Record sales and earnings
Jörgen Zahlin, Managing Director & CEO
Demand has remained high in the first quarter and our delivery capability has been good, given the circumstances. As a result, turnover rose 21% which marked a new quarterly sales record. Changes in foreign exchange rates had a positive 6 percentage point impact, which resulted in organic growth of 15%.
The level of incoming orders has been relatively good and was on a par with the first quarter of last year, but 4% lower than sales this quarter. Now that the supply chains are operating more smoothly, customers are placing shorter orders and the order book is shrinking as a result. The order book remains at an historically high level, however.
Operating profit (EBITA) for the quarter rose 21% to a new quarterly record and the EBITA margin came in at 16.7% (16.7%). The EBITA margin remains at a high level, where cost increases and a slightly lower gross margin are met by increased turnover.
Growth across the regions
The combination of continuing strong demand, higher price levels and positive exchange rate effects has generally resulted in record levels for most of the operations.
Strong demand in Region Sweden resulted in 22% growth and, excluding exchange rate effects, organic growth reached 16%. Strongest first-quarter growth was delivered by OEM Electronics, Telfa and the Group's largest company OEM Automatic, with Agolux, Elektro Elco, OEM Motor and Rydahls also reporting good growth.
A robust quarter too for Region Finland, the Baltic states and China resulted in 21% growth and, excluding exchange rate effects, organic growth reached 14%. The entities reporting strongest growth are OEM Electronics, and the operations in the Baltics and China. OEM Automatic and Hidealite have also experienced good growth.
Demand has remained strong in Region Denmark, Norway, the British Isles and East Central Europe where sales growth came in at 20%, boosted 5 percentage points by exchange rate effects. The operations in Slovakia, Hungary, Poland and Ireland have experienced strongest growth, and the Norwegian operations have also reported robust growth figures.
Market situation remains uncertain
Despite the many uncertainties surrounding the market, demand has remained strong. However, the market situation is uncertain and there are signs of an economic slowdown and reductions in raw material prices, which will adversely impact growth and profitability, but will create new opportunities to advance our market positions when this happens. While the organisation has adapted and become more efficient in response to the challenges in recent times, the rate of new launches has also increased. 2023 has started well and I am confident that our employees' creative collaboration with customers and suppliers will enable us to further increase our market share.
Jörgen Zahlin
Managing Director and Chief Executive Officer
