GARO's year-end report for 2023 is now published.

Strong cash flow during an otherwise challenging quarter - new action package initiated.

GARO's year-end report for 2023 is now published.


  • Net sales amounted to SEK 1,369.9 million (1,390.5).
  • Net sales decreased by 1 percent (+7).
  • Operating profit amounted to SEK 51.1 million (152.8).
  • The operating margin amounted to 3.7 percent (11.0).
  • Profit after tax amounted to SEK 31.3 million (120.5).
  • Earnings per share amounted to SEK 0.63 (2.41).
  • Cash flow from current operations amounted to SEK 25.6 million (89.2).
  • The board proposes a dividend of SEK 0 (0.80) per share.

GARO showed a total turnover of SEK 311 million, which is SEK 30 million or nine percent lower than the same quarter in 2022. The turnover within the business area GARO E-mobility showed a growth of 17 percent, while the turnover within GARO Electrification decreased by 17 percent. Sales towards the end of the quarter were significantly lower than our expectations as the market was cautious in both business areas. The operating profit amounted to -0.1 MSEK (8.9) where items of a net non-recurring nature are included in the operating profit with +8.2 MSEK (-15 MSEK). We are now taking further measures to strengthen profitability.

Despite a weak quarter in terms of profitability, we have generated a strong cash flow from current operations of SEK 34.9 million (13.0). In addition, we have sold a production facility in Poland for SEK 45 million, as well as another smaller industrial property in Gnosjö for SEK 12 million. The capital gain totals SEK 18 million and the divestments have reduced the interest-bearing net debt by SEK 57 million.

Furthermore, during the autumn we started a major project to update and improve our business system, where the new system will enable better processes and cooperation between the group's various units. The project will run during 2024 and 2025.

For the full year, turnover amounted to SEK 1,370 million compared to SEK 1,390 million for the full year 2022. Operating profit for the full year amounted to SEK 51.1 million (152.8), which gave an operating margin of 3.7 percent (11.0).

Net sales within the GARO E-mobility business area during the quarter amounted to SEK 94 million compared to SEK 81 million in the same quarter of 2022.

Growth for the quarter was lower than expected in a wait-and-see market. The prevailing market situation with macroeconomic uncertainty noticeably affects purchasing behavior and investment decisions, above all in the Swedish market. This means that the market development within the business area is currently difficult to forecast with rapid changes in demand. For the full year 2023, net sales amounted to SEK 462 million (422), which gave a growth of 10 percent.

The first half of 2024 looks like it will continue to be a wait and see on the Swedish market. The markets we process outside of Sweden feel more positive. The second half of the year has the conditions for recovery. The outlook for 2025 feels more positive.

Net sales within the GARO Electrification business area amounted to SEK 217 million (261) in the quarter, which is a decrease of SEK 44 million compared to the same quarter in 2022. For the full year 2023, sales within the business area amounted to SEK 908 million (969), which resulted in a negative growth of six percent . A weaker economy with rising interest rates has meant that the market for new construction of single-family houses and apartments has decreased significantly in Sweden and in the rest of the Nordic region. However, it is our opinion that there is still relatively good demand for new construction in the public sector, commercial properties and for industry. The current market situation with a bifurcated construction market is expected to continue throughout 2024.

GARO announced on January 30 that it is adapting the organization to current market conditions and implementing another action program which means that the number of employees in the group will be reduced by approximately 50 positions. The action program will primarily affect the GARO E-mobility business area and is estimated to reduce personnel costs by approximately SEK 25 million on an annual basis. The program is expected to have its intended effect from the third quarter of 2024.

In 2023, we have continued to integrate sustainability into every part of our business, a priority for both us and our customers. Among other things, this means that we have prepared and taken measures to meet the requirements of the EU Carbon Border Adjustment Mechanism (CBAM) and the upcoming EU Due Diligence Directive. In 2024, we will continue our internal work for future reporting according to the EU's Corporate Sustainability Reporting Directive (CSRD) in 2025.

The market for charging infrastructure is growing structurally with the number of chargeable vehicles and we see long-term continued strong development with further expansion of charging infrastructure in the European market. In the short term, we see lower growth, above all in the Swedish market for mainly macroeconomic reasons.

Housing construction in Sweden but also in the rest of the Nordic region has decreased significantly and the new production of single-family houses and apartments is expected to be weak for several quarters to come. On the other hand, demand for other commercial and public construction, combined with renovation needs and energy efficiency, is expected to remain good. Overall, we take a positive view of the long-term market conditions, primarily driven by growth in charging infrastructure and its need for power supply.

Patrik Andersson
President and CEO

Read the full year-end report here.