Soltech Energy Sweden AB (publ) quarterly report for the period January-March 2022
CONTINUED VERY STRONG GROWTH
CEO comment:
Soltech once again delivers very strong growth during the first quarter of 2022. We reach a full SEK 287.5 million in revenue, which corresponds to 143 percent growth in Sweden. The quarter began with unusually high rate of sick leave due to Covid-19 and related family quarantine rules, and on February 24, Russia's offensive war against Ukraine started. In other words, an unusual and tough quarter, which we still manage to navigate through in a good way. Our organic growth was as much as 43 percent, which is a figure to be proud of for all our employees.
FIRST QUARTER IN BRIEF
• The Group's revenues in the quarter amounted to SEK 287.5 (145.2) million, an increase of 98%.
• The Group's revenues in the Swedish operations amounted to SEK 287.5 (118.1) million, an increase of 143%.
• The Group's organic growth amounted to 43 (56) %.
• The Group's profit before depreciation (EBITDA) amounted to SEK -38.5 (-8.3) million. EBITDA was negatively affected by earnings from participations in associated companies by SEK -5.1 million. EBITDA has also been negatively affected by price increases for components as well as continued investments and investments in both new acquisitions and existing subsidiaries, which drives increased costs.
• The Group's operating profit (EBIT) amounted to SEK -53.2 (-28.4) million. EBIT has, in addition to the above-mentioned effects on EBITDA, been affected by increased depreciation as a result of acquisitions.
• The Group's EBITDA in the Swedish operations amounted to SEK -38.5 (-26.7) million and EBIT -55.3 (-35.6) million.
• Profit after tax for the period amounted to SEK -53.2 (-18.2) million.
• Cash flow for the period from operating activities amounted to SEK -71.2 (-4.7) million.
• The period's cash flow for the Group amounted to SEK -80.2 (-101.7) million.
• Earnings per share amounted to SEK -0.52 (-0.33).
• Covid-19 affected the Swedish operations during the first quarter, mainly in the form of sick leave and family quarantine.
SIGNIFICANT EVENTS DURING THE FIRST QUARTER
Significant events in subsidiaries:
• ESSA Glas & Aluminum AB has won a contract for the execution of a façade contract with construction starting during the summer of 2022. The assignment is carried out for the Stockholm Region, through Locum AB, and has an order value of SEK 92 million.
• Soltech Energy Solutions and Falkenklev Logistik are deepening their collaboration. In addition to the 1.5-hectare solar park that Soltech will build, both companies, together with Scania, will also build Sweden's largest charging and battery park for electric trucks. The project is part-financed by the Swedish Environmental Protection Agency.
• Soltech Energy Solutions will build Sweden's largest solar park connected to only one industry for Åbro Bryggeri in Vimmerby. The solar park will cover an area of 10 hectares and will contribute to Åbro Bryggeri becoming completely self-sufficient in solar. The park is planned to be commissioned during the latter part of 2022.
Acquisitions:
• Soltech has acquired the remaining 30% of the shares in the subsidiary Fasadsystem i Stenkullen AB, which after the acquisition is a wholly owned subsidiary.
• The remaining 40% of the shares in the subsidiary Din Takläggare i Värmland-Dalsland AB have been acquired and the company is now a wholly owned subsidiary. At the same time, the Group made its first additional acquisition by acquiring 100% of the solar energy company Solexperterna Värmland AB, with effect from 1 April 2022. The acquired company will be part of the now wholly owned subsidiary Din Takläggare.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
International acquisition:
• Expansion outside Sweden. Soltech has acquired 53.3 percent of the shares in the Dutch solar energy company 365 Energie Holding B.V. (365zon) based in Eindhoven, the Netherlands. The acquisition of 365zon is financed entirely from its own cash and with newly issued Soltech shares. The company had sales of SEK 250 million in 2021 and is estimated to have sales of approximately SEK 350 million in 2022 with an operating profit of approximately 10%. Since 2012, 365zon has completed over 20,000 successful installations and with its nationwide installation capacity, the company now has an average of approximately 6,500 solar cell installations annually in the Dutch housing market.
Significant events in subsidiaries:
• Soltech Energy Solutions has been commissioned to build a 38,000 sqm solar energy solution for Coop Sverige AB consisting of CFP-certified panels with recycled silicon from Norway and silicon from Germany and the US. The facility will cover half of the entire property's electricity needs. Commissioning is planned for the turn of the year 2022/2023.
• Soltech Energy Solutions and Provektor have been commissioned to build panel installations for solar energy solutions at three ICA stores. Commissioning of the first facility in Borås is planned for the summer of 2022.
Other:
• Soltech's Annual General Meeting was held on May 12, 2022. It was decided, among other things, that the Board was given renewed authorization to decide on new issues of shares and / or convertibles and / or warrants, that the Board & CEO were granted discharge for the past year.
* Soltech Energy Sweden AB's subsidiary Advanced Soltech Sweden AB (ASAB) was listed on the Nasdaq First North Growth Market on October 29, 2021 and was thus deconsolidated from the Group. The comparative figures are not recalculated with this in mind.
