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Beijer Ref AB Q3-2019

Growth despite lower prices for refrigerants


Net sales increased by 9,6% in the third quarter compared to the same period last year and amounted to SEK 3,953 million (3,607). Organic growth was 5.2%.

The operating profit for the quarter amounted to SEK 358 million (339), an increase of 5.5% compared with the same period last year. The operating margin was 9.1% (9.4%), of which 0.2% is a positive IFRS 16 effect.

Profit for the period totalled SEK 256 million (240). Profit per share amounted to SEK 2.00 (1.88).

The company's liquidity is good and unutilised credit amounts to SEK 1,453 million (589).

With effect from 1 January 2019, the company applies IFRS 16 with regard to the group's leasing agreements and all figures for 2019 include this change. The conversion had a positive effect of SEK 7 million on operating profit and of SEK 0.5 million on net profit.

Comments by the CEO

Sustainable growth

During the third quarter, the group's sales and profit increased compared with the same period the previous year. Net sales amounted to SEK 3,953 million (SEK 3,607 million), which is an increase of 9.6%, of which 5.2% is organic. The increase in sales is mainly due to increased sales of HVAC and OEM.

Operating profit during the quarter amounted to SEK 358 million (SEK 339 million) and the operating margin was 9.1% (9.4%). The margin is slightly lower than the previous year. The main reason is a continuing downward price trend for refrigerants. Our assessment has always been that the price level will become stabilised, something that we have not yet seen. In the long run, the phasing-out programme under the European F-gas regulation, which runs until 2030, should mean a price increase for refrigerants. There are also tougher measures to prevent the illegal trade in refrigerants, something about which we take a positive view. The percentage of refrigerants in total sales is falling and is expected to continue to decrease.

Of the group's other product segments, corresponding to approximately 90% of the total business, sales in HVAC now account for 38% (34%) of the company's turnover. The company's OEM product range also continues to increase its share of sales and now accounts for approximately 10% (9%). To be able to satisfy the market's growing demand for environmentally friendly refrigeration technology, Beijer Ref has decided to invest in a new production facility for OEM manufacturing in Padua, Italy.  As well as production and storage, the building will accommodate offices and a training and development centre for natural refrigerants. The facility is expected to be ready by the end of 2020. We will also invest in a production line to handle natural, environmentally friendly refrigerants such as CO2 and propane at the company's filling unit in Gothenburg.

All regions except the Nordic region show growth in both sales and profit. If we look at our geographical regions, the outcome is affected to some extent by seasonal variations. It is gratifying that both Asia Pacific and Africa are showing profit improvements. In Asia Pacific, we have also implemented a number of measures that have contributed to both sales growth and better margins. In Africa, we have received new orders for green, environmentally friendly technology.

The market's interest in our environmentally friendly refrigeration technology continues to increase, for which reason we are educating customers, suppliers and our own personnel in handling natural refrigerants. Our training concept Beijer Ref Academy, which is concentrating on exactly this, is highly appreciated. Our first academy was inaugurated about a year ago in Italy. Now we have established further academies in France and China and more are in the pipeline.

Beijer Ref has grown to be active today in 36 countries. Although the companies work independently, we also work as a group with common basic values and centralised projects. To contribute to development and increase knowledge, we have launched the Beijer Ref Exchange Programme during the quarter. Employees from different parts of Beijer Ref have the opportunity to try a new job at another company within the group. I am convinced that this type of activity strengthens us as a group and helps to increase motivation and team spirit and provides us with new insights.

My assessment is that we have good opportunities for continued growth, despite uncertain external factors. Acquisitions are an important part of the strategy and are evaluated continuously. The company's liquidity is good and the group has a strong cash flow, which means that we have the capacity to perform further acquisitions. Overall, we have coped very well with the conditions prevailing in the market. Our strategy is firmly anchored within the company, which puts us in a strong position for the future.

Per Bertland, CEO

Third quarter of 2019


Beijer Ref increased its net sales by 9.6 per cent to SEK 3,953 million (3,607) in the third quarter of 2019, 1.7% of which is explained by the acquisitions made in 2018. Adjusted for exchange rate changes and acquisitions, organic growth in net sales was 5.2 per cent. All regions except the Nordics show sales growth. Commercial refrigeration represents 52% (57%) of the company's sales, 38% (34%) is HVAC and OEM accounts for 10% (9%) of total sales. The latter two show organic growth of 18% and 14% respectively during the quarter. Refrigerants continue to decrease and represent 12% (14%) of total sales.

