GARO E-mobility Electrification
spésifikasi
- Product Name: GARO Group Key Figures
- Product Type: Financial Data Analysis Tool
- Taun: 2023
- Key Features: Net Sales, EBIT, Growth Percentage, Business Area Information
Parentah Pamakéan Produk
Understanding the Key Figures
The GARO Group Key Figures provide information on net sales, EBIT, growth percentages, and business area details for the year 2023.
Nafsirkeun Data
- Net Sales: Represents the total sales revenue generated by the company. EBIT (Earnings Before Interest and Taxes): Indicates the company’s operating profitability.
- Growth Percentage: Shows the change in key figures compared to the previous year.
- Business Area Information: Provides insights into specific segments like GARO Electrification and GARO E-mobility.
Analyzing the Financial Data
Use the provided figures to analyze the company’s performance, identify trends, and make informed decisions regarding investments or business strategies.
FAQ
- What is the significance of EBIT margin?
The EBIT margin is a profitability ratio that measures a company’s earnings before interest and taxes as a percentage of its revenue. It indicates how efficiently a company is operating and generating profits. - How can I use the growth percentages to assess performance?
Growth percentages help you understand how key figures such as net sales or EBIT are evolving over time. Positive growth indicates improvement, while negative growth may signal challenges that need attention. - Why is it important to track business area information?
Monitoring business area information allows you to assess the performance of different segments within the company. This insight can help in allocating resources effectively and identifying areas for growth or improvement.
YEAR-END REPORT 2023
Strong cash flow during an otherwise challenging quarter — new action package initiated
OCTOBER – DECEMBER 2023
- Net sales amounted to MSEK 31 1.2 (341.8).
- Net sales declined 9% (-8).
- EBIT amounted to MSEK-O-I (8.9)-
- EBIT margin amounted to 0% (2.6).
- Non-recurring costs of MSEK 9.8 (150) were charged to EBIT-
- Non-recurring revenue from the sale of industry properties of MSEK 1 8 (O) is included in EBIT-
- Net income was MSEK O. I (70)-
- Earnings per sharea amounted to SEK O (O. 14).
- Cash flow from operating activities amounted to MSEK 34.9 (13.0).
JANUARY – DECEMBER 2023
- Net sales amounted to MSEK 1,369.9 (1,390.5)-
- Net sales declined I % (+7).
- EBIT amounted to MSEK 51.1 (152.8)-
- EBIT margin amounted to 3.7% (1 1.0).
- Net income was MSEK 3 1.3 (120.5).
- Earnings per sharea amounted to SEK 0.63 (2.41
- Cash flow from operating activities amounted to MSEK 25.6 (89.2).
- The Board proposes o dividend of SEK O per share (0.80).
SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER
- During the fourth quarter, a production facility in Poland was divested for MSEK 45 and a small industrial property in Gnosiö was divested for MSEK 1 2, reducing operating costs and interest-bearing net debt by MSEK 57. The total capital gains amounted to MSEK 18.
- The action and efficiency program, which primarily concerns the GARO Electrification business area, was carried out in accordance with plan during the fourth quarter.
- On January 30, it was announced that o new action and efficiency program had been initiated, resulting in the reduction of about 50 employees in the Group, primarily in the GARO E-mobility business area.
CEO PATRIK ANDERSSON’S COMMENTS ON THE QUARTER
Strong cash flow during an otherwise challenging quarter — new action package initiated
GARO posted overall sales of MSEK 31 1, which is a decline of MSEK 30 or 9% compared with the same quarter in 2022. Sales in the GARO E-mobility business area reported growth of 17% while sales in GARO Electrification declined 17%. Sales were considerably lower than our expectations at the end of the quarter due to a cautious market in both business areas. EBIT amounted to MSEK-O.I (8.9) including net non-recurring items of MSEK +8.2 15). We are now taking further action to strengthen profitability.
Despite a weak quarter in terms of profitability, we generated strong cash flow from operating activities that amounted to MSEK 34.9 ( 13.0). We also divested a production facility in Poland for MSEK 45 and a small industrial property in Gnosiö for MSEK 12. Total capital gains amounted to MSEK 1 8 and the divestments reduced interest-bearing net debt by MSEK 57.
During the autumn, we also initiated a major project to update and improve our business system. The new system will enable improved processes and collaboration between the Group’s different units. The project will take place in 2024 and 2025.
For the full year, sales amounted to MSEK 1,370 compared with MSEK
1 ,390 for full-year 2022. EBIT for the full year amounted to MSEK 51.1
(152.8) providing an EBIT margin of 3.7% (1 1.0).
