(Interim report January - June 2021 is distributed as an appendix to this press release)
CEO PATRIK ANDERSSON:
CONTINUED STRONG GROWTH WITH A HIGH EBIT MARGIN
GARO is developing positively. Net sales rose 43% and amounted to MSEK 341.2. EBIT for the quarter rose 82% to MSEK 55.1 and the EBIT margin was 16.1%, mainly as a result of the substantial volume increase.
The organization has maintained a solutions-oriented perspective during the quarter, focusing on customers to complete our transactions and continue to create growth, despite facing challenges with components and materials supplies. This approach has allowed us to remain aggressive, with measures including increasing production capacity in Sweden and Poland.
I would also like to highlight the breadth of GARO's product and service offerings, which is a strength and a distinctive feature of GARO. Close collaboration between GARO's product development and the different product areas enables the Group to quickly meet market demands, which generates increased growth. Unique synergy effects between the product areas create opportunities and make it easy for our customers to obtain a complete solution from GARO where, for example, high sales volumes of wall boxes increase sales of installation materials, safety products and power supply components used for the installation of charging infrastructure.
The E-mobility product area reported growth of 88% for the quarter. Sales in the business area were strong throughout the entire product portfolio, but particularly in AC chargers (home chargers and public chargers). In addition to the continued rapid growth in Sweden, noteworthy positive trends were posted in the UK, Ireland and Finland as well as in other European markets.After the end of the quarter, Niklas Rönnäng was appointed CEO of GARO E-mobility AB to further strengthen the fast-growing E-mobility product area. The position also entails Group responsibility for the E-mobility product area.
The markets for the Electrical distribution products, Project business & Temporary Power product areas reported a strong recovery compared with the preceding year, during which a number of markets were essentially closed as a result of the pandemic. The Electrical distribution products and Project business product areas reported combined growth of a full 21%, which is assessed to be considerably stronger than the underlying market.
The strong market recovery and growth has brought about certain challenges such as occasional component shortages. In the second quarter, GARO managed to successfully secure materials supplies, but uncertainty remains concerning access to raw materials and components.
The market for charging infrastructure is growing structurally with rising numbers of rechargeable vehicles, and we have noted a continuing strong trend with further expansion of the charging infrastructure in all markets. Demand for construction-related products in Sweden combined with the important renovation sector is expected to remain stable. Housing construction has slowed down slightly from its peaks during the last few years, but the production rate remains high and stable. The trend in other markets served by GARO, aside from the pandemic, is expected to be similar. All in all, GARO has a positive view of long-term market conditions, mainly driven by growth in charging infrastructure.
For more information, please contact:
Patrik Andersson, CEO +46 (0)76 148 44 44
Helena Claesson, CFO +46 (0)70 676 07 50
This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact persons on August 12, 2021, at 8:30 a.m. CEST.
GARO AB (publ) Corp. Reg. No. 556071-7772 is a company that develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. GARO's customer offering is to provide complete solutions in the product areas of Electrical distribution products, E-mobility, Project business & Temporary Power with a focus on electrical safety, user-friendliness and sustainability. GARO was founded in 1939, has its head office in Gnosjö and is today an international company with operations in six countries with around 400 employees. The company's production units in Sweden are located in Gnosjö and Värnamo, as well as in Szczecin, Poland. GARO's sales in 2020 amounted to MSEK 1,040. GARO is listed on Nasdaq Stockholm under the ticker name GARO. For more information, see www.garo.se
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