VOLATI AB Q4 | Year-end report |
January-December 2022 |
"Continued growth and a good starting position for 2023"
Andreas Stenbäck, President and CEO
This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish original and the translation, the Swedish shall have precedence.
Year-end report, January-December 2022
Income statements are comparable for 2022 and 2021 and have been restated to describe continuing operations in Volati. For financial information about discontinued operations, see note 5.
Quarter Oct- Dec 2022
- Net sales increased by 12 percent to SEK 1,930 (1,722) million.
- EBITA increased by 12 percent to SEK 179 (159) million
- Profit after tax increased to SEK 105 (104) million
- Earnings per ordinary share increased by 3 percent to SEK 1.08 (1.05)
- On 17 November, an agreement was signed to acquire the operations of the painting tool wholesaler Embo Import AB for the Salix Group business area
Period Jan-Dec 2022
- Net sales increased by 23 percent to SEK 7,751 (6,309) million
- EBITA increased by 7 percent to SEK 710 (664) million
- Profit after tax declined by 2 percent to SEK 433 (442) million
- Earnings per ordinary share for continuing operations increased to SEK 4.44 (4.42)
- Earnings per ordinary share fell by 18 percent to SEK 4.44 (5.421))
- The Board proposes a dividend of SEK 1.80 (1.70) per ordinary share and SEK 40.00 per preference share in quarterly payments of SEK 10.
Events after the reporting period
- No significant events have taken place after the end of the reporting period.
Summary of results and key figures
Oct-Dec | Oct-Dec | Full year | Full year | |
SEK million | 2022 | 2021 | 2022 | 2021 |
Net sales | 1,930 | 1,722 | 7,751 | 6,309 |
EBITA2) | 179 | 159 | 710 | 664 |
EBIT | 155 | 143 | 624 | 620 |
Profit after tax | 105 | 104 | 433 | 442 |
Operating cash flow 2) | 323 | 290 | 431 | 487 |
Net debt/adjusted EBITDA, x2) | 1.9 | 1.3 | 1.9 | 1.3 |
Basic and diluted earnings per ordinary share, SEK1) | 1.08 | 1.05 | 4.44 | 5.42 |
Basic and diluted earnings per ordinary share, continuing operations, | 1.08 | 1.05 | 4.44 | 4.42 |
SEK | ||||
Return on adjusted equity, %1), 2) | 32 | 40 | 32 | 40 |
Net sales, SEK million
EBITA1), SEK million
-
000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Q4 | Q1 | Q2 | Q3 | Q4 |
2018 | 2019 |
Q1 | Q2 | Q3 | Q4 |
2020 |
Q1 | Q2 | Q3 | Q4 |
2021 |
Q1 | Q2 | Q3 | Q4 |
2022 |
800
700
600
500
400
300
200
100
0
Q1 | Q2 | Q3 | Q4 |
2019 |
Q1 | Q2 | Q3 | Q4 |
2020 |
Q1 | Q2 | Q3 | Q4 |
2021 |
Q1 | Q2 | Q3 | Q4 |
2022 |
Net sales, LTM | EBITA, LTM |
1) Key figure includes discontinued operations. 2) See note 7 for definitions of alternative performance measures.
Volati AB - Year-end report, 1 January- 31 December 2022 | - 2 - |
Continued growth and a good starting position for 2023
We bring the year 2022 to a close with a good growth rate and a 12-percent increase in both sales and EBITA for the fourth quarter. The positive growth is mainly attributable to our Ettiketto Group and Industry business areas, which continue to perform strongly, but we also see positive contributions from acquisitions. Our six add-on acquisitions during the year bring additional annual sales of over SEK 800 million. The Board recommends an increased dividend of SEK 1.80 per ordinary share for 2022.
Ettiketto Group continues strongly as a business area
A good fourth quarter from Ettiketto Group contributed to a 36 percent increase in net sales for the full year and a 25 percent increase in EBITA. Market conditions normalised during the quarter, following a supplier strike that affected the entire industry for much of 2022. The growth is mainly due to completed acquisitions, from which we continue to exploit synergies, thereby improving earnings. We intend to continue this margin-strengthening work during 2023.
