Looking back on 2023, it's clear that this year was another milestone of impressive progress for Håndverksgruppen, despite the challenging market conditions we faced.
Achieving positive revenue growth for the companies included in the group as of 31 December 2022 is a testament to our resilience, underpinned by the effective use of our toolkit and a diversified business mix. Our strategic expansion in Sweden, marked by the addition of 29 new local companies1, has strengthened our market leadership position and enabled us to secure national contracts. In addition, our entry into Germany, with the addition of two companies1, marks our third successful market entry in as many years.
Our culture has been significantly enriched this year through the further development of our ESG agenda and the training of over 420 employees at the HG Academy. We've also provided numerous opportunities for our local General Managers to engage, share best practice and foster a cohesive community across the HG family. This sense of togetherness is further strengthened by our shared ownership model, with more than 50 per cent of Håndverksgruppen owned by our employees. As we now have over 600 employee shareholders, the deeply rooted share ownership model ensures that our incentives are perfectly aligned across the Group. It is truly inspiring to work with such a dedicated group of colleagues.
33
new companies1 joined HG in 2023.
This year we added 33 new companies1 to our list, bringing the total number of local companies in our family to 134 by the end of the year. The fact that more than 80 per cent of these new companies came through referrals from our own employees confirms our reputation as an ideal growth environment for entrepreneurs. This outreach by prospective members underscores our position as the premier destination for nurturing business ambitions.
Throughout the year, my travels to many of our local businesses have been uplifting, allowing me to engage directly with our craftspeople and discuss how Håndverksgruppen can support their operational and customer service excellence. My visits to our emerging networks in Denmark and Germany were particularly enlightening, demonstrating the appeal of our model across Europe and our ability to navigate new market territories. The General Managers' Meeting in Gothenburg highlighted the collaborative spirit that thrives within our organisation, demonstrating a shared commitment to mutual growth and excellence.
In line with our vision for a sustainable future and our commitment to lifelong learning, the HG Academy has been instrumental. This investment not only secures the future of our industry, but also enhances the quality and consistency of our services. In addition, our ongoing efforts to minimise our carbon footprint have been significant, with 85 percent of our local companies1 achieving ISO 14001 certification by the end of the year. Widespread training on our Code of Conduct, completed by over 85 percent of our employees, reinforces our governance standards and delivers commercial benefits while making a positive contribution to society.
Despite the headwinds of the past 12-18 months, our robust performance, with reported revenue up 55 percent to NOK 5.96 billion, is a clear indicator of the resilience of our business model. This growth, both organic and through new acquisitions, coupled with a reported EBITDA and EBITA2 margin of 7.1 and 4.6 percent, respectively, even in the midst of strategic investments in Germany and Denmark, underlines our operational strength.
Looking ahead, we are cautiously optimistic about the market recovery and are positioning ourselves to take advantage of the coming upturn. The effectiveness of our toolkit has been proven across all geographies and provides a blueprint for sustainable organic growth and operational excellence.
Demonstrating the power of our organic toolkit across geographies
The strength of our toolkit has never been more evident than in these challenging times. We've seen significant contributions to our revenue growth among the companies included in the Group as of 31 December 2023, particularly through national agreements in Norway that leverage the collective strengths of our local businesses.
Our Swedish operations demonstrate the power of collaboration, turning competition into cooperation and opening up new opportunities, as you can read in the example on Haninge Terrazzo later in the report. In Denmark, our collective bargaining power has secured more favourable purchasing terms from key suppliers, underlining the benefits of being part of HG.
Our move into Germany was marked by the addition of Hans Übelacker GmbH and BECK GmbH in 2023. The pre-existing relationship between these two companies has laid a solid cultural foundation for our operations, embodying our values and facilitating a seamless integration. This cultural synergy, rooted in mutual respect and shared history, enhances our ability to work cohesively towards common goals and promises a vibrant future for HG in the German market.
Our move into Germany was marked by the addition of Hans Übelacker GmbH and BECK GmbH in 2023.
