Net sales and profit 

January – June 2022

Group net sales for the first half-year 2022 increased by eleven percent and amounted to SEK 29,402 million (26,385). After adjustments for acquired and divested units and exchange rate effects net sales increased by ten percent. Some of the increase is explained by higher material and energy costs which have affected pricing to customers. Of the period’s net sales SEK 7,968 million (7,325) were attributable to sales and production outside Sweden. Net sales during the latest rolling 12 month period were SEK 63,043 million compared to SEK 60,026 million for the full year 2021. The proportion of public sector customers was 41 percent (43) while private customers represented 59 percent (57) of total net sales.

Net sales in business area Construction increased by twelve percent and the increase was related to the Swedish and Norwegian operations. Net sales in business area Civil Engineering increased by two percent with small variations among the product areas. Net sales in business area Industry increased by 16 percent with the increase primarily related to Paving, Concrete and Construction System. In business area Project Development net sales increased by 22 percent where the increase was mainly generated in Housing Development. More ongoing housing projects and a high level of sold homes has had a positive effect on net sales in Housing Development.

Operating profit for the first half-year 2022 amounted to SEK 895 million (751) and the operating margin was 3.0 percent (2.8). In the latest rolling 12 month period the operating margin amounted to 5.1 percent compared to 5.2 percent for the entire year of 2021. During 2021 and the beginning of 2022 prices for material and energy have risen dramatically. We have handled price hikes and delivery disruptions through adjustments and streamlining but there has been some negative impact on the operating margin.

In business area Construction the operating margin was 2.3 percent (2.6), lower in both Sweden and Finland. In business area Civil Engineering the operating margin was unchanged at 2.9 percent (2.9). All in all the operating margin for construction contract operations amounted to 2.5 percent (2.7). Operating profit in business area Industry was on par with the corresponding period last year. Operating profit in Mineral Aggregates and Rentals improved while it contracted in Paving and Transportation and Machines. The operating margin in Industry amounted to -0.6 percent (-0.8). Operations in Industry have a very clear seasonal pattern where the first quarter is characterized by substantial deficits since the season begins in the second quarter. In business area Project Development the operating profit improved in both Housing Development and Property Development. The fact that there are more ongoing housing projects in Housing Development has had a positive effect during the period.

The operating margin in Housing Development was 11.2 percent (11.9). Profit contributions from partially owned companies increased in Property Development. Capital gains from property sales had a positive effect of SEK 22 million (26).

Depreciation and write-downs for the first half year were SEK -648 million (-640).

Elimination and reversal of internal profit in our own projects have affected operating profit during the period net by SEK -23 million (-15).

Net financial items amounted to SEK -6 million (-10) of which net interest was SEK -33 million (-28). In net financial items exchange rate differences had a positive effect of SEK 0 million (8).

Pre-tax profit was SEK 889 million (741). Profit for the period was SEK 707 million (586).

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.