Consolidated comprehensive income
| Consolidated comprehensive income | |||
| SEK millions | Note | 2023 | 2022 |
| Net sales | 1, 2, 3, 4, 36 | 63,598 | 52,135 |
| Cost of goods sold | 9 | -42,714 | -34,489 |
| Gross profit |
| 20,884 | 17,646 |
| Sales costs | 5, 6, 9 | -6,342 | -5,634 |
| Administration costs | 5, 6, 7, 9 | -2,880 | -2,305 |
| Research and development costs | 9 | -1,563 | -1,356 |
| Other operating income | 8 | 932 | 772 |
| Other operating costs | 8, 9 | -1,827 | -2,652 |
| Share of result in joint ventures | 34 | 52 | 48 |
| Operating income |
| 9,256 | 6,519 |
| Dividends and other financial income and costs | 10 | 13 | 5 |
| Interest income and financial exchange rate gains | 11 | 448 | 267 |
| Interest expense and financial exchange rate losses | 11 | -1,067 | -612 |
| Result after financial items |
| 8,650 | 6,179 |
| Tax on this year’s result | 16 | -2,220 | -1,574 |
| Other taxes | 16 | -49 | -36 |
| Net income for the year |
| 6,381 | 4,569 |
| Other comprehensive income: |
| ||
| Items that will subsequently be reclassified to net income |
| ||
| Cash flow hedges | 54 | -346 | |
| Translation difference | -2,040 | 1,872 | |
| Deferred tax on other comprehensive income | 16 | -31 | 211 |
| Sum |
| -2,017 | 1,737 |
| Items that will subsequently not be reclassified to net income |
| ||
| Revaluations of defined benefit obligations | -125 | 329 | |
| Market valuation of external shares | 16 | -2 | -13 |
| Deferred tax on other comprehensive income | 23 | -109 | |
| Sum |
| -104 | 207 |
| Comprehensive income for the year |
| 4,260 | 6,513 |
| Net income attributable to: |
| ||
| Owners of the parent | 6,330 | 4,503 | |
| Non-controlling interests | 51 | 66 | |
| Earnings per share (SEK) | 15.31 | 10.89 | |
| Average number of shares* |
| 413,326,315 | 413,637,227 |
| Comprehensive income attributable to: |
| ||
| Owners of the parent | 4,224 | 6,427 | |
| Non-controlling interests |
| 36 | 86 |
* Average number of shares has been impacted by repurchase of shares.
Comments to the consolidated
comprehensive income
For comments on the individual lines in the consolidated comprehensive income statement, reference is made to Notes 1 to 16 and Notes 34, 36 and 38. For comments on the operating segments, see Note 1.
As a basis for comments on the various main items of the consolidated comprehensive income statement, please find a comparison between the last two years:
| Income analysis | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Net sales | 63,598 | 52,135 |
| Adjusted gross profit * | 21,849 | 18,589 |
| – adjusted gross margin (%) * | 34.4 | 35.7 |
| Expenses ** | -10,069 | -8,911 |
| – in % of net sales | 15.8 | 17.1 |
| Adjusted EBITDA * | 11,780 | 9,678 |
| – adjusted EBITDA margin (%) * | 18.5 | 18.6 |
| Depreciation | -1,559 | -1,449 |
| Adjusted EBITA * | 10,221 | 8,229 |
| – adjusted EBITA margin (%) * | 16.1 | 15.8 |
| Amortisation of step-up values | -965 | -943 |
| Comparison distortion items | – | -767 |
| Operating income | 9,256 | 6,519 |
* Alternative performance measures. ** Excluding comparison distortion items.
The gross profit margin has been negatively affected by under-absorption in manufacturing units where demand has shifted quickly and negative material and currency hedges. Some of these negative impacts are offset by net positive mix effects that are further reinforced by the increase of invoicing.
Sales and administration expenses amounted to SEK 9,222 (7,939) million, which corresponded to 14.5 (15.2) percent of net sales. Excluding currency effects and acquisition/divestment of businesses, sales and administration expenses were 7.8 percent higher than last year.
The costs for research and development have amounted to SEK 1,563 (1,356) million, corresponding to 2.5 (2.6) percent of net sales. Excluding currency effects and acquisition/divestment of businesses, the costs for research and development have increased by 7.9 percent compared to last year.