Øyvind Emblem CEO, Håndverksgruppen
A focused strategic vision
At the heart of our strategy is the belief that our local businesses thrive as part of a larger collective, while retaining their unique identities, relationships and market positions. We are creating a distinctive ecosystem for craft businesses, growing both organically and through the addition of new members to our group.
Our toolkit enables local businesses to leverage the strengths of a larger organisation, giving them access to more competitive material prices, best practice sharing, national agreements and employee development opportunities, without sacrificing their operational independence or local connections.
Organic growth of our existing businesses remains a top priority, but our long-term expansion will also come from bringing new businesses into the Group, particularly in Germany and Denmark. This approach allows us not only to enter new markets and broaden our expertise, but also to attract top talent.
We are prepared to maintain our momentum in integrating local companies at a steady pace, as we have done over the past three years. In addition, as HG matures and market conditions improve, we expect to make even greater use of our organic growth tools.
Positioned for further expansion
Our Group's unified commitment to shared values and behaviours is driving our growth and the wider application of our toolkit. We see untapped potential for margin improvement through improved procurement and the adoption of best practices - a vision yet to be fully realised. In addition, the potential to secure national agreements in Norway, Sweden and Denmark offers significant growth opportunities, building on the strong performance of our local companies.
With Germany emerging as the largest opportunity market of the four countries in which we operate, we are excited by the prospects this presents. Our successful entry into Germany strengthens our ability to replicate our Nordic success elsewhere and promises a rich pipeline of opportunities.
Reflecting on the past year, I am proud of our achievements. Despite the economic headwinds, our collective resilience and strategic collaborations have underscored the fundamental strength of our business, confirming the effectiveness of our strategic direction and the value of our close-knit operational fabric.
We are proud craftspeople leading the way.
Øyvind Emblem CEO, Håndverksgruppen
1 Includes operating companies only. 2 EBITA represents operating result excluding amortisation and impairment charges related to intangible assets. EBITA margin represents EBITA divided by Total Operating Income.
CEO STATEMENT
Elevating HG through collective effort
Looking back on 2023, it's clear that this year was another milestone of impressive progress for Håndverksgruppen, despite the challenging market conditions we faced.
Achieving positive revenue growth for the companies included in the group as of 31 December 2022 is a testament to our resilience, underpinned by the effective use of our toolkit and a diversified business mix. Our strategic expansion in Sweden, marked by the addition of 29 new local companies1, has strengthened our market leadership position and enabled us to secure national contracts. In addition, our entry into Germany, with the addition of two companies1, marks our third successful market entry in as many years.
Our culture has been significantly enriched this year through the further development of our ESG agenda and the training of over 420 employees at the HG Academy. We've also provided numerous opportunities for our local General Managers to engage, share best practice and foster a cohesive community across the HG family. This sense of togetherness is further strengthened by our shared ownership model, with more than 50 per cent of Håndverksgruppen owned by our employees. As we now have over 600 employee shareholders, the deeply rooted share ownership model ensures that our incentives are perfectly aligned across the Group. It is truly inspiring to work with such a dedicated group of colleagues.
new companies1 joined HG in 2023.
This year we added 33 new companies1 to our list, bringing the total number of local companies in our family to 134 by the end of the year. The fact that more than 80 per cent of these new companies came through referrals from our own employees confirms our reputation as an ideal growth environment for entrepreneurs. This outreach by prospective members underscores our position as the premier destination for nurturing business ambitions.
Throughout the year, my travels to many of our local businesses have been uplifting, allowing me to engage directly with our craftspeople and discuss how Håndverksgruppen can support their operational and customer service excellence. My visits to our emerging networks in Denmark and Germany were particularly enlightening, demonstrating the appeal of our model across Europe and our ability to navigate new market territories. The General Managers' Meeting in Gothenburg highlighted the collaborative spirit that thrives within our organisation, demonstrating a shared commitment to mutual growth and excellence.
