Net sales and profit

January – March 2023

Group net sales during the first quarter 2023 increased by one percent and amounted to SEK 12,690 million (12,544). Even adjusted for acquired and divested units and exchange rate effects, net sales increased by one percent. Net sales during the latest rolling 12 month period were SEK 63,281 million compared to SEK 63,135 million for the entire year 2022. The proportion of public sector customers increased in total net sales calculated on a rolling 12 month period and was 44 percent (41) while private customers represented 56 percent (59).

Net sales in business area Construction increased by ten percent with increases in all countries. In business area Civil Engineering net sales increased by eight percent and the increase is related to all three product areas. A large part of the increase in net sales in both business areas Construction and Civil Engineering is due to the continued high cost of material and energy, which has affected pricing to customers. Net sales in business area Industry increased by eight percent in the quarter with growth in most of the product areas. In business area Project Development net sales decreased by 25 percent. The weak demand for housing throughout the Nordic region has affected net sales in Housing Development.

Operating profit for the first quarter 2023 amounted to SEK -156 million (10) and the operating margin was -1.2 percent (0.1). The first quarter is clearly affected by the season, particularly in business area Industry, where the beginning of the year is characterized by substantial deficits since the paving season does not begin until the second quarter.

In business area Construction the operating margin was 2.2 percent compared to 2.4 percent for the same quarter the last year. In business area Civil Engineering the operating margin was 1.8 percent (1.7). All in all the operating margin for construction contract businesses amounted to 2.1 percent (2.2). We continue to experience some dilution of the operating margin as a result of the high cost of material and energy in contracts received before the war broke out in Ukraine. In the business area Industry, which has a very clear seasonal pattern primarily in paving operations, the operating profit amounted to SEK -435 (-396) million and the operating margin to -15.7 percent (-15.4). Operating profit in business area Project Development was lower in both Housing Development and Property Development. The weak demand for housing has led to fewer sold homes and production-started housing projects, which has affected operating profit negatively in Housing Development. The operating margin in Housing Development was 7.3 percent (10.6). In Property Development, profit contributions from partially owned companies was somewhat lower compared to the same quarter last year. Capital gains from real estate transactions affected Property Development positively by SEK 1 million (13).

Depreciation and write-​downs for the first quarter were SEK -343 million (-320).

Elimination and reversal of internal profit in our own projects have affected operating profit during the quarter net by SEK 4 million (-25).

Net financial items amounted to SEK -40 million (-2) of which net interest was SEK -68 million (-12). In net financial items exchange rate differences had an effect of SEK -2 million (0).

Pre-​tax profit was SEK -196 million (8). Profit for the period was SEK -154 million (13).

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.