Strong organic growth and continued European expansion
Fourth quarter 2021
- Net revenue increased by 53% to SEK 532 million (349).
- Adjusted EBITA increased to SEK 36 million (20), corresponding to an adjusted EBITA margin of 6.7% (5.9).
- Operating profit (EBIT) amounted to SEK 13 million (11).
- Adjusted operating profit (EBIT) increased to SEK 22 million (13).
- Adjusted profit for the period amounted to SEK 20 million (-20).
- Earnings per share, basic and diluted, totalled SEK 0.10 (-0.19).
- Cash flow from operating activities amounted to SEK -33 million (5).
Costs affecting comparability amounted to SEK 9 million (2) in the fourth quarter of 2021.
CEO Comments
When summing up 2021 and our early days as a listed company, it is clear that the business has continued to develop strongly. Sales increased by 30% overall in 2021, totalling SEK 2,141 million (1,651), primarily as a result of the acquisitions made during the year. Despite the ongoing pandemic, with lockdowns in countries including Norway and the UK, the Group’s organic growth also increased by 6% in 2021. It is pleasing to be able to report strong organic growth in sales for the year, despite the impact of Covid-19. It should be added that the stock exchange listing was a large-scale project that required a great deal of time and resources. I consider it an indication of the strength of Cary Group that we were still able to take our opportunities to increase growth through acquisitions. In the fourth quarter of 2021, which is seasonally the weakest, Cary Group’s net revenue increased by 53% overall, totalling SEK 532 million (349), with organic sales growth of 8%, driven primarily by strong demand and growth in Sweden.
In the fourth quarter, we signed agreements on two platform acquisitions and one add-on acquisition. With the two platform acquisitions, we are launching on two new geographical markets within our Rest of Europe region, namely Germany and Portugal. In Germany, this is through the acquisition of Zentrale Autoglas, a leading player in the repair and replacement of bus glass, while in Portugal it is through the acquisition of ExpressGlass, which operates a vehicle glass repair and replacement business. With the acquisition of ExpressGlass, we are expanding our position on the Iberian peninsula, which we expect to bring both operational and commercial benefits. In Norway, we signed an agreement for the add-on acquisition of MPS Bilskade, which operates within both major and minor vehicle damage repair. This acquisition gives us a stronger market position in the country and a broader offering for insurance companies, as well as greater proximity to our customers, with a considerably larger network of workshops. The acquisition is part of our Nordic expansion strategy, where we are broadening our operations within an additional vertical. All acquisitions will be completed in early 2022.
Adjusted EBITA increased by 19% in 2021 to a total of SEK 294 million, as a result of increased sales, corresponding to a profitability of 13.7% (15.0). In the fourth quarter, adjusted EBITA increased by 75% to SEK 36 million, corresponding to profitability measured in terms of adjusted EBITA margin of 6.7% (5.9). Alongside our focus on integrating newly acquired companies in order to achieve economies of scale and so increase profitability, we are also reviewing specific measures in certain countries where profitability is lower and working to improve the operational efficiency of our workshops. We are working to achieve our financial target of an adjusted EBITA margin of 20% in the medium term.
We believe that the demand for our services and the opportunity for growth is good as society opens up and restrictions due to Covid-19 gradually disappear. We look forward to integrating our newly acquired operations during 2022 and look positively at the opportunities to make further acquisitions and continue our expansion journey during the year, which is an important part of our strategy.
Presentation of the report
A conference call for investors, analysts and financial media will be held at 10:00 AM CET. The report will be presented by Anders Jensen, CEO, as well as by Joakim Rasiwala, CFO.
You can follow the conference via https://tv.streamfabriken.com/cary-group-q4-2021/register.
A recording of the conference call will be available afterwards at www.carygroup.com.
Dial-in details for the conference call:
DK: +4582333194
SE: +46856642693
UK: +443333009273
US: +1 6319131422 PIN US: 98839649#
This information is such that Cary Group Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person indicated below, on 11 February 2022 at 08:00 CET.
Anders Jensen, CEO, Cary Group
Stockholm, 11 February 2022
For more information, please contact:
Helene Gustafsson, Head of IR & Corporate Communication
Tel: +46 708 684 050
E-mail: helene.gustafsson@carygroup.com
About Cary Group
Cary Group provides sustainable damage repair and car care services and has business operations in Sweden, Denmark, Norway, the UK and Spain. It specialises in the repair and replacement of automotive glass, with a complementary range of services in auto body repair and SMART repair. With good accessibility for customers, high-quality products and smart solutions, we help our customers make simplified and sustainable choices. For more information, please visit www.carygroup.com.
This information is information that Cary Group Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-02-11 08:00 CET.
