Good morning, everyone, and welcome to today's presentation, where we have Volati presenting. With us, we have the CEO, Andreas Stenbäck, and CFO, Martin Aronsson. We will open up for a Q&A after the presentation. You can either type in your questions using the form, or if you are calling in and would like to ask a question, please press star nine to raise your hand and star six to mute yourself when you get the word. With that said, please go ahead with your presentation.
Thank you. Very happy to have all of you listening in today. Let's get into the presentation of the Q1 result. Volati, we're a growing group of well-managed companies with strong earnings. I would like to remind you that we are operating with six platforms. We have Solix Group, Ettiketto Group, and the four platforms within the business area industry. We've had an average annual growth of 17% since 2019, so more or less the last five years. That's despite the recent years' market headwinds. Looking at Q1, one could see that the trend from last quarter remains. It's the Q2 in a row where we see some signs of recovery in the market after many years of tough conditions. Sales growth was 15%, but I'm even more happy about looking at the organic sales growth, which was 4%.
We've also, thanks to improved margins, seen the effect in the EBITDA growth, which was 48%, whereof 33% organic. All platforms except for Corroventa contribute to that profit growth. We will get into Corroventa a bit later on, but to just say one sentence about it, it's mainly because of Corroventa having a really strong quarter last year. Tough comparables for that platform. As I said before, we do see some signs of recovery in the market, in particular when it comes to the construction-related segment, which everyone knows is important for us at Volati. I have to remind everyone that it's from low levels. It takes time, and we expect it to take time. This market still varies a lot between months.
It is not that we have seen any dramatic shift, but we have seen some kind of stabilization and slight improvement in the market, which is very promising. That is what shows in the organic growth. Tornum Group within the business area Industry is still facing headwinds. We have said that now for a few quarters. It is a slow market in large parts of Europe, but we still have the Lantmännen project, which somewhat compensates for that market. Trade tariffs have limited direct impact on Volati. We see it in Communication and in particular to the North American volume that they deliver. Other than that, it is not that much direct effects that we see within Volati. We have done two acquisitions so far this year, adding a little more than SEK 300 million of annual revenue.
One could also take the acquisition that we did in December into account, and then we're up at SEK 750 million of annual turnover that we have acquired the last four or five months. We have expanded the credit facilities during the quarter, and that is just to be on top of things and make sure that we have the liquidity needed to continue growing with acquisitions. As you've heard me say before, we haven't delivered on our financial growth targets for the last two years. We're supposed to grow 15% annually on EBITDA, and that means doubling the EBITDA every five years. That is something that we haven't delivered on the last couple of years, which have created a growth gap.
We have, however, taken several long-term structural measures during the last years, and our platforms are very well prepared to monetize on the market recovery once we see it. I think already in Q1, we see some small signs of that. In addition, we have continued acquiring companies. Thanks to that, we have companies with strong cash flows. We also went into this period with the low net debt to EBITDA levels. We have been able to continue acquiring companies. This will also help us close the growth gap once we see that the market will get back to more normal levels. A little bit more on the actual numbers then. These are the Q1 numbers. I already touched upon the net sales and EBITDA. Operating cash flow, Q1 is typically, because of seasonality, a negative operating cash flow quarter for us.
That also means that if you take that into account and also that we did the acquisition of Kleber, our net debt to EBITDA has increased to 2.9. It is now in the upper part of our financial goal, but that is very much expected. I would also like to remind you, I do that every time this part of the year, that we have the strong cash-generating quarters ahead of us, in particular in the second half of the year. If we look at the numbers on a last 12 months' basis, which I actually think is better when it comes to Volati, more or less everything points in the right direction. Sales, margins, and EBITDA increased in Q1 compared to Q4. As I said in the introduction, when we look at the last five years, we have grown our EBITDA on an annual average base of 17%.
Looking at this, Q1 was the first step to compensate for last year's slower growth rates in relation to our financial goals. With that, I leave to Martin to give you a bit more information about the financial targets.
Yeah, thank you, Andreas. Let's look at our performance in relation to our three financial targets. Let's start with the EBITDA growth during the last 12 months. As Andreas mentioned, we have a strong EBITDA growth in the quarter, which is then also resulting in that our EBITDA growth per ordinary share during the last 12 months is 5% now in the quarter, which is an improvement from minus 11% in full year 2024. This is still below our target, but it's also worth noting that our target is over business cycles. Our five-year average performance on EBITDA growth is 17%. Our second financial target is our return on adjusted equity, which came in at 17% versus our financial target of 20%. It's below our target now, driven by a lower EBITDA growth.
During the last five years, we have delivered on average 33% return on adjusted equity. Lastly, our capital structure, which is where our net debt to EBITDA ratio came in at 2.9, is in the higher range of our financial target ratio between 2-3 times. As Andreas mentioned, the development in the quarter was expected, as Q1 is the quarter with the seasonally lowest cash flow. We also completed the acquisition of Kleber during this quarter. Let's look at how our business areas are performing. Let's start with Solix Group, who saw a net sales growth of 25%, of which roughly two-thirds was acquired and roughly one-third was organic growth. At the same time, EBITDA almost doubled compared to last year, and the margin in the quarter increased with 3 percentage points in the quarter.