Earnings per share was SEK 15.31 (10.89) for 2023. The corresponding figure excluding amortisation of step-up values and the corresponding tax, was SEK 17.15 (12.78).
The changes that have impacted the development of adjusted EBITA during the year are presented in the following table.
| Income bridge | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Adjusted EBITA last year | 8,229 | 7,114 |
| Volume 1) | 3,157 | 2,684 |
| Mix 1) | -518 | -582 |
| Costs 1) | -854 | -1,545 |
| Currency | 207 | 558 |
| Adjusted EBITA current year | 10,221 | 8,229 |
1) Change excluding currency effects.
In order to illustrate the quarterly development, the last 12 quarters are shown below for four of the parameters in the income analysis:
| Comparison distortion items | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Other operating costs |
| |
| Comparison distortion items: |
| |
| – Provision for financial consequences of Russia’s war on Ukraine | – | -400 |
| – Restructuring costs | – | -367 |
| Net comparison distortion items | – | -767 |
The comparison distortion items during 2022 were relating to costs triggered by Russia’s war on Ukraine and for a restructuring project for parts of the Marine Division and the Business Unit for Welded Heat Exchangers in the Energy Division.
Consolidated financial net and taxes
The financial net for 2023 was SEK -337 (-219) million, excluding realised and unrealised exchange rate losses and gains. The main elements of costs were interest on the debt to the banking syndicate of SEK -26 (-18) million, interest on the bilateral term loans of SEK -132 (-20) million, interest on the corporate bonds of SEK -125 (-127) million, interest on the commercial paper programme of SEK -16 (-10) and a net of dividends, changes in fair value and other interest income and interest costs of SEK -38 (-44) million.
The net of realised and unrealised exchange rate differences was SEK -269 (-121) million.
The tax on the result after financial items was SEK -2,269 (-1,610) million in 2023.
| Accumulated translation differences * | ||||
| Consolidated | ||||
| SEK millions | ||||
| Year | Main explanation to translation differences | Change | Accumulated | Pre-tax effect on change by hedging measures |
| Formation of the Group | ||||
| 2000 | The EUR was appreciated by 6 %, which | -94 | -94 | -312 |
| 2001 | The USD was appreciated by 10.7 % | 97 | 3 | -105 |
| 2002 | The USD was depreciated by 16.7 % | -190 | -187 | 165 |
| 2003 | The USD was depreciated by 17.5 % | -38 | -225 | 195 |
| 2004 | The USD was depreciated by 9.0 % | -103 | -328 | -19 |
| 2005 | The USD was appreciated by 20.3 % | 264 | -64 | -65 |
| 2006 | The USD was depreciated by 13.5 % | -269 | -333 | 56 |
| 2007 | The USD was depreciated by 5.7 % | 224 | -109 | 13 |
| 2008 | The USD was appreciated by 20.5 % | 850 | 744 | -468 |
| 2009 | The USD was depreciated by 7.5 % | -392 | 352 | 220 |
| 2010 | The USD was depreciated by 5.7 % | -554 | -202 | 99 |
| 2011 | The USD was appreciated by 1.4 % | -254 | -456 | 34 |
| 2012 | The USD was depreciated by 5.8 % | -798 | -1,254 | 214 |
| 2013 | The USD was appreciated by 0.3 % | 39 | -1,215 | -83 |
| 2014 | The USD was appreciated by 20.5 % | 439 | -776 | -1,033 |
| 2015 | The USD was appreciated by 6.6 % | -1,056 | -1,832 | 301 |
| 2016 | The USD was appreciated by 8.6 % | 1,882 | 50 | -643 |
| 2017 | The USD was depreciated by 9.4 % | -1,339 | -1,289 | -207 |
| 2018 | The USD was appreciated by 8.8 % | 641 | -648 | -571 |
| 2019 | The USD was appreciated by 4.2 % | 632 | -16 | -288 |
| 2020 | The USD was depreciated by 12.2 % | -2,454 | -2,470 | 313 |
| 2021 | The USD was appreciated by 10.2 % | 1,681 | -789 | -165 |
| 2022 | The USD was appreciated by 15.6 % | 1,872 | 1,083 | -946 |
| 2023 | The USD was depreciated by 4.5 % | -2,040 | -957 | 89 |
* Reported against other comprehensive income. Prior to 2009 these translation differences were reported against equity.