Correction: Ambea year end report 2022

The correction refers to missing the word adjusted in the bullet points four in the summary of the fourth quarter (October – December) and full year (January – December) 2022. The correction only applies to the English version.

Corrected press release and year-end report follows in its entirety.

CEO comment:

Strong organic growth continued in the fourth quarter, and our Swedish divisions, Nytida and Vardaga, showed stable underlying earnings, while the strategic shift in Klara generated results.

Klara is now making a greater contribution to consolidated earnings, which was evident during the quarter. During the quarter, we were generally impacted by higher costs for electricity, food and consumables. Sick leave also increased across our units. In Altiden, we worked intensively with integration and change management. The quarterly earnings were charged with non-recurring, reorganization related costs to create a stronger and more stable operation. Operational improvements and lower administration costs in Altiden enable gradual performance improvements in 2023.

Higher sales and a share buyback
In the fourth quarter, net sales rose 8 per cent to SEK 3,225 million (2,988). Adjusted EBITA was SEK 170 million (214), corresponding to a margin of 5.3 per cent (7.2). Due to the company’s strong cash flow and financial position, Ambea’s Board decided on a share buyback in November to optimise the company’s capital structure and increase shareholder value. The share buyback programme to purchase up to 5 million shares is ongoing.

Fourth quarter October-December

• Net sales rose 8 per cent to SEK 3,225 million (2,988). Organic growth was 4 per cent, acquired growth was 2 per cent and the exchange rate effect was 2 per cent.
• Operating profit (EBIT) totalled SEK 140 million (37).
• EBITA increased 146 per cent to SEK 170 million (69), corresponding to a margin of 5.3 per cent (2.3)
• Adjusted EBITA declined 21 per cent to SEK 170 million (214), representing a margin of 5.3 per cent (7.2).
• Profit for the period totalled SEK 22 million (loss: -37).
• Earnings per share were SEK 0.24 (loss: -0.39) before and after dilution.
• Cash conversion was 121.3 per cent (148.1).
• Free cash flow totalled SEK 402 million (410).

Full-year January-December

• Net sales rose 10 per cent to SEK 12,635 million (11,478). Organic growth was 5 per cent, acquired growth was 3 per cent and exchange rates had a 2 per cent impact on growth.
• Operating profit (EBIT) totalled SEK 843 million (598).
• EBITA rose 34 per cent to SEK 954 million (712), representing a margin of 7.6 per cent (6.2).
• Adjusted EBITA rose 11 per cent to SEK 954 million (857), representing a margin of 7.6 per cent (7.5).
• Profit for the year totalled SEK 366 million (237).
• Earnings per share were SEK 3.89 (2.51) before and after dilution.
• Cash conversion was 95.6 per cent (95.7).
• Free cash flow totalled SEK 1,451 million (1,139).
• The Board proposes a dividend of SEK 1.25 (1.15) per share for 2022

Telephone conference
In connection to the announcement, Ambea will host a telephone conference today at 10:00 (CET). The presentation will be held in English and available as webcast on www.ambea.com or direct link: https://edge.media-server.com/mmc/p/8nqfj93c

To participate the conference call, register before the call using the link below. Upon registration you will receive a dial-in number and a unique personal PIN code. To ensure that the connection to the conference call is working, please dial in ten minutes before the start time of the conference call.

Telephone conference registration:
https://register.vevent.com/register/BI2801f8a9f212465dbbcdd9b1164cda11

The quarterly earnings report and associated presentation will be available on www.ambea.com

This disclosure contains information that Ambea is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 09-02-2023 09:04 CET.