Bergman & Beving AB: Financial Report 1 April 2019–31 March 2020
Financial Report 1 April 2019–31 March 2020
Fourth quarter (1 January–31 March 2020)
- Revenue increased by 10 percent to MSEK 1,090 (995).
- EBITA amounted to MSEK 57 (57) and was charged with restructuring expenses of MSEK 18.
- EBITA before restructuring expenses increased by 32 percent to MSEK 75 (57), corresponding to an EBITA margin of 6.9 percent (5.7).
- Net profit amounted to MSEK 30 (38).
- Earnings per share amounted to SEK 1.10 (1.40).
12 months (1 April 2019–31 March 2020)
- Revenue increased by 3 percent to MSEK 4,060 (3,945).
- EBITA amounted to MSEK 208 (249) and was charged with restructuring expenses of MSEK 41.
- EBITA before restructuring expenses was MSEK 249 (249).
- Net profit amounted to MSEK 116 (169).
- Earnings per share amounted to SEK 4.30 (6.25).
- Return on working capital (P/WC) amounted to 16 percent (22).
- The Board postpones the decision on dividend proposal.
Significant events since the start of the operating year
- Five acquisitions have been completed, with total annual revenue of approximately MSEK 270.
- Collaboration began with Sundström Safety AB through a jointly owned company with Bergman & Beving as the majority shareholder.
- Jörgen Wigh was elected as the new Chairman of the Board at the Annual General Meeting on 26 August 2019. Fredrik Börjesson and Alexander Wennergren Helm were elected as new directors.
- The Covid-19 pandemic had a variety of effects on operations. Construction-related sales continued while industry-related sales decreased at the end of the quarter. Sales of personal protective equipment increased. It is currently difficult to determine how significant the impact will be and how long the effects will linger.
The year concluded with a healthy sales trend and Bergman & Beving reported its highest invoicing yet in a single quarter. Revenue increased by 10 percent, or 2 percent after adjustments for acquisitions and currency effects. Earnings were on a par with the preceding year. Adjusted for items affecting comparability, earnings and the operating margin improved significantly. We can thus look back on a year of restructuring that ended on a positive note in terms of revenue and earnings performance.
The Covid-19 pandemic impacted our operations in several ways, with varying demand from our customers. Demand from construction-related customers was relatively stable while demand from industry-related customers demonstrated a downward trend towards the end of the quarter. At the same time, the demand for personal protective equipment was very high. Some of the companies in the Workplace Safety division assisted the authorities with both purchasing and temporary deliveries of personal protective equipment to best meet needs in the society. Considering the circumstances, our normal deliveries have functioned smoothly, without major disruptions to our customers.
The previously announced efficiency measures have been carried out according to plan and are now completed. These measures consisted primarily of staff reductions. Costs associated with carrying out these actions had a negative impact of approximately MSEK 18 on earnings for the quarter. To mitigate the negative effects of reduced demand as a result of the Covid-19 pandemic and to adapt operations to the new market conditions, efficiency measures in the companies have been strengthened further. The Group’s decentralised business model means that each company prepares measures that are suited for its particular operations. The measures are decided and implemented gradually in each company depending on how the market and the situation changes.
During a year marked by restructuring, we continued in parallel to make future-oriented investments in product development, sales and marketing of our strong brands. The share of proprietary product brands increased to 66 percent, both as a result of organic improvements and through acquisitions. Acquisitions remain an important part of our strategy for growth and five acquisitions were completed totalling approximately MSEK 270 in annual business volume. During these times, our priorities are the health and safety of our employees, customers and business partners. We will maintain a high focus on the business and hard work, with initiatives to improve profitability and our efficiency in a more decentralised structure. Ultimately, this will create the conditions to achieve our financial targets, although our current profitability is significantly below our long-term targets.
I would like to conclude by extending my sincere thanks to all our dedicated employees for your committed work during the year and welcome our new employees to Bergman & Beving. The Group’s financial position remains strong and we have a healthy level of financial readiness to address both challenges and opportunities. Our ambition is clear – we will emerge from this crisis as a stronger company.
Stockholm, May 2020
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 person set out above, at 7:45 a.m. CET on 15 May 2020.
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.