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Indutrade AB, Sweden
COMPANY PROFILE
Indutrade AB, Sweden Profile
Indutrade AB specialises in industrial components, systems and services with high-tech content in selected niches. It is comprised of nearly 200 subsidiaries in 27 countries and operates six business segments - Engineering & Equipment, Flow Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement & Sensor Technology and Special Products. Filters and related process technology form part of the product range in a number of the segments, particularly in the Fluids & Mechanical Solutions sector. Analysis
COMMENT
Indutrade posted net sales for fiscal 2015 of SEK11 881 million, an increase of 21.9% on the year prior. For comparable activities the increase was 7%, with growth from new acquisitions contributing 12% to the revenue figure. Currency movements were positive, accounting for the remaining circa 3% of sales gain. In the company’s Fluids & Mechanical Solutions, home to much of its filtration activities, revenues rose 18.1% on the year prior to SEK1249 million. The increase comprised a 3% lift in comparable sales, 14% boost from acquisitions and 1% uplift from currency movements. Indutrade reported that demand was stable during the year, with most companies in the segment strengthening their positions in their respective niches. Filter and process technology products contributed 20% of the segment’s sales, with revenues of approximately SEK250 million. Filter and process technology also contributed 5%, or approximately SEK122 million, to the Industrial Components segment’s sales of SEK2446 million that rose 27% on fiscal 2015. Similarly, they made a 4% contribution (SEK51 million) to the Engineering & Equipment segment’s annual sales of SEK1283 million (up 0.7%) and represented 5% (SEK189 million) of Special Products total revenues of SEK3772 million, up 39.2% on the year prior. Indutrade’s order intake for fiscal 2015 amounted to SEK11 939 million, an increase of 19.4% on twelve months ago. For comparable units, order intake rose 4%, while growth from acquisitions was 12%. Currency movements had a 3% positive impact. Like-for-like order intake increased for all business areas except Engineering & Equipment where it was down marginally. Indutrade carried out 13 acquisitions with total annual sales of SEK1155 million during fiscal 2015, including UK-based Filtration Ltd. Net profit rose 27.2% year-on-year to SEK894 million. Key Figures (SEK million) Indutrade AB 2015
Indutrade is continuing with its strategy of targeting leading positions in niche market segments with products featuring high-tech content, both through organic growth and acquisition. The company has a distinct acquisition strategy with its targets often owner-led industrial companies where the management wants to continue running and growing the business. As a policy, Indutrade does not combine companies or change their names following acquisition. It targets firms with strong market positions not only as they often have good profitability, but also because it believes this makes it easier to attract the best suppliers. The company also seeks businesses with proprietary products and brands serving sectors with long-term growth potential. Since 2004 the share of net sales coming from proprietary products has grown by 31 percentage points, and in fiscal 2015 they accounted for 40% of consolidated revenues. Reflecting its growth and acquisition strategies, Indutrade’s governance model is characterised by decentralisation. Individual companies are expected to make their own decisions and are responsible for their own profitability, with Indutrade supporting them with industrial know-how, financing, business development and management by objective. In fiscal 2015 Indutrade made 13 acquisitions, and by early July 2016 had announced a further nine. Acquisitions are also in selected geographic markets with the company targeting the UK, the Netherlands and Switzerland in recent years, as it looks to expand outside its core home market in the Nordic countries. Q
Year ended 31.12 2014 2013
2012
2011
Order Intake
11 939
10 000
9014
8444
8315
Net Sales Of Which: Fluids & Mechanical Solutions
11 881
9746
8831
8384
7994
1249
1058
993
1020
1007
Cost of Goods Sold
7847
6464
5833
5545
5268
Selling Costs
2044
1708
1601
1527
1430
EBITA Of Which: Fluids & Mechanical Solutions
1427
1134
990
905
917
163
127
110
125
134
Operating Profit
1235
981
856
797
822134
894
703
587
569
540
Net Profit Contact Details
Chair: CEO and President: Address:
6
Filtration Industry Analyst
Fredrik Lundberg Johnny Alvarsson Raseborgsgatan 9 Box 6044 SE-164 06 Kista Sweden