GARO E-MOBILITY
Net sales in the GARO E-mobility business area amounted to MSEK 94 during the quarter, compared with MSEK 81 in the year-earlier quarter.
Growth for the quarter was lower than expected in a cautious market. The prevailing market situation with macroeconomic uncertainty has noticeably impacted purchasing patterns and investment decisions, primarily in the Swedish market. As a result, market development in the business area is currently difficult to forecast with rapid changes in demand. For the full year 2023, net sales amounted to MSEK 462 (422) leading to growth of 10%.
The first half of 2024 is projected to continue to be cautious in the Swedish market. Our active markets outside Sweden appear more positive. The preconditions are in place for recovery in the second half of the year. Forecasts ahead of 2025 are more hopeful.
GARO ELECTRIFICATION
Net sales in the GARO Electrification business area amounted to MSEK 217 (261 ) in the quarter, which is a year-on-year decline of MSEK 44. For the full year 2023, net sales in the business area amounted to MSEK 908 (969) leading to negative growth of 6%. A weaker economy with rising interest rates has resulted in a considerable decline in the market for the new construction of single-family homes and apartments in Sweden and the rest of the Nordic region. However, we believe that there is still a relatively healthy demand for new builds in the public sector, commercial properties and for industry. The current market situation with a divided construction market is expected to continue for the entirety of 2024.
ACTION AND EFFICIENCY PROGRAM
On January 30, GARO announced that it was to adapt its organization in light of prevailing market conditions and carry out an additional action and efficiency program resulting in the reduction of about 50 employees. The action program will primarily concern the GARO E-mobility business area and is expected to reduce personnel expenses by about MSEK 25 on an annual basis. The program is expected to achieve its intended effect from the third quarter of 2024.
KELESTARIAN
In 2023, we continued to integrate sustainability throughout every part of operations, which is a priority for both us and for our customers. As part of this, we have prepared measures to meet the requirements from the EU Carbon Border Adjustment Mechanism (CBAM) and the forthcoming EU Due Diligence Directive. In 2024, we will continue our internal efforts for the coming reporting in accordance with the EU Corporate Sustainability Reporting Directive (CSRD) in 2025.
MARKET CONDITIONS
The market for charging infrastructure is growing structurally with rising
numbers of rechargeable vehicles, and we see a continuing strong, long- term trend with further expansion of the charging infrastructure in the European market. We see lower growth in the short term, primarily for macroeconomic reasons, particularly in the Swedish market. In Sweden, but also in the rest of the Nordic region, the construction of housing has declined considerably and new production of single-family homes and apartments is expected to be weak for several quarters moving forward.
On the other hand, demand for other commercial and public construction, combined with renovation requirements and energy efficiency enhancements, remains favorable. All in all, we have a positive view of long-term market conditions, mainly driven by growth in charging infrastructure and its requirements for power supply.
Patrik Andersson
- Présidén jeung CEO
Panghasilan
Penjualan NET
Net sales for the fourth quarter amounted to MSEK 3 1 1.2 (341.8), down 9% year-on-year. Net sales for the full-year 2023 amounted to MSEK 1 ,369.9 ( 1 ,390.5) corresponding to negative growth of 1% compared with the year-earlier period.
|
CHANGE IN NET SALES |
Oct–Dec 2023 (MSEK) | Oct–Dec 2023 (%) | Jan–Dec 2023 (MSEK) | Jan–Dec 2023 (%) |
| Year-earlier period | 341.8 | 1,390.5 | ||
| Organic growth | -29.2 | -9 | -19.9 | -1 |
| Acquisitions and structural changes | 0 | 0 | ||
| Exchange-rate effects | -1.4 | -0.5 | ||
| Current quarter | 311.2 | -9 | 1,369.9 | -1 |
| For definitions of key figures, see page 19 |
EBIT
EBIT was MSEK -0.1 (8.9) for the quarter, including non-recurring revenue of MSEK 1 8 but with non-recurring items of MSEK 9.8 ( 15.0) charged to EBIT. The low EBIT was a result of lower sales and
lower gross margin combined with an organization built for greater
volume in GARO E-mobility.
EBIT for the full-year 2023 amounted to MSEK 51.1 (152.8) providing an EBIT margin of 3.7% (1 10). In addition to the recognized nonrecurring revenue in the fourth quarter, the completed changes to the
sales organization in Norway charged EBIT with MSEK 6.2 for the full- year 2023.