Industry business area rounds off a good 2022
All four platforms in the Industry business area finished the year strongly, contributing to an increase of 36 percent in net sales and 25 percent in EBITA for the year. We see generally good market conditions and Industry's platforms are exposed to segments that are not particularly sensitive to the general economic climate. Our focus on creating strong platforms through operational improvements is paying off, while add-on acquisitions and synergies position us well for continuing growth in line with our long-term goals.
A stable 2022 gives Salix Group a good starting position
Salix can look back on a stable 2022 with sales growth of 10 percent. After several years of high demand and strong growth, from the second quarter of 2022 lower demand has been noted, particularly in the consumer-oriented parts of the business. During the year, we made three add-on acquisitions, which will contribute fully in 2023. We also strengthened our position and won new customers and contracts. We saw lower margins in 2022 as a consequence of the slowdown in demand and factors such as high freight costs, high material prices and a weak krona. We have taken measures and expect them to produce effects gradually during 2023. The focus on cost control and pricing gives good opportunities to influence profitability. At the same time, we can now see positive effects of the long-term operational improvements enabled by creating the integrated group that is Salix Group.
Good conditions for value-creatingadd-on acquisitions
We successfully worked on reducing our tied-up capital during the quarter and will continue these efforts in 2023. This has had a positive impact on our indebtedness and our net debt/adjusted EBITDA ratio is 1.9 times. We had a high acquisition rate during the year, ending with the acquisition of Embo Import in the fourth quarter. We completed six acquisitions in total, adding over SEK 800 million in annual sales. With solid financial capacity, well-developed processes and strong platforms to build on, we are in a very good position to maintain a good acquisition rate in the future.
Focus on long-term shareholder value
Over a long period of time, we have demonstrated a strong ability to deliver long-term shareholder value. EBITA has grown by 123 percent since the IPO in 2016. We raised SEK 1.2 billion in ordinary share capital in connection with the listing and have not since then diluted our preference shareholders by issuing new shares. During the same period, we have distributed SEK 1.8 billion to our ordinary shareholders. Our growth has therefore been self-financed and mainly based on strong cash flows and growing earnings. On the basis of the companies that make up the Group today, we have achieved average annual EBITA growth of 26 percent since the IPO.
In recent years, we have made a number of strategic shifts to ensure growth in line with historical growth. Among other things, we have focused our business on six platforms with long-term sustainable business models and good growth opportunities. An increased focus on value-creatingadd-on acquisitions will enable us to maintain our acquisition rate and returns. At the same time, our work on organic growth and operational improvements is a central part of the continuing development of our platforms. Our unique focus on strategic HR enables good skills supply, ensures that that we have the right leaders in our businesses and gives them the best possible development opportunities.
All in all, we are in an excellent position as we move into 2023.
Andreas Stenbäck, President and CEO
Volati AB - Year-end report, 1 January- 31 December 2022 | - 3 - |
This is Volati
Volati acquires well-managed companies with strong cash flows at reasonable valuations, and develops them with a focus on long-term value creation. Acquiring companies that have stable and sustainable cash flows from the outset creates a stable base for operations. These cash flows are then used for further acquisitions. Through active long-term corporate development efforts, Volati creates favourable conditions for organic growth.
Net sales and EBITA trends | ||||||||||||||||||||
2004-2022, SEK million (including discontinued operations), LTM | ||||||||||||||||||||
Net sales | EBITA | |||||||||||||||||||
9 000 | 1 229 | 1 400 | ||||||||||||||||||
8 000 | ||||||||||||||||||||
1 200 | ||||||||||||||||||||
7 000 | 1 000 | |||||||||||||||||||
6 000 | ||||||||||||||||||||
750 | ||||||||||||||||||||
5 000 | 710 | 800 | ||||||||||||||||||
513 | ||||||||||||||||||||
4 000 | 433 | 600 | ||||||||||||||||||
3 000 | 377 | |||||||||||||||||||
326 | 318 | 400 | ||||||||||||||||||
227 | ||||||||||||||||||||
2 000 | 215 | |||||||||||||||||||
142 | ||||||||||||||||||||
1 000 | 99 | 60 | 76 | 69 | 89 | 200 | ||||||||||||||
7 | 16 | 28 | ||||||||||||||||||
- | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | - |
Net sales | EBITA |
Financial targets
Volati's overall objective is to generate long-term value growth by building an industrial group of profitable companies with solid cash flows and capacity for continuous development. The Board has established the following long-term financial targets, which should be evaluated as a whole:
EBITA growth: The target is average annual growth in EBITA1) per ordinary share of at least 15 percent over a business cycle.
