Swedish technology group Lagercrantz Group AB on Friday reported a 12% rise in first-quarter operating profit, driven by its active acquisition strategy which offset slower organic sales growth.
Operating profit (EBITA) for the three months to June 30 rose to 432 million Swedish Kroner from 386 million a year earlier, the company said.
Net revenue grew 10% to 2.47 billion Swedish Kroner, though organic growth was 3%.
The company, which owns a portfolio of about 85 niche technology businesses, has relied on deal-making for expansion, completing eleven acquisitions since July 2024.
These deals are expected to add approximately 1.38 billion Swedish Kroner in annual revenue, according to the company.
"The market in general was stable with positive organic growth and continued good profit contributions from acquisitions," CEO Jörgen Wigh said in a statement.
Lagercrantz also reported its operating margin improved to 17.5% from 17.1% and proposed an increased dividend of 2.20 Swedish Kroner per share.
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