Currency effects marginally impacted EBIT for the quarter compared with the year-earlier quarter when EBIT was charged with MSEK 6.4 for these effects. Negative currency effects in EBIT for the full-year 2023 amounted to MSEK 147 compared with a negative effect of MSEK 17.9 in the preceding year.
FINANCIAL ITEMS
The Group’s net financial items amounted to MSEK 2.9 (2.1 ) for the quarter and included currency effects from loans and hedging. Net interest income for the quarter amounted to MSEK -3.5 (-0.8). Currency effects attributable to revaluations of financial assets amounted to MSEK 9.0 (0.3).
The Group’s net financial items for the full year 2023 amounted to MSEK -3.3 (0.6). Net interest income for the year amounted to MSEK – 1 1.4 (-1.9). Currency effects attributable to revaluations of financial assets amounted to MSEK 9.1 (2.7).
PAJAK
Net income amounted to MSEK O. 1 (7.0) for the quarter, and earnings per share amounted to MSEK 0 (O. 14). The tax expense amounted to MSEK 2.7 (4.0). Net income for the full year 2023 amounted to MSEK 3 1.3 ( 120.5) and earnings per share amounted to MSEK 0.63 (2.42). The tax expense for the full year 2023 amounted to MSEK 16.5 (32.9) generating an average effective tax rate of 34.5% (2 1.4). The higher tax rate for 2023 is linked to non-deductible costs in the operations in Poland.
CASH FLOW AND INVESTMENTS
Cash flow from operating activities for the quarter amounted to MSEK 34.9 ( 13.0). The year-on-year improvement for the quarter was mainly attributable to the change in accounts receivable. GARO has also paid a deposit with a supplier for ordered materials that have not yet been called off. The deposit amounts to MSEK 39.1, of which MSEK 19.1 was paid in the fourth quarter. Working capital in relation to net sales amounted to 29.8% (26.5) at the end of 2023. The difference is mainly due to a continued high inventory value combined with lower short-term
liabilities. Total capital gains from the sales of industry properties amounted to MSEK 1 8 and the divestments reduced interest-bearing net debt by MSEK 57. Investments for the quarter amounted to MSEK 17.8 (66.5), of which MSEK 1 1.1 (8.1) pertained to product development.
Cash flow from operating activities for the full-year 2023 amounted to MSEK 25.6 (89.2). Investments for the full year 2023 amounted to MSEK 108.2 (l m .0), of which MSEK 34.8 (30.9) pertained to product development, primarily for the new charging platform GARO Entity. The investment of the new production facility in Poland amounted MSEK 53.6 in 2023 and a total of MSEK 101.
For the full-year 2023, right-of-use assets (leases and rental contracts) declined net by MSEK 8.5 (increase: 42.7). During the year, a dividend of MSEK 40.0 (70.0) was distributed to shareholders.
LIQUIDITY AND FINANCIAL POSITION
The Group’s net debt at the end of the period amounted to MSEK 222.1 ( 143.7). Compared with the third quarter of 2023, net debt has declined MSEK 71.3. The Group’s net debt excluding lease liabilities, which is to say effects of IFRS 16, amounted to MSEK 149.8 (65.2). Available
liquidity in the Group, including unutilized overdraft facilities, amounted to MSEK 163.9 ( 179.5) and the equity ratio was 50.9% (53.2).
THE GARO SHARE
At the end of the period, the number of shares amounted to (50,000,000). The average number of shares amounted to (50,000,000) for the fourth quarter of 2023. On December 29, 2023, the share price closed at SEK 43.52 ( 108.60).
EVENTS AFTER THE END OF THE QUARTER
On January 30, GARO announced that a new action and efficiency program had been initiated. The program results in the reduction of about 50 employees in the Group, primarily in the GARO E-mobility business area. Aside from this, from the end of the period until the publication of this report, no significant events or conditions have occurred, favorable or unfavorable, that would require further disclosures.
DIVIDEND
The Board of Directors proposes that no dividend be paid for the 2023 fiscal year in light of completed investments and the Group’s other consolidation requirements.
NOMINATION COMMITTEE
The members appointed to the Nomination Committee until the 2024 Annual General Meeting are: Niklas Bogefors appointed by Lars Svensson, Johan Ståhl appointed by Svolder AB, Emma Englén
appointed by Spiltan Fonder and Rickard Blomqvist in his capacity as Chairman of GARO AB. Niklas Bogefors has been appointed as Chairman of the Nomination Committee.
