Green Landscaping Group (publ) Year-end report 2023

8 February 2024, 07:00 CET

October – December 2023

 

• Net sales amounted to SEK 1,656 (1,625) million.
• Growth was 2 percent, of which organic growth amounted to –6 percent.
• EBITA decreased by 4 percent to SEK 159 (166) million.
• EBITA margin amounted to SEK 9.6 (10.2) percent.
• Cash flow from operating activities amounted to SEK 80 (215) million.
• Basic earnings per share were SEK 1.66 (1.41).
• Diluted earnings per share were SEK 1.66 (1.40).

 

 

CEO comments

 

For Green Landscaping Group, 2023 was a strong year with a solid finish and I am very pleased that the development has followed the plan we laid out. We started the year with focus on consolidating the acquisitions from 2022, along with the comprehensive effort of establishing the business in Germany and setting up the platform for further expansion in the region. We also monitored developments in the surrounding world, including uncertainty about interest rates, inflation, the economic situation and how our companies were handling it all. During the second half of 2023, we once again accelerated the rate of acquisition and ended the year well. Both net sales and profitability have grown strongly, where both the tightening of market conditions and prevailing uncertainty about the economy have presented opportunities for us to advance.

 

A strong year

During the year, net sales grew by 21 percent, of which 3 percent organic. Expressed as EBITA, our profit increased by 26 percent to SEK 512 million, which corresponds to a margin of 8.8 percent. It means that we exceeded our growth target for the third year in a row and our profitability target for the second year in a row. We benefit from the long-term positive trends, which continue to provide us with the prerequisites for generating value over time.

 

Strong finish to the year

The outcome for the last quarter of the year was strong. More than half of our existing companies

increased both net sales and EBITA. It confirms the stability of the market and quality of our companies. It also bodes well for the future.

 

Net sales increased by 2 percent in the fourth quarter and amounted to SEK 1,656 (1,625) million.

Organic growth was –6 percent, acquisitions contributed with 10 percent and the impact from changed exchange rate was –2 percent.

 

The market situation in the fourth quarter was still mixed and our assessment is that the underlying demand has not changed significantly compared to the third quarter. There is stability in our contracts for ongoing maintenance of grounds and green areas, streets, snow & ice removal. The situation was somewhat different however, for landscaping and construction. Uncertainty in the economy has hit the housing construction market particularly hard, causing many construction companies to pursue business in adjacent markets like ours.

 

EBITA amounted to SEK 159 (166) million, corresponding to an EBITA margin of 9.6 (10.2) percent. Profitability improved in line with normal seasonality, and we achieved the second highest outcome to date, surpassed only by the fourth quarter of last year. Profitability decreased somewhat from high levels in Sweden and Norway, while Finland and rest of Europe once again delivered an impressive profitability, particularly Stebule in Lithuania and Schmitt & Scalzo in Germany.

 

Cash flow from operating activities amounted to SEK 80 (215) million, with earnings making a positive contribution. Accounts receivables were higher at year-end due to snow & ice removal activities in December, which impacted cash flow since the payments were not received until January. Indebtedness, expressed as net debt in relation to EBITDA pro-forma RTM amounted to 2.5 (2.4) times, which is in line with our financial target of 2.5 times.

 

A good start to our journey on Continental Europe

We continued our expansion during the quarter with the acquisition of Rainer Gartengestaltung & Landschaftsbau in October. It is situated in Bavaria, Germany in the town of Senden. In December, we announced our first acquisition in Switzerland of the company Viva Gartenbau AG, located in Basel. And, just prior to year-end, we welcomed Hartmann Ingenieure GmbH in Germany. It is in the business of ground maintenance and landscaping for outdoor environments in Berlin. The combined annual sales of these companies in 2022 was approximately SEK 120 million and all three achieved a higher profit margin than the Group.

 

Overall, there is a lot to be proud of when looking back on 2023, and my assessment is that we are well-equipped for further expansion in 2024. With that, I'd like to say thank you to all our employees, partners and owners for a good year.

 

 

Presentation of the report:

 

Green Landscaping Group’s CEO Johan Nordström and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on 8 February 2024 at 09:00 CET. The presentation will be held in English.

 

If you would like to participate in the webcast, please visit the link below.
https://ir.financialhearings.com/green-landscaping-group-q4-report-2023

If you would like to participate in the teleconference, you will need to register via the link below. Once you have registered, you will receive the phone number and a conference ID for logging in. There are opportunities for asking questions via the teleconference.

https://conference.financialhearings.com/teleconference/?id=50047316

 

For more information:

Magnus Larsson, Head of Investor Relations, Green Landscaping Group AB
+46-(0)70 270 52 83, [email protected]

Green Landscaping Group AB (publ) is a home for entrepreneurs. The service areas it is involved in are landscaping and construction, ground maintenance and snow & ice removal. The Group has closer to 3,000 employees and net sales amounted to SEK 5.8 billion for 2023. The shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information visit www.greenlandscaping.com

This disclosure contains information that Green Landscaping is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 08-02-2024 07:00 CET.