A weakened Swedish krona resulted in positive currency effects of SEK 91 million (195), corresponding to 2.7% (8.8%), since most of the company’s sales are in currencies other than Swedish kronor.


The group’s operating profit totalled SEK 358 million (339) during the third quarter, an increase of 5.5 per cent. The operating margin was 9.1% (9.4%), for which the main explanation is lower prices for refrigerants. Adjusted for IFRS 16 effects, the company's net financial items are in principle unchanged compared with the previous year despite increased borrowing.

The pre-tax profit was SEK 344 million (331). Profit for the period was SEK 256 million (240). Profit per share amounted to SEK 2.00 (1.88).


Cash flow from current operations before changes in working capital amounted to SEK 371 million in 2019, compared with SEK 390 million in 2018. Operating profit is higher in the quarter, but non-cash items increased by SEK 76 million in respect of depreciation of usage rights assets due to the transition to IFRS 16. Taxes paid during the quarter are higher, which explains the decrease.

Working capital decreased by SEK 212 million during the quarter compared with an increase of SEK 198 million the previous year. This gives a positive cash flow from operating activities of SEK 583 million, compared with SEK 191 million the previous year. The change in working capital between the years is mainly explained by a lower build-up of stocks.

At the end of the period, the group had unutilised credit facilities totalling SEK 1,453 million (589).


The group’s investments in fixed assets including business combinations totalled SEK 36 million (36) during the quarter and refer primarily to investments in fixed assets.


The group has made a minor supplementary acquisition during the quarter of the remaining shares (40%) in AC & Ref Parts CQ Patton Pty Ltd in Australia and now owns 100% of the company. The company has annual sales of approximately SEK 25 million through two sales branches. The company is included in its entirety in the consolidated accounts with effect from 1 July 2019.


Beijer Ref has taken a decision and received planning permission to invest in a new factory for green refrigeration technology so as to be able to satisfy market demand for refrigeration units based on natural refrigerants. Production capacity is therefore increased at the subsidiary SCM Frigo S.p.a., outside Padua in Italy, one of Beijer Ref's fastest growing subsidiaries. The company develops refrigeration units that are based on the environmentally friendly refrigerant CO2. SCM Frigo is one of the global leaders in the market. Demand for environmentally friendly refrigeration units is driven by the European F-gas regulation and a general green trend. The regulation means that F-gases, which are the most important refrigerants for industrial and commercial cooling, must be reduced by 80% by 2030. Construction begins in the autumn of 2019 and the plant will be completed at the end of the fourth quarter of 2020. The investment is estimated to amount to approximately 10 million euros. The facility will have a clear green profile.


Since 2 January 2019, Beijer Ref’s B share has been listed on Nasdaq OMX Stockholm's Large Cap list. The share capital in Beijer Ref totals SEK 371,685,513, made up of 127,434,690 shares, each with a quota value of SEK 2.92.  There are two types of share, A shares and B shares, which represent ten and one vote respectively. Beijer Ref had 7,716 shareholders on 30 September 2019 (7,214). The proportion of foreign shareholders amounts to 4.4% (4.9%), corresponding to a capital shareholding of 57.6% (57.0%). As per 30 September 2019, there are 9,918,720 A shares and 117,515,970 B shares. The company's ten largest shareholders hold 79.7% (80.7%) of the votes and 66.1% (68.1%) of the capital. Average sales of the Beijer share in the quarter amounted to 153,439 shares (113,766) per day at an average purchase price of SEK 217 (181). The closing price on 30 September was SEK 224 (185).


The Beijer Ref Group’s operations are subject to a number of business environment factors, the effects of which on the Group’s operating profit can be controlled to varying degrees. The Group’s operations depend on general economic trends, primarily in Europe, which determine demand for Beijer Ref’s products and services. Acquisitions are normally associated with risks, for example loss of key employees. Other operating risks, such as agency and supplier agreements, product liability and delivery commitments, technical development, warranties, dependence on key individuals, etc., are analysed continually. Where necessary, measures are taken to reduce the Group’s risk exposure. In its operations, Beijer Ref is subject to financial risks such as currency risk, interest rate risk and liquidity risk. The Parent’s risk profile is the same as that of the Group. For further information, see the Group’s Annual Report.


This interim report was prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting policies and valuation methods as described in the most recent annual report.