ANNUAL GENERAL MEETING
The 2024 Annual General Meeting will take place on Wednesday, May 1 4, 2024 in the company’s premises in Hillerstorp, Sweden. Please visit for more information. www.qaro.se
GARO’s business areas
GARO divides its operations into two business areas: GARO E-mobility and GARO Electrification. GARO E-mobility consists of the E-mobility product area and GARO Electrification consists of the three product areas of Electrical distribution products, Project business & Temporary Power.
GARO E-mobility
Penjualan NET
Net sales in the GARO E-mobility business area amounted to MSEK 93.9, compared with MSEK 80.6 in the year-earlier quarter, providing growth of 17%. For the full-year 2023, sales amounted to MSEK 462.0 (421.8) leading to growth of 10% or MSEK 4 1 .
Deliveries of GARO Entity Compact commenced in October after the previous delivery delay. The lower growth towards the end of the year in the business area was a result of a COUtiOUS market primarily in Sweden. The private market has been significantly cooler as a result of higher interest rates, the economic climate and the removal of the climate bonus, resulting in a slowdown in the pace of new car registrations for rechargeable vehicles.
Sales of major customer projects have also been lower than expected
due to the challenging economic situation. Demand for public charging is the primary factor driving growth in the business area and GARO’s sales under international contracts are now taking place at a slower pace than at the start of 2023.
For full-year 2023, sales in Sweden were 3% lower year-on-year while healthy growth was noted in the rest of the Nordic region.
panghasilan
EBIT for the fourth quarter amounted to MSEK -33.0 (-20.9) providing an EBIT margin of -35.2% (-25.9). Low sales, a weak gross margin an an organization that is built for higher volumes were the main reasons behind the negative earnings. In addition, the business area paid non-recurring costs of MSEK 9.8 ( 1 5) during the quarter partly as a result of an ongoing change of technical platform in GARO E-mobility. EBIT for the full-year 2023 amounted to MSEK -37.2 (13.1) providing an EBIT margin of -8.1% (3.1). Currency effects in EBIT amounted to MSEK -1.3 (-2.0) for the quarter and MSEK -8.7 (-6.1 ) for the full-year. The number of employees at the end of the period was 1 97 (213).
GARO ENTITY
The delivery start of GARO Entity Compact in October signaled the completion of the development project of new platforms for destination charging, and the project is therefore complete. A number of new versions of the GARO Connect app were released from mid November, further simplifying the installation process for installation engineers and facility owners. GARO will continue to develop future features to meet market expectations and maintain GARO Entity’s uniqueness in the market.
SYNERGY EFFECTS
GARO currently has a broad and strong product portfolio, which is a prerequisite for success in this rapidly growing industry. Together with the GARO Electrification business area, GARO E-mobility offers a complete solution from power supply to electric car charging. GARO E-mobility has a positive impact on sales of components in GARO Electrification and the Electrical distribution products product area as well as cable cabinets and energy supply in the Project business product area. This synergy effect between the business areas is a great advantage for customers and creates growth.
| Oct–Dec | Oct–Dec | Disaluyukeun | Disaluyukeun | Jan–Dec | Jan–Dec | |||||
| 2023 | 2022 | Oct–Dec | Oct–Dec | 2023 | 2022 | |||||
| GARO E-MOBILITY KEY FIGURES | 2023 | 2022 | ||||||||
| Penjualan net | MSEK | 93.9 | 80.6 | 93.9 | 80.6 | 462.0 | 421.8 | |||
| Tumuwuhna | % | 17 | -39 | 16 | -39 | 10 | -3 | |||
| EBIT | MSEK | -33.0 | -20.9 | -23.2 | -5.9 | -37.2 | 13. l | |||
| EBIT margin | % | -35.2 | -25.9 | -24.7 | -7.3 | -8.l | 3.1 | |||
| Investasi | MSEK | 12.3 | 41.6 | 12.3 | 41.6 | 96.9 | 93.8 | |||
| Panyusutan | MSEK | 6.5 | 2.9 | 6.5 | 2.9 | 22.3 | l l.5 | |||
| Jumlah pagawé | 197 | 213 | 197 | 213 | 197 | 213 | ||||
| For definitions of key figures, see page 19 | ||||||||||
THE MARKET
The transition to fossil-free fuels as well as energy-efficient systems and services is crucial for achieving Sustainable Development Goals, which benefits GARO since its offering is synchronized with current needs.
However, the current economic situation with high interest rates has significantly changed consumer purchasing behavior and companies’ willingness to invest. In the first half of 2024, we anticipate cautious demand, particularly in the Swedish market, while other markets continue to post growth. In Sweden, demand for charging stations for larger projects in locations such as commercial properties, public places and tenant-owner associations are believed to be stable.
