Bergman & Beving AB: Interim Report 1 April–30 September 2020
Interim Report 1 April–30 September 2020
Second quarter (1 July–30 September 2020)
- Revenue increased by 4 percent to MSEK 1,013 (970).
- EBITA increased by 25 percent to MSEK 66 (53).
- Net profit rose by 33 percent to MSEK 40 (30).
- Earnings per share rose by 36 percent to SEK 1.50 (1.10).
- Cash flow from operating activities amounted to MSEK 133 (13).
Six months (1 April–30 September 2020)
- Revenue increased by 6 percent to MSEK 2,110 (1,994).
- EBITA increased by 14 percent to MSEK 130 (114).
- Net profit rose by 18 percent to MSEK 80 (68).
- Earnings per share rose by 20 percent to SEK 3.00 (2.50).
- Cash flow from operating activities amounted to MSEK 266 (94).
Significant events since the start of the operating year
- The COVID-19 pandemic had a variety of effects on operations during the first half of the year. Sales of personal protective equipment increased and construction-related sales improved. Industry-related sales were affected negatively, with a gradual recovery from the end of the first quarter. It is difficult to determine how significant the impact will be and how long the effects will linger.
- Charlotte Hansson was elected as a new Director at the Annual General Meeting on 26 August 2020.
Bergman & Beving performed well also during the second quarter and the Group posted its highest-ever quarterly results as an independent company, with positive contributions from all divisions. Revenue increased by 8 percent in local currency, of which 4 percent was organic. Operating profit (EBITA) increased by 25 percent to MSEK 66 and the operating margin improved to 6.5 percent. The business demonstrated its strength by delivering cash flow of MSEK 133.
Demand from industrial customers recovered gradually during the period as restrictions were eased, though the rate of recovery varied between regions. Demand from construction customers remained strong, as well as for personal protective equipment. At the same time, earnings were impacted by negative currency effects, primarily related to a weaker NOK.
The Group delivered organic growth for the third consecutive quarter. The pandemic forced a delay in the implementation of previously won customer contracts, but work on these is now well under way. Restructuring measures completed in the operations had a positive effect and we now have a better balance between income and expenses. Decentralising continued with a focus on the relevant profit centres and our various companies have implemented different measures on an ongoing basis to address their unique situations. Overall, it is satisfying that the divisions consistently improved their operating profit and strengthened their operating margins. Building Materials and Workplace Safety had a successful first half of the year, with high organic growth and a good earnings performance. It is gratifying that Tools & Consumables reversed the trend after the first quarter and once again improved its earnings despite weaker demand. Considering the special market conditions, the Group’s overall performance was positive, even though we did not reach the long-term profitability level we are striving for. I would like to take this occasion to thank all employees for their commitment and outstanding contributions in these turbulent times.
Our long-term focus on investments in sales and marketing of our strong products and brands continued and we have advanced our positions, even in the current market. Acquisitions remain an important part of our strategy for growth and it is gratifying that the newly acquired companies contributed positively to the earnings performance. Our cash flow and strong financial position give us continued opportunity to act forward and we intend to complete more value-generating acquisitions going forward.
Stockholm, October 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 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 a.m. CET on 22 October 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.