Fourth quarter

• Organic sales rose 17.9 per cent in the quarter compared to the previous year. Acquisition effects amounted to 8.9  per cent and currency effects were 9.3 per cent. Net sales increased by 36.2 per cent and amounted to SEK 5,818 million (4,271).
• EBITA before items affecting comparability amounted to SEK 570 million (338), which is an increase of 69 per cent compared to the same period the previous year. The EBITA margin amounted to 9.8 per cent (7.9).
• This is Beijer Ref’s best fourth quarter ever, excluding items affecting comparability, both in absolute terms and margin, based on current structure.
• The fourth quarter includes non-recurring costs related to the acquisition of the North American operation Heritage Distribution of SEK 245 million, which is reported under the item ”Items affecting comparability”.
• EBITA including items affecting comparability in the quarter amounted to SEK 325 million (338).
• The operating cash flow amounted to SEK 633 million (-313) during the quarter and was affected by a normal seasonal effect.
• Profit per share after dilution and before items affecting comparability amounted to SEK 0.96 (0.65), which is an increase of 47 per cent.
• Profit per share after dilution amounted to 0.38 SEK (0.65).
• The previously announced acquisition of AAD and HVAC Consolidated (Australia) was completed during the fourth quarter. During the quarter, Beijer Ref announced the acquisition of Easy Air Conditioning (UK) and Beijer Ref signed an agreement to acquire the HVACR company Heritage Distribution (North America).
• After the end of the period, the acquisition of Heritage Distribution was completed, which is intended to be refinanced by a fully underwritten rights issue.
• The board proposes a dividend amounting to a total of SEK 475 million (419), corresponding to 38 per cent (43) of the year’s profit.

Full year 2022

• Organic sales rose 16.4 per cent compared to the previous year. Acquisition effects amounted to 10.7 per cent and currency effects were 6.8 per cent. Net sales increased by 33.9 per cent to SEK 22,638 million (16,905).
• The group’s EBITA before items affecting comparability amounted to SEK 2,217 million (1,410), which is an increase of 57.2 per cent. Positive exchange rate effects of SEK 85 million (-22) are included in EBITA. The EBITA margin amounted to 9.8 per cent (8.3).
• The group’s EBITA including items affecting comparability amounted to SEK 1,971 million (1,410).
• Items affecting comparability amounted to SEK -245 million (0). Financial net amounted to SEK -179 million (-69). Profit after tax for the group was SEK 1,266 million (990). Profit per share in total for the group after dilution before items affecting comparability amounted to SEK 3.86 (2.56). Profit per share total for the group after dilution amounted to SEK 3.28 (2.56).Operating cash flow amounted to SEK 176 million (-59).
• 2022 has been an active year and the company has made eight acquisitions. The acquisitions contribute positively to the group’s net profit.

CEO Kommenterar

"We are leaving behind a strong fourth quarter. Sales amounted to SEK 5,818 million, which is an increase of 36 per cent compared with the corresponding period the previous year. Organic growth was 18 per cent and operating profit (EBITA), before items affecting comparability, amounted to SEK 570 million, which is an increase of 69 per cent. The EBITA margin was 9.8 per cent, compared to 7.9 per cent the previous year. Both operating profit and operating margin are Beijer Ref’s best to date for a fourth quarter. Operating cash flow of SEK 633 million was positive during the quarter compared with the corresponding period the previous year. Our work to normalise our operating capital has begun and will continue in 2023.

Of our geographical regions, Europe stood out above all and has had an accelerating demand for HVAC and OEM. Both of these product areas are in an expansive phase and during the quarter we invested in a build-up of stocks of critical components. All our markets in the southern hemisphere have experienced strong growth in environmentally friendly solutions in our OEM segment. During the quarter, we completed the previously announced acquisition of the Australian HVAC company AAD and HVAC Consolidated.

To respond to the prevailing inflation, we have been working proactively on both internal and external efficiency. During the quarter, the supply of materials, including semiconductors, improved and the price of raw materials stabilised. There are still long lead times, but we have good expectations that this will normalise in 2023.

We established ourselves in the North American market on 15 December through the acquisition of the HVACR company Heritage Distribution. The transaction, which was finalised on 20 January, represents a significant milestone in Beijer Ref’s history and an important strategic step in our continued growth journey. Heritage Distribution offers an excellent platform from which we can continue to pursue consolidation. Work is now underway to integrate the company and benefit from value-creating synergies and common points of contact, such as environmentally friendly and innovative HVAC technologies.

To ensure that we continue to operate a sustainable business model, we signed letters of commitment to the Science Based Targets initiative (SBTi) during the quarter. The ambition is to set goals and definable action to limit global warming to a maximum of 1.5 degrees. Beijer Ref is actively working to contribute to sustainable societal development and has an important role when it comes to electrification and the programme to phase out F-gases. During the quarter, we also renewed our partnership with Danfoss, which includes an increased focus on sustainability.

It is with pleasure that I can sum up a successful 2022. Net sales totalled just over SEK 22,6 billion, which is an increase of 34 per cent compared with 2021. Organic growth was 16 per cent and, in parallel with organic growth, we have added eight new companies to the group. EBITA, excluding items affecting comparability, for the full year was SEK 2,217 million, which is an increase of 57.2 percent, and the corresponding margin was 9.8 percent.

In conclusion, I would like to extend a big thank you to our fantastic employees and welcome all new companies to the Beijer Ref group. Now our journey continues: towards a larger and even more profitable group with new and exciting opportunities."

Christopher Norbye
CEO

Telephone conference Q4 2022

The company invites investors, analysts and the media to attend a telephone conference at which CEO Christopher Norbye and CFO Ulf Berghult will present the interim report for the fourth quarter of 2022. The presentation is held in English. The meeting is on 31 January at 10.00 CET. Join the presentation using the link or telephone number below:

Webcast: https://financialhearings.com/event/45869

Dial-in-number:

SE: +46 8 505 163 86

US: +1 412 317 6300

UK: +44 20 319 84884

The pin code is: 8259671#

The presentation will also be available on the company’s website www.beijerref.com from 08.30 on 31 January.

This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors.

This interim report has been subject to a general review by the company’s auditor.

Malmö, 31 January, 2023

Beijer Ref AB (publ)
Christopher Norbye, CEO

For more information on this report, contact:

Christopher Norbye
CEO
Telephone +46 40-35 89 00
Email cne@beijerref.com

Ulf Berghult
CFO
Telephone +46 40-35 89 00
Email ubt@beijerref.com

Niklas Willstrand
Global Corporate Communications Manager
Telephone +46 40-35 89 00
Email nwd@beijerref.com

This disclosure contains information that Beijer Ref AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 31-01-2023 08:30 CET.