In 2023, there were more than 1 0 million rechargeable cars in Europe. This figure is expected to amount to 41 million by 2030. Electric and chargeable hybrid cars accounted for 35% of the number of newly registered cars in Europe in 2023. However, the number of electric cars only amounted to about 1% of the total number of cars on the roads. This can be compared with Norway, which is at the forefront in the transition to more fossil-free vehicles and where electric cars accounted for 15.5% of the total number of cars during the same period. The country with the highest number of electric cars is currently Germany, with over 1 million, while Norway, the Netherlands, Denmark and Sweden have the highest numbers of electric cars in terms of percent of total number of cars. According to the agreement between the EU member states and the European Parliament in autumn 2022, all new cars sold in the EU will be zero-emission vehicles by 2035.
The target is to reach 250,000 public charging stations in Sweden by 2030, which will require a substantial increase in the pace of expansion from the approximately 34,400 public charging stations currently in place.
A decision by the European Council to adopt regulation and clear guidelines for all member countries regarding the availability of charging stations along the transport network that reached the market in the autumn will generate growth. The regulation sets the foundations for a cohesive network of public charging stations both for cars and for trucks throughout the EU, which is necessary for players in the transportation and construction sectors to transition their vehicle fleets. The regulation outlines compulsory national minimum targets doe the expansion of infrastructure for alternative fuels. The directive means that charging stations must be present every 60 kilometers for cars and every 120 kilometers for trucks along the Trans-European Transport Network’s core network. The agreement also places requirements on the operators of the charging stations. It is to be easy for customers to pay and receive price information in a clear and transparent manner.
GARO Electrification
Penjualan NET
Net sales amounted to MSEK 2 17.3 for the fourth quarter, compared with MSEK 261.2 for the year-earlier quarter, which was a decline of 17%. For the full year 2023, net sales amounted to MSEK 908.0 (968.7) leading to negative growth of 6% or MSEK 60. Sales for the Electrical distribution products product area declined MSEK 1 9 or 12% compared to the year-earlier quarter. For the full-year, negative growth in the product area was 6%. Not surprisingly, demand for products related to the new construction of single-family homes and apartments is down sharply, particularly in Sweden and other Nordic countries. However, GARO continues to see healthy demand for products related to other public and commercial construction and the energy efficiency of buildings. The market connected to the green transition is also assessed to be favorable, which is continuing to maintain sales in several product groups.
The general slowdown in the market also impacted the Project business product area, which is late in the construction cycle. The product area posted a negative growth of 18% or just under MSEK 14 compared with the preceding year. However, the Project business product area posted growth of 3% for the full year.
Sales in the Temporary Power product area have slowed. Sales in this product area are primarily to customers in Sweden and it is now notable that several rental companies are cautious about investing in this type of product.
panghasilan
EBIT for the quarter amounted to MSEK 32.9 (29.8) providing an EBIT margin of 15.2% (1 1.4). The business area has essentially acceptable profitability given the prevailing economic situation where business is currently conducted with a considerable focus on price and rapid delivery. Capital gains from the sale of a facility in Poland and a small industrial property in Gnosiö strengthened EBIT by MSEK 18. During the autumn, GARO commenced an update to the business system that will enable improved processes and collaboration between the Group’s different units. EBIT for the full-year 2023 amounted to MSEK 88.3 (139.7) providing an EBIT margin of 9.7% (14.4). Positive currency effects in EBIT amounted to MSEK 1.6 (negative currency effect of MSEK 4.4) for the quarter and negative currency effects in EBIT amounted to MSEK 5.8 (negative currency effect of MSEK 1 1.9) for the full-year 2023. The number of employees at the end of the period was 281 (308).
THE MARKET
The number of construction starts for single-family homes and apartments has declined substantially in Sweden, but even in the other Nordic countries. The forecast shows that this will continue to impact the production rate of housing in 2024/2025. Relatively healthy demand remains for new construction from the public sector, for commercial properties and for industry. Renovation, energy efficiency, electrification and the green transition are also helping to sustain demand. However, these volumes will not fully compensate for lower volumes in new housing construction in the short term.
In the markets where GARO is active, there is a considerable underlying need for new housing and the long-term assessment is that the market will gain new momentum in line with the impact of the anticipated interest-rate reductions on the real economy. In addition, the market for road and transport infrastructure development is growing, contributing to a strong demand for temporary electricity for construction sites.