And thus this is really showcasing the great work that the Solix Group has done working with cost control and then also extracting synergies from acquisitions and working with coordination benefits. Solix Group saw a cautious market improvement in the quarter. However, it was at a slow pace, and still there are quite some uncertainties regarding the future development. Regarding currency, we saw a positive currency effect for Solix Group since they do a lot of purchasing in foreign currency, while the majority of the sales is in Swedish kronor. We're also happy to see that Solix completed acquisition on Hans Eggestrand after the quarter. We also see significant potential to grow further through acquisitions in this business area. Let's move over to Ettiketto Group, who continues to deliver another strong quarter.
Sales increased with 32% in the quarter, driven by the acquisition of Kleber, but also through strong organic growth. EBITDA in nominal terms increased with 35%, and margins increased slightly, which to us is quite impressive given that the newly acquired Klebe-Technic has significantly lower margins compared to the rest of Ettiketto Group. Speaking about Kleber, the integration of Kleber is progressing well, and the work with extracting synergies and operational improvement has started. As mentioned before, there was good organic growth for Ettiketto Group during the quarter, and they also saw solid order intake, especially in the Swedish business, and that is putting the completed capacity expansions in good use. Also with Kleber's new home market platform to grow from, we see significant potential to grow further through acquisitions.
Let's look at our last business area, Industry, who saw a slight revenue decline of 2% in the quarter. We saw a slight revenue decline of 2% in the quarter and an EBITDA decline of roughly SEK 2 million to SEK 22 million in the quarter. This is the smallest quarter in the year for Industry. Also, as Andreas mentioned, three out of our four platforms in Industry are improving their contribution from last year. Communication performed well in the quarter, increasing the EBITDA contribution despite the lower deliveries to the U.S. market. Tornum Group is still facing a weak market; however, it increases the result from last year, partly driven by the land mining project. S:t Eriks continued to face a challenging market situation in the construction segment, while the demand in the infrastructure segment is stable.
Lastly, Corroventa, who in this quarter did not see any significant effects from floodings and was also facing strong comparables from the last Q1 in 2024, who did see quite significant effects from floodings. That sums up the industry. With that, I leave the word to you, Andreas.
Okay, let's talk a bit about the acquisitions. This is a slide that I always like looking at. It shows that our strategy with doing add-on acquisitions to existing platforms really worked. Twenty-seven acquisitions since 2020 in five out of six of our platforms. We've done three acquisitions since December 2024 and two of them done this year. Looking at this slide, the SEK 710 million of annualized turnover that we have acquired, the two acquisitions in the last twelve months do not include Eggestrand. Including that, we're up at SEK 750 million of acquired annual growth. I would just like to spend one or two minutes on the acquisition that we did in Q1, Kleber Ettiketto . As you all know by now, Ettiketto have done quite an impressive journey for the last five years or so, quadrupled in size.
During that time, also being able to acquire them, and it's been driven by six acquisitions, one of them this quarter. After having done all the work with operational improvement and the synergy realization, also being able to maintain the margins that we have prior to starting this journey. Now we did the acquisition of Kleber in Germany. I think the case with that acquisition is twofold. Firstly, as we pointed out, they operate under or significantly under the margins that Ettiketto have proven to be able to operate under, which means that we see significant operational improvements and synergy realization. Secondly, we now have a platform in Central Europe where we can continue doing a similar acquisition-driven journey as we've done in the Nordics for the last couple of years. Basically using that as a platform to continue doing acquisitions in Central Europe.
This is a very strategic acquisition for Ettiketto Group, but also for Volati. In order to continue doing acquisitions, we have to have a look at the financing and our liquidity. What we've already touched upon is the operational cash flow, which is, as expected, negative in Q1. Basically what I want to point out with this slide is that the last bullet there, that once the market normalizes, once we see that the organic growth, that trend continues, we would have a positive effect of net debt to EBITDA ratio. Because what the problem that we've had the last couple of years because of the negative organic market-driven organic growth, we haven't had the EBITDA expansion required or that we need. In this quarter, we had quite a significant such.
We expect once the market continues to recover, we expect that trend to continue. To summarize, very happy about the Q1. it is a solid performance. The numbers are very good, and it is laying a strong foundation for the rest of the years, of course. I want to remind you, and we remind ourselves that we are best evaluated over time. Individuals' quarters may vary over time. We still feel that market conditions are uncertain, yet we also see that positive trend. We have seen it now at least in two quarters, and we have talked about the positive organic sales growth. If we continue to have that organic sales growth, and if the market continues to recover, we are also going to see an accelerated organic growth when it comes to Volati overall. Our platforms are in great shape.
They are very well prepared to capitalize on the organic growth, but also to continue doing acquisitive growth. We are looking forward to continue doing this. With that, I leave for any potential questions.
