to Ystad Energi, contract value approximately SEK 21.5 million
  • Subsidiaries in Germany sign contracts worth approximately SEK 18 million

Significant events after the end of the reporting period

  • No significant events after the end of the reporting period.

CEO's comment
Saxlund started the year very strongly with increased sales and profit compared to the first quarter of 2021. EBITDA increased to SEK 2.9 (1.5) million for the quarter and sales increased to SEK 84.5 (48.7) million in 2021. Sales for the quarter are the highest for a single quarter in 4 years and reflect the strong order book that we have, an extremely positive development. We are also increasing sales for aftermarket compared to 2021, even though quarter one is historically weak for aftermarket. The purchase of IMUS contributes positively to both sales and earnings for the Swedish part of the aftermarket, which is gratifying.

Profitability is better than the corresponding quarter of 2021, despite being affected by the general situation with higher inflation and increased commodity prices. Several of the projects completed during the first quarter were signed in late 2020 and early 2021 and were costed at the time of the contract award. Going forward, we have raised our prices in contracts and in cost forecasts for the new cost situation. However, the global situation is unpredictable and inflation remains high.

The order book for new projects has been replenished during the quarter by approximately SEK 40 million, which is in line with the company's expectations. In Germany, we continue to have high demand linked to the Phosphorus Recycling Act and we signed a new contract during the quarter. The market for our transportable bioenergy plants looks strong and we have signed a contract with Ystad Energi for the delivery of two transportable plants where commissioning will take place during the first half of 2023.

We have an exciting sales pipeline and activity in the market remains high in all our home markets. During last year and at the beginning of this year, we also broadened our offering with Saxlund's Electrostatic Precipitator Filter systems and entered the market for service and aftermarket of hydropower plants. The year has started well for these two new areas for Saxlund where we deliver our first Electrostatic Filter during the quarter and where IMUS contributes positively to the result.

During the first quarter, uncertainty about the energy market in Europe has increased due to the war in Ukraine. The transition from energy production with gas and coal to electricity and heat will be further accelerated. Germany intends to completely stop buying Russian oil by the end of 2022/2023. In Sweden, the forecast for necessary electricity production is 300 TWh by 2045 and today about 150 TWh is produced. Much of the increase is attributable to the investments taking place in northern Sweden on fossil-free steel. Our assessment is that the market for electricity and heat from bioenergy will therefore increase throughout Europe and thus also the demand for Saxlund's systems and products for material handling and energy production.

The future for Saxlund looks extremely exciting and we envisage a positive 2022. The global situation creates some uncertainty and the toughest challenge will be to increase profitability as price increases are already hitting the cost side. The demand for our systems and products is high, which is extremely positive. Saxlund has shown in 2021 that we are making positive results and the beginning of 2022 indicates that we can further improve earnings and sales.

Upcoming reporting sessions
Annual General Meeting 2022: 28 April 2022
Interim report April - June 2022: 25 August 2022
Interim report July - September 2022: 10 November 2022
Year-end report and quarterly report October - December 2022: 16 February 2023


Stockholm, 28 April 2022

Kenneth Eriksson 
Chairman of the Board 

William Heigard
Board Member

Peter Löfgren 
Board member 

Linus Johansson
Board member

Charlotte Danielsson 
Board member

Stefan Wallerman
CEO

Addresses
Saxlund Group AB (publ)
Fanny's Way 3
13154 Nacka

Org. no. 556556-8325

Website: www.saxlundgroup. com

[1] https://www.dn.se/ekonomi/expansionen-i-norr-kraver-el-fran-alla-vara-karnkraftverk/

Questions about the report are answered by

Stefan Wallerman
CEO/CEO
stefan.wallerman@saxlund.se
Tel: +46 70 306 37 00


Saxlund Group AB (publ) is listed on NASDAQ OMX First North, Erik Penser Bank is Certified Adviser. Phone number: +46 8-463 83 00, Email: certifiedadviser@penser.se.
This information is information that Saxlund Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 8 :30 a.m. CET on April 28, 2022.

Originally published in Swedish: 

https://www.saxlundgroup.com/se/investerare/pressmeddelanden/delarsrapport-januari-mars-2022/