Bergman & Beving AB: Interim Report 1 April–30 September 2019
25.10.2019
Press release
Interim Report 1 April–30 September 2019
Second quarter (1 July - 30 September 2019)
- Revenue amounted to MSEK 970 (919).
- EBITA totalled MSEK 53 (64), corresponding to an EBITA margin of 5.5 percent (7.0).
- Net profit totalled MSEK 30 (44).
- Earnings per share amounted to SEK 1.10 (1.65).
Six months (1 April - 30 September 2019)
- Revenue amounted to MSEK 1,994 (1,956).
- EBITA totalled MSEK 114 (128), corresponding to an EBITA margin of 5.7 percent (6.5).
- Net profit totalled MSEK 68 (86).
- Earnings per share amounted to SEK 2.50 (3.20).
- Return on working capital (P/WC) amounted to 20 percent (21).
Significant events since the start of the operating year
- Four acquisitions have been completed, with total annual revenue of approximately MSEK 230.
- Collaboration began with Sundström Safety AB through a jointly owned company with Bergman & Beving as the majority shareholder.
- Jörgen Wigh was elected as the new Chairman of the Board at the Annual General Meeting on 26 August 2019. Fredrik Börjesson and Alexander Wennergren Helm were elected as new directors.
CEO’s comments
We consistently continued our investments in innovation, international expansion and acquisitions to develop our portfolio of leading product companies. Sales developed positively at the end of the quarter, which partly compensated for weaker sales during the summer months. We experienced mixed demand signals from our primary markets and from our various customer segments, reflecting increased uncertainty in the market. At the same time, we continued to successfully broaden our customer base, and sales to new customers increased steadily.
The investments in our prioritized brands create the basis for long-term profitable growth and accounted for most of the cost increases during the quarter. Nonetheless, we are not satisfied with the profit trend and measures to reduce costs by MSEK 60 have been initiated. Implemented cost reduction activities had a negative effect on cost with approximately MSEK 7 in the quarter.
Measures to improve the contribution margin have been initiated in all divisions as a response to the effects of a weakened krona and increased raw material prices. Tools & Consumables developed in line with the preceding year, where the subsidiary Luna continued to develop positively. The Building Materials divisions maintained its strong market position despite increased price pressure. Workplace Safety continued its focus on additional independent units and targeted investments in product development and establishing a European sales network. At the same time, planned structural measures were completed within the division’s distribution operation, Skydda.
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 110. The latest acquisition, Systemtextgruppen AB, contributed an annual revenue of approximately MSEK 40 with a healthy profitability. Thanks to a gradually improving pipeline, we foresee good opportunities to acquire attractive companies both in the Nordic region and in other geographic markets in the future.
Stockholm, October 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 and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 7:45 CET on 25 October 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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