Our strong position in strategically selected growth areas continues to deliver good organic growth in all business areas. Thanks to the commitment and hard work of our entrepreneurial driven companies, we continue to cope with a strained supply chain and an ongoing pandemic and we were, on the whole, able to capture the quarter's high level of demand and deliver in accordance with our commitments. Combined with several project deliveries towards the end of the period, this resulted in a total sales increase of 24 percent, of which 13 percent was organic. Despite a certain increase in costs, EBITA increased by 51 percent during the quarter, with strengthened margins in all business areas.


The market situation remained very good in all of our customer segments, with the exception of the marine sector, where the lack of willingness to invest persisted, although with a slightly positive trend. Sales of input components to manufacturers of special vehicles and to the medical and mechanical industries remained fundamentally strong, while the market situation in the forest and sawmill industry was very strong. The business situation in other important segments, such as electronics and electricity-related products for building and installation customers, was favourable, while being stable in wind power. Demand regarding projects to build out and strengthen national and regional power grids, particularly in the Swedish market, increased from already high levels. Geographically, the market situation remained strongest in Sweden and Finland. Denmark was stable at satisfactory levels while Norway continued to experience a slightly weaker demand situation. For our companies operating outside the Nordic region, the market situation further improved during the quarter.


Our strategy, according to which we acquire companies carefully selected in niche areas with a high technical content, good stable profitability and clear growth potential, continues to deliver successful acquisitions. Three companies were acquired in the third quarter. Since the beginning of the financial year, a total of 12 companies have been acquired, adding total annual sales of approximately SEK 860 million and bringing some 240 new employees into the Group. Entirely in line with our strategy, the proportion of acquisitions with a clear sustainability profile, as well as in markets outside the Nordic region, is increasing. Regardless of geography, we are always mindful of cultural matching to foster conditions for various forms of collaboration in the networks that comprise our business units. Our business model, with strictly decentralised responsibilities combined with active ownership, continues to attract many privately owned companies. Given this and a strong balance sheet, we perceive favourable opportunities to continue maintaining a good acquisition rate.


The high level of customer activity remains and our order books have continued to strengthen. On the other hand, we expect this high level of demand to abate somewhat as the lengthy supply chain lead times normalise. Costs associated with sales promotion activities in the companies are expected to continue rising, although good cost control is being maintained. Following our reorganisation last autumn, we now have five business areas with sharpened niche strategies through which we are fully focused on capturing the potential in select growth areas. Addtech's strategy and business model work very well and the conditions to continue generating sustainable profitable growth are good.

Niklas Stenberg
President and CEO

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