Tel: +46 8 703 03 00 Web: www.indutrade.se
July 2016
Indutrade AB, Sweden Profile
Indutrade AB specialises in industrial components, systems and services with high-tech content in selected niches. It is comprised of nearly 200 subsidiaries in 27 countries and operates six business segments - Engineering & Equipment, Flow Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement & Sensor Technology and Special Products. Filters and related process technology form part of the product range in a number of the segments, particularly in the Fluids & Mechanical Solutions sector. Analysis
COMMENT
Indutrade posted net sales for fiscal 2015 of SEK11 881 million, an increase of 21.9% on the year prior. For comparable activities the increase was 7%, with growth from new acquisitions contributing 12% to the revenue figure. Currency movements were positive, accounting for the remaining circa 3% of sales gain. In the company’s Fluids & Mechanical Solutions, home to much of its filtration activities, revenues rose 18.1% on the year prior to SEK1249 million. The increase comprised a 3% lift in comparable sales, 14% boost from acquisitions and 1% uplift from currency movements. Indutrade reported that demand was stable during the year, with most companies in the segment strengthening their positions in their respective niches. Filter and process technology products contributed 20% of the segment’s sales, with revenues of approximately SEK250 million. Filter and process technology also contributed 5%, or approximately SEK122 million, to the Industrial Components segment’s sales of SEK2446 million that rose 27% on fiscal 2015. Similarly, they made a 4% contribution (SEK51 million) to the Engineering & Equipment segment’s annual sales of SEK1283 million (up 0.7%) and represented 5% (SEK189 million) of Special Products total revenues of SEK3772 million, up 39.2% on the year prior. Indutrade’s order intake for fiscal 2015 amounted to SEK11 939 million, an increase of 19.4% on twelve months ago. For comparable units, order intake rose 4%, while growth from acquisitions was 12%. Currency movements had a 3% positive impact. Like-for-like order intake increased for all business areas except Engineering & Equipment where it was down marginally. Indutrade carried out 13 acquisitions with total annual sales of SEK1155 million during fiscal 2015, including UK-based Filtration Ltd. Net profit rose 27.2% year-on-year to SEK894 million. Key Figures (SEK million) Indutrade AB 2015
Indutrade is continuing with its strategy of targeting leading positions in niche market segments with products featuring high-tech content, both through organic growth and acquisition. The company has a distinct acquisition strategy with its targets often owner-led industrial companies where the management wants to continue running and growing the business. As a policy, Indutrade does not combine companies or change their names following acquisition. It targets firms with strong market positions not only as they often have good profitability, but also because it believes this makes it easier to attract the best suppliers. The company also seeks businesses with proprietary products and brands serving sectors with long-term growth potential. Since 2004 the share of net sales coming from proprietary products has grown by 31 percentage points, and in fiscal 2015 they accounted for 40% of consolidated revenues. Reflecting its growth and acquisition strategies, Indutrade’s governance model is characterised by decentralisation. Individual companies are expected to make their own decisions and are responsible for their own profitability, with Indutrade supporting them with industrial know-how, financing, business development and management by objective. In fiscal 2015 Indutrade made 13 acquisitions, and by early July 2016 had announced a further nine. Acquisitions are also in selected geographic markets with the company targeting the UK, the Netherlands and Switzerland in recent years, as it looks to expand outside its core home market in the Nordic countries. Q
Year ended 31.12 2014 2013
2012
2011
Order Intake
11 939
10 000
9014
8444
8315
Net Sales Of Which: Fluids & Mechanical Solutions
11 881
9746
8831
8384
7994
1249
1058
993
1020
1007
Cost of Goods Sold
7847
6464
5833
5545
5268
Selling Costs
2044
1708
1601
1527
1430
EBITA Of Which: Fluids & Mechanical Solutions
1427
1134
990
905
917
163
127
110
125
134
Operating Profit
1235
981
856
797
822134
894
703
587
569
540
Net Profit Contact Details
Chair: CEO and President: Address:
6
Filtration Industry Analyst
Fredrik Lundberg Johnny Alvarsson Raseborgsgatan 9 Box 6044 SE-164 06 Kista Sweden
Tel: +46 8 703 03 00 Web: www.indutrade.se
July 2016