Bergman & Beving AB: Interim Report 1 April - 30 September 2018
Interim Report 1 April - 30 September 2018
Second quarter (1 July-30 September 2018)
- Revenue amounted to MSEK 919 (902).
- EBITA totalled MSEK 64 (60), corresponding to an EBITA margin of 7.0 percent (6.7).
- Operating profit amounted to MSEK 60 (58), corresponding to an operating margin of 6.5 percent (6.4).
- Net profit totalled MSEK 44 (40).
- Earnings per share amounted to SEK 1.65 (1.45).
- Cash flow from operating activities totalled MSEK 48 (10).
Six months (1 April-30 September 2018)
- Revenue amounted to MSEK 1,956 (1,919).
- EBITA totalled MSEK 128 (116), corresponding to an EBITA margin of 6.5 percent (6.0).
- Operating profit amounted to MSEK 121 (112), corresponding to an operating margin of 6.2 percent (5.8).
- Net profit totalled MSEK 86 (77).
- Earnings per share amounted to SEK 3.20 (2.75).
- The return on working capital (P/WC) for the rolling 12-month period was 21 percent (20).
- Cash flow from operating activities totalled MSEK 189 (12).
Significant events since the start of the operating year
- Two acquisitions have been carried out, with total annual revenue of approximately MSEK 90.
- Johan Sjö was elected as the new Chairman of the Board at the Annual General Meeting on 23 August 2018.
- In accordance with a resolution by Bergman & Beving's Annual General Meeting on 23 August 2018, the number of Class B shares outstanding was reduced by 1,000,000.
Continued earnings improvement
The Group's positive performance continued during the second quarter, with improved earnings and a stronger operating margin. Demand for our proprietary brands improved and the share increased to 62 percent.
Overall, we experienced favourable demand in our main markets in the Nordic region, despite being impacted to a certain extent by a later-than-normal start to the season following the summer. The construction market noted stable demand, with Sweden remaining hesitant and more positive signals from Norway, which benefited from increased activity in the offshore industry. The industrial market remained strong, primarily driven by the trend in Sweden and Finland.
Our restructuring measures in the Tools & Consumables division yielded results and our efforts to enhance the efficiency of the organisation continued. At the same time, the niche companies in the division performed well. The Building Materials divisions maintained its strong market position and demand tracked the trend in our main markets. Workplace Safety continued to make good progress and the division delivered both improved earnings and a stronger operating margin. Th establishment of the division's brands as independent units has been well received in the market.
Redemptions and acquisitions
During the quarter the cancellation of one million repurchased shares was completed, which affects our shareholders positively.
Acquisitions remain an important part of our strategy for growth. Our recent acquisitions of niche technology companies have contributed positively to our performance, demonstrating the success of our acquisition model. We see good potential to continue acquiring attractive companies.
Stockholm, October 2018
President & CEO
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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 26 October 2018.
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 15 brands, about 1,000 employees and revenue of approximately SEK 3.8 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company's website: www.bergmanbeving.com.