Ratos AB: Solid earnings and important acquisitions in a challenging quarter

Regulatory Information 2022-07-18

Q2 2022

• Adjusted1) EBITA amounted to SEK 963m (1,035)
• Operating profit amounted to SEK 925m (915)
• Profit for the period amounted to SEK 689m (679)
• Diluted earnings per share amounted to SEK 1.83 (1.84) for continuing operations
• Cash flow from operations amounted to SEK 824m (1,188)

 

January–June 2022

• Adjusted1) EBITA amounted to SEK 1,215m (1,211)
• Operating profit amounted to SEK 930m (1,069)
• Profit for the period amounted to SEK 551m (2,412). The sale of Bisnode had a positive effect on preceding year’s profit with SEK 1,816m
• Diluted earnings per share amounted to SEK 1.17 (1.85) for continuing operations
• Cash flow from operations amounted to SEK 335m (578)
• Leverage excluding financial leasing amounted to 0.6x (-0.7x)

 

Significant events during and after the end of the period

• On 16 May, Ratos acquired 74% of NVBS Rail Group Holding AB (NVBS), which is now part of the Construction & Services business area
• On 1 June, Ratos divested all of its shares in Dun & Bradstreet. The transaction strengthened Ratos’s cash position by approximately SEK 700m and had an impact of SEK -18m on EBITA for the second quarter of 2022
• On 15 June, Ratos signed an agreement to acquire 70% of the consulting firm Knightec, which will become part of the Industry business area. The acquisition is expected to be completed at the beginning of August
• On 1 July, NVBS acquired the civil engineering company TKBM Entreprenad AB

1)  For definition see page 22 in the report. EBITA for Q2 2022 is adjusted with revaluation of listed shares SEK -18m (-113). EBITA for Q1-2 is adjusted with revaluation of listed shares SEK -118m (-131) and restructuring costs of SEK -130m attributable to Diab.

“Sales totalled SEK 8,420m, up 20% year on year. During the quarter, NVBS was acquired and an agreement to acquire Knightec was signed. Both companies are an excellent fit with our industrial strategy with synergies. The acquisitions will be followed by a number of initiatives in their respective industries. We are delivering solid earnings and are growing in line with our financial targets, despite the challenges in our operating environment. Adjusted EBITA for the second quarter amounted to SEK 963m, down 7% year on year. Plantasjen was impacted by adverse weather in the quarter, inflation and the diminishing impact of the pandemic.”

Jonas Wiström, President and CEO, Ratos

A telephone conference will be held today at 09.00 CEST to present the result. The presentation will be held in English and will also be available as an audiocast on Ratos website, www.ratos.com.

Link to the audiocast: https://financialhearings.com/event/44161

Those who wish to participate in the conference call in connection with the presentation are welcome to call the number below. To make sure that the connection to the conference call works, call a few minutes before the conference starts to register.

Dial-in number:
UK: +44 333 300 9263
SE: +46 8 505 583 54
US: +1 646 722 4903

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

Stockholm 18 July 2022
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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 a.m. CEST on 18 July 2022.


About Ratos
Ratos is a business group consisting of 14 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2021, the companies have approximately SEK 25 billion in net sales. 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.