In line with our vision for a sustainable future and our commitment to lifelong learning, the HG Academy has been instrumental. This investment not only secures the future of our industry, but also enhances the quality and consistency of our services. In addition, our ongoing efforts to minimise our carbon footprint have been significant, with 85 percent of our local companies1 achieving ISO 14001 certification by the end of the year. Widespread training on our Code of Conduct, completed by over 85 percent of our employees, reinforces our governance standards and delivers commercial benefits while making a positive contribution to society.
of our Local Companies1
ISO 14001-certified.
Overall resilient performance despite challenging market conditions
Despite the headwinds of the past 12-18 months, our robust performance, with reported revenue up 55 percent to NOK 5.96 billion, is a clear indicator of the resilience of our business model. This growth, both organic and through new acquisitions, coupled with a reported EBITDA and EBITA2 margin of 7.1 and 4.6 percent, respectively, even in the midst of strategic investments in Germany and Denmark, underlines our operational strength.
Looking ahead, we are cautiously optimistic about the market recovery and are positioning ourselves to take advantage of the coming upturn. The effectiveness of our toolkit has been proven across all geographies and provides a blueprint for sustainable organic growth and operational excellence.
Demonstrating the power of our organic toolkit across geographies
The strength of our toolkit has never been more evident than in these challenging times. We've seen significant contributions to our revenue growth among the companies included in the Group as of 31 December 2023, particularly through national agreements in Norway that leverage the collective strengths of our local businesses.
Our Swedish operations demonstrate the power of collaboration, turning competition into cooperation and opening up new opportunities, as you can read in the example on Haninge Terrazzo later in the report. In Denmark, our collective bargaining power has secured more favourable purchasing terms from key suppliers, underlining the benefits of being part of HG.
Our move into Germany was marked by the addition of Hans Übelacker GmbH and BECK GmbH in 2023. The pre-existing relationship between these two companies has laid a solid cultural foundation for our operations, embodying our values and facilitating a seamless integration. This cultural synergy, rooted in mutual respect and shared history, enhances our ability to work cohesively towards common goals and promises a vibrant future for HG in the German market.
Øyvind Emblem
CEO, Håndverksgruppen
A focused strategic vision
At the heart of our strategy is the belief that our local businesses thrive as part of a larger collective, while retaining their unique identities, relationships and market positions. We are creating a distinctive ecosystem for craft businesses, growing both organically and through the addition of new members to our group.
Our toolkit enables local businesses to leverage the strengths of a larger organisation, giving them access to more competitive material prices, best practice sharing, national agreements and employee development opportunities, without sacrificing their operational independence or local connections.
Organic growth of our existing businesses remains a top priority, but our long-term expansion will also come from bringing new businesses into the Group, particularly in Germany and Denmark. This approach allows us not only to enter new markets and broaden our expertise, but also to attract top talent.
We are prepared to maintain our momentum in integrating local companies at a steady pace, as we have done over the past three years. In addition, as HG matures and market conditions improve, we expect to make even greater use of our organic growth tools.
Positioned for further expansion
Our Group's unified commitment to shared values and behaviours is driving our growth and the wider application of our toolkit. We see untapped potential for margin improvement through improved procurement and the adoption of best practices - a vision yet to be fully realised. In addition, the potential to secure national agreements in Norway, Sweden and Denmark offers significant growth opportunities, building on the strong performance of our local companies.
With Germany emerging as the largest opportunity market of the four countries in which we operate, we are excited by the prospects this presents. Our successful entry into Germany strengthens our ability to replicate our Nordic success elsewhere and promises a rich pipeline of opportunities.
Reflecting on the past year, I am proud of our achievements. Despite the economic headwinds, our collective resilience and strategic collaborations have underscored the fundamental strength of our business, confirming the effectiveness of our strategic direction and the value of our close-knit operational fabric.
We are proud craftspeople leading the way.
Øyvind Emblem
CEO, Håndverksgruppen
1 Includes operating companies only.
2 EBITA represents operating result excluding amortisation and impairment charges related to intangible assets. EBITA margin represents EBITA divided by Total Operating Income.