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Beijer Ref Q2 2015

Southern Europe on the right track

Quarter 2 2015

Net sales amounted to SEK 2,152.9M (1,870.8).

Operating profit amounted to SEK 158.3M (136.9).

Net profit amounted to SEK 107.2M (89.3).

Profit per share amounted to SEK 2.48 (2.03).

Continued positive trend in the second quarter with sales growth of 15.1 per cent and an operating profit improvement of 15.6 per cent compared with the corresponding quarter in the previous year.

Strong development in the Nordic countries, a continued positive trend in Southern Europe and positive contributions from the acquisitions made during the first quarter in New Zealand, Australia, Thailand, India and Malaysia.

Comments by the CEO

Beijer Ref’s second quarter in 2015 consolidates the positive trend from the first quarter. It is especially pleasing that Beijer Ref’s
largest market region Southern Europe, which accounts for nearly 40 per cent of the Group’s total sales, continues on a good trend.

Beijer Ref’s operation is partly weather dependent and warm summers bring about increased sales, but the result in Southern Europe is especially due to an increased demand as a result of stronger markets. It seems as if the economic reform work, especially in Spain, but also in the other countries in the region, is beginning to impact, which gives a reason for cautious optimism about continued growth in Southern Europe.

This, combined with continued strong growth in Sweden, the acquisitions made and continued good development in southern Africa, contributed to enabling Beijer Ref to increase its sales for the second quarter by 15.1 per cent and to an increased operating profit of SEK 158.3M – an increase of 15.6 per cent compared with the same period in 2014. This is the so far strongest quarter ever for Beijer Ref.

Beijer Ref’s investment in carbon dioxide-based refrigeration systems continues to capture market share, especially in the Nordic countries. Compared with the second quarter in 2014, sales of eco-friendly refrigeration systems have trebled in Sweden, a success that can be attributed to the Group’s investment in eco-friendly refrigeration systems developed by the company. This manufacturing is currently carried out in Italy, Sweden and, since May, also in France, where the newly established manufacturing company, SCM REF France, delivers chillers to the Beijer Ref companies in Southern Europe. Beijer Ref’s OEM investment continues with expansion in additional geographic markets.

Breakthrough order in Poland

In Central Europe, especially Holland and Belgium report stable growth. In Eastern Europe, the market concern that can be attributed to the Ukraine crisis remains evident. However, a gratifying and future-oriented message came at the beginning of July when Beijer Ref in Poland signed its first order for carbon dioxide-based refrigeration systems. These are manufactured by Beijer Ref’s OEM division and installed in a logistics centre for a leading food chain in Europe. Beijer Ref’s objective is to be a proactive participant in the changeover to eco-friendly refrigeration technology in Europe. The Polish order should be regarded as something of a breakthrough in the Polish refrigeration market. Beijer Ref has previously delivered carbon dioxide-based refrigeration systems manufactured by the company in the Estonian and Latvian markets. The company’s own manufacturing of eco-friendly refrigeration systems are currently growing faster than any other activity.

Successful integration of acquisitions

The acquisitions made in the first quarter – of the refrigeration wholesaler Patton’s operations in New Zealand, Australia, Thailand and India, and of RNA Engineering & Trading in Malaysia – are already well integrated within the Beijer Ref organisation and the work involved with the realisation of synergies continues. For example, the production in Thailand is under evaluation for the possible introduction of European technology. All one-off and structural costs related to the acquisitions are taken in the second quarter.

Hot July bodes well

With an initially hot July in Southern Europe, the continuing general strong market development and a breakthrough for eco-friendly refrigeration systems in Poland, I am looking forward with confidence to the third quarter for Beijer Ref.

Per Bertland

CEO, Beijer Ref AB

About Beijer Ref

Beijer Ref is one of the largest refrigeration wholesalers in the world and the leading company in this sector in Europe. The Group offers competitive and innovative solutions within refrigeration and air conditioning providing customer-adapted products, chillers developed by the company itself, a high level of service and efficient logistics.


