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Bergman & Beving AB: Interim Report 1 April–31 December 2020
Press release
Interim Report 1 April–31 December 2020
Third quarter (1 October–31 December 2020)
Revenue increased by 11 percent to MSEK 1,086 (976).
EBITA increased by 84 percent to MSEK 68 (37) and the EBITA margin improved to 6.3 percent (3.8).
Net profit rose by 139 percent to MSEK 43 (18) and earnings per share rose to SEK 1.60 (0.65).
Cash flow from operating activities amounted to MSEK 142 (151).
Nine months (1 April–31 December 2020)
Revenue increased by 8 percent to MSEK 3,196 (2,970).
EBITA increased by 31 percent to MSEK 198 (151) and the EBITA margin improved to 6.2 percent (5.1).
Net profit rose by 43 percent to MSEK 123 (86) and earnings per share rose to SEK 4.60 (3.20).
Cash flow from operating activities increased to MSEK 408 (245).
Significant events since the start of the operating year
The COVID-19 pandemic had a variety of effects on operations and demand has varied between segments and regions. Demand for personal protective equipment remained strong, as did demand from construction customers. Demand from industrial customers continued to recover during the quarter. It is difficult to predict how demand will develop in the future.
Four acquisitions were completed, two of which after the end of the period, with total annual revenue of approximately MSEK 90.
Alexander Wennergren Helm stepped down from his role as Director.
Charlotte Hansson was elected as a new Director at the Annual General Meeting on 26 August 2020.
CEO’s comments
Bergman & Beving continued its positive performance, which resulted in a significantly stronger quarter with favourable growth and improved earnings compared with the same period last year. Revenue increased by 15 percent in local currency, of which 12 percent was organic, which was a higher growth rate compared with earlier in the year. Operating profit (EBITA) increased by 84 percent to MSEK 68 and the operating margin improved to 6.3 percent. The operations also delivered a solid cash flow.
Since the outbreak of the pandemic, demand has varied significantly between segments and regions. In general, demand was higher than in the preceding year and many of our units strengthened their positions in the market. Demand for personal protective equipment remained strong, as did demand from construction customers. The recovery in demand from industrial customers continued during the quarter, as observed in the beginning of the autumn. We have not yet felt the effects of the pandemic’s second wave and it is difficult to predict how demand will develop in the future.
The Workplace Safety division delivered a strong quarter with a favourable earnings performance. The improvement was primarily driven by the largest units, Skydda and Guide, but also by improved profitability in the smaller units. The Building Materials division also improved its results thanks to a favourable sales trend and cost control. One gratifying example is the growth in ESSVE Industry, where previous restructuring measures have had a positive impact. The Tools & Consumables division recovered, with a steady earnings improvement compared with previous periods during the year.
Our acquisitions contributed to the positive earnings performance during the quarter and so far this year. Thanks to our positive cash flow and our strong balance sheet, we stepped up our acquisition agenda and completed four attractive acquisitions. The intention is to complete additional value-generating acquisitions going forward and we have continuous discussions with several companies of interest.
Despite the uncertain market conditions and negative currency effect, the Group increased its earnings. This is rewarding and an effect of the continuous improvement efforts carried out in our various units. There is great potential in all of our divisions and we have considerable room for improvement. One prioritised focus area is to increase our value generation in order to strengthen our margins. We are continuing to work on our decentralised structure, with clear objectives and measures at each company. The units are working continuously on improvements to strengthen their competitiveness and leverage growth opportunities, whether organic or through acquisitions. All told, this gives me great hope for the future.
Stockholm, February 2021
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 persons set out above, at 7:45 a.m. CET on 5 February 2021.
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 20 brands, about 1,000 employees and revenue of approximately SEK 4 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company’s website: www.bergmanbeving.com.
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