Bergman & Beving AB: Financial Report 1 April 2020–31 March 2021

Press release

Financial Report 1 April 2020–31 March 2021

Fourth quarter (1 January–31 March 2021)

• Revenue increased by 2 percent to MSEK 1,115 (1,090).
• EBITA increased by 28 percent to MSEK 73 (57) and the EBITA margin improved to 6.5 percent (5.2).
• Net profit rose by 43 percent to MSEK 43 (30) and earnings per share rose to SEK 1.60 (1.10).
  
  

12 months (1 April 2020–31 March 2021)

• Revenue increased by 6 percent to MSEK 4,311 (4,060).
• EBITA increased by 30 percent to MSEK 271 (208) and the EBITA margin improved to 6.3 percent (5.1).
• Net profit rose by 43 percent to MSEK 166 (116) and earnings per share rose to SEK 6.15 (4.30).
• Cash flow from operating activities increased to MSEK 383 (222).
• The Board proposes a dividend of SEK 3.00 per share (1.50).
  
  

Significant events since the start of the operating year

• Magnus Söderlind started as President and CEO for Bergman & Beving AB on 1 May 2021.
• Seven acquisitions were completed, two of which after the end of the period, with total annual revenue of approximately MSEK 150.
• The COVID-19 pandemic had a variety of effects on operations and demand has varied between segments and regions. Demand for personal protective equipment remained strong, as did demand from construction customers. Demand from industrial customers continued to recover during the quarter.
• Charlotte Hansson was elected as a new Director at the Annual General Meeting on 26 August 2020.
• Alexander Wennergren Helm stepped down from his role as Director.
  
  

CEO’s comments

Bergman & Beving continued the positive performance during the fourth quarter. It became our best quarter to date as an independent company both in revenue, operating profit and earnings per share. Revenue increased by 5 percent in local currency, of which 2 percent was organic. Operating profit (EBITA) increased by 28 percent to MSEK 73 and the operating margin improved to 6.5 percent. The operations also delivered a good cash flow.

The year as a whole became also a clear step in the right direction for Bergman & Beving. Revenue increased by 9 percent in local currency, of which 5 percent was organic. Operating profit (EBITA) increased by 30 percent to MSEK 271 and the operating margin improved to 6.3 percent. Cash flow from operating activities increased to MSEK 383, or SEK 14.40 per share. We are pleased that we delivered our highest revenue and operating profit to date as an independent company and a record-breaking cash flow.

Demand in our main markets was mostly strong during the quarter, with a limited impact from the pandemic. During the year, demand has varied significantly between segments and regions. In general, demand was higher than in the preceding year and many of our units strengthened their market positions, both organically and through acquisitions. Our business areas have successfully handled both the challenges and the opportunities presented by the situation. Our decentralised model, with a large share of responsibility and decision-making taken on by the individual companies, has worked well.

All our divisions, led by Building Materials, improved their earnings and operating margins during the quarter. Our largest product companies ESSVE, Guide, Arbesko, Cresto and Teng Tools, posted a positive performance, as did many of our smaller companies. For the full year, the Building Materials and Workplace Safety divisions delivered especially strong performances, with significant earnings improvements. The Tools & Consumables division was negatively affected during the beginning of the year and gradually improved after adjustments were made to adapt to the new market conditions and demand recovered.

We increased our rate of acquisitions during the year and completed seven acquisitions. The majority will become new niche profit units, while the two smallest companies were acquired to supplement our proprietary products in currently existing focus areas. The intention is to complete additional value-generating acquisitions going forward and we are in ongoing discussions with several companies of interest.

Magnus Söderlind is now taking over as President & CEO, while I will transition to my new role of Executive Vice President and Division Head, Building Materials. Together, we will continue to drive earnings improvements with clear objectives in our companies together with acquisitions of highly profitable companies with strong positions in market niches. After a successful year of progress, Bergman & Beving is a significantly stronger Group with excellent conditions in place to improve both our earnings and our operating margins and that is why I look to the future with great confidence. I would like to conclude by offering my sincere thanks to all our dedicated employees for your many outstanding efforts during the year and welcome our new employees to Bergman & Beving.

Stockholm, May 2021

Pontus Boman

For further information, please contact:
Magnus Söderlind, 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 a.m. CET on 12 May 2021.

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 1,100 employees and revenue of approximately SEK 4.5 billion. Bergman & Beving is listed on Nasdaq Stockholm.
Read more on the company’s website: www.bergmanbeving.com.

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