Annual Report 2022

Full Annual Report 

Press Release

SUMMARY JANUARY-DECEMBER 2022

• Net sales amounted to SEK 1,390.5 million (1,295.8).

• Net sales increased by 7 percent (25).

• Operating profit amounted to SEK 152.8 million (207.2).

• The operating margin amounted to 11.0 percent (16.0).

• Profit after tax amounted to SEK 120.5 million (166.7).

• Earnings per share amounted to SEK 2.41 (3.33).

• The board proposes a dividend of SEK 0.80 (1.40) per share.

CEO PATRIK ANDERSSON: FOCUSING ON FUTURE GROWTH AND PROFITABILITY DESPITE A CHALLENGING QUARTER
The group's net sales amounted to SEK 342 million during the fourth quarter, which is eight percent lower than the same quarter last year. Similar to previous quarters during the year, GARO Electrification continued to show good growth, while GARO E-mobility decreased its turnover. It is mainly the lack of electronic components that has affected our production and delivery capabilities within the business area.

GARO E-MOBILITY
Net sales within the GARO E-mobility business area amounted to SEK 81 million (134) during the quarter. Compared to the fourth quarter of the previous year, the market has increasingly shifted to connected products also for home use. This, in turn, has led to GARO's sales of certain non-connectable home chargers falling. The lower turnover is also an effect of the challenging situation with limited availability of electronic components, which created long delivery times for customers. The order book remains high, mainly within connected systems for public charging, where the expansion of the charging infrastructure is ongoing. During the quarter, we launched a new product program for destination charging1. The range is built on a new technical platform with a high degree of functionality for home use, commercial properties and public environment. The interest from the market has been great and we have started taking orders for GARO Entity, a newly developed charger intended for the public environment. We are gradually increasing production and expect full capacity by the summer. As a natural step for our continued growth within GARO E-mobility, we have started market establishment in Germany. A market that we previously reached via retailers, but where we now want to see a higher market presence.

GARO ELECTRIFICATION
Net sales within the GARO Electrification business area increased by 11 percent to SEK 261 million. We have seen good growth in most markets and especially in the product areas Installation and Projects. The new construction and renovation sector has generally remained strong during the quarter. Furthermore, households' increased focus on energy efficiency and measurement has driven sales within the Installation product area. Temporary electricity decreased slightly compared to the previous year. During the quarter, Daniel Emilsson was appointed as new business area manager. Since 2007, Daniel has successfully led GARO's product development team as GARO's CTO and has the necessary background to continue developing the business area.

MATERIAL SUPPLY
Within the GARO Electrification business area, deliveries during the fourth quarter have been at a good level. In the GARO E-mobility business area, however, the lack of electronic components has greatly affected our production and delivery ability of connected charging products. This will also affect the group's operations during the beginning of 2023.

MARKET CONDITIONS
The market for charging infrastructure is growing structurally with the number of chargeable vehicles and we see continued strong development with further expansion of charging infrastructure in the European market. Residential construction is still at a good production pace, but new production is expected to gradually slow down during the second half of 2023. On the other hand, demand for other commercial and public construction, in combination with renovation needs, energy efficiency and electrification, is expected to remain good, which is positive for GARO. Overall, we view the long-term market conditions positively, mainly driven by growth in charging infrastructure.
Patrik Andersson
President and CEO

Read the full year-end report here.