Thank you very much for that presentation. Now we'll open up for the Q&A here. If you're calling in and have a question, please press star nine to raise your hand and then star six to unmute yourself when you get the word. You can also type in your questions using the form. We have Carl from Carnegie with a question. Please go ahead. You have the word.
Hi, Carl.
Hello, Andreas and Martin. Can you hear me?
Yes, we can.
Yes, we can.
Yes. Hi. Yeah, so I mean, obviously a very strong profit development here in Solix. I'm just curious to hear, perhaps if you could add a bit of color here on what caused the beat in terms of margins year over year, and if you could perhaps split that up roughly, how much of this delta is due to M&A and how much that is due to organic initiatives.
Okay, so Solix, yes, very strong profit development. If you look at it, they're actually now at the margins that they were in Q1 2022, I think. Very well done. As you said, it's two factors driving that margin development. One is that we now see an organic growth in that business area for the Q2 in a row. Before that, we had several quarters where we had negative organic growth. At that point in time, it was much about protecting the margins, which I think they've done in a very, very good way. Now when we see the organic growth, it also has the effect that we're actually expanding, improving the margins. That's thanks to all the good work that they've done the last couple of years. That's one part of it. The second part of it is acquisition-driven.
We have had some of the acquisitions that have been done in Solix the last year that strengthened the average margin, strengthened our margin overall. That is also contributing to that development.
Got it. Very clear. If we could perhaps just split up Solix into the DIY versus the professional side of the business, could you provide any color there on how those two have developed respectively here in the quarter? If you see any change in dynamics compared to last quarter in any of those subsegments?
I'm a bit unfinished here, but as far as I know, and the trend at least that we've seen over time now is that the consumer-related market came into the slowdown 6 to 12 months before the professional segment did. That was a couple of years back. We have similarly seen that they also have come out earlier. We've actually seen positive numbers from the consumer-related parts for a couple of quarters now. It's been the professional side that's been slower. Up until, I think, if you look at market numbers up until Q4 2024, the overall market was down. We had a slight growth in Q4. That was thanks to the then also the professional side improving slightly. I think we've seen the same pattern in Q1, meaning that consumer is slightly stronger and the professional side is lagging a bit.
Got it. If we just shift the focus to Tornum here, could you say anything there on how the sort of underlying business has developed in the quarter versus last year if you would perhaps adjust for the contribution from the land mining project just to get a sense for how the underlying agricultural market is developing here and how it looks throughout Europe?
The underlying agricultural market is slower in Q1 this year compared to last year, I would say, because the slowdown was more in Q2 and the rest of the year, even though it was slow also in the Q1 last year. Overall, the market has not improved during the last 6-12 months, and it is still very tough, hesitant out there. As you know, yes, we have the land mining project. We are going to deliver on that for the whole year, whole 2025 and a bit into 2026. That has helped us to compensate for some of that slow market. It is not that it is, it is also that we still have some markets that are delivering okay. We have the Spanish markets that we said before that are okay. We have the U.K. market that is okay.
It is not that all European countries are doing very bad, but overall, it is still a slow market, and we expect it to be for yet some time. I said that profit-wise, we still improved in Tornum in Q1 this year compared to last year. We are doing a very good job protecting margins and protecting profit in the slow market in Tornum.
Perfect. Thank you. Just looking just at the business area Industry here overall, just so I understood you correctly, is it fair to assume that all platforms in that business area saw profit growth year over year besides S:t Eriks?
Yes. Now, besides Corroventa. So Corroventa, they did not improve their profit. There were some good floodings last year, so they had tough comparables. Tornum and S:t Eriks and Volati Communication had better profits this year compared to last year. One thing that you need to keep in mind is also that for industry, Q1 is really small.
Yep. Yep. Got it. Just final from my side, if we look at the net financials here in the quarter, these were a bit higher than at least I had expected. I think it's up about 70% Q or Q or so. Could you perhaps share some extra light there on what is driving that and if there are perhaps any extraordinary items or reevaluation effects here that is included in the numbers?
Absolutely. Let me share some light on that. I think you can also look in the cash flow statement if you're interested in knowing what the interest expenses were. The majority of, or compared to last year, the majority of the difference is that we get currency effects on internal loans, which is actually not affecting our cash position. We give loans to our foreign subsidiaries, and the translation effects on those also end up in the net financials, which is this quarter a substantial amount. If you dig into the cash flow statements, you will get some more information about that as well.
Perfect. That is very clear. That was all my questions. Thank you very much.
Okay. That is a wrap of the Q&A section here. Andreas, do you have any concluding remarks before we wrap up this presentation?
I think my wrap-up is that we're very happy to see a continuous positive trend. It's not a dramatic shift, but we're showing slight positive organic sales numbers and the profitability and the profit increased quite a lot. I'm very happy to see that. I also keep in mind that there are still a lot of market uncertainty out there. We are expecting that the market recovery will take time, and we're very well prepared for that. Yeah, thank you for listening in today.