Sdiptech AB (publ) publishes Year-End Report 2023 - Seite 2

DIVIDEND

• The Board of Directors proposes that the Annual General Meeting resolves on a dividend to the preference shareholders in accordance with the articles of association. The Board of Directors further proposes, in line with the dividend policy, that no dividend be paid on ordinary shares of Class A or Class B.
  
  

COMMENTS BY THE CEO

Despite the uncertainties in the world, rising inflation and higher interest rates, Sdiptech has shown strong resilience in 2023. The stable demand and strong market positions of our units have generated continued steady growth. Regardless of a slower pace of acquisitions, Sdiptech has been able to maintain a profit increase of 37 percent, of which 13 percent was organic excl. currency effects.

THIS YEAR'S OVERVIEW
The year 2023 was characterized by continuously strong demand from our customers in almost all business units, which led to organic sales growth of 18 percent excl. currency effects. In addition, acquisitions made a further contribution, with a total increase in sales of 37 percent. Our adjusted EBITA, previously called EBITA*, also increased by 37 percent, of which 13 percent was organic excl. currency effects. We have had good cost control and are pleased to be able to deliver double-digit organic profit growth. In addition, our adjusted EBITA margin was stable at 19.1 percent (19.1). Excluding Rolec, the Group's unit for electric vehicle chargers, which had a weak second half of 2022, we also delivered organic sales and profit growth of 17 and 11 percent for the full year, respectively, excl. currency effects. This illustrates the good demand and growth that the entire Group has been able to show 2023.

The cash conversion during the year was 67 percent, which is below our normal levels, but still an improvement compared to the beginning of the year. We are working hard to manage accounts receivables, which were a result of the strong sales growth, and to optimize our inventories. This has led to a cash conversion of 90 percent for the last two quarters.

Return on capital employed (ROCE) is an important key performance indicator as it demonstrates the profitability and capital efficiency of our companies. Our average ROCE on the operating units was 65 percent. However, as acquisitions lead to an increased share of goodwill and intangible assets on the balance sheet, the key ratio is lower at Group level, which was 13.0 percent in 2023 compared to 12.2 percent in 2022.