FY2023 Results Lifco AB
Earnings discussion and conference call
Today, Lifco AB reported its full-year 2023 financial results. Let’s review them in great detail to see whether or not our investment case has materially changed. At the time of writing, the stock is up by close to 3%.
Summary
The below summary could serve as a good starting point for further discussion:
Surprisingly, organic revenue growth turned more negative in Q4 (-5.1%) as Demolition & Tools witnessed weaker volumes. This performance was worse than expected and we recall the negative market reaction in the summer of 2023.
Despite this, Lifco once again demonstrated its profitability focus with 23.2% EBITA margin, up 120 bps. We suspect mix effects and the incoming highly profitable entities (acquisitions closed in Q3 23) to have contributed positively to this result. It’s a remarkable profitability improvement given the weaker organic top line development.