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Bergman & Beving; Interim Report 1 April–31 December 2022

Bergman & Beving AB
Bergman & Beving AB

Press release

Interim Report 1 April–31 December 2022

Third quarter (1 October–31 December 2022)

  • Revenue rose by 7 percent to MSEK 1,239 (1,163).

  • EBITA increased by 23 percent to MSEK 103 (84) and the EBITA margin improved to 8.3 percent (7.2).

  • Net profit rose by 10 percent to MSEK 56 (51).

Nine months (1 April–31 December 2022)

  • Revenue rose by 4 percent to MSEK 3,512 (3,370).

  • EBITA increased by 14 percent to MSEK 278 (243) and the EBITA margin improved to 7.9 percent (7.2).

  • Net profit rose by 7 percent to MSEK 160 (149).

  • Earnings per share for the most recent 12-month period increased to SEK 7.90 (7.15) before dilution.

  • Three acquisitions have been carried out, with a total annual revenue of approximately MSEK 200.

CEO’S comments

Our strong result trend continues
We are proud to report historically high earnings of MSEK 103 for the third quarter, corresponding to an increase of 23 percent compared with the year-earlier period. The EBITA margin increased to 8.3 percent. All three divisions contributed to the earnings improvement, and it is particularly gratifying that the majority of our 21 profit units recorded improved earnings in the quarter.

Continued favourable demand despite uncertain market
Rising inflation, a weak SEK and uncertainty in the construction and industrial sectors have not yet had any major impact on demand for our products from end customers. However, the company’s reseller customers have reduced their buffer inventories. Many of our companies won new important customer contracts during the quarter, which, in time, will strengthen their position in the market. As previously announced, one of our largest companies – Luna Group – was unable to carry out invoicing at the end of the preceding quarter due to an IT attack on its logistics provider. This attack resulted in an estimated earnings loss of MSEK 10 for the second quarter, more than half of which Luna recovered during the third quarter.

Our continued focus on earnings growth remains, which means that we reject certain volume-based transactions where the profitability is too low. This resulted in that the organic revenue declined 3 percent in the quarter, but the earnings and margin strengthened.

Increased cost control and reduced buffer inventories
Initiated cost reductions have begun to have an impact and during the quarter our companies have implemented further cost savings. The Group’s like-for-like costs declined during the quarter, even though we were unable to fully compensate for cost increases as a result of inflation and a weaker SEK. Activities have been carried out to reduce the companies’ inventory levels, but they remain higher than in the year-earlier period as they continue to be impacted by higher average prices and a weaker SEK. In 2023, the companies will continue to work actively to reduce their inventory levels, which is expected to give positive effect on cash flow from the first quarter of next operating year.

Acquisitions and profitability improvements remains on the agenda
The strength of our decentralised model is that we can quickly adapt our operations to changing market conditions. We have financial muscle, established relationships and the operational capacity to continue to acquire highly profitable, niche companies with strong cash flow and growth opportunities. We remain focused on our ambition to acquire four to six companies during the year. However, we will be selective in our acquisition discussions given the prevailing economic uncertainty. We are also working continuously in all divisions, on a company by company basis, to improve profitability, earnings, margins and cash flow.

Adjusted for the second quarter’s extraordinary loss of income in conjunction with the IT attack on Luna Group’s logistics supplier, we have increased our earnings for the twelfth quarter in a row. I believe that Bergman & Beving has good potential to continue to improve its earnings and our ambition to reach MSEK 500 in operating profit by the 2025/26 operating year remains firm.

Stockholm, February 2023

Magnus Söderlind
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 persons set out above, at 7:45 a.m. CET on 3 February 2023.

Bergman & Beving, founded in 1906, is a Swedish listed group that acquires and develops leading companies with an eternal ownership horizon. The Group’s autonomous companies work in expansive niches where they provide value-adding solutions for industrial and construction clients. Each company operates with great freedom on the basis of a decentralised management model that has been creating growth, profitability and sustainable development for more than 100 years.  Bergman & Beving is listed on Nasdaq Stockholm, has approximately 1,300 employees and a turnover of approximately SEK 5 billion. The Group consists of about 20 companies represented in more than 25 countries. Read more about our operations at