Bergman & Beving AB: Interim Report 1 April-30 September 2017
Interim Report 1 April-30 September 2017
Second quarter (1 July-30 September 2017)
- Revenue amounted to MSEK 902 (884).
- EBITA totalled MSEK 60 (82), corresponding to an EBITA margin of 6.7 percent (9.3).
- Operating profit amounted to MSEK 58 (82), corresponding to an operating margin of 6.4 percent (9.3).
- Net profit totalled MSEK 40 (61).
- Earnings per share amounted to SEK 1.45 (2.15).
Six months (1 April-30 September 2017)
- Revenue amounted to MSEK 1,919 (1,896).
- EBITA totalled MSEK 116 (162), corresponding to an EBITA margin of 6.0 percent (8.5).
- Operating profit amounted to MSEK 112 (162), corresponding to an operating margin of 5.8 percent (8.5), including items affecting comparability of MSEK +2.
- Net profit totalled MSEK 77 (120).
- Earnings per share amounted to SEK 2.75 (4.25).
- The return on working capital (P/WC) for the rolling 12-month period was 20 percent (27).
Significant events since the start of the operating year
- Momentum Group was listed as a separate company on Nasdaq Stockholm on 21 June 2017.
- The Company changed its name from B&B TOOLS AB to Bergman & Beving AB.
- Pontus Boman was appointed as the Company's new President & CEO.
- Two acquisitions strengthened the Group's market position and contributed annual revenue of approximately MSEK 225.
Positive business climate with a high activity level
Bergman & Beving continued to perform well, with a high level of activity in the second quarter, the Company's first full quarter as an independent company. We are rapidly implementing planned structural measures in the areas of the business with weaker profitability and consistently focusing on product development, sales and marketing of our leading brands.
The business climate in our main markets in the Nordic region remains favourable. Although the growth rate for investments in the construction sector declined slightly over the past quarter, our operations in the sector continued to deliver robust growth. The manufacturing sector in Sweden and Norway displayed a stable trend and we are now seeing positive signals from Finland with respect to industrial production. Overall, demand from the manufacturing sector continued to be impacted by weaker sales to the TOOLS chain, where we are implementing a planned change in supplier agreements for goods for resale, which were previously invoiced onward via Bergman & Beving. Compared with the same quarter in the preceding year, revenue increased 2 percent. Acquired units contributed according to plan, which meant that revenue for comparable units was slightly lower than in the year-earlier period.
Measures resulting in earnings improvement
EBITA for the quarter amounted to MSEK 60, an improvement compared with the first quarter of the operating year but weaker than in the corresponding quarter in the preceding year, which was relatively strong. In connection with the planned change in supplier agreements, we initiated a number of structural measures. These measures are now beginning to generate a positive earnings effect across the operations, with clear improvements in the units impacted most by the change. We were particularly pleased with the improvements achieved within the Tools & Consumables operating segment, which has once again reported profit - both for the quarter and accumulated for the year to date. Luna's preparations to outsource its logistics are continuing as planned and gradual staffing changes will be made at our logistics unit in Ulricehamn during the first quarter of 2018. At the same time, we are carrying out our previously planned investments in growth within the Building Materials operating segment and we are continuing to capture market shares in the Nordic markets.
Combined with clear decentralised business responsibility and a focus on our strong brands, the rationalisation measures implemented provide us with a solid foundation for profitable growth and the continued successful development of our operations.
Stockholm, October 2017
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
The information in this report is such that B&B TOOLS 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 07:45 a.m. CET on 27 October 2017.
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.Bergman_Beving_Q2_17_18_eng
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bergman & Beving AB via Globenewswire