Welcome back. We have received some questions on our Q1 report, I will ask these questions, Ulf will answer them. Firstly, what % of organic growth comes from price increases?
As we have also stated before, it is very difficult to give an exact answer as the composition between volume and price increase as the products that we sell changes quite a lot from time to time, due to them being spare parts to a large extent. However, as we also comment in the report, we have been working with and successfully compensated for the price increases from suppliers.
Thank you. How do you see the price situation in the future? Does it slow down?
As the causes for the price increases to some extent has stabilized and in some cases calmed down, we hope that the price volatility in the market will cool a bit. Besides the obvious risk with the high degree of price volatility to safeguard the gross margins, there's also substantial resources and costs that need to be devoted to the actual work, updating price list, renegotiation agreements, et cetera.
Thank you. Can you explain a little how things are going for the companies like Mekano and Rörick?
If we start with Rörick, as you know, the acquisition of the old NEA Verkstäder was a substantial addition to the Rörick business. The management in Rörick has worked really hard integrating the business in a very successful way to make Rörick into the number one electromechanical workshop in Sweden today, for service of heavy and complex electrical motors, generators, transformers, pumps, and spindles. As regards Mekano, that business is a bit different from Rörick, with a stronger focus on field service, especially targeting water and waste plants, chemical processing, et cetera. As such, we are more dependent on weather and wind, meaning that Q1 is often a rather slow period for Mekano.
How do you view your continued acquisition markets in 2023?
Well, we continue to see a good M&A market. No changes really from before. We are working very much with our outreach work and have many meetings. The deal flow from M&A advisors is stable.
Finally, the last question. What is the main reason why Momentum Industrial ended the quarter so strongly?
Well, there are several reasons, of course, the high level of availability of products, strong commitment to its customers over time, highly skilled employees, good support from its suppliers, and a lot of fighting spirit.
Thank you. That ends the question-and-answer session for this report, we would like to thank you for listening in to the report and the question-and-answer.
Thank you. As you can see, if you have any more questions, don't hesitate to contact us on this address or email. Thank you very much.
Thank you.