Bergman & Beving AB: Interim Report 1 April-31 December 2017
Interim Report 1 April-31 December 2017
Third quarter (1 October-31 December 2017)
- Revenue amounted to MSEK 954 (970).
- EBITA totalled MSEK 55 (52), corresponding to an EBITA margin of 5.8 percent (5.4).
- Operating profit amounted to MSEK 53 (51), corresponding to an operating margin of 5.6 percent (5.3).
- Net profit totalled MSEK 41 (39).
- Earnings per share amounted to SEK 1.50 (1.35).
Nine months (1 April-31 December 2017)
- Revenue amounted to MSEK 2873 (2866).
- EBITA totalled MSEK 171 (214), corresponding to an EBITA margin of 6.0 percent (7.5).
- Operating profit amounted to MSEK 165 (213), corresponding to an operating margin of 5.7 percent (7.4).
- Net profit totalled MSEK 118 (159).
- Earnings per share amounted to SEK 4.20 (5.60).
- 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.
Moving in the right direction
During the third quarter, we intensified our focus on our leading brands and strengthened our earnings compared with the year-earlier period. Overall, our share of proprietary brands also continued to increase. Our sales and marketing initiatives for our leading brands were well received, and we signed agreements with several new chain customers in the Nordic region. Although we are moving in the right direction, our aim is to increase our profitability at a faster rate, and we therefore initiated further efficiency-enhancement measures during the quarter.
We received varying signals from our main markets, with strong demand from industrial customers in the Nordic region alongside a certain degree of uncertainty in the Nordic construction market. Our construction-related customers adopted a wait-and-see approach and were cautious in their purchases toward the end of the year. However, we maintained our market shares and strong position, and still consider the underlying construction market to be stable, albeit with a lower growth rate than in the past. Sales to the TOOLS chain declined as planned following the implementation of changes in our supplier agreements for goods for resale, which were previously invoiced onward via Bergman & Beving. Sales to other industry-related customers developed positively.
Workplace Safety displayed a strong performance and delivered an EBITA margin of more than 10 percent, the highest to date for the division. The division now has several dedicated units and launched a new e-commerce platform during the quarter. Launches in other operations will continue until the summer. The restructuring of Tools & Consumables generated positive results, and the outsourcing of the subsidiary Luna's logistics continued according to plan. The new solution is expected to be in place during the next quarter. Building Materials was negatively impacted by sluggish demand from its construction-related customers. The implementation of the Group's previously initiated structural measures has proceeded according to and had a positive effect. Combined with the recently initiated efficiency enhancements, these measures are expected to impact profitability, mainly in the next financial year.
Repurchases and acquisitions
Shares were repurchased for a total of MSEK 88 during the quarter and we now hold a total of 1.4 million shares, of which approximately one-third will be used to cover two outstanding option programmes. The Board continuously assesses the need to repurchase shares in order to optimise our capital structure. We are also actively pursuing our acquisition strategy and have good potential to carry out further transactions, particularly given our healthy cash flow and strong financial position.
Stockholm, February 2018
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 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 persons set out above, at 07:45 a.m. CET on 9 February 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.Bergman_Beving_Q3_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