Stable organic growth
Net sales increased by 13.1% (-2.9) in the third quarter compared to the same period last year and amounted to SEK 4,341 million (3,837). Organic growth amounted to 6.4% (-1.7) Acquisition effects amounted to 7.0% (3.3) and currency effects amounted to -0.3% (-4.5).
EBITA amounted to SEK 366 million (353), corresponding to an EBITA margin of 8.4% (9.2). The operating profit amounted to SEK 354 million (342), an increase of 3.6% compared with the previous year. The operating margin amounted to 8.2% (8.9%).
Profit before tax was SEK 339 million (329). Interest costs are higher than the previous year due to increased borrowing because of the acquisitions performed. Net debt/EBITDA amounted to 2.1 (2.0).
Cash flow from current activities before change in working capital was positive and amounted to SEK 393 million (381). The company's liquidity remained good and the company's balance sheet is strong, with unutilized credit amounting to SEK 444 million (1,484). After the quarter, the company has taken up loans of SEK 600 million. Profit per share before and after dilution was 0.65 (0.64).
During the quarter, Beijer Ref increased its holding to just over 50 per cent in the Danish refrigeration technology company Fenagy A/S, which produces industrial heat pumps based on environmentally friendly refrigeration technology.
An agreement has been signed to acquire 80% of the shares of the air conditioning company Inventor AG in Greece. The company has sales of just over SEK 750 million and about 80 employees. This will be Beijer Ref's 38th market and an important complement to Beijer Ref's existing product portfolio in HVAC.
At the end of July, Beijer Ref acquired 100% of the shares of the distribution company Froid et Clim Distribution (FCD). The company has annual sales of SEK 20 million with five employees and a profitability that exceeds the region's profitability in APAC.
On 31 August, 100% of the shares of the climate and ventilation company Armcor were acquired. The company has annual sales of approximately SEK 105 million with good profitability and 37 employees in Australia.
During the quarter, Beijer Ref and Alfa Laval renewed their partnership and distribution agreement in a new three-year partnership agreement covering the entire group.
Christopher Norbye, new President and CEO of Beijer Ref, joined the company on 30 August 2021. He comes most recently from a position as Executive Vice President and Head of Entrance Systems Division at Assa Abloy and succeeds Per Bertland.
Nine-month period 2021
Net sales increased by 18.6% during the period compared to the same period last year and amounted to SEK 12,633 million (10,654). Organic growth was 15.3% (-7.8). Acquisition effects amounted to 6.2% (3.0). Currency effects amounted to -2.9% (1.6).
EBITA amounted to SEK 1,072 million (815), corresponding to an EBITA margin of 8.5% (7.6). The operating profit for the period amounted to SEK 1,035 million (780), which is an increase of 32.7% compared with the previous year. The operating margin amounted to 8.2% (7.3).
Profit before tax was SEK 989 million (738). Interest costs are higher than earlier years due to increased borrowing because of the acquisitions performed.
Profit per share before dilution amounted to SEK 1.92 (1.43) and after dilution to SEK 1.91 (1.42), an increase of 34.1 and 34.3 per cent respectively.
2021 has been an active year and the company has made eight acquisitions, four of them in APAC and four in Europe.
Acquired annual sales amount to approximately SEK 1.6 billion, of which approximately SEK 850 million will have an effect on the current year. The acquisitions contribute positively to the group's operating profit. Seasonal variations occur and mean that demand and earnings are highest in quarters two and three in Europe and that quarters one and four are strongest in APAC.
Covid-19 has had some effect on the company's profit during the period; individual regions such as South Africa, Southeast Asia and Oceania have been affected. The assessment is that there will be no major impact on profits from Covid-19 in the fourth quarter, unless new outbreaks occur or existing lockdowns are extended.
TELEPHONE CONFERENCE Q3 2021
Beijer Ref invites investors, analysts and the media to attend a web meeting at which CEO Christopher Norbye and CFO Maria Rydén present the interim report for the third quarter of 2021. The presentation will be held in English and lasts for about 30 minutes. The meeting is on 19 October at 10.00 CET.
Audiocast with teleconference:
Teleconference dial-in number:
SE: +46 8 505 583 51
UK: +44 33 330 092 62
US: +1 646 722 4904
A presentation will be available on the company's website from 08.40 CET on 19 October.
This interim report for Beijer Ref AB (publ) has been submitted following approval by the Board of Directors
Malmö, 19 October 2021
Beijer Ref AB (publ)
Christopher Norbye, CEO
For more information on this report, please contact:
Christopher Norbye, CEO – +46 (0) 76-736 00 64
Maria Rydén, CFO – +46 (0) 73-429 25 65