January-March 2023

• Net turnover 394.3 MSEK (315.6)
• Operating profit EBITA 59.5 MSEK (44.2)
• Operating margin EBITA 15.1% (14.0)
• Operating profit EBIT 57.8 MSEK (43.3)
• Operating margin EBIT 14.7% (13.7)
• Profits after tax 41.8 MSEK (31.7)
• Earnings per share before dilution 3.20 SEK (2.47)
• Earnings per share after dilution 3.18 SEK (2.40)
  

A word from the CEO

Strong momentum

Solid start to the year

Net turnover in the first quarter of 2023 increased to 394.3 MSEK (315.6), which corresponds to an increase of 25 percent. More than half the growth is organic and the remainder originates from acquisitions made in 2022.

The EBITA results during the first quarter of the year were 59.5 MSEK (44.2), which correspond to an increase of 35 percent. The EBITA margin was 15.1 percent (14.0). The profit per share after dilution increased by 33 percent, from 2.40 to 3.18 SEK per share.

Safe and sustainable operations strategy

That profitability increased in the first quarter of 2023 compared to the corresponding period the previous year depends on several factors. In part, it is based on a long term strategy of focusing on high value for all stakeholders and building a genuine company with a welcoming environment. The profit increase is also a result of hard work over the past year with pricing, costs, gaining more employees and that our acquisitions have contributed positively to our development. This combined has given increased profitability despite somewhat lower utilization compared to the corresponding quarter last year.

It is notable that this fact can give a possible upside in profits. We can increase utilization, continue to increase the value for the customers and we can develop and grow our business. We see this as reassuring if the market slows down going forward. We are of course humble and we always strive for improvements.

On the customer side, activities have been intensive. Some customers have reduced their demand but in large part that has been compensated by increased demand from other existing customers and new customers. We often have a very long term relationship and close collaboration with our customers. To the extent that we can look into the future, we see continued demand for development from our customers, primarily regarding automation, product development, electrification, work with sustainability and several other driving factors. Even if the need is there the demand may fall periodically. However, at present we can see no signs of that.

We have been involved in lots of exciting assignments. For example, Nipro Medical Europe chose to work with us to implement an extensive UX study of their medical devices. With the help of our expertise within UX and UI, a new design concept has been developed. Our analysis is based on interviews, surveys and observations from end users and experts from ten European countries. It is very pleasing to also see that our new nodes have been noticed. Myra, one of our latest acquisitions, has won the prestigious international design prize, Red Dot Design Award, for the QuietFrames from Ambicare product, the world’s first noise-canceling glasses.

During the quarter we gained five colleagues. Each individual colleague is significant. The proportion of women has increased by a few tenths. Not much, but still going in the right direction. During the quarter we held ’Prevas Ingenuity Week’ which is an internal activity. A week of inspirational lectures within several different areas, everything from green code, digitalization to self development and experiences from customer collaborations. The week was rounded off by a review our strategy, the business plan for the year and the final of the Prevas Awards. Each year our employees nominate colleagues that they believe represent our values, and Prevas Ingenuity Week is concluded by highlighting some of our best role models.

Focused work going forward

Although the first quarter of 2023 historically meant records in turnover, profit and margin, we are not settling down. One of our core values is "Active", which is why we continue to focusing heavely on being active, seeking ways forward, striving to realize our strategy and to be perceived as a premium company, by all our stakeholders - customers, employees, owners, partners and society. The year has started well and we have a close knit team that works to continue to develop us and our business. We co-create technological advancement for the betterment of all; people, planet and profit.

Johan Strid, CEO Prevas AB

This information is such that Prevas AB (publ) is required to make public in accordance with EU regulations to prevent market abuse and the Securities Market Act. The information was submitted by the above contact person for publication on April 27th, 2023, at 08.30.

This is a translation of an original document in Swedish. In case of dispute, the original document should be taken as authoritative (Delårsrapport januari-mars 2023 at www.prevas.se). Or contact the company direct.