Grad-In improves profitability significantly from low level

Published on Installationsbranschen

Heating technology company Grad-In reports growth and significantly improved profitability, albeit from a low level, for 2019-2020. The heating technology company Grad-In reports growth and significantly improved profitability, albeit from a low level, for 2019/2020. The comparison year covered 16 months. Recalculation has been made for this in Installationssiffror.se’s analysis.

Growth was driven, among other things, by new agreements, a factor that is expected to have even stronger effects in the future.

“Cooperation agreements with several leading installation chains/companies were signed during the year, which are expected to have an increased effect in the coming years and secure the growth of Grad-In AB,” writes the management in the annual report. During the year, the company has also expanded its product range.

They also point out that “the sales organization has been strengthened to provide customers with improved service”, which is reflected in the fact that the average workforce increased to ten people during the year. The operating margin improvement was driven by a combination of effects. The gross margin improvement was driven by a combination of effects. The gross margin lifted by almost 5 percentage points.

At the same time, economies of scale were achieved, reflected in a rise in the value-added ratio to 19.1% (9.1%), while the wage intensity fell to 74.3% (80.5%) despite an increase in the workforce. The operating margin of 4.6% achieved during the year was almost 1 percentage point higher than the five-year average of 3.7%, an average achieved in the range of 1.6-4.9%.

As regards the pandemic, the situation, as described by management, was calm as of the end of October when the annual report was signed. “At present, the spread of the Coronavirus has not had a significant impact on operations, sales and earnings,” they write.

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