Letter from the CEO
Despite these headwinds, I am proud to report that Saferoad Group has once again demonstrated steadfast performance. We have increased our market share with emphasis on Central Europe, and experienced a robust organic growth. Underlying revenues have surged by 9.1 per cent to NOK 6,734 million. Our underlying EBITDA has witnessed a commendable uplift of NOK 139 million, culminating at NOK 718 million for the year. Despite facing downward pressure on steel prices, our company has successfully offset this challenge through a significant increase in volume sales, demonstrating our robust market presence and operational resilience. This financial robustness is a testament to our team’s agility, dedication, and the strategic decisions that have fortified our market position.
The year 2023 was pivotal for Saferoad Group. We had several strategic initiatives, including renewing the leadership structures in several areas of the business, marking a solid foundation for sustained growth in the years ahead.
As a testament to our transformational journey, 2023 was the year where we shaped an invigorated group strategy, affirming our commitment to our core competencies in road safety and broadening our horizons further into steel solutions.
This expansion is set to unlock new product and innovation opportunities. With ambitious growth in sight, our strategy is enabled by a focus on our people, fostering innovation, advancing ESG principles, operational and commercial excellence, spurring organic growth, and exploring mergers and acquisitions.
The Group made a pivotal decision to commit to the Science Based Targets initiative (SBTi), redefining our environmental strategy and integrates it into the core of our business. Driven by the urgent need to address climate change and the role that corporations play in driving global emissions. By setting science-based targets, we are holding ourselves accountable to measurable and meaningful actions that reduce our carbon footprint in line with the Paris Agreement goals. Our decision to commit to SBTi reflects our proactive approach to the green transition, resonating with our stakeholders’ growing expectations for sustainable practices, and aim to drive demand for products and solutions with lower carbon footprint in our industry.
To accelerate the Group`s growth potential, a strategic project aimed at improving liquidity through targeting inventory management, receivables, and payables was conducted across all business units. By reducing operating working capital and improving cash-flow, the project aimed to establish a robust foundation for the company’s expansion and long-term growth strategy. Good progress in this area in 2023 increased the Group`s financial robustness and position to further capitalize on growth opportunities in the coming years as this focus also continues. Furthermore, we embarked on a strategic project to streamline the brand complexity across the Group. With the aim to create a cohesive brand identity across all operating units, thereby bolstering market position and brand equity. The rebranding activities were fuelled by the launch of a new visual identity. A development that resonated throughout our teams, bolstering a sense of shared purpose and direction.
As we turn the page to a new chapter, we are cognizant of the evolving landscapes and emerging challenges. However, our strategic blueprint and the collective resolve of our near 2600 employees stand as assurances of our preparedness to meet these challenges head-on.
The Group is strategically positioned to extend our influence and persistently provide high quality value to our customers. As we look to the future, we maintain a confident outlook on our potential for consistent growth in sales and profitability margins. We are poised for this progression, propelled by a robust order book—a direct result of fortified internal processes and structures, along with operational enhancements that have streamlined efficiencies throughout the organization. Moreover, we anticipate harnessing the synergies inherent within our essential business domains to fuel our expansion.
In closing, I extend my deepest gratitude to our employees, customers, and partners for their unwavering support and to our stakeholders, for their continued trust in Saferoad Group. Together, as a unified force, we will continue to innovate, grow, and lead the way in sustainable infrastructure and road safety.
Sincerely,
Bernd Frühwald
Group CEO
