ÄLVSBYHUS

KENT JOHANSSON, CEO

FACTS

Älvsbyhus was founded in 1944 by Göran Johansson, grandfather of the current CEO Kent Johansson. Starting out as a carpentry business, the company transitioned into house production in the 1960s. Today, Älvsbyhus is Sweden’s largest manufacturer of single-family homes and develops, sells and manufactures high-quality pre-assembled wooden houses at the lowest prices on the market. This is made possible through cost-effective prefabrication of essential elements, and by the company being responsible for the entire construction process, from the laying of the foundations to the home being ready for occupancy. With a proprietary sawmill, the Group is self-sufficient in timber. Älvsbyhus conducts sales in Sweden, Norway and Finland through forty sales offices.

Älvsbyhus has been an associated company in the Mellby Gård portfolio since 1995. Mellby Gård’s representatives on the Board of Directors are Erik Andersson (Chairman), Johan Andersson and Anna Blom.

  • Headquarters: Älvsbyn
  • Sales 2021: SEK 1,265 million
  • Employees (FTE): 261
  • Chairman: Erik Andersson

www.alvsbyhus.se

ÄLVSBYHUS’ 2021

“ÄLVSBYHUS REPRESENTS HONESTY AND SECURITY FOR CUSTOMERS”

Älvsbyhus makes the dream of your own house on your own land possible, and at a reasonable price. It’s a bit like H&M and IKEA, but for prefab houses. As a result, Älvsbyhus is now Sweden’s biggest manufacturer of prefab houses for the twentysecond year in a row. Sales increased by more than 50 per cent in 2021. Kent Johansson is the third-generation CEO of Älvsbyhus after his father Donald Johansson and his grandfather, founder Göran Johansson.

“We’re extremely proud to be able to deliver the highest profitability in the industry while still maintaining prices at a lower level than our competitors. Also, not every company offers a turnkey contract with the delivery of a turnkey house. All this is possible thanks to the fact that we control much of our production ourselves.”

Älvsbyhus prefabricates the parts for houses, has its own sawmill and even manufactures kitchen fittings. Not even IKEA can make kitchen fittings that are more cost-effective than its own production. In combination with constant cost awareness, this makes for the biggest, most profitable company in the industry.

FULL SPEED AHEAD AT THE FACTORIES

2021 was a really good year. Älvsbyhus is one of the companies that saw an increase in sales in the wake of the COVID-19 pandemic. The trend of working from home has meant that more people have the opportunity to move from an apartment in an urban area to their own home in a rural area. The company’s three house factories in Älvsbyn, Bjärnum and Kauhajoki in Finland have been working at full speed since the summer of 2020.

Älvsbyhus sells products in Sweden, Norway and Finland. The Swedish market is the biggest by some margin, selling 835 houses in 2021. This gives Älvsbyhus a market share of almost 13 per cent, making it the industry leader – a position the company has held for many years.

The market in Norway remained stable with more than 180 houses sold during the year, with profitability higher than in Sweden. The price situation in Norway is higher than in Sweden because of different building standards, and also because of Norwegian purchasing power, which is relatively strong. More than 90 houses were sold in Finland. Finnish homebuyers are starting to return to Älvsbyhus after a few lean years.

More than 1,100 houses in total were sold by the Group in 2021. In figures, this represents an increase of more than 50 per cent compared with the previous year, which also ended strongly. This means that the increase is based on what are already relatively strong comparative figures.

“We’ve crushed the budget for sales in Sweden by almost 60 per cent. We’re running our factories as hard as we can without compromising on quality. This success comes at a price: it has a slight impact on profitability. The Swedish and Norwegian order intake has meant that the factories in Sweden haven’t caught up fully. This is why our Finnish factory had to produce a number of houses that were transported across the Gulf of Bothnia to our customers in Northern Sweden. The cost of transporting the houses has eaten up some of the profit, but the alternatives weren’t as good.”

SELLING AT A FIXED PRICE A MATTER OF HONOUR

Another factor that’s placed pressure on profitability is the fact that Älvsbyhus sells its houses at the price fixed when the order is placed, but the customer only pays when the finished house is delivered. Delivery times have jumped to upwards of eighteen months with this year’s pressure on sales, which means there’s plenty of time for the cost of materials and inputs to go up. So in other words, the house costs more to produce than what was charged at the time of sale.

“Selling at a fixed price is a matter of honour for us, we won’t compromise on that. Älvsbyhus represents honesty and security for customers. And an extra house sold is always an extra house sold. On the other hand there is economies of scale in production, which means the higher the production, the greater the profitability. Moreover, this success can be viewed as a way of marketing this well-established brand. All in all, though, sales pressure means slightly lower profitability, which is nevertheless still the highest in the sector.”

FULLY BOOKED FOR A YEAR

There’s nothing to indicate that growth will come to a halt in 2022. The factories are working at full capacity the whole year. New sales, for houses with delivery in 2023, are also looking very promising. The biggest challenge faced by Kent Johansson is to increase the delivery rate. The company is also producing houses with a different design than just a few years ago as houses now have significantly better energy ratings than they used to. Älvsbyhus used to produce more houses per week than it does now, but new production records are being set all the time with the company’s new, extremely energyefficient houses.

“We haven’t yet identified our capacity limit for the new houses. What we do know is that our staff are working extremely hard to keep up the pace, while we’re seeing lots of staff off sick or taking time off to look after children on account of the pandemic, and all the precautionary measures that entails. I’d like to thank all our staff for their sterling efforts.”

SIGNIFICANT EVENTS 2021

Largest in Sweden for the twenty-second year in a row.

Greater sales stability in Norway. The market in Finland stepped up its pace.

Production targets were met despite high numbers of staff on sick leave.