IFRS 16 Leases

IFRS 16 Leases, is applied from 1 January 2019. Beijer Ref has chosen to report the transition to the new standard using the simplified method. The relief rule not to create a comparative year has been applied. A discount rate has been defined per each country and are decided quarterly. Right of use agreements of less than 12 months are reported as short-term agreements and are therefore not included in the reported liabilities or rights of use. Right of use agreements with an acquisition value below USD 5,000 have been classified as low-value agreements and are not included in the reported liabilities or rights of use.

The lease portfolio contains approximately 1,500 contracts and comprises primarily operational leases for offices, warehouses, company cars, forklift trucks and office equipment. Beijer Ref has identified many agreements, primarily relating to properties, with the right to extend. As a result of these considerations, many leases have been deemed to be longer. All leases relating to properties that fall due in 2019 have been extended by three years.

Comparative information is not recalculated and is still reported in accordance with IAS 17 Leases and IFRIC 4 Determining whether an Agreement contains a Lease.

Financial assets and liabilities by category and measurement level

Financial assets and liabilities consist of financial assets valued at fair value and also financial assets and liabilities valued to discounted acquisition cost.

Financial assets valued at fair value consist of two holding, one of which (SEK 19 million) refers to listed shares and is valued at market value on the balance sheet date (measurement level 1). The second holding (SEK 25 million) is an unlisted holding and is valued at estimated fair value (measurement level 3). Financial assets valued at discounted acquisition cost, such as accounts receivables including other receivables and liquid funds, amount to SEK 4 175 million on the balance sheet date and financial liabilities, such as trade creditor including other liabilities, borrowing and other long-term liabilities, amount to SEK 7 200 million.

Financial interest-bearing liabilities such as borrowing linked to financing are valued at discounted acquisition cost and are considered representing a reasonable approximation of the fair value.


The company invites investors, analysts and the media to attend a web meeting at which CEO Per Bertland and CFO Maria Rydén present the interim report for the third quarter of 2019. The presentation will be held in English and lasts for about 20 minutes. The meeting is on 22 October at 10.00 CET.

Email your wish to participate at and a link will be distributed before the meeting. Internet connection is required. The presentation will be available on the company's website

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

Malmö, 22 October 2019

Beijer Ref AB (publ)

Per Bertland, CEO & President

For more information on this report:

Per Bertland, CEO – switchboard, +46 (0)40-35 89 00

Maria Rydén, CFO – switchboard, +46 (0)40-35 89 00

This information is information that Beijer Ref AB is obliged to make public pursuant to the EU Market
Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 22 October 2019.


Beijer Ref AB (publ), corp. reg. no. 556040-8113


We have reviewed the condensed interim financial information (interim report) of Beijer Ref AB (publ) as of 30 September 2019 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.


We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.  A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.


Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 22 October 2019

PricewaterhouseCoopers AB

Cecilia Andrén Dorselius               Mikael Nilsson

Authorized Public Accountant            Authorized Public Accountant

Auditor in charge

Beijer Ref in short

The Beijer Ref Group is focused on trading and distribution operations within refrigeration products, air conditioning and heat pumps. The product programme consists mainly of agency products from leading international manufacturers and, in addition, some manufacture of own products, combined with service and support for the products. The Group creates added value by contributing: technical competence to the products; accounting for knowledge and experience about the market; and by providing efficient logistics and warehousing.

Operations are carried out by region within the Beijer Ref, which comprises Beijer Ref ARW (Air conditioning, refrigeration, wholesale) and Toshiba’s distribution operation within air conditioning and heating. The Beijer Ref Group is a leading operator within the refrigeration sector in Europe and has a significant position within air conditioning in Europe. The operation is split into six geographic segments: Nordic countries, Southern Europe, Central Europe, Eastern Europe, Africa and Asia Pacific. Growth is achieved both organically and through the acquisition of companies which supplement existing operations.

Seasonal effects

Beijer Ref’s sales are seasonally dependent as demand for refrigeration and air conditioning is at its peak during the warm months of the year. It means that demand in the northern hemisphere is at its peak during the second and third quarters whilst demand in the southern hemisphere is at its peak during the first and fourth quarters.

Financial calendar

The Interim Report for the fourth quarter 2019 will be published on 30 January 2020.

Annual Report 2019 will be published in March 2020.

AGM will be held in Malmö on 16 April 2020.

The Interim Report for the first quarter 2020 will be published on 21 April 2020.

The Interim Report for the second quarter 2020 will be published on 15 July 2020.

The Interim Report for the third quarter 2020 will be published on 20 October 2020.

The Interim Report for the fourth quarter 2020 will be published on 28 January 2021.