Annual Report 2023

Balco Group - climate-smart solutions

Balco Group AB is a market-leading group within innovative and sustainable balcony solutions. Under six brands, we help our customers to create safer and more pleasant homes in eight markets in northern Europe.

Balco AB was founded in 1987 in Växjö and has since then developed into a group with around 700 employees. The group's subsidiaries often have a local connection and are scattered in a large number of locations in the Nordic region and northern Europe. The geographical proximity to our customers creates both confidence in us as a company and good knowledge of the markets in which we operate.

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2023 in numbers

1 215 SEK m


90 SEK m




2.12 SEK

Camilla Camilla


A challenging year with several positive announcements for the future

The year 2023 brought both challenges and successes. The general rise in interest rates affected the market and led to a reduction in orders and sales, but we defended our margins through strong cost efficiency measures. Once inflation has fallen and interest rates have stabilized, there are many indications that order intake will pick up, which we saw clear signs of in the fourth quarter. Our focus on selective acquisitions was consolidated by the purchase of NMT Montageteknik i Norden AB, which strengthened our position in northern Sweden. We began 2024 with two acquisitions, Riikku Group OY and Soumen Ohutlevyasennus, which marked Balco Group's entry into the Finnish market. We have also continued our work for more sustainable operations, including through our connection to the Science Based Targets initiative (SBTi). A continued focus on sustainability and costs awaits us in the future. An important priority in the new year is more customer meetings to meet the increased willingness to invest among our customers.

A message from the CEO
Valuecreation Valuecreation

Growing sustainably and profitably

The housing of the future needs to adapt to more agglomeration, resource efficiency and quality of life. Our strategy for addressing this challenge in terms of economic, environmental and social value creation is based on three pillars: a long-term business model, innovation and acquisitions.

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Balco Group is to be the obvious choice for balcony solutions and help ensure a better living environment

Value creation within Balco Group
  • Balco Group's business model is based on our unique customer offerings, a focus on customer security and our role in the green transition. Thanks to long experience and expertise, we can guide our customers through the entire project and offer a customized end product that corresponds to needs and conditions.

  • Through a high level of innovation and development, we drive our customer offering forward. With unique projects, product development takes place naturally and continuously in connection with our various assignments.

  • Selective acquisitions are an important part of the Group's growth strategy and today Balco Group consists of seven brands, all of which have unique customer offerings. With our experience from previous acquisitions, we have a clear and structured process for successful integration and development of acquired companies.

The Market

Balco Group operates across eight geographical markets where the majority of the projects involve Renovation, while New Build accounts for the remainder. The fragmented market is characterized by several small and local players, as well as a few larger companies which, like Balco Group, control large parts of the value chain.

Net sales by segment 2023

In 2023, Renovation accounted for the majority of revenues, which is in line with the relative size of the Renovation market compared to the New Build market.

  • Renovation (90%)
  • New build (10%)
More about the market

Market trends

With a growing interest in reducing climate impact combined with rising energy costs, more and more customers are demanding energy-efficient homes. At the same time, interest in balconies has increased as they offer an opportunity for outdoor living close to home.

How Balco Group responds:

Balco Group offers glazed balconies with an energy saving effect of up to 30%. In addition, we offer advice on other measures such as solar cell installation, insulation and heat recovery. Our balconies are designed with the well-being of the residents in mind and our goal is to enhance their quality of life through innovative balcony solutions.

New regulations aimed at maintaining the character and cultural heritage of buildings are lengthening building permit processes, but with the right look and design of balconies, the process can be streamlined. At the same time, due to increasing space constraints in cities, the need for smooth assembly processes and deliveries increases as different contractors have to work together in a limited space.

How Balco Group responds:

As a market leader, Balco Group is well aware of building permit processes and adapts the design of its products to meet the requirements. With innovative solutions, we can offer flexible options that are both easy to install and well-designed. For example, we offer a web-based configuration for the Levitate open balcony that enables smooth planning.

The changed economic situation means that associations and market participants are becoming more cautious in their decision-making processes in connection with new investments. Despite this, there is an increased need for renovations and new construction.

How Balco Group responds:

Balco Group's efficient sales process enables a greater exchange of information with the customer. Through more dialogs and visits to associations, we shape the projects together with the customer, which creates greater security and lays the foundation for long-term projects that can be carried out in more stable times in the future. Both in Sweden and abroad, there is a strong focus on building long-term relationships with customers.

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Michael Michael


Clear focus on our business and our costs

2023 provided weaker sales, but through a strong focus on costs and efficiency, we managed to defend our profit margin in a good way. During the second half of the year, we noticed a gradual increase in our customers' willingness to make investment decisions, but the lower order intake during the year will continue to affect the income statement. The financial position remains stable and provides a solid foundation for our acquisition ambitions. Going forward, a strong focus will be maintained on our cash flows, cost development and opportunities for efficiency improvements.

A message from the CFO

Sustainability for Balco Group

The foundation for Balco Group's sustainability work is to be found in our business concept - to develop innovative, sustainable and attractive balcony and facade solutions that improve people’s quality of life, with the customer in focus. Our products must contribute to creating a safe and aesthetically pleasing local environment, with long-term value creation through energy savings that benefit both people and the environment.

Lowesgrisk Lowesgrisk
Involvement in SBTi

In 2023, Balco Group took another step towards sustainable business by joining the Science Based Targets initiative (SBTi). As a new member of SBTi, the first step for Balco Group is to propose relevant targets to work towards. Thereafter, work is ongoing to contribute to reduced emissions from our operations.

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Key ratios

Net sales 1 214.9 1 333.6
Order intake 977.0 1 108.6
Order backlog 1 073.6 1 274.7
Adjusted operating profit (EBITA) 89.8 107.2
Adjusted operating margin (EBITA), % 7.4 8.0
Operating profit (EBIT) 70.4 102.5
Operating margin (EBIT), % 5.8 7.7
Adjusted operating profit 89.8 107.2
Adjusted operating margin, % 7.4 8.0
Profit for the year 46.5 76.2
Operating cash flow 3.6 200.3
Earnings per share, SEK, before dilution 2.12 3.48
Earnings per share, SEK, after dilution 2.12 3.44
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