Ratos AB: Adjusted EBITA up 41% in the fourth quarter – continued good demand

Regulatory Information 2023-02-13

Q4 2022

• Adjusted1) EBITA amounted to SEK 318m (226)
• Operating profit amounted to SEK 282m (379)
• Profit for the period last year was impacted positively by an unrealised gain of SEK 164m related to the revaluation of shares in Dun & Bradstreet Holding Inc.
• Diluted earnings per share amounted to SEK -0.11 (0.94)2)
• Cash flow from operations amounted to SEK -175m (75)

 

Full-year 2022

• Adjusted1) EBITA amounted to SEK 1,966m (1,802)
• Operating profit amounted to SEK 1,618m (1,656)
• Diluted earnings per share amounted to SEK 1.68 (2.83) for continuing operations
• Cash flow from operations amounted to SEK 723m (425)
• Leverage excluding finance leases was 2.5x (0.1x)
• The Board of Ratos proposes a dividend for full-year 2022 of SEK 0.84 per share (1.20)

 

Significant events during and after the end of the quarter

• On 27 October, Ratos completed the acquisition of Semcon, which is now part of the Industry business area
• On 1 December, HL Display, which is part of the Industry business area, acquired the company Allied POS
• On 23 December, TFS, which is part of the Industry business area, acquired the contract research organization (CRO) Appletree CI Group AG

1) For definition see page 24 in the report. EBITA for Q4 2021 is adjusted with revaluation of listed shares SEK 164m. EBITA for Q1-4 2022 is adjusted with revaluation of listed shares SEK -118m (-116) and restructuring costs of SEK -130m attributable to Diab.

2) Earnings per share declined as a result of the fact that the profit for the period in the fourth quarter declined SEK -338m as a result of that the preceding year was impacted positively by the revaluation of the shares in D&B that were divested in 2022 (SEK 164m) and due to the recognition of a deferred tax asset (SEK 94m). Net financial items for the period declined due to financing of acquisitions and higher interest rates (SEK -45m) as well as negative currency effects (SEK -40m).

“Adjusted EBITA amounted to SEK 318m for the quarter and SEK 1,966m accumulated for the full year, up 41% and 9%, respectively. Sales for the quarter amounted to SEK 8,195m, up 42% year on year, of which 12% was organic growth. The efforts to create a more homogeneous group continued during the fourth quarter with the acquisition of the consulting company Semcon. During the year, we continued to acquire infrastructure companies as well as companies in the Industry business area. These areas will also be our focus going forward. The path towards a more unified structure will involve both sales of Group companies and acquisitions and will enable us to maintain a strong balance sheet.”

Jonas Wiström, President and CEO, Ratos

A presentation of the interim report will be held today at 09.00 CET. The presentation will be held in English and will also be available as a webcast on Ratos website, www.ratos.com.

The presentation can be followed on Youtube via the following link; https://youtu.be/6rBHv2vp6t4

Participants who wish to ask questions live are asked to pre-register, please send an e-mail to helena.jansson@ratos.com in advance for a personal invitation.

Representatives of the media are welcome to contact Josefine Uppling, Vice President Communication, for interview requests.

Stockholm 13 February 2023
Jonas Wiström
President and CEO

For further information, please visit www.ratos.com or contact:
Josefine Uppling, Vice President Communication and Sustainability
+46 76 114 54 21
josefine.uppling@ratos.com

Jonas Ågrup, CFO and IR
+46 8 700 17 00

Jonas Wiström, President and CEO
+46 8 700 17 00

This is information that Ratos AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 a.m. CET on 13 February 2023.


About Ratos
Ratos is a business group consisting of 16 companies divided into three business areas: Construction & Services, Consumer and Industry. The companies have approximately SEK 32 billion in net sales (LTM). Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.