Green Landscaping Group Year-End Report 2022
16 February 2023 – 07:00 CET
October – December 2022
- Net sales increased by 74 percent to SEK 1,625 (935) million.
- Organic growth was 14 percent.
- EBITA increased by 98 percent to SEK 166 (84) million.
- EBITA margin amounted to SEK 10.2 (8.9) percent.
- Cash flow from operating activities amounted to SEK 215 (47) million.
- Basic earnings per share were SEK 1.41 (0.61).
- Diluted earnings per share were SEK 1.40 (0.60).
CEO comments
We ended the year with growth of 74 percent in the fourth and last quarter, an EBITA margin over 10 percent and cash flow from operating activities of SEK 215 million.
We thus sum up 2022 as successful and eventful year for Green Landscaping Group. We welcomed eleven new companies to the Group and substantially increased our revenue, both organically and through acquisitions. Our EBITA margin is 8.5 percent and we embark upon 2023 with a good order backlog.
A positive development despite turbulence in the surrounding world
Green Landscaping Group delivered a strong quarter despite all the turbulence in the world around us. Revenue increased by 74 percent and amounted to SEK 1.6 (0.9) billion, which is attributable to organic growth and new companies that joined the Group. There is high demand from our customers and we have succeeded in implementing indexation adjustments in many of our agreements due to the sharp rise in inflation, all of which has contributed to achieving an organic growth of 14 percent. Demand increased in the fourth quarter compared to the previous quarter, in line with normal seasonal fluctuations. Our order backlog grew even stronger at just over SEK 7.8 billion, most of which is contracts in the public sector.
EBITA amounted to SEK 166 (84) million and the EBITA margin increased by more than one percentage point to 10.2 (8.9) percent. For the full year, the margin amounted to 8.5 (7.4) percent.
Several of the companies with lower profitability have gradually improved through long-term and methodical work. I am very pleased and would like to heartily thank our employees who have worked so hard to achieve that, along with our LEAN team, which was frequently involved in these efforts. Our strategy of acquiring the most successful companies with the best entrepreneurs in our industry also results in a favorable effect on the EBITA margin.
We were once again impacted by the high rate of inflation during the fourth quarter due to rising costs. In most of our customer agreements, indexation of prices based on inflation occurs on an annual basis.
Diluted earnings per share increased by 133 percent and amounted to SEK 1.40 (0.61) in the quarter.
Cash flow from operating activities increased and amounted to SEK 215 (47) million in the quarter. A strong cash flow offers us the freedom of being able to regulate our debt/equity level, which is certainly advantageous when financial conditions tighten up as they have now. During the quarter, net debt in relation to EBITDA fell to 2.4 times, which is in line with our long-term goal.
Our aim is to be a home for the best entrepreneurs in our industry. The following four companies joined the Group during the quarter: H&K Sandnes in Norway with annual sales of approximately NOK 140 million, H.T. Vike in Norway with annual sales of approximately NOK 60 million, and Taimisto Huutokoski in Finland with annual sales of approximately EUR 3.5 million. And, as we mentioned earlier, we also took our first step outside the Nordics with the acquisition of UAB Stebule in Lithuania. It has 330 employees and annual sales of approximately EUR 13 million. All of our acquired companies are run by skilled entrepreneurs with excellent knowledge of the conditions in their local market. They also share the same business culture that we value highly. In total, the four companies contribute around SEK 370 million in annual sales, with good profitability.
We are well prepared
A number of years have passed since we set the strategy for Green Landscaping Group. We are active in a fragmented market, where we are one of the few larger players. It is also a stable market with sustainable growth and very little variation from one year to the next. Approximately two-thirds of our revenue comes from customers in the public sector. Furthermore, a more in-depth analysis reveals that the share of the customers’ total operating costs spent on outdoor environment is quite small. And, over the last 15 years, we can see that the revenue is essentially unaffected by business cycle fluctuations. We now have several years of successful improvement efforts behind us, and, in my opinion, a well-deserved good reputation for acquisitions in the market. We are strongly positioned in an attractive market and have reason for being optimistic over both the short and long term.
In summary, we are well prepared for the years ahead.
Presentation of the report:
Green Landscaping Group CEO Johan Nordström and CFO Carl-Fredrik Meijer will present the report in a teleconference/audiocast on 16 February 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-q4-2022
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=5004413
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) works with outdoor environments and infrastructure. Through subsidiaries, we offer the most comprehensive service portfolio on the market, aimed at making outdoor environments more sustainable and safe. Our business concept is to enhance the customer's outdoor environment by offering services focused on high customer value, long-term sustainability, and quality. The Group has more than 2 000 employees and net sales amounted to SEK 4.8 billion. The shares are listed on Nasdaq Stockholm with the ticker GREEN. For more information visit www.glgroup.se.
This disclosure contains information that Green Landscaping 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 16-02-2023 07:00 CET.