Return on adjusted equity: The long-termtarget is a return on adjusted equity1) of 20 percent.2)
Capital structure: The target is a net debt/adjusted EBITDA1) ratio of 2 to 3 times, not exceeding 3.5 times.
10 | 100% | 2000 | 80% | 2000 | 4 |
8 | 80% | 1500 | 60% | 1600 | 3 |
1200 | |||||
6 | 60% | 1000 | 40% | 2 | |
800 | |||||
1 | |||||
4 | 40% | 500 | 20% | 400 | |
0 | |||||
0 | |||||
2 | 20% | 0 | 0% | -1 | |
-400 | |||||
0 | 0% | -500 | -20% | -800 | -2 |
2018 | 2019 | 2020 | 2021 | 2022 | 2018 | 2019 | 2020 | 2021 | 2022 | 2018 | 2019 | 2020 | 2021 | 2022 |
EBITA per ordinary share, SEK | Average adjusted equity, SEK million | Net debt, SEK million | ||||||||||||
Growth in EBITA per ordinary share, | Return on adjusted equity, % | Net debt/adjusted EBITDA, x | ||||||||||||
LTM, % | ||||||||||||||
- See note 7 for definitions of alternative performance measures
- Includes discontinued operations
Volati AB - Year-end report, 1 January- 31 December 2022 | - 4 - |
+12%
Net sales
Q4 2022
Consolidated financial trend
Net sales
The Group's net sales for Q4 2022 amounted to SEK 1,930 (1,722) million, an increase of 12 percent compared with the same period the previous year.
Net sales for the full year 2022 increased by 23 percent to SEK 7,751 (6,309) million. The increase in sales is mainly due to the effects of acquisitions in Volati's business areas. Organic sales growth was 3 percent in 2022.
Oct-DecOct-Dec | Δ % | Full year | Full year | Δ % | ||
2022 | 2021 | 2022 | 2021 | |||
Net sales, SEK million | 1,930 | 1,722 | 12 | 7,751 | 6,309 | 23 |
EBITA1), SEK million | 179 | 159 | 12 | 710 | 664 | 7 |
EBIT, SEK million | 155 | 143 | 9 | 624 | 620 | 1 |
Profit after tax, SEK million | 105 | 104 | 0 | 433 | 442 | -2 |
1) See note 7 for definitions of alternative performance measures
+12%
EBITA per ordinary share
Q4 2022
Earnings
EBITA for Q4 increased by 12 percent to SEK 179 (159) million. The Industry and Ettiketto Group business areas contributed positively and reported increased earnings compared with the same period in the previous year, while Salix Group's earnings showed a decline from the previous year. Items affecting comparability made a negative contribution of SEK 2 million during the period.
EBITA for the full year 2022 increased by 7 percent to SEK 710 (664) million.
Profit after tax for Q4 increased to 105 (104) million and for the full year it declined by 2 percent to SEK 433 (442) million.
Net sales, SEK million | EBITA, SEK million | ||||||||
1800 | 200 | ||||||||
1600 | 180 | ||||||||
1400 | 160 | ||||||||
1200 | 140 | ||||||||
120 | |||||||||
1000 | |||||||||
100 | |||||||||
800 | |||||||||
80 | |||||||||
600 | |||||||||
60 | |||||||||
400 | |||||||||
40 | |||||||||
200 | 20 | ||||||||
0 | 0 | ||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
2018 | 2019 | 2020 | 2021 | 2022 | 2018 | 2019 | 2020 | 2021 | 2022 |
Volati AB - Year-end report, 1 January- 31 December 2022 | - 5 - |
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Disclaimer
Volati AB published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 08:49:04 UTC.
