Investment Case
Balco Group is the market leader in the Nordic region in the attractive and niche balcony market.
Balco Group offers customer-adapted balcony solutions under its own trademark to tenant-owner associations, private landlords, the public housing sector and construction companies, primarily in Sweden, Norway and Denmark which are the company’s primary markets, but also in Germany, Finland, the UK and the Netherlands.
International presence
Balco Group is the market leader in our main markets in Sweden and Norway. The group is also a key player in Denmark, and it also operates in Germany, the United Kingdom, and the Netherlands. In the wake of the acquisition of Riikku and Suomen Ohutlevyasennus, the group has also established a strong position in Finland.
A growing market
Balco Group's total addressable market (TAM) is valued at approximately SEK 40 billion, and the market for balcony renovations in our primary markets is expected to grow by 5% in the coming years.
Attractive financial profile
Despite high interest rates, which negatively impacted both sales and costs, Balco Group has managed to grow and stand firm, thanks to a sustainable long-term capital allocation strategy, based on limiting liabilities and maintaining a strong operating cash flow.
Low ESG risk
Energy savings are an important component of Balco Group's offerings. Additionally, the group has implemented a variety of initiatives to minimise the environmental impact of its manufacturing operations. In terms of product development, material choices, processes, and new products are under constant evaluation. These targeted sustainability efforts have reduced our ESG risk for three consecutive years, according to figures from Sustainanalytics. In the construction sector, Balco Group is among the top 10% of companies with the lowest ESG risk.
More than balconies
Balco Group's balcony offerings are complemented by opportunities to implement additional energy-saving measures, such as solar panels, facade insulation, window replacements, roof insulation, and integrated heat pumps.