Bergman & Beving AB: Interim Report 1 April–30 June 2019
17.07.2019
Press release
Interim Report 1 April–30 June 2019
First quarter (1 April–30 June 2019)
- Revenue amounted to MSEK 1,024 (1,037).
- EBITA decreased by 5 percent to MSEK 61 (64), corresponding to an EBITA margin of 6.0 percent (6.2).
- Operating profit amounted to MSEK 57 (61), corresponding to an operating margin of 5.6 percent (5.9).
- Net profit totalled MSEK 38 (42).
- Earnings per share amounted to SEK 1.40 (1.55).
- Three acquisitions have been completed, one of which after the end of the period, with total annual revenue of approximately MSEK 190.
- Collaboration with Sundström Safety AB through a jointly owned company with Bergman & Beving as the majority shareholder.
CEO’s comments
The result in the first quarter amounted to SEK 61 million, with the calendar effect impacting negatively with approximately SEK 10 million. We are not satisfied with the development and are therefore implementing price adjustments and efficiency measures that are expected to contribute positively during the second half of the operating year.
We received mixed signals from our primary markets and from our various customer segments during the quarter. Demand in the Finnish market was stable, while the Swedish and Norwegian markets developed more cautiously, where customers in both the construction and manufacturing sectors were more careful in their purchasing. At the same time, we continued our investments to broaden the customer base and signed several new customer agreements in which we steadily increase our sales.
We are pleased to highlight the development within Tools & Consumables, where our investments have yielded positive results and our earnings have strengthened considerably. However, we are not satisfied with the development within Building Materials. The gross margin in the division declined, in large part explaining the weak earnings performance. The price increases we have implemented have not yet been sufficient in light of the continued weakening of the Swedish krona. Workplace Safety strengthened its gross margin while our targeted growth investments had a negative effect on costs. We have invested in our strong brands and will continue to implement targeted initiatives to create profitable growth.
Acquisitions remain an important part of our strategy for growth, and two companies were acquired during the quarter, with an annual revenue of approximately MSEK 120. After the end of the period, the Building Materials division acquired H&H Tuonti, with an annual revenue of approximately MSEK 70. The acquisition has strengthened the division’s position within fastening elements in the Finnish market. Thanks to a sound financial situation and a gradually improving pipeline, we anticipate good opportunities to acquire attractive companies both in the Nordic region and in other geographic markets in the future.
Stockholm, July 2019
Pontus Boman
President & CEO
For further information, please contact:
Pontus Boman, President & CEO, Tel: +46 10 454 77 00
Peter Schön, CFO, Tel: +46 70 339 89 99
This information is information that Bergman & Beving AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 7:45 CET on 17 July 2019.
Bergman & Beving owns and refines companies that develop and market strong brands for professional users in industry and construction, mainly in the Nordic region, the Baltic States and Poland. Bergman & Beving aims to enable successful product companies to take the next step and become leading brands in their categories. The Group currently has some 17 brands, about 1,000 employees and revenue of approximately SEK 3.9 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company’s website: www.bergmanbeving.com.
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