ELECTRICAL DISTRIBUTION PRODUCTS, PROJECT
BUSINESS, TEMPORARY POWER Distribution has commenced of the new engine heater outlet GARO Entity Heat, which is built on the same platform as GARO Entity and for which sales commenced in the third quarter. The product has been well received in the market with its ability to make it possible to combine engine heater and charger products in the same system.
The Project business product area posted increased sales of distribution boards, cable cabinets and switchgear in the quarter, which can, for example, supply power to various types of properties, E-mobility solutions and renovations for energy efficiency. This growth is positive since housing-related products have declined in sales. In Temporary Power, sales of GARO Entity Flex, GARO’s new mobile electric car charger adapted for construction sites, events and other temporary establishments, commenced during the quarter.
GARO’s breadth of products and solutions are beneficial for customers and end users as the company is able to offer a complete solution with anything from power supply to connectable charging stations for EV charging.
ALLOCATION OF NET SALES PER PRODUCT AREA
January-December 2023
For definitions of key figures, see page 19
Product development with a focus on safety
GARO is continually developing its customer offering in both of its business areas: GARO E-mobility and GARO Electrification. To ensure that the customer offering remains at the forefront and is expanded with smart products, considerable resources are invested in product development.
Development is a basic prerequisite for continued expansion. In 2023, considerable focus has been placed on further developing GARO Entity with new functions and services. GARO has a long history in the manufacturing of products for electrical installations and in focusing on the safety of these products. The trend we see now is for increased safety requirements from different players in the market, while regulations are becoming increasingly stringent for all types of electrical products. GARO does not compromise when it comes to safety and the company delivers products and solutions that comply with laws and standards.
Kelestarian
SUSTAINABILITY WORK
The Group bases its framework of GARCYs sustainability work on two cornerstones: how proprietary operations are structured, and how the products contribute to the transition to an electrified society. CARO’s operations are to be conducted in a sustainable manner in which all employees are to be offered safe and comfortable workplaces. The products and services that GARO provides create the preconditions for and enable the growth of a fossil-free society. Sustainability issues are a natural part of the Group’s strategy which is characterized by operations with a long-term path that will help guide and structure sustainability activities at all levels of the company.
2023 FISCAL YEAR
In 2023, GARO continued to integrate sustainability throughout every part of operations, which is a growing priority for both GARO and for our customers. Efforts to meet the requirements from the EU Carbon Border Adjustment Mechanism (CBAM) and the forthcoming EU Due Diligence Directive have commenced in dialog with our business partners. In 2024, GARO will continue efforts to align reporting in accordance with the EU Corporate Sustainability Reporting Directive (CSRD) from 2025. Sustainability policies have expanded to include statutory and voluntary standards.
GARO is continually strengthening its ambitions, knowledge and internal and external collaboration for sustainable products. Work is also continuing for Environmental Product Declarations (EPDs) in
line with Eco-Passport and ISO 14067 for GARO Entity. For more information about GARO’s goals for a more sustainable future, refer to our 2022 Annual Report, pages 36—51
Parent Company figures
The Parent Company’s operations encompass the Electrical distribution products product area, development department, Group Management, certain Group-wide functions and the Group’s finance function. Since January 1 2023, certain customer transactions with associated production in GARO Electrification were internally transferred from the Parent Company to other companies in the Group. This impacted comparative figures in terms of both external and internal sales.
Net sales for the Parent Company in the fourth quarter amounted to MSEK 88.2 (133.7). Sales to other Group companies amounted to MSEK 13.1 (44.4). EBIT for the quarter amounted to MSEK 10.0 (17.1). Net sales for the Parent Company amounted to MSEK 354.8 (498.4) for the full-year 2023, of which sales to other Group companies comprised MSEK 60.3 ( 159.0), EBIT for the full-year amounted to MSEK 40.4 (78.6).
GARO’s financial targets
Leuwihview
NATURE OF OPERATIONS
GARO develops, manufactures, and markets innovative products and systems for the electrical installations market under its own brand. The company has operations in Sweden, Norway, Finland, Ireland, Germany, Poland and the UK. The Group is organized in two business areas: GARO Electrification and GARO E-mobility. GARO has a broad product assortment and is a market leader within several product areas. GARCYs business concept is to, with a focus on innovation, sustainability and design, provide profitable complete solutions for the electrical industry
SEASONAL VARIATIONS
CARO’s operations are, to a certain degree, subject to seasonal variations. GARO’s sales are generally stable from one quarter to the next but can fluctuate monthly within the quarter. Sales can be somewhat lower during the vacation months (July—August) and from December to January. During periods of high production, GARO is normally tied up in working capital. Cash and cash equivalents are freed from working capital after the busy season, when the finished products have been installed in customers’ facilities and invoices have been paid.
