Healthy growth, increased profit and strong cash flow. Measures implemented to address anticipated lower demand in the second quarter.
First quarter of 2020
- Net sales rose by 21 percent to
SEK 1,316 million (1,091).
Organic growth was -5 percent. - Order intake was in line with net sales
- Operating profit (EBITA) rose to
SEK 126 million (119) and the operating margin was 9.5 percent (10.9) - Operating cash flow increased to
SEK 84 million (38) - Earnings per share rose to
SEK 2.31 (2.23) - A new segment structure has been implemented as per
January 1, 2020
Group Summary
Quarter 1 | Δ | 12-months rolling | Full year | |||
SEK million | 2020 | 2019 | % | 2020/19 | 2019 | |
Order intake | 1,321 | 1,084 | 22 | 4,591 | 4,354 | |
Net sales | 1,316 | 1,091 | 21 | 4,573 | 4,348 | |
Gross profit | 351 | 304 | 16 | 1,230 | 1,183 | |
% | 26.7 | 27.9 | 26.9 | 27.2 | ||
Operating expenses | -226 | -184 | 22 | -841 | -799 | |
% | -17.2 | -16.9 | -18.4 | -18.4 | ||
Operating profit (EBITA) | 126 | 119 | 5 | 390 | 384 | |
% | 9.5 | 10.9 | 8.5 | 8.8 | ||
Operating profit | 118 | 117 | 1 | 370 | 368 | |
% | 9.0 | 10.7 | 8.1 | 8.5 | ||
Profit after tax | 86 | 84 | 3 | 255 | 253 | |
Earnings per share, SEK | 2.31 | 2.23 | 4 | 6.83 | 6.75 |
CEO’s overview
The first quarter of 2020 started well but came to be increasingly dominated by the coronavirus and its effects on customers, suppliers and Bufab’s operations.
At an early stage, we established three main priorities: health and safety, quality and deliveries to customers, and financial stability. We quickly reorganised work in all of our subsidiaries so that it could be conducted safely and with a minimal risk of spreading of the virus. We also had to handle large fluctuations in our customers’ manufacturing and delivery plans. Our suppliers, first in
Toward the end of the quarter, demand returned in
Accordingly, in the first weeks of April, we reduced staffing by 30 percent of normal levels, which generated significant cost savings. If demand declines further, we will take additional measures.
During the first quarter, we reorganised the business into four operating segments instead of the previous two. The segments have been impacted in different ways by the crisis. In segment East, demand was weaker at the beginning of the quarter in
However, the overall impact on demand was moderate during the quarter. In fact, both sales and earnings for the first quarter of 2020 were Bufab’s strongest ever.
On the other hand, the conditions for the second quarter of 2020 are challenging. We can expect a strong fall in sales in April and it is impossible to say how long a recovery will take. On the one hand, many customers are indicating an intention to resume their operations relatively soon, while on the other hand, the pandemic’s development is impossible to predict. Accordingly, we have taken robust measures to reduce costs and to ensure the ability to also manage a prolonged period of low demand. At the same time, it is important to be able to quickly return to full capacity. Bufab’s action programme therefore prioritises speed and retained flexibility.
I want to take this opportunity to thank the entire team at
President and CEO
Conference call
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Contact
CEO
+46 370 69 69 00
jorgen.rosengren@bufab.com
CFO
+46 370 69 69 66
marcus.andersson@bufab.com
This information is such that
Tel: +46 370 69 69 00 Fax +46 370 69 69 10
www.bufab.com
Attachment
- Interim report Q1 2020 Final ENG
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