Lifco Ab

LIFCO B

Equity

ISIN SE0015949201 / Valor 111355378

NASDAQ Nordic Exchange Stockholm, Equities (2024-11-21)

SEK 312.20+1.10%

Lifco Ab
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About company

Lifco Ab is a company that provides a secure environment for small and medium-sized businesses. The company's main business concept is to acquire and enhance market-leading niche businesses that have the potential for sustainable earnings growth and strong cash flows. Lifco operates with a long-term perspective on its holdings, prioritizing profitability and maintaining a decentralized organizational structure. The company has three main business areas: Dental, Demolition & Tools, and Systems Solutions, with a presence in 31 countries through its 233 operating companies. In 2023, Lifco reported an EBITA margin of 23.2% on net sales of SEK 24.4 billion.

Summarized from source with an LLMView SourceSector: Healthcare

Summary of Financial Performance

Lifco AB reported a slight increase in net sales of 0.8% to SEK 6,006 million in the first quarter of 2024, compared to SEK 5,959 million in the same period last year. However, organic net sales saw a decline of 7.8%, primarily due to weaker performance in the Demolition & Tools and parts of the Systems Solutions segments. EBITA decreased by 3.9% to SEK 1,278 million, and the EBITA margin dropped by 1.0 percentage point to 21.3%. Profit before tax also declined by 11.0% to SEK 941 million.

CEO's Commentary

Per Waldemarson, President and CEO of Lifco AB, commented on the first quarter results of 2024, noting the challenges faced due to a weak market in specific segments. Despite these challenges, Lifco AB managed to achieve a net sales increase through strategic acquisitions. The early Easter in 2024, compared to a later Easter in 2023, also slightly impacted the financial results, particularly in the Dental segment.

Operational Cash Flow

Cash flow from operating activities for Lifco AB decreased by 13.6% in the first quarter of 2024, amounting to SEK 631 million compared to SEK 731 million in the previous year. This decline reflects the lower earnings and adjusted working capital movements during the period.

Acquisitions and Financial Position

In the first quarter of 2024, Lifco AB announced the acquisition of two Italian companies, Brevetti Montolit and CFR, which are expected to enhance the company's portfolio in the Demolition & Tools and Systems Solutions segments, respectively. Lifco AB also issued two unsecured bonds totaling SEK 1,000 million, maintaining a strong financial position with interest-bearing net debt at 1.0 times EBITDA.

Segment Performance: Dental

The Dental segment of Lifco AB saw a 2.8% increase in net sales to SEK 1,568 million in the first quarter of 2024. Despite this growth, EBITA slightly decreased by 0.3% to SEK 327 million, and the EBITA margin contracted by 0.6 percentage points to 20.9%. The segment continues to be a significant contributor to Lifco's portfolio, providing a range of products and services to the dental industry across Europe and the US.

Summarized from source with an LLMView Source

Key figures

37.0%1Y

15.5%3Y

212%5Y

Performance

23.8%1Y

32.1%3Y

34.4%5Y

Volatility