Net sales and profit

January – March 2024

Group net sales during the first quarter 2024 decreased by twelve percent and amounted to SEK 11,141 million (12,690). The decrease is due to the weak demand on the housing market. Even after adjustments for divested units and exchange rate effects, net sales decreased by twelve percent. Net sales for the latest rolling 12 month period amounted to SEK 57,272 million compared to SEK 58,821 million for the full year 2023. Of net sales calculated on a rolling 12 month basis, the share of public sector customers continued to increase and accounted for 50 percent (44) and private customers for 50 percent (56).

Net sales in business area Construction decreased by 22 percent compared to the same period last year. The decrease is due to less activity in new housing production which has not been fully compensated for by other types of projects, and has been experienced in all the countries we operate in. Activity in business area Civil Engineering continued to be on a high level during the period and net sales increased by seven percent compared to the corresponding quarter last year. Net sales in business area Industry decreased by 13 percent with decreases in most of the product areas. Net sales in business area Project Development decreased by 43 percent due to the weak demand for housing throughout the Nordic region and this has affected net sales in Housing Development.

Operating profit for the first quarter 2024 amounted to SEK -106 million (-156) and the operating margin was -1.0 percent (-1.2). 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 start until the second quarter.

In business area Construction the operating margin decreased to 1.7 percent (2.2) while the operating margin in business area Civil Engineering increased to 2.2 percent (1.8). Overall, the operating margin for construction contract operations amounted to 1.9 percent (2.1). In business area Industry, which has a clear seasonal pattern primarily in paving operations, operating profit amounted to SEK -479 million (-435) and the operating margin was -19.9 percent (-15.7). The operating profit in paving was on a par with the first quarter 2023 but both prefab and rental operations have been affected by the weak housing market with a lower level of activity compared to the first quarter last year. Operating profit in business area Project Development improved to SEK 246 million (127). The improvement is attributable to Property Development where capital gains had a positive effect of SEK 258 million (1), of which the sale of the shares in the partially owned company Tornet Bostadsproduktion contributed by SEK 220 million. Operating profit was lower in Housing Development and the operating margin was -1.5 percent (7.3).

Depreciation and write-​downs for the first quarter were SEK -350 million (-343).

Elimination and reversal of internal profit in our own projects affected operating profit during the period by net SEK 7 million (4).

Net financial items amounted to SEK -76 million (-40) of which net interest was SEK -102 million (-68). Higher net debt and interest rates have had a negative impact on net interest during the quarter.

Pre-​tax profit was SEK -182 million (-196). Profit for the period was SEK -129 million (-154).

Seasonal variations

Group operations, particularly in Industry and Civil Engineering, are normally affected by fluctuations that come with the cold weather during the winter half of the year. The first quarter is usually weaker than the rest of the year.

* Operating margin excluding effect of MoS was 4.4%. For more information on arbitration in Mall of Scandinavia, see the Annual and Sustainability Report 2023

* Operating margin rolling 12 months excluding effect of MoS was 3.8% as of June 30, 2023, 3.6% as of September 30, 2023, 2.5% as of December 31, 2023 and 2.6% as of March 31, 2024.