Net sales and profit 

January – March 2021

Group net sales during the first quarter 2021 decreased by four percent and amounted to SEK 11,216 million (11,638). Adjusted for acquired and divested units, net sales decreased by five percent. Of the quarter’s net sales SEK 2,689 million (2,651) were attributable to sales and production outside Sweden. Net sales during the latest rolling 12 month period were SEK 56,995 million compared to SEK 57,417 million for the full year 2020. The proportion of public sector customers has grown to 43 percent (33) while private customers represent 57 percent (67) of total net sales.

Net sales in business area Construction decreased by six percent and the reduction refers to Swedish operations. Net sales in business area Civil Engineering increased by twelve percent and the increase is largely due to Operation and maintenance. Net sales in business area Industry were on par with the corresponding period last year. Mineral Aggregates, Paving and Concrete increased while Rentals and Transportation and Machines had lower net sales. In business area Project Development net sales decreased by 13 percent. The decrease is attributable to both Housing Development and Property Development.

Operating profit for the first quarter 2021 amounted to SEK -73 million (211) and the operating margin was -0.7 percent (1.8). In business area Construction the operating margin improved and was 2.4 percent (2.2) and in business area Civil Engineering the operating margin improved to 1.7 percent (1.5). All in all the operating margin for construction contract operations amounted to 2.2 percent (2.0). Operating profit was lower in business area Industry compared to the corresponding period last year. Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020. The acquired operations have a very clear seasonal pattern which means the first quarter carries considerable deficits since the season starts in the second quarter. If the acquisition had taken place on January 1, 2020 profit in the first quarter would have been affected by SEK -297 million. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged the first quarter 2021 by SEK -20 million. In addition, the cold winter has had a negative effect on result on operations in business area Industry. In business area Project Development the operating margin in Housing Development increased to 12.1 percent (8.1) while the operating profit in Property Development decreased. During the quarter some operations connected to traveling and tourism were negatively affected by the corona pandemic, which led to lower profit in Property Development by around SEK -20 million compared to the first quarter 2020.

Depreciation and write-downs for the first quarter were SEK -318 million (-266). Depreciation on surplus values for, among other things, taken over order backlog and tangible assets related to acquired paving and mineral aggregates operations in business area Industry were SEK -20 million.

Elimination and reversal of internal profit in our own projects have affected operating profit during the quarter net by SEK -10 million (-1).

Net financial items amounted to SEK 6 million (-70) of which net interest was SEK -12 million (-3). In net financial items exchange rate differences had a positive effect of SEK 12 million (-81).

Pre-tax profit was SEK -67 million (141). Profit for the period was SEK -55 million (121).

Seasonal variations

Group operations, particularly in Industry and Civil Engineering, are affected by fluctuations that come with the cold weather during the winter half of the year. Normally the first quarter is weaker than the rest of the year. The seasonal pattern has now become even stronger due to the acquisition of the paving and mineral aggregates operations in business area Industry.

*Q1-Q3 2019 not translated according to the changed accounting principles for our own housing development projects.