Third quarter (1 October–31 December 2024)

• Revenue rose by 6 percent to MSEK 1,264 (1,187).
• EBITA increased by 10 percent to MSEK 121 (110) and the EBITA margin improved to 9.6 percent (9.3).
• Net profit amounted to MSEK 54 (55) and earnings per share after dilution totalled SEK 1.95 (1.95).
• Cash flow from operating activities totalled MSEK 214 (207).
• Four acquisitions have been completed, with annual revenue of approximately MSEK 310.

Nine months (1 April-31 December 2024)

• Revenue rose by 4 percent to MSEK 3,661 (3,509).
• EBITA increased by 12 percent to MSEK 360 (322) and the EBITA margin improved to 9.8 percent (9.2).
• Net profit rose by 10 percent to MSEK 167 (152).
• Cash flow from operating activities totalled MSEK 502 (562).
• Earnings per share for the most recent 12-month period amounted to SEK 7.55 after dilution, compared with SEK 7.15 for the 2023/2024 financial year.
• Six acquisitions have been completed, with total annual revenue of approximately MSEK 390.

CEO’s comments

Another quarter in the right direction
We have now put yet another quarter behind us with increased profit, strengthened margins, improved profitability (P/WC) and a strong cash flow. EBITA increased by 10 percent to MSEK 121 (110), while the EBITA margin rose to 9.6 percent (9.3). Our efforts to improve profitability continued to have an effect. P/WC increased by 6 percentage points to 30 percent (24) and cash flow from operating activities increased to MSEK 214 (207) during the quarter.

The Group’s positive performance is the result of the focus, commitment and hard work of our organisation in challenging business conditions. It is encouraging to see that Division Core Solutions and Division Industrial Equipment are continuing to increase their earnings and profit margins. Division Safety Technology delivered at roughly the same level as in the preceding year, but I expect that the division – as a first step – will return to its previous profit and margin levels.

Challenging market – stronger results
Although the economic climate remains weak for the majority of our companies, we increased the Group’s revenue by 6 percent during the quarter due to our acquisitions. Organic revenue decreased 5 percent, which reflects the developments in the construction and manufacturing sectors in the Nordic countries, with the number of employees decreasing during the autumn. Despite these challenges, our decentralised governance model and clear capital allocation demonstrate just how adaptable our companies are. For example, ESSVE increased its revenue due to three new major customer contracts in Sweden, and Cresto Group secured its first large order for rescue equipment from yet another global wind power manufacturer. Our efforts to optimise our product range and inventory resulted in an organic decrease of MSEK 172 in working capital during 2024, of which inventory accounted for MSEK 93. Moreover, Fastit divested its operations in Asia during the quarter, and I cannot rule out that further structural measures in the Group may be necessary.

Four new companies strengthen the Group
During the quarter, we welcomed four new companies to the Group: three Finnish and one Swedish, which together generate revenue of MSEK 310 with good profitability. In Finland, we acquired Levypinta, Ovesta and Labsense. Levypinta manufactures bespoke high-pressure laminate boards, primarily for manufacturers of special furniture used in schools and public properties in Finland and Sweden. Ovesta sells primarily customised fireproof and soundproof doors to construction and real estate companies for installation in public properties. Labsense is a distributor to several leading global suppliers of technical laboratory equipment sold to the public and private sectors in Finland. In Sweden, we acquired Collinder Märksystem, a leading company in safety and industrial signage. The company strengthens our position in the growing segment of safety and industrial signage, a niche where we are already present with companies in Sweden, Norway and Denmark.

Our strong financial position has made it possible for us to achieve our acquisition goals, which has enabled us to maintain profit growth despite challenging market conditions. The new acquisitions supplement our existing portfolio, and we look forward to seeing the companies contribute the Group’s continued progress. I would also like to take this opportunity to warmly welcome all our new employees to the B&B Group.

We are building for the future
In my previous CEO comments, I mentioned that diamonds form under pressure. It does not appear that this pressure will ease in the near future, but these challenging times are driving our companies to continue to increase their efficiency, develop their customer and product mix, and improve their capital efficiency – thereby allowing the companies to grow stronger and position themselves for a stronger market. I am confident that our existing companies, in combination with acquisitions, will ensure that we continue to deliver positive earnings and improvements to profitability going forward. Our trend of increased profit over 20 consecutive quarters is proof that we are on the right path.

Stockholm, February 2025

Magnus Söderlind
President & CEO