Press release
Interim Report 1 April - 30 June 2018
First quarter (1 April-30 June 2018)
- Revenue amounted to MSEK 1,037 (1,017).
- EBITA increased 14 percent to MSEK 64 (56), corresponding to an EBITA margin of 6.2 percent (5.5).
- Operating profit amounted to MSEK 61 (54), corresponding to an operating margin of 5.9 percent (5.3).
- Net profit totalled MSEK 42 (37).
- Earnings per share amounted to SEK 1.55 (1.30).
- Cash flow from operating activities totalled MSEK 141 (2).
- Two acquisitions were conducted during the period, with total annual revenue of approximately MSEK 90.
- The Board of Directors has proposed that the Annual General Meeting reduce the number of shares outstanding by 1,000,000.
CEO's comments
Positive start to the year
The Group continued to deliver a positive trend during the first quarter of the year. We achieved favourable earnings growth and our operating margin strengthened. We continued to implement measures to achieve earnings growth and increased profitability at the same time as our businesses generated a strong cash flow.
We experienced favourable conditions in our main markets in the Nordic region, albeit with a certain level of hesitancy in the Swedish construction market. This hesitancy was mainly due to a decline in new residential construction. At the same time, the Norwegian construction market displayed a positive trend. The economic situation in the industrial sector remained strong, primarily driven by the Swedish and Finnish markets.
We continue to focus on development, sales and marketing of our proprietary brands and the share increased to 61 percent. In terms of the development of our divisions, it feels particularly gratifying to highlight Workplace Safety, which delivered both strong earnings growth and an improved operating margin. It is also positive that the operating margin in Building Materials was restored to a level well above 10 percent. The restructuring of Tools & Consumables is continuing, with a focus on measures to improve profitability within the subsidiary Luna. In parallel, we are focusing on developing other companies in the division.
Acquisitions
Acquisitions are an important part of our strategy for growth, and two companies were acquired during the quarter: BVS Brannvernsystemer AS and Belano Maskin AB. The companies contribute annual revenue of approximately MSEK 90. With the acquisition the Building Materials division strengthened its position in passive fire protection, while Tools & Consumables improved its position in the attractive niche of construction and ventilation sheet-metal workers.
Pontus Boman
President & CEO
Stockholm, in July 2018
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 CET on 20 July 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.bergm anbeving.com.
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