Momentum Group (MMGR) Q4 2023 (Q&A) earnings summary

Executive summary

• Transformative year with stable demand despite economic turbulence; EBITA growth of 30% and EBITA/working capital return of 59% exceeded targets of >15% and >45%.

• Completed 11 acquisitions with combined annual revenue of ~SEK 610 million; organic growth was 7%, and acquisitions strengthened specialist positions and contributed positively to EBITA.

• Launched a new structure effective 1 January 2024, dividing operations into Industry and Infrastructure business areas to support growth and collaboration.

Financial highlights

• Revenue rose 32% to SEK 2,298 million; comparable-unit growth was 7%, acquisitions contributed SEK 438 million, and currency translation added SEK 9 million.

• Operating profit increased 28% to SEK 237 million; EBITA grew 30% to SEK 265 million. EBITA excludes acquisition-related amortisation and items affecting comparability.

• Net profit rose 24% to SEK 173 million; EPS increased 28% to SEK 3.45. Profit after financial items was SEK 222 million.

• Operating cash flow reached SEK 260 million, versus SEK 135 million in 2022; operating cash flow before working-capital changes was SEK 280 million.

Outlook and guidance

• Target remains annual EBITA growth of at least 15% over a business cycle, alongside strong profitability and disciplined working-capital use.

• Strong balance sheet, operating cash flow and expanded acquisition resources support continued earnings growth and a high acquisition pace in 2024.

• Market conditions are expected to remain cautious amid sluggish economic activity and international security uncertainty; operations will adapt costs and offerings to demand.