Arbona (ARBO) Q4 2022 earnings summary

Executive summary

• 2022 was a record year for operating subsidiaries and associates, but weaker listed investments drove a consolidated net loss of SEK 21.8M versus profit of SEK 67.6M in 2021.

• Strategic focus remains on shifting capital from listed securities to private operating businesses, building groups with organic and acquisition-led growth, and targeting resilient industries.

Financial highlights

• Revenue was SEK 84.6M, up from SEK 64.0M; operating income was SEK 6.7M versus SEK 1.2M.

• Net income was -SEK 21.8M versus SEK 67.6M; parent-shareholder result was -SEK 25.0M and EPS was -SEK 0.05 versus SEK 0.13.

• Associate income rose to SEK 18.1M from SEK 11.2M; financial non-current asset result was -SEK 44.2M versus +SEK 47.8M, while short-term investment result was SEK 0.1M versus SEK 9.2M.

• Year-end equity was SEK 1,437.4M, or SEK 2.75/share, versus SEK 1,462.4M, or SEK 2.80/share; equity ratio was 97%.

• Cash flow was -SEK 64.2M versus +SEK 101.4M; year-end cash was SEK 59.8M versus SEK 124.0M.

Outlook and guidance

• The outlook on the macro environment and general economy remained somewhat negative; continued execution of long-term investment and return objectives was planned.

• Priorities include gradually rotating listed holdings into private investments and acquiring mature businesses, especially in less cyclical or macro-trend-driven sectors.

• Tyresö Finmekaniska began 2023 with good order intake; further acquisitions in mechanical industry are a stated ambition.

• The stated hope was for a strong 2023 across existing subsidiaries, associates and the listed portfolio, alongside further additions to the portfolio.