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Bergman & Beving’s Interim Report 1 April–30 June 2022
First quarter (1 April–30 June 2022)
Revenue rose by 1 percent to MSEK 1,200 (1,193).
EBITA increased by 17 percent to MSEK 91 (78) and the EBITA margin improved to 7.6 percent (6.5).
Net profit rose by 15 percent to MSEK 55 (48).
Two acquisitions were carried out, with total annual revenue of approximately MSEK 75.
“The Group’s positive performance continues” is how I would summarise the first quarter of the financial year, and I am pleased to report that the earnings have increased tenth quarter in a row. We delivered our highest quarterly result to date, with profit growth of 17 percent. The EBITA margin improved to 7.6 percent. All three divisions delivered increased earnings and improved operating margins, and 12 of our 19 profit units strengthened their earnings. This progress is a result of an increased focus on profit growth ahead of revenue growth, which means a focus on transactions where we offer higher added value and assigned a lower priority to lower-margin transactions. We have also continued to strengthen our decentralisation, increased our focus on profitability, intensified our management by objectives and increased our rate of acquisitions.
As part of our endeavour to increase the rate of acquisitions, we acquired Retco and Fallskyddspecialisterna during the quarter. Retco is a well-run, highly profitable company that affords us a market-leading position in Finland in automated welding technology for general industry, which is an expansive niche market. Cresto Group’s acquisition of Fallskyddspecialisterna is in line with our strategy to conduct add-on acquisitions in the company groups deemed to have favourable growth prospects.
However, the quarter has not been without its challenges. We experienced continued disruptions in the supply chain and were forced to counteract shipping, material, and production costs, which were at historically high levels. The effects of rising inflation, a weaker SEK, the consequences of the war in Ukraine and the uncertainty this is creating in the construction and industrial sectors have not yet had any major impact on demand for our products. But given the uncertainty regarding the future economic situation, our companies tightened their cost control during the during the quarter and began scaling down their buffer inventories.
We have a plan with tangible targets and activities for each company that we are carrying out on an ongoing basis. Progress is being made, but there are improvements left to be made. I therefore believe we have good potential to improve our profitability, earnings, operating margin and cash flow in all divisions, and I am convinced that our decentralised model will enable us to quickly adapt – company by company – to changing market conditions. Assuming that the underlying economic situation does not dramatically worsen, I am confident in delivering on our plan to double the Group’s operating profit within four to five years.
Stockholm, July 2022
President & CEO
For further information, please contact:
Magnus Söderlind, 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 a.m. CEST on 13 July 2022.
Bergman & Beving attracts, acquires and, over the long term, develops leading companies in expansive niches that deliver productive, safe, and sustainable solutions to the industrial and construction sectors. Through our companies, we are represented in over 4,000 sales outlets in more than 25 countries. Bergman & Beving is listed on Nasdaq Stockholm and has about 1,200 employees and generates revenue of approximately SEK 4.5 billion. Read more on the company’s website: www.bergmanbeving.com.