Stark Group’s turnover in the financial year was 6 billion euros. The growth of 21.2% was driven by acquisitions, increased market shares and the price development of construction materials, which in particular in the first part of the year, were characterized by acute shortages and significant price increases in six months when demand was higher than the capacity in the market, Stark Group writes in a press release.
While construction materials prices were volatile, the company had a strong grip on its costs. Stark Group maintained a stable gross profit of 25.7% and achieved, through great hustle, continued cost focus and effect from acquisitions, a growth in EBITDA of 41.1%. Stark Group’s adjusted EBITDA ended at 479 million euros.
Extraordinary in every way
– We have been through a year that has been extraordinary in every way. The first half of the year was characterized by a pandemic, a lack of building materials and very high activity in construction. It brought a work like we have never seen in recent times. The past six months were marked by inflation and the consequences of war in Ukraine. The extraordinary busyness in the first half of the year, in particular, has led to a result that we are proud of and which has given us the opportunity to increase investments in the company significantly, says CFO Sisse Fjelsted Rasmussen.
Acquisition of 12 new companies
In the financial year, Stark Group increased its investments in creating a better company for customers and suppliers. The company completed 12 acquisitions in particularly Swedish and German growth zones that bring Stark Group closer to the construction sites where the company’s customers work.
– We invest in providing our customers with better solutions with opening hours 24/7, well-located stores with a wide range and professionally skilled staff. We have put ourselves in a position where we can experiment across the company with new business concepts within sustainability and new digital solutions. We have solid underlying growth and are in a strong position. Therefore, we could accelerate our growth with an aggressive acquisition agenda that strengthens our leadership, says Sisse Fjelsted Rasmussen.
In the coming financial year 2022/23, Stark Group expects to increase its revenue to 6.1-6.5 billion euros and its adjusted EBITDA to 480-510 million euros.
