Interim report 1 January – 31 March 2023
Milestone reached in Germany
FIRST QUARTER 2023
- Revenue increased 39% to SEK 631m (455)
- Operating profit increased 42% to SEK -14m (-25)
- Operating margin increased to -2.2% (-5.4)
- Result for the period decreased by 89% to SEK 7m (63)
- Earnings per share from continuing operations1 amounted to SEK 0.46 (-2.13)
- Cash flows from operating activities amounted to SEK -126m (-16)
Lars Corneliusson, CEO Ferronordic
First quarter 2023
“The first quarter of 2023 marked the start of a new chapter in Ferronordic’s history. After the sale of our Russian operations at the end of 2022, we were able to focus entirely on Germany and Kazakhstan, as well as on Ferronordic's next growth opportunities.
In Germany, for the first time since the start of operations in 2020, we achieved a positive operating profit for the quarter. This is a milestone for us. Three years ago, we took over a loss-making business and set the goal of making it sustainably profitable over time through investments and improvements in the organisation, processes and network. Building on the 9 workshops we took over from Volvo in January 2020, we now have a network of 21 facilities. We have made major changes in the organisation and worked hard to create a culture built on employee engagement, customer focus and results. Our goal is and was to take higher shares of the aftermarket business and the market for trucks in our sales area. We have had some success in these areas but much work remains to capture the potential we continue to see. We are aware of macroeconomic risks but expect a positive operating result also for the full year in Germany.
In Kazakhstan, new and used machine sales doubled in the first quarter. Profitability also continued to improve.
During the quarter, we continued to develop our operations in both our markets. Our work to promote sustainable transport solutions in Germany leads to increased interest in electric trucks. We also offer electric trucks and charging equipment for rent. In Kazakhstan, we completed work on reorganising our workshops to further increase customer focus. Meanwhile, we continue to look for new growth opportunities for Ferronordic. Our intention is to use the proceeds from the sale of the Russian business to expand into new markets.
Total revenue for the Group grew by 39% to SEK 631m. The operating result improved by 42% to SEK -14m.
In Germany, we continue to see strong demand for service and trucks, despite concerns about a weaker economy. Our operations in Kazakhstan continue to develop and we actively seek opportunities to grow our product and business portfolio. In a longer perspective, we believe that the underlying conditions and business opportunities in the German and Kazakh markets are strong. We continue to analyse new opportunities outside our current markets.”