Continued strong growth and earnings development in a challenging environment
Third quarter of 2021
- Net sales rose by 21 percent to
SEK 1,425 million (1,181). Organic growth was 20 percent and order intake was higher than net sales - Operating profit (EBITA) increased to
SEK 164 million (142) and the operating margin was 11.5 percent (12.1) - Adjusted for acquisitions and remeasured additional purchase considerations, operating profit (EBITA) increased to
SEK 182 million (142) and the operating margin to 12.8 percent (12.0) - Earnings per share rose by 18 percent to
SEK 2.90 (2.46) Staffan Pehrson was appointed new President and CEO and joins the company inFebruary 2022 - Component Solutions Group, with annual sales of about
SEK 280 million , was acquired - Jenny |
Waltle GmbH andTilka Trading AB with annual sales of aboutSEK 190 million andSEK 50 million respectively were acquired after the end of the quarter
January-
- Net sales rose by 22 percent to
SEK 4,279 million (3,518). Organic growth was 25 percent and order intake was higher than net sales - Operating profit (EBITA) increased to
SEK 526 million (361) and the operating margin was 12.3 percent (10.2) - Earnings per share rose by 56 percent to
SEK 9.40 (6.01)
The Group in Brief
Quarter 3 | Δ | Jan-Sep | Δ | 12-months rolling | Full year | |||
SEK million | 2021 | 2020 | % | 2021 | 2020 | % | 2021/20 | 2020 |
Order intake | 1,454 | 1,219 | 19 | 4,461 | 3,528 | 26 | 5,760 | 4,827 |
Net sales | 1,425 | 1,181 | 21 | 4,279 | 3,518 | 22 | 5,517 | 4,756 |
Gross profit | 405 | 320 | 27 | 1,195 | 929 | 29 | 1,518 | 1,252 |
% | 28.4 | 27.1 | 27.9 | 26.4 | 27.5 | 26.3 | ||
Operating expenses | -241 | -178 | 35 | -669 | -568 | 18 | -872 | -771 |
% | -16.9 | -15.0 | -15.6 | -16.2 | -15.8 | -16.2 | ||
Operating profit (EBITA) | 164 | 142 | 16 | 526 | 361 | 46 | 647 | 482 |
% | 11.5 | 12.1 | 12.3 | 10.2 | 11.7 | 10.1 | ||
Operating profit | 157 | 135 | 16 | 505 | 338 | 49 | 618 | 452 |
% | 11.0 | 11.4 | 11.8 | 9.6 | 11.2 | 9.5 | ||
Profit after tax | 113 | 91 | 24 | 355 | 223 | 59 | 431 | 299 |
Earnings per share, SEK | 2.90 | 2.46 | 18 | 9.40 | 6.01 | 56 | 11.43 | 8.04 |
CEO’s overview
The good demand that we saw during the first half of the year continued in the third quarter.
Organic growth amounted to 20 percent which, alongside a weak comparative quarter, was primarily due to continued strong underlying demand in all segments, but also due to continued captured market shares.
The economic recovery and strong increase in demand after the pandemic created major challenges for the industry globally. This is primarily in the form of an extremely strained supply chain and higher prices for raw materials and freight, but also because there is now a shortage of capacity at many stages of the supply chain. Overall, this creates uncertainty and consequently, additional work throughout our organisation, which is expected to continue for at least the first half of 2022.
Similar to most other companies, we have been affected by large price increases for raw materials and freight, but have succeeded to date in offsetting this by passing these costs on to the customer. This work, together with the higher volumes relative to the comparative quarter, resulted in a good gross margin in the quarter.
The proportion of operating expenses increased during the quarter but adjusted for acquisitions and remeasured additional purchase considerations it is nonetheless at a historically low level. As society has started to open up in most markets, we have begun, for example, to increase the pace of recruitment and investments in our own operations to secure future growth. These investments will not only lead to increased growth, but also to enhanced efficiency, which in turn, will generate positive and sustainable profitability for us going forward. Adjusted for acquisitions and remeasured additional purchase considerations our operating profit and the operating margin increased significantly relative to the comparative quarter.
We have a continued focus on acquisitions and we have a strong pipeline of potential acquisition candidates in several geographies. During the quarter, this resulted in our acquisition of
After the reporting period we also acquired Jenny | Waltle and Tilka Trading with annual sales of MSEK 190 and 43 employees and net sales of MSEK 50 and 18 employees respectively. The companies have operations in
During the quarter, the Board of Directors appointed
The challenge going forward will be to address the normalisation of the cost level by further increasing productivity and to continue to manage the strained supply situation in the market, as well as continuing to pass on the higher costs of raw materials and freight to customers. I do however take a positive view of the future. This is because Bufab’s offering, in times such as these, should be perceived as even more relevant in terms of securing the companies’ own supply of C-parts. In addition, the healthy demand looks to continue in the fourth quarter. Combined with continued low inventory levels throughout the manufacturing industry in
Overall, we are very proud that we, despite a challenging environment, have succeeded in maintaining supplies to our customers in a favourable manner. I want to sincerely thank all of our 1,450 solutionists for the incredible focus and flexibility they demonstrated during the year.
President and CEO
Conference call
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Contact
President & CEO
+46 370 69 69 00
johan.lindqvist@bufab.com
Marcus Söderberg
CFO
+46 370 69 69 66
marcus.soderberg@bufab.com
This information is such that
Tel: +46 370 69 69 00 Fax +46 370 69 69 10
www.bufab.com
Attachment
- 211027-Q3ReportENG
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