Sdiptech AB (publ) publishes interim report for the first quarter (January - March) 2020

Press release
29 April 2020, 08:00

Sdiptech AB (publ) publishes interim report for the first quarter (January - March) 2020
The report will be available on the company's website: www.sdiptech.se

A STRONG FIRST QUARTER - LIMITED IMPACT FROM COVID-19

JANUARY - MARCH  2020

• Operating profit EBITA* increased by 37% compared to the previous year to SEK 70.8 million (51.8), corresponding to an EBITA* margin of 14.6% (12.3). The organic EBITA* growth for the Group overall was +12.1%, of which +0.4% related to exchange rate differences.
   
• Net sales increased by 15% to SEK 484.4 m (422.2). The organic growth within segment Water & Energy was -3.2% for the quarter, for segment Special Infrastructure Solutions the organic growth was +18.4% and for segment Property Technical Services the organic growth as -5,4%. For the Group overall, the organic growth was +1.1%.
   
• Profit after acquisition costs before financial items (EBIT) increased by 116% and amounted to SEK 68.8 m (31.8).
   
• Earnings before tax increased by 158% and amounted to SEK 68.5 m (26.5).
   
• Earnings after tax for the Group amounted to SEK 52.0 m (20.2), of which SEK 52.0 m (19.3) was attributable to the Parent Company’s shareholders.
   
• Cash flow from current operations amounted to SEK 58.3 m (57.6), corresponding to a cash conversion of 71.5% (110.8).
   
• Earnings per ordinary share, less minority interests and dividends on preference shares, was SEK 1.60 (0.52).
   
• Earnings per ordinary share after dilution, less minority interests and dividends on preference shares amounted to SEK 1.59 (0.52).

COMMENT ON THE IMPACT OF COVID-19

Covid-19 has had a limited impact on Sdiptech's sales and earnings during the first quarter. Although we experienced delayed deliveries in some of our business units as a result of local restrictions in March, the Group's overall performance was strong. The current global uncertainty is obvious, and we are humbled to make a statement about the future. Currently, on 29^th of April 2020, the Group delivers approximately 85% of planned orders and, in line with easing restrictions, we plan to catch up on postponed orders. Based on our knowledge of the current situation, we see no reason to revise our growth targets for organic profit growth of 5-10 percent, neither for 2020 nor for further ahead.