GlobeNewswire by notified

Bufab Group: Interim report January – September 2023

Share

Strong cash flow and stable underlying results

Third quarter of 2023

  • Net sales declined by -2 percent to SEK 2,071 million (2,122). Organic growth was -7 percent and order intake was somewhat lower than net sales.
  • Adjusted operating profit (EBITA) was SEK 260 million (274), corresponding to an operating margin of 12.6 percent (12.9).
  • Operating profit (EBITA) was SEK 220 million (272) and the operating margin was 10.6 percent (12.8).
  • Earnings per share decreased by 46 percent to SEK 2.56 (4.71).
  • Operating cash flow amounted to SEK 417 million (-5), corresponding to a cash conversion ratio of 178 percent (-2).
  • The key figure net debt/EBITDA improved and amounted to 2.7 (3.4).

January – September 2023

  • Net sales increased by 6 percent to SEK 6,737 million (6,358). Organic growth was -5 percent and order intake was somewhat lower than net sales.
  • Adjusted operating profit (EBITA) was SEK 892 million (845), corresponding to an operating margin of 13.2 percent (13.3). 
  • Operating profit (EBITA) increased by 15 percent to SEK 862 million (748) and the operating margin was 12.8 percent (11.8).
  • Earnings per share increased by 5 percent to SEK 13.30 (12.64).
  • Operating cash flow amounted to SEK 1,242 million (-38), corresponding to a cash conversion ratio of 137 percent (-5).
Q3 ∆ Jan-Sep ∆ LTM Full-year 
MSEK202320222023202222/23 2022
Order intake1,9832,071-46,5666,36138,7688,453
Net sales2,0712,122-26,7376,35868,8118,431
Gross profit601601-01,9251,80772,5072,389
Gross margin (%) 29.028.328.628.428.528.3
Operating expenses-381-32916-1,063-1,0590-1,404-1,399
Share of net sales (%) -18.4-15.5-15.8-16.6-15.9-16.6
Operating profit (EBITA)220272-19862748151,104990
Operating margin EBITA (%) 10.612.812.811.812.511.7
Operating profit (EBITA), adjusted260274-589284561,1311,084
Operating margin EBITA (%), adjusted 12.612.913.213.312.812.9
Operating profit202250-19809705151,034930
Operating margin (%) 9.811.812.011.111.711.0
Profit after tax98177-455034746638609
Earnings per share, SEK2.564.71-4613.3012.64516.8916.23

CEO’s overview

Bufab had a continued solid performance during the third quarter, reporting strong cash flow and stable underlying results.

Sales growth amounted to -2 percent. Organic growth amounted to -7 percent and was negatively impacted by strong comparative figures and a lower demand in some industrial segments.

In particular, Segment East and UK/North America noted a decline, especially sectors that experienced a tailwind during the pandemic, such as furniture, kitchen, outdoor recreation and health. Sectors that reported a strong demand during the quarter were energy, automotive and defence. Segment West had a good development during the quarter, supported by high demand and increased market shares. Order intake for the Group was slightly lower than net sales.

The gross margin increased, mainly due to a better customer and business mix in both the UK and North America.

The share of operating expenses increased year on year. The increase was essentially due to remeasurement of additional purchase considerations, which amounted to SEK -40 in the quarter compared with SEK -2 million in the comparison period.

Adjusted for the above items affecting comparability, the operating margin amounted to 12.6 percent (12.9).

Segments West and North had a positive impact on the results for the quarter, whereas Segment East’s impact was negative.

Our focused work to strengthen cash flow is continuing to yield results. Operating cash flow improved significantly year on year due to a strong improvement in working capital. We anticipate a continued strong cash flow during the year. Our objective is to gradually reduce the key ratio Net debt/EBITDA, which improved during the quarter and amounted to 2.7 (3.4).

We are seeing good results from the integration of the most recent acquisitions and at the same time, we are moving forward with several potential acquisition candidates.

We are also continuing to integrate sustainability throughout our operations – an increasingly important area for us and our customers. In 2023, we prepared for compliance with the EU’s new legal requirements regarding the Corporate Sustainability Reporting Directive (CSRD) and we have a strong customer offering as regards to sustainability that encompasses both legal and voluntary requirements that are well suited to the needs of both large and small customers.

Lately, the market outlook has become more uncertain, which was reflected in Bufab’s organic growth during the quarter. However, we have a large and well-diversified customer base and article portfolio, with a good spread of risk among various industries and markets. Our short-term priorities that we established last year stand firm: to capture market share, maintain a good margin and improve cash flow.

I look forward to welcoming investors, analysts, and the media to our Capital Markets Day on 6 December in Stockholm, where we will present Bufab’s updated strategy, growth opportunities and execution going forward.

Finally, I want to thank all our customers around the world for the trust they show in us and to extend a big thank you to our 1,800 “solutionists” worldwide.

Erik Lundén
President and CEO

Conference call

A conference call will be held on 26 October 2023 at 10:00 a.m. CEST. Erik Lundén, President and CEO, and Pär Ihrskog, CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link:Click here to join the meeting and use the “Raise Your Hand” function during the Q&A session.

