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2019-02-08 07:45 CET
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Bergman & Beving AB: Interim Report 1 April-31 December 2018

Press release

Interim Report 1 April-31 December 2018

Third quarter (1 October-31 December 2018)

  • Revenue amounted to MSEK 994 (954).
  • EBITA increased with 16 percent and totalled MSEK 64 (55), corresponding to an EBITA margin of 6.4 percent (5.8).
  • Operating profit amounted to MSEK 61 (53), corresponding to an operating margin of 6.1 percent (5.6).
  • Net profit totalled MSEK 45 (41).
  • Earnings per share amounted to SEK 1.65 (1.50).
  • Cash flow from operating activities totalled MSEK 110 (118).

         

Nine months (1 April-31 December 2018)

  • Revenue amounted to MSEK 2,950 (2,873).
  • EBITA increased with 12 percent and totalled MSEK 192 (171), corresponding to an EBITA margin of 6.5 percent (6.0).
  • Operating profit amounted to MSEK 182 (165), corresponding to an operating margin of 6.2 percent (5.7).
  • Net profit totalled MSEK 131 (118).
  • Earnings per share amounted to SEK 4.85 (4.20).
  • The return on working capital (P/WC) for the rolling 12-month period was 22 percent (20).
  • Cash flow from operating activities totalled MSEK 299 (130).

         

Significant events since the start of the operating year

  • Three acquisitions have been completed, 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.

CEO's comments

Good earnings growth during the third quarter

The Group's positive performance continued during the third quarter. Profit rose by 16 percent and the operating margin strengthened. Revenue from proprietary product brands continued to increase and the initiatives to widen the consumer base began to generate results.

Overall, we experienced stable demand in our main markets in the Nordic region, without any major effects from the uncertain market situation. As before, demand in the Norwegian market displayed a positive trend. We also experienced early signs of increased demand from the Swedish renovations market. This is positive, since it contributes to stronger demand from our customers, who generally have a significantly higher exposure to this segment than to new housing construction.

It is encouraging that the Building Materials division increased its sales and consolidated its leading market position in the Nordic region while we also made progress in our aim to grow the business geographically. Sales in the Workplace Safety division were favourable but with a temporary negative margin impact due to start-up costs associated with new customer contracts and targeted growth initiatives for our strong brands. The ongoing changes within the Tools & Consumables division remained positive during the quarter and the profit increased. We are not yet satisfied with the results in the subsidiary Luna and we continue our efforts to further improve profitability.

Acquisitions

Acquisitions remain an important part of our strategy for growth. During the quarter, a minor acquisition was completed that complements our current position within the weighing niche. We are continuing to actively pursue appropriate additions to the Group and see good opportunities to acquire attractive companies in the future, not least given our strong financial position.

Stockholm, February 2019

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 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 08 February 2019.

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.

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