Interim Report January–September 2024, Coor Service Management Holding AB

Interim Report January–September 2024, Coor Service Management Holding AB.

Third quarter of 2024

• Net Sales in the third quarter amounted to SEK 2,943 (3,016) million. Organic growth was -0 per cent and growth from acquisitions 0 per cent, while exchange rate effects accounted for -2 per cent.
• Adjusted EBITA amounted to SEK 120 (126) million and the operating margin was 4.1 (4.2) per cent.
• EBIT was SEK 73 (78) million. Profit after tax was SEK 17 (28) million.
• Earnings per share were SEK 0.2 (0.3).
• Cash conversion for the most recent 12-month period amounted to 77 (93) per cent. 
• Leverage in relation to adjusted EBITDA was 2.7 (2.4).

 

January – September 2024

• Net Sales for the full period amounted to SEK 9,247 (9,156) million. Organic growth was 0 per cent and growth from acquisitions 1 per cent, while exchange rate effects accounted for -1 per cent.
• Adjusted EBITA amounted to SEK 441 (439) million and the operating margin was 4.8 (4.8) per cent.
• EBIT was SEK 329 (278) million. Profit after tax was SEK 139 (125) million.
• Earnings per share were SEK 1.5 (1.3).

 

“In the third quarter, Coor successfully continues to both extend important contracts and win new business. Variable volumes remained at a high level during the quarter, but ahead we see a declining demand, which leads to adjustments of the cost base. In the previously launched action programme, parts of the programme have been completed and we expect further effects to be implemented gradually. The market outlook remains good with a strong pipeline of new business.”

  AnnaCarin Grandin, President and CEO, Coor

Quarterly summary

• During the third quarter, Coor successfully continued to extend important contracts as well as win new ones.
• We see a declining demand for variable volumes in Sweden and Denmark, which leads to adaptations of the cost base.

• In the ongoing action programme, downsizing of administrative resources was completed during the second quarter. Harmonisation of processes and procurement efficiency are ongoing, and we expect effects to be implemented gradually in the coming quarters.

• In parts of the Swedish cleaning operations, we saw lower profitability in the quarter, which is explained by excessive resource utilization. An action plan has been initiated to gradually return to the previous level of profitability during the fourth quarter.

• Cash conversion amounts to 77 percent, which is primarily due to an increase in working capital of SEK 88 million, explained by increased accrued revenue. During the fourth quarter, the business will focus on invoicing accrued revenues to restore the net working capital position in the fourth quarter.

 

Group Earnings Summary

	Jul-Sep			Jan-Sep			Rolling	Jan-Dec
	2024	2023		2024	2023		12 mth.	2023
Net sales, SEK m	2,943	3,016		9,247	9,156		12,534	12,443
Organic growth, %	-0	3		0	1		1	2
Acquired growth, %	0	4		1	2		2	2
FX-effects, %	-2	3		-1	2		-0	1
Adjusted EBITA, SEK m	120	126		441	439		607	606
Adjusted EBITA-margin, %	4.1	4.2		4.8	4.8		4.8	4.9
EBIT, SEK m	73	78		329	278		416	364
Income for the period, SEK m	17	28		139	125		169	155
Earnings per share, SEK	0.2	0.3		1.5	1.3		1.8	1.6
Cash conversion, %	-	-		-	-		77	86
Leverage, times	-	-		-	-		2.7	2.5

 

Invitation to a press and analyst presentation

On 24 October 2024 at 10:00 CEST, the company’s President and CFO will give a presentation on developments in the third quarter via a webcast. To participate in the webcast, please register in advance via the following links. The audio link is for listening only and when the participant wants to ask a verbal question. If the participants are not going to ask any questions, but want to see the presentation, just click on the link for the webcast.

Webcast Audience URL (to register for the web presentation without asking questions):

https://onlinexperiences.com/Launch/QReg/ShowUUID=40FC8D20-0031-434D-ADEF-9273D8DA67B1

Audio Conference Call Access (to register to listen to the presentation and to ask questions):

https://emportal.ink/4do3ZQl

The power point presented as well as a recording of the webcast will be published on the Company's website www.coor.com under the Investors/Financial reports and presentations-tab.

 

For further information

For questions concerning the financial report, please contact our CFO and Director of Investor Relations Andreas Engdahl (+46 10 559 54 63).

For questions concerning the operations or the company in general, please contact AnnaCarin Grandin, President and CEO (+46 10 559 57 70) or Magdalena Öhrn, Director of Communications (+46 10 559 55 19).

More information is also available on our website: www.coor.com.

You will find the Q3 report here: Financial reports and presentations

This constitutes information which Coor Service Management Holding AB is required to publish under the EU’s Market Abuse Regulation. The information was submitted for publication through the above contact person on 24 October at 7:30 a.m. CEST.

 

About Coor:

As the leading provider of facility management services, Coor aims to create the happiest, healthiest, and most prosperous workplace environments in the Nordic region. Coor offers specialist expertise in workplace services, property services and strategic advisory services. Coor creates value by executing, developing, and streamlining our customers’ service activities. This enables our customers to do what they do best.

 

Coor’s customer base includes many large and small companies and public-sector organisations across the Nordic region, including ABB, Aibel, Alleima, the Danish Building and Property Agency, DNV, DSB, Equinor, ICA, IKEA, Karolinska University Hospital in Solna, PKA - “Danish Police, Public Prosecution Authority and Prison and Probation Service”, PostNord, Saab, SAS, Skanska, Swedbank, Telia Company, Vasakronan and Volvo Cars.

Coor was founded in 1998 and has been listed on Nasdaq Stockholm since 2015. Coor takes responsibility for the operations it conducts, in relation to its customers, employees and shareholders, as well as for its wider impact on society and the environment. Read more at www.coor.com