Bergman & Beving AB: Financial Report 1 April 2018-31 March 2019

Press release

Financial Report 1 April 2018-31 March 2019

Fourth quarter (1 January-31 March 2019)

• Revenue amounted to MSEK 995 (960).
• EBITA increased by 8 percent to MSEK 57 (53), corresponding to an EBITA margin of 5.7 percent (5.5).
• Operating profit amounted to MSEK 54 (51), corresponding to an operating margin of 5.4 percent (5.3).
• Net profit totalled MSEK 38 (40).
• Earnings per share amounted to SEK 1.40 (1.50).

12 months (1 April 2018-31 March 2019)

• Revenue amounted to MSEK 3,945 (3,833).
• EBITA increased by 11 percent to MSEK 249 (224), corresponding to an EBITA margin of 6.3 percent (5.8).
• Operating profit amounted to MSEK 236 (216), corresponding to an operating margin of 6.0 percent (5.6).
• Net profit totalled MSEK 169 (158).
• Earnings per share amounted to SEK 6.25 (5.70).
• The return on working capital (P/WC) was 22 percent (20).
• Cash flow from operating activities totalled MSEK 258 (109).
• The Board proposes a dividend of SEK 3.00 per share (2.50).

Significant events since the start of the operating year

• Five acquisitions have been completed, two of which after the end of the period, with total annual revenue of approximately MSEK 210.
• In accordance with a resolution by Bergman & Beving’s Annual General Meeting on 23 August 2018, the number of Class B shares outstanding was reduced by 1,000,000.
• The Nomination Committee proposes to elect Jörgen Wigh as new Chairman of the Board of Bergman & Beving AB.

CEO’s comments

Earnings improvement and growth initiatives

The year ended with improved earnings and the development of both the earnings and the operating margin have been positive in every quarter of the year. The year’s earnings growth amounted to 11 percent with an EBITA margin of 6.3 percent. It was encouraging to see that the year’s cash flow from operating activities totalled MSEK 258.

The fourth quarter is normally a weak quarter in terms of seasonal effects. The demand from industrial customers in the Swedish Market remained good, while a lower level of activity in the construction market was reflected in a cautious attitude among our customers. The demand from the industrial market as well as the construction market in Norway were stable. Our dependency on the TOOLS chain was gradually reduced during the year, which resulted in a more balanced customer structure. 

We continued to implement our strategy of making targeted investments in product development, sales and marketing of our strong brands. Both our revenue and share of proprietary product brands grew. Our focus on broadening the customer base intensified and sales to new customers and markets increased. Sales in the Workplace Safety division were favourable with a temporary negative margin impact due to targeted growth initiatives. The international expansion investments in the Building Materials division developed positively which somewhat counteracted the cautiousness in the Swedish market. At the same time, I am very pleased to see that the ongoing changes within the Tools & Consumables division have been successful and the division’s earnings have improved significantly. Overall, we are not satisfied with the result level and continue the work with focus on improved profitability balanced with investments for growth.

During the year, we completed three acquisitions with an annual business volume of approximately MSEK 90. After the end of the period, we acquired two leading brands, KGC and Millers, with an annual business volume of approximately MSEK 120. We also entered into a strategic partnership with Sundström Safety. Acquisitions remain an important part of our growth strategy and we see many opportunities to acquire attractive companies in the future, not least given our strong financial position and cash flow.

Finally, I would like to extend my sincere thanks to all our dedicated employees for your excellent work during the year and welcome our new employees to Bergman & Beving. 

Stockholm, May 2019

Pontus Boman

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 CET on 16 May 2019.

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 3.9 billion. Bergman & Beving is listed on Nasdaq Stockholm. Read more on the company’s website: www.bergmanbeving.com.

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• Bergman_Beving_Q4_18_19_eng