Net sales and profit 

January – March 2022

Group net sales during the first quarter 2022 increased by twelve percent and amounted to SEK 12,544 million (11,216). Adjusted for acquired and divested units and exchange rate effects, net sales increased by ten percent. Net sales during the latest rolling 12 month period were SEK 61,354 million compared to SEK 60,026 million for the entire year 2021. The proportion of public sector customers was 41 percent (43) while private customers represented 59 percent (57) of total net sales calculated on a rolling 12 month period.

Net sales in business area Construction increased by nine percent and the increase primarily refers to Swedish operations. The business area Civil Engineering had unchanged net sales in the first quarter. Net sales in business area Industry increased by 17 percent with increases in most of the product areas. In business area Project Development net sales increased by 44 percent and the increase is attributable to Housing Development. The greater number of ongoing housing projects and a high level of home sales has had a positive effect on net sales in Housing Development.

Operating profit for the first quarter 2022 amounted to SEK 10 million (-73) and the operating margin was 0.1 percent (-0.7). There has been a significant rise in the price of materials and energy during 2021 and the first part of 2022. We have handled the price hikes along with supply chain disturbances through adjusting and streamlining operations and so far there has been a limited impact on operating profit.

In business area Construction the operating margin was unchanged at 2.4 percent compared to same period the last year. Even in business area Civil Engineering the operating margin was unchanged at 1.7 percent (1.7). All in all the operating margin for construction contract businesses amounted to 2.2 percent (2.2). Business area Industry has a very clear seasonal pattern where the first quarter is characterized by substantial deficits since the season begins in the second quarter. Operating profit in business area Industry was unchanged and amounted to SEK -396 million (-397) and the operating margin was -15.4 percent (-18.0). Operating profit in business area Project Development improved and the operating margin was 11.7 percent (12.5). Operating profit in Housing Development improved because of more ongoing housing projects and the operating margin was 10.6 percent (12.1). Capital gains from real estate transactions affected Property Development positively by SEK 13 million (0).

Depreciation and write-​downs for the first quarter were SEK -320 million (-318).

Elimination and reversal of internal profit in our own projects have affected operating profit during the quarter net by SEK -25 million (-10).

Net financial items amounted to SEK -2 million (6) of which net interest was SEK -12 million (-12). In net financial items exchange rate differences had an effect of SEK 0 million (12).

Pre-​tax profit was SEK 8 million (-67). Profit for the period was SEK 13 million (-55).

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 in April 2020 of the paving and mineral aggregates operations in business area Industry.