RISKS AND UNCERTAINTIES
GARCY risks and uncertainties are described in Note 3 on pages 70— 72 of the 2022 Annual Report. The Annual Report is available at www.garogroupse. At the time of writing, the situations in Ukraine and
Gaza are not assessed to have any notable impact for the Group and its operations.
ALTERNATIVE PERFORMANCE MEASURES
In this interim report, GARO presents certain financial measures that are not defined by IFRS, known as alternative performance measures. The Group believes that these measures provide valuable supplementary information to investors since they enable evaluations of the company’s earnings and financial position. These financial measures are not always comparable with the measures used by other companies since not all companies calculate them in the same way. Investors should view these financial measures as a supplement rather than a replacement of financial reporting in accordance with IFRS. For definitions, see page 19.
RELATED-PARTY TRANSACTIONS
Related-party transactions take place in accordance with the principles described in the 2022 Annual Report. There were no related party transactions during the year except for the payment of fees to the Board of Directors and the remuneration of senior executives.
ACCOUNTING POLICIES
GARO applies the International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act (1995: 1 554) and the recommendations and statements of the Swedish Financial Reporting Board in RFR l. This year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting. Disclosures in accordance with IAS 34, 16A are presented in the financial statements and their notes in the interim information on pages 1— 1 9, which constitute an integrated part of this financial statement. In addition, disclosures according to IAS 34, 16A are presented in the financial statements and their notes as well as other parts of the interim report. The Parent Company’s interim report was prepared in accordance with Chapter 9 of the Annual Accounts Act and the Swedish Financial Reporting Board’s recommendation RFR 2.
GARO AB applies the same accounting policies as in the most recent Annual Report.
AUDITORS’ STATEMENT
This year-end report has not been reviewed by the company’s auditors.
Gnosiö, February 21, 2024
GARO AB
The Board of Directors
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EBIT BEFORE AND AFTER ADJUSTMENT OF NON-RECURRING COSTS
Capital gains from the divestment of property in Poland and Sweden improved earnings in GARO Electrification. In addition, non-recurring items, such as the ongoing change of technical platform, impacted earnings in GARO E-mobility. These items affect the comparability of this year-end report.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||
| Amount in MSEK | 31 Désémber 2023 | 31 Désémber 2022 |
| ASET | ||
| Dibereskeun aset | ||
| Aset intangible | 145.9 | 127.7 |
| Tangible assets | 285.2 | 269.4 |
| Keuangan aset | 4.2 | 4.1 |
| Total dibereskeun aset | 435.3 | 401.2 |
| Aset ayeuna | ||
| Inventories | 395.2 | 344.9 |
| Rekening receivable | 252.6 | 32 l. l |
| Receivables ayeuna séjén | 65.5 | 56.8 |
| Kas jeung sarimbag kas | 50.0 | 29.5 |
| Total current assets | 763.3 | 752.3 |
| JUMLAH ASET |
l, 198.6 |
l, 153.5 |
| EKUITAS AND LIABILITIES | ||
| Share capital | 20.0 | 20.0 |
| Other reserves | 13.8 | 9.7 |
| Other contributed capital | l.5 | l.5 |
| Other equity including net income for the period | 574.2 | 582.9 |
| Total equity | 609.5 | 614. l |
| long-term liabilities | ||
| Kawajiban ka kiridit institutions | 22.2 | 36.6 |
| lease liabilities | 56. l | 62.4 |
| Lain katangtuan | 7.0 | 9.0 |
| Deferred tax liabilities | 0 | 0 |
| Total long-term liabilities | 85.3 | 108.0 |
| Jangka pondok liabilities | ||
| Kawajiban ka kiridit institutions | 177.6 | 58. l |
| lease liabilities | 16.2 | 16. l |
| Hutang | 183.3 | 187.4 |
| Other short-term liabilities | 126.7 | 169.8 |
| Total jangka pondok liabilities | 503.8 | 431.4 |
| TOTAL EQUITY AND LIABILITIES |
l, 198.6 |
l, 153.5 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONDENSED CONSOLIDATED CASH-FLOW STATEMENT
CONDENSED PARENT COMPANY INCOME STATEMENT
The Parent Company does not have any items recognized as other comprehensive income which is why total comprehensive income corresponds to net income. Since January 1, 2023, certain customer transactions with associated production in GARO Electrification were internally transferred from the Parent Company to other companies in the Group. This impacted comparative figures in terms of both external and internal sales.
