The growth continued in the third quarter with a 12 percent growth compared with the same quarter last year. Organic growth adjusted for calendar effects was 10 percent. Adjusted EBITA margin taking into account estimated calendar effects of NOK 27 million, was 7.8 percent in the quarter, up from 7.2 percent the same quarter last year.
Highlights Q3 2023
- Solid growth in income after external project costs of 12 percent to NOK 1 705 million (1 523)
- Calendar effect of NOK 27 million due to one less working day for the quarter compared with Q3 2022
- Organic growth of 10 percent adjusted for calendar effects
- Adj. EBITA decreased to NOK 108 million (109) with an adj. EBITA margin of 6.4 percent (7.2)
- Adj. EBITA margin adjusted for calendar effects increased to 7.8 percent (7.2)
- Net profit of NOK 80 million (81)
- Earnings per share NOK 0.28 (0.29) adjusted for share split of 25 for 1
Highlights YTD Q3 2023
- Solid growth in income after external project costs of 14 percent to NOK 6 161 million (5 383)
- Calendar effect of NOK 34 million due to one less working day per YTD Q3 2023 compared to last year
- Organic growth of 11 percent adjusted for calendar effects
- Adj. EBITA increased to NOK 601 million (534) with an adj. EBITA margin of 9.8 percent (9.9)
- Adj. EBITA margin adjusted for calendar effects increased to 10.3 percent (9.9)
- Net profit of NOK 442 million (394)
- Earnings pr share NOK 1.57 (1.38) adjusted for share split of 25 for 1
Comments from CEO Egil Hogna:
"During the last year we have seen rising interest rates and high inflation create uncertainty regarding certain segments of the Nordic market. This has also been the case during the third quarter of 2023. Nevertheless, Norconsult delivered profitable growth and good margins in line with corresponding quarters in previous years.
On 10 November Norconsult ASA completed a successful listing on Oslo Børs under the ticker NORCO. This was an important milestone in our almost 95-year history, a listing that will secure employee ownership and provide exciting opportunities for the Company. Norconsult is a highly skilled company with a strong local presence in the Nordics, with a balanced project mix in the private and public sector. Going forward, we will continue to work on attracting, developing, and retaining the best talents and continue our profitable growth."
Outlook
The general market outlook continues to be uncertain, with geopolitical tensions in Ukraine and in the Middle East, higher interest rates and continued high inflation. Norconsult has a limited direct impact on its overall activity level from these factors, with a diversified backlog and customer base. The Company has the majority of its demand from the public sector in the Nordics, and overall, a diversified mix of services and end-market exposures. Historically, Scandinavian governments have implemented counter cyclical measures like infrastructure investments, which have reduced the general negative impact on the economy, when private sector demand has been slow. We continue to experience lower activity within the private residential and non-residential building markets. This is offset by continued stable demand within public buildings, energy and industry, and infrastructure.
The orderbook remains stable at approximately 75 percent of our annual revenues. Our decentralized organisational structure provides flexibility and allows us to take proactive measures to maintain our efficiency. As previously communicated, we expect some one-off items to affect our reported profitability in Q4 2023. This is related to IPO costs, costs related to the 2023 employee program (gift shares), and a higher number of senior new hires in Sweden than normal. Our underlying profitability excluding these items is expected to be satisfactory, and we expect these short-term negative effects to benefit Norconsult’s growth and cash flow generation going forward.
For detailed information, please see the attached report and presentation.
For further information:
Investors: Dag Fladby, CFO, IR@norconsult.com
Media: Henrik Charlesen, Senior Communication Advisor, henrik.charlesen@norconsult.com
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This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.