CONTACT

Erik Lundén                                                   Pär Ihrskog
President & CEO                                             CFO
+46 370 69 69 00                                          +46 370 69 69 00
erik.lunden@bufab.compar.ihrskog@bufab.com

Bufab AB (publ)
Box 2266
SE-331 02, Värnamo, Sweden
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com

This information is such that Bufab AB (publ) is obliged to disclose in accordance with the EU’s Market Abuse Regulation. The information was submitted for publication by the aforementioned contact on 26 October 2023 at 7:30 a.m. CEST.

About Bufab

Bufab AB (publ) is a trading company that offers its customers a full-service solution as a Supply Chain Partner for sourcing, quality control and logistics for C-parts

Bufab was founded in 1977 in Småland, Sweden, and is an international company with operations in 28 countries. The head office is located in Värnamo, Sweden, and Bufab has about 1,800 employees. Bufab’s net sales for the past 12 months amounted to SEK 8.8 billion and the operating margin was 12.5 percent. The Bufab share is listed on Nasdaq Stockholm, under the ticker “BUFAB”. Please visit www.bufabgroup.com for more information

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Iveco Group signs a 150 million euro term loan facility with Cassa Depositi e Prestiti to support investments in research, development and innovation11.6.2024 12:00:00 CEST | Press release

Turin, 11th June 2024. Iveco Group N.V. (EXM: IVG), a global automotive leader active in the Commercial & Specialty Vehicles, Powertrain and related Financial Services arenas, has successfully signed a term loan facility of 150 million euros with Cassa Depositi e Prestiti (CDP), for the creation of new projects in Italy dedicated to research, development and innovation. In detail, through the resources made available by CDP, Iveco Group will develop innovative technologies and architectures in the field of electric propulsion and further develop solutions for autonomous driving, digitalisation and vehicle connectivity aimed at increasing efficiency, safety, driving comfort and productivity. The financed investments, which will have a 5-year amortising profile, will be made by Iveco Group in Italy by the end of 2025. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a

DSV, 1115 - SHARE BUYBACK IN DSV A/S11.6.2024 11:22:17 CEST | Press release

Company Announcement No. 1115 On 24 April 2024, we initiated a share buyback programme, as described in Company Announcement No. 1104. According to the programme, the company will in the period from 24 April 2024 until 23 July 2024 purchase own shares up to a maximum value of DKK 1,000 million, and no more than 1,700,000 shares, corresponding to 0.79% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. Trading dayNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-25478,1001,023.01489,100,86026:3 June 20247,0001,050.597,354,13027:4 June 20245,0001,055.705,278,50028:6 June20243,0001,096.273,288,81029:7 June 20244,0001,106.174,424,68

Landsbankinn hf.: Offering of covered bonds11.6.2024 11:16:36 CEST | Press release

Landsbankinn will offer covered bonds for sale via auction held on Thursday 13 June at 15:00. An inflation-linked series, LBANK CBI 30, will be offered for sale. In connection with the auction, a covered bond exchange offering will take place, where holders of the inflation-linked series LBANK CBI 24 can sell the covered bonds in the series against covered bonds bought in the above-mentioned auction. The clean price of the bonds is predefined at 99,594. Expected settlement date is 20 June 2024. Covered bonds issued by Landsbankinn are rated A+ with stable outlook by S&P Global Ratings. Landsbankinn Capital Markets will manage the auction. For further information, please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.

Relay42 unlocks customer intelligence with a new insights and reporting module, powered by Amazon QuickSight11.6.2024 11:00:00 CEST | Press release

AMSTERDAM, June 11, 2024 (GLOBE NEWSWIRE) -- Relay42, a leading European Customer Data Platform (CDP), is leveraging Amazon QuickSight to power its new real-time customer intelligence, reporting, and dashboard module. Harnessing the breadth and quality of customer data, the new Insights module empowers marketing teams to dive deep into customer behaviors and gain invaluable insights into the performance of their marketing programs across all online, offline, paid, and owned marketing channels. Preview of the Relay42 Insights module, in pre-beta version Key capabilities of the Relay42 Insights module include: Deep insights into customer behaviors: With the Relay42 Insights module, marketers can ask unlimited questions about their data and gain a deeper understanding of how to serve their customers more effectively. Simplicity with AI-powered querying: Marketers can use artificial intelligence to query their data using natural language search, reducing the reliance on data scientists. Us

Metasphere Labs Announces X Spaces Event on the Topic of Green Bitcoin Mining and Sound Money for Sustainability11.6.2024 10:30:00 CEST | Press release

VANCOUVER, British Columbia, June 11, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere Labs" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is thrilled to announce an engaging Twitter Spaces event on Green Bitcoin mining, energy markets, and sustainability on July 3, 2024 at 2 p.m. ET. Follow us on X at MetasphereLabs for updates and to join the event. What We'll Discuss Bitcoin Mining Basics: Understand the fundamentals of Bitcoin mining.Energy Market Dynamics: Explore how Bitcoin mining interacts with energy markets.Sustainable Innovations: Learn about our efforts to promote sustainability in Bitcoin mining.Sound Money: Discover how tamper-proof currency can enhance stability.Efficient Payment Rails: See how fast, neutral payment systems support humanitarian projects.Carbon Footprint: Compare Bitcoin's environmental impact with traditional banking. "We're excited to host this event and dive into the critical topics of Bitcoin

HiddenA line styled icon from Orion Icon Library.Eye