Profitable growth for the quarter and an all-time-high for the half year.
A word from the CEO
Increased turnover in Q2, stable profitability and all-time-high for the first half year
Net turnover for the second quarter 2023 increased to 377.7 MSEK (335.3), equivalent to an increase of 13 percent. More than half the growth is organic and the remainder comes from acquisitions made during 2022.
The EBITA results during the second quarter were 34.7 MSEK (34.9) which is in line with the previous year despite the fact that the quarter was one working day shorter (59 compared to 60). The EBITA margin for the quarter was 9.2 percent (10.4). Taking into account that the quarter is one day shorter this year, the margin is in line with the previous year’s quarter. Profit per share after dilution was 1.90 SEK per share (2.16).
Combined EBITA for the first half year was 94.2 MSEK (12.2%) compared to the previous year’s 79.1 MSEK (12.2%), an increase of 19 percent. That Prevas maintains a profit margin during strong growth is a sign of strength and evidence that our strategy works. It is also very positive to see how quickly our acquired units are included and contribute to Prevas’ development.
It is worth noting that both the turnover and profit for the first half year of 2023 were all-time-high. The cash flow from the ongoing operations increased to 72.9 MSEK (52.5) for the first half year. We look forward to continuing to develop Prevas through qualitative profitable growth in line with our financial goals.
An important factor to our profitable growth is our successful work in building the industry’s most attractive employer. Our goal is to grow and during the quarter we had net growth with 12 new highly qualified employees. We see great interest in Prevas from both experienced specialists and newly qualified engineers. During the quarter, we continued our work on developing our employees, for example through so-called learning lunches, technology evenings, external and internal lectures as well as sales and management trainings. The best way for us at Prevas to develop, however, is through our customer assignments, either via projects from our offices or as experts out in customers’ organization. To further underline the importance of diversity within Prevas, we have had diversity workshops, meetings with our female networks and also welcomed more women to Prevas.
Sustainable marketing strategy gives results
During the quarter we have intensified our market presence by growing in industries with continued high demand, such as automation, electrification, work with sustainability, energy and the defense industry. In certain parts of Prevas the demand is so high that we are now taking orders for delivery in 2024 and in some cases even 2025. Our decentralized organization with strong specialized nodes means that we are close to the market and can take the correct decision quickly. During the quarter we have also started a larger market project where we as a group come together in order to be able to meet the demand, with selected customers and partners.
Our acquisition strategy is to be extremely selective and to grow qualitatively. One good example is that during the quarter we carried out a operational transfer from SDS MedteQ, which reinforces Prevas position within Life Science. We welcome 8 experts with cutting edge expertise in regulations and quality issues for medical technology and the pharmaceutical industry.
In June we were awarded ”Outstanding Channel Partner EMIA 2023” by our partner of many years Hexagon. We received the award at the HxGN Live Global event in Las Vegas. We see great opportunities in further developing our collaboration with Hexagon around EAM (Enterprise Asset Management) to the great benefit of our common customers.
We have continued to create great value for our customers. One example is that Uddeholm chose to extend their collaboration with Prevas by us implementing our advanced oven control FOCS in 20 ovens. This control streamlines the heating of steel which reduces the energy consumption (and thereby the CO2 emissions) by between 5-20 percent. This is an example of when Prevas together with our leading customers collaborate to streamline and improve our environment by using cutting-edge technology. During the quarter we have also signed framework agreements with several world leading industrial groups, been given the task of building a large automated production line for a customer in the automotive industry and received an order to develop an advanced safety system for mobility.
In my first period as the new CEO of Prevas, I have had the benefit of visiting our units around the Nordic area. What fascinates me is the combination of high social ability, motivated and committed teams and world class delivery to customers who compete on the global market. Our customers need partners who have a place in the global arena and it is clear that we at Prevas play in that arena. Together with our customers and partners we create technical innovations and progress that are good for people, the planet and profits. It is inspiring to meet our colleagues and see the desire to develop people and technology to do good. Through many years of qualitative deliveries, Prevas has built a strong brand in the Nordic area and is a global premium partner in many areas. We have several examples of Prevas being contacted by major tech and industrial companies, within and outside the Nordic area, to develop products and systems in international competition – really impressive!
I am proud to have been trusted to lead Prevas and really look forward to continuing to develop Prevas together with our employees. We have a strong platform and never previously been as relevant as we are to our customers and employees. Neither have we previously contributed so much to resolving the major societal challenges of our time by creatively using the opportunities provided by technology to do good. Prevas is about using the possibilities of technology through ingenuity to make a difference - for real!
Magnus Welén, 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 July 18th, 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-juni 2023 at www.prevas.se). Or contact the company direct.