Green Landscaping Group (publ) Year-end report 2024

• Net sales amounted to SEK 1,774 (1,656) million.
• Growth was 7 percent, of which organic growth amounted to -6 percent.
• EBITA increased by 3 percent to SEK 164 (159) million.
• The EBITA margin amounted to SEK 9.3 (9.6) percent.
• Cash flow from operating activities amounted to SEK 282 (80) million.
• Earnings per share, basic and diluted, were SEK 1.09 (1.66)*.
• In October, changes and reinforcements to the Group management team were announced.
• The following acquisitions were completed during the quarter: Turun Reunakivi- ja Laatta-asennus Oy (Finland), Viva Gartenbau AG (Switzerland) and Tiefbau Lenzen GmbH (Germany).

*The fourth quarter of 2023 was positively impacted by revaluations of additional considerations (earn-outs) of SEK 24 million, corresponding to SEK 0.42 per share.

CEO comments

It is with a great deal of pride that I look back on 2024. Net sales surpassed SEK 6 billion with a good margin and growth of 10 percent, adjusted for currency effects. EBITA exceeded SEK 0.5 billion, which corresponds to a profit margin of 8.3 (8.8) percent. We have thus delivered sales growth, adjusted for currency effects, in line with our financial target and a profit margin that exceeds our target. We have generated a strong cash flow, which has enabled us to end the year with indebtedness in line with our financial target, while having completed eight acquisitions. Given the challenging market conditions that we have faced throughout the year, it is an achievement that makes me proud.

Stable earnings and strong cash flow
Net sales increased by 7 percent in the last quarter of the year and amounted to SEK 1,774 (1,656) million. Organic growth amounted to -6 percent. It was negatively impacted by lower volumes in Sweden, while Norway and Other Europe reported positive organic growth. Acquisitions contributed with 11 percent and the impact from changed exchange rates was 2 percent.

The market conditions were relatively unchanged during both the quarter and full year. Our landscaping companies faced a particularly challenging market, while those more focused on green space management and maintenance were less affected. Several of our Norwegian companies succeeded in both maintaining their current business and winning new customers. For me, the ability to deliver both growth and good profitability in a challenging market is proof of our customers’ trust in us. To achieve that, you need to consistently be among the best in your field.

During the fall, we intensified our efforts to improve the weaker companies in segment Sweden and boost their margins. We anticipate lasting improvement primarily via our long-term efforts with best practice. We are fundamentally a decentralized company with incredibly skilled and successful entrepreneurs at the helm of each subsidiary. Improvement efforts are aligned with our model of decentralization and facilitating improvement in our weaker units by helping them learn from the best.

EBITA amounted to SEK 164 (159) million, corresponding to an EBITA margin of 9.3 (9.6) percent. Profitability in Norway was on a par with the corresponding period last year and it was once again strong in Other Europe. In Sweden however, profitability declined.

Cash flow from operating activities amounted to SEK 282 (80) million and indebtedness in relation to EBITDA pro-forma RTM amounted to 2.5 (2.5) times at the end of the quarter. It is in line with our financial target.

Investing in Green Landscaping Group
Towards the end of the year, we held our first-ever capital market day. It offered us an opportunity to give a more in-depth presentation of the reasons why investing in Green Landscaping Group is a good idea. We conduct our business in a very attractive market, achieve success by using the right business model and have proven our ability to convince successful companies to join our group.

During the fourth quarter, we met our target of eight acquisitions for the year by completing the acquisitions of the following companies: Turun Reunakivi- ja Laatta-asennus Oy (Finland), Viva Gartenbau AG (Switzerland) and Tiefbau Lenzen GmbH (Germany). Green Landscaping Group thus embarked on 2025 with operations in six countries and more than 50 companies serving their local markets. We are now present in Sweden, Norway, Finland, Lithuania, Germany and Switzerland. Lastly, I would like to thank our customers, partners and employees for their excellent collaboration in 2024.

Presentation of the report:
The report will be presented in a teleconference/audiocast on 30 January 2025 at 08:30 CET. The presentation will be held in English.

If you would like to participate in the webcast, please visit the link below.
https://green-landscaping-group.events.inderes.com/q4-report-2024

If you would like to participate in the teleconference, you will need to register via the link below. Once you have registered, you will receive the phone number and a conference ID for logging in. There are opportunities for asking questions via the teleconference.
https://conference.inderes.com/teleconference/?id=5005679