Scandinavian construction company Veidekke has reported a rise in revenue to Nkr10.38bn ($929.09m) in the third quarter (Q3) of 2023, up 9% from Nkr9.55bn in Q3 2022.

This growth has been attributed to the company's Construction Norway, Construction Sweden, and Infrastructure Sweden business segments.

The company recorded profit before tax of Nkr601m, a rise from Nkr545m in Q3 last year.

Overall profit margin in the quarter grew to 5.8%, compared to 5.7% in Q3 2022.

Veidekke Group CEO Jimmy Bengtsson said: “Rising interest rates and ongoing high material costs are increasing hesitancy among clients and delaying project starts.

“Although we have a good overview of activity in the next 12 months, we expect to feel the impact of market conditions on revenue towards the end of 2024.”

At the end of Q3 2023, the group’s order book amounted to Nkr40.7bn.

Order intake in the quarter was Nkr5.0bn, compared to Nkr7.6bn in Q3 2022.

According to the company, approximately 66% of its order book will be turned into revenue in the following 12 months.

Bengtsson added: “The third-quarter order intake primarily came from the private sector, and can be attributed to strong, long-term customer relationships developed by profitable group entities.

“Market conditions vary significantly between our different operational regions and segments. The market downturn has long been apparent in the Swedish residential segment, and we will therefore be implementing an extensive reorganisation in Sweden in Q4, which will reduce the workforce by 60 persons.”