CONDENSED PARENT COMPANY BALANCE SHEET
SALES AND EBIT BY BUSINESS AREA
REVENUE PER CUSTOMER’S GEOGRAPHIC LOCATION (OCT-DEC)
REVENUE PER CUSTOMER’S GEOGRAPHIC LOCATION (JAN-DEC)
GARO GROUP MULTI-YEAR OVERVIEW AND KEY FIGURES*
QUARTERLY FIGURES
Key figures, alternative performance measures and definitions
The performance measures in this report take into account the nature Of the operations and are deemed to provide relevant information to shareholders and Other stakeholders and also enable comparability with Other companies,
- EBIT: Earnings before interest and tax
- EBIT margin, %: EBIT as a percentage Of net sales for the period
- Earnings per share, before and after dilution, SEK: Net income for the period divided by the average number Of shares at the end Of the period
- Equity per share, SEK: Equity divided by the number Of shares at the end Of the period
- Return on equity, Net income for the past 1 2 months divided by average equity
- Return on capital employed, %: EBIT for the past 1 2 months divided by capital employed,
- Equity ratio, Equity as a percentage Of total assets
- Capital employed, SEK: Total assets less short-term liabilities adjusted for cash and bank balances
- Net debt: Interest-bearing liabilities, lease liabilities according to IFRS 16 less assets including cash and cash equivalents
- Net debt excluding IFRS 16: Interest-bearing liabilities excluding lease liabilities in accordance with IFRS 1 6 less assets including cash and cash equivalents
- Net debt/ EBITDA multiple: Net debt at the end Of the period as a percentage Of EBITDA for the past 1 2 months
Alternative performance measures
GARO uses certain performance measures that are not defined in the rules for financial reporting that GARO applies, The goal Of these performance measures is to create better understanding Of how the operations are performing. It must be stressed that these alternative performance measures, as defined, are not entirely comparable with performance measures Of the same name used by Other companies. Organic growth: Organic growth with adiustments for currency effects from operations in currencies Other than SEK.
- EBITDA: Earnings before interest, taxes, depreciation and amortization EBITDA margin, EBITDA as a percentage Of net soles for the period
- Working capital: The sum Of current assets less cash and cash equivalents less current non-interest-bearing liabilities, all calculated at the end Of the period
- R 12: A summary Of the outcome Of the past 1 2 months
- Number Of Employees: The number Of employees at the end Of the period
Economic information
INVITATION TO PRESENTATION FOR THE PRESS AND ANALYSTS
On February 21, 2024 at 9:30 a.m., the President and CEO Patrik Andersson and CFO Helena Claesson will present the report and respond to questions in a teleconference,
Nomer telepon:
- Sweden: +46 20012 37 17
- Éropa: +44 20 3936 2999
- Code: 82 50 73
The presentation used during this teleconference can be downloaded at under Investor Relations. A recording Of the teleconference will www.garogroup.se be available on the company’s website afterward.
FOR MORE INFORMATION, PLEASE CONTACT:
- Patrik Andersson, President and CEO: +46 76 148 44 44
- Helena Claesson, CFO: +46 70 676 07 50
FINANCIAL CALENDAR
- First quarter Of 2024 May 14, 2024
- Second quarter 0 2024
- Third quarter Of 2024 August 16, 2024 November 1 5, 2024
FORWARD-LOOKING INFORMATION
Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specifically mentioned factors, Other factors may have a material impact on the actual outcome. Such factors include, but are not limited tot the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact Of competing products and the prices Of such products, difficulties associated with product development and commercialization, technical problems, interruptions to the CJCC*SS to raw materials and credit losses attributable to major customers.
GARO IN BRIEF
GARO develops and manufactures innovative products and solutions within electricity and E-mobility, GARO targets both professionals and end users. GARO’s brand is your guarantee for electrical safety, user-friendliness, and sustainability, GARO was founded in 1939 in Gnosiö, in Småland, in southern Sweden where our distinct entrepreneurial spirit originates from and where our head Office remains, There is not much else that is similar from that time, Today, GARO is an international Group with approximately 500 employees and operations in six countries, The foundation Of GAROts work is all Of the knowledge and experience that the Group has collected since 1939 until today.
This information is such information that GARO AB is obligated to publish in accordance with the EIJ Market Abuse Regulation- The information was published by the abovementioned contact persons on February 21, 2024, at 8:30 a.m. CET.
Dokumén / Sumberdaya
| GARO E-mobility Electrification [pdf] Pituduh Pamaké E-mobility Electrification, E-mobility, Electrification |
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