Duroc (DURC) investor relations material

Executive summary

• Q1 net sales rose 40% to MSEK 583.0, with 24% organic growth; adjusted EBIT improved to MSEK 29.8 from a loss of MSEK 13.5.

• Earnings recovery reflected stronger Core Operations, positive contributions from five prior-year acquisitions, and the discontinuation of a loss-making unit.

• Management expects continued earnings improvement, led by Core Operations, while maintaining its FY adjusted EBIT budget of MSEK 100 for Core Operations.

Financial highlights

• EBITDA was MSEK 50.4 versus MSEK 3.4; adjusted EBITDA was MSEK 51.6 versus MSEK 4.8.

• EBIT was MSEK 28.5 versus a loss of MSEK 14.8; continuing-operations profit after tax was MSEK 15.1 versus a loss of MSEK 10.4.

• EPS from continuing operations was SEK 0.38 versus a loss of SEK 0.17; EPS including discontinued operations was SEK 0.11 versus a loss of SEK 0.49.

• Operating cash flow was MSEK 0.4 versus MSEK 27.1; cash and cash equivalents were MSEK 195.4 at quarter-end.

Outlook and guidance

• Management expects gradually improving profitability in Q2, with Rail expected to recover earlier earnings shortfalls and Broddson starting the year stronger.

• The adjusted EBIT budget of MSEK 100 for Core Operations remains unchanged; the stated ambition is annual net sales growth of at least 20% through organic growth and acquisitions.

• Management sees acquisition opportunities and intends to pursue further acquisitions in coming quarters; the acquisition market is considered favourable.