“The first quarter of 2023 is historic for Multiconsult with the best financial result ever. There was high activity in most segments and strong organic growth. All four business areas had high activity during this period and in addition we saw good activity and results in our segments. The improvement in LINK Arkitektur was driven by good performance in Sweden and Norway. We see the effects from the turnaround in Sweden and the start of the improvement program in Norway. Region Norway and Region Oslo delivered a strong performance, while the International segment was impacted by a more challenging market in Poland.
Our dedicated team of 3 400 employees continue to deliver expertise and solutions which our clients require. Our highly skilled workforce is inspired by seeing themselves as part of the solution to the challenges facing us.”
– Grethe Bergly, CEO of Multiconsult
For a full review of comments from our CEO, please refer to our first quarter 2023 report.
Please find enclosed the presentation and first quarter 2023 report.
FIRST QUARTER 2023 – HIGHLIGHTS
- A strong start to 2023 with an all-time high result, solid growth and strong order intake
- Solid growth in net operating revenues of 15.1 % to NOK 1 310.2 million (1 138.1)
- Organic growth of 12.1 %
- All-time high result with EBITA of NOK 216.3 million (169.2) and margin of 16.5 % (14.9)
- All-time high order intake of NOK 2 573 million (1 467)
- All-time high order backlog of NOK 4 654 million (3 521)
- Other opex ratio (ex. IFRS 16) decreased to 14.4 per cent (15.2)
- Other operating expenses of NOK 140.2 million (126.6)
- Net profit of NOK 158.1 million (121.6)
- Earnings per share 5.76 (4.44)
- Good market outlook in all business areas, while market related to housing and real estate is anticipated to continue cooling down
Net operating revenues came in at NOK 1 310.2 million (1 138.1), an increase of 15.1 per cent compared to the same quarter last year. The organic revenue growth, adjusted for calendar effect, was 12.1 per cent for the quarter. The increase was driven by higher number of employees and higher billing rates. The growth in net operating revenues was offset by a slightly lower billing ratio of 0.4pp, which came in at 71.0 per cent (71.4).
Operating expenses consist of employee benefit expenses and other operating expenses. Operating expenses increased by 13.2 per cent to NOK 1 039.1 million (918.0) compared to the same quarter in 2022. Employee benefit expenses increased by 13.6 per cent due to ordinary salary adjustment, increased number of employees and higher cost from the increased employer contribution tax of 5 per cent (for salaries/compensation above NOK 750 thousand) in Norway. Other operating expenses increased to NOK 140.2 million (126.6), an increase of 10.8 per cent due to increased office expenditure, IT-cost, and higher travel expenditure compared to the first quarter 2022. Other opex ratio (ex. IFRS 16) decreased to 14.4 per cent, compared to a ratio of 15.2 per cent in the comparable quarter last year.
EBITDA was NOK 271.1 million (220.0), an increase of 23.2 per cent compared to the same period last year, reflecting an EBITDA margin of 20.7 per cent (19.3) in the quarter.
EBITA was NOK 216.3 million (169.2), reflecting an EBITA margin of 16.5 per cent (14.9) in the quarter.
The overall market outlook for Multiconsult’s services remains generally good across all four business areas. There are still some uncertainties related to parts of the market within Buildings & Properties. In general, the opportunities in the pipeline are at a high level. Multiconsult is expected to benefit from the growing market related to the green shift and demand for sustainable solutions. Energy transformation and efficiency, circular economy and new green industries are key drivers in the markets.
Strong and diversified portfolio of ongoing projects and a solid order backlog provides Multiconsult with an overall good foundation going forward.
For a full review of outlook and report, please refer to our first quarter 2023 report.