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Green Landscaping Group (GREEN) investor relations material
Green Landscaping Group ABGSC Investor Days summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Business overview and strategy
Operates in ground maintenance and green space management, serving public and private sectors across six European countries.
Market estimated at SEK 370 billion, with 65% of revenue from public sector contracts, providing stability and predictability.
Decentralized business model empowers local entrepreneurs and supports margin enhancement through best practice sharing.
Proven M&A strategy, targeting stable, profitable companies with strong corporate cultures; reinvests free cash flow into acquisitions.
Ownership is concentrated, with board, management, and entrepreneurs holding about 50% of shares.
Financial performance and market conditions
Year-to-date growth is flat, with 9% M&A-driven growth offset by -9% organic decline, mainly due to tough markets in Sweden and Norway.
EBITDA margin declined to 7.5%, below the 8% target, impacted by negative organic growth and a SEK 21 million project write-down in Norway.
Operating cash flow remains strong at SEK 390 million, with a capex-light model and low working capital needs.
Leverage stands at 3.0x, above the preferred 2.5x, but expected to improve as the company enters historically strong quarters.
Margin improvement initiatives include closing loss-making entities and focusing on cost and contract structure, especially in Sweden and Norway.
Market outlook and operational focus
Structural growth drivers remain, with expected annual market growth of 3%-5% over the next five to seven years.
No significant behavioral changes observed between public and private customers or between maintenance and landscaping segments.
Maintenance segment offers higher stability; current portfolio is balanced 50/50 between maintenance and landscaping.
Margin prioritized over volume, with underperforming entities focusing on profitability rather than growth.
DACH region (Germany, Austria, Switzerland) prioritized for M&A due to high margins and growth potential; Nordic M&A on hold until margin stability improves.
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