Beijer Ref increased its sales by 15.1 per cent to SEK 2,152.9M (1,870.8) for the second quarter of 2015. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was three per cent.

The Group increased its sales by 15.8 per cent to SEK 3,998.6M (3,451.8) during the period January to June which organically is an increase of two per cent.

Beijer Ref operates in three market areas: commercial refrigeration, industrial refrigeration and HVAC (comfort cooling). The Group splits its operation in the global market into six geographic segments: The Nordic countries, Central Europe, Eastern Europe, Southern Europe, A&A (Africa and Asia) and Oceania.

Behind this quarter’s sales increase lies a positive development in Southern Europe, the Nordic countries and A&A as well as acquisitions.


The Group’s operating profit amounted to SEK 158.3M (136.9) for the second quarter. The result increase can mainly be explained by increased activity in the Nordic countries, Southern Europe and South Africa as well as acquisitions.

For the first six months, operating profit amounted to 252.5M (208.2). The main reason why the increase in the profit calculated as a percentage was not higher in relation to the sales increase is that the majority of the sales increase comes from acquisitions and currency effects. The acquisitions give the same proportional increase in the profit as in the sales as the margins of the acquisitions are close to the Group’s total margin. Exchange rate fluctuations have the same percentage effect on the sales as on the profit as long as this has largely the same distribution as the sales, which is the case.

The Group’s financial income/expense amounted to SEK -6.9M (-8.6) for the second quarter. Profit before tax was SEK 151.3M (128.3). Net profit was SEK 107.2M (89.3). Profit per share amounted to SEK 2.48 (2.03). For the first six months of the year, the Group’s financial income/expense amounted to SEK -16.2M (-16.1). Profit before tax was SEK 236.3M (192.1). Net profit amounted to SEK 167.7M (134.9). Profit per share was SEK 3.87 (3.06).

Other financial information

Consolidated capital expenditure, including acquisitions, amounted to SEK 172.6M (40.2) for the first six months of the year. Shareholders’ equity amounted to SEK 2,588.9M (2,431.7). The net debt was SEK 1,776.3M (1,607.5). The equity ratio amounted to 40.7 per cent (41.9). The average number of employees during the period was 2,361 (2,169).

Significant events during the first six months of the year

In January, Beijer Ref signed an agreement with, Carrier International Corporation, the world-leading American refrigeration group. The agreement gives the Swedish refrigeration wholesaler the exclusive right to distribute Carrier’s DX product series within the comfort-cooling segment and to all pertaining service of these products in Europe.

In February, Beijer Ref acquired all the shares in the refrigeration wholesale company, RNA Engineering & Trading, which has its head office in Kuala Lumpur, Malaysia. The company reports sales of approximately SEK 45M. It is the leading refrigeration wholesaler in the Malaysian market for commercial refrigeration.

In March, Beijer Ref acquired all the shares in the refrigeration wholesale company, Patton, which has its head office in Auckland, New Zealand, and operations in New Zealand, Australia, India and Thailand. Patton was founded in 1923 and reports sales of approximately SEK 400M. It is the leading refrigeration wholesaler in New Zealand, with some sales of products manufactured by the company itself. The acquisition gives Beijer Ref a foothold in the important New Zealand, Australian and Indian markets and, at the same time, strengthens the existing operation in Thailand.

In May, Beijer Ref expanded its OEM division through the formation of the company SCM REF France which, with its registered office in Lyon, will focus on the development of an assembly operation to Beijer Ref’s subsidiaries in Southern Europe. The Group transfers its collective refrigeration competence to a growing portfolio with products manufactured by the company itself, modelled on the Italian company’s, SCM Frigo, recipe for success. In Sweden, the manufacturing company, SCM REF Sweden, already exists.

In June, Beijer Ref Poland signed its first order for carbon dioxide-based refrigeration systems, which is a step forward in the Group’s ambition to participate in the changeover to eco-friendly refrigeration technology in Europe.

Risk assessment

The operation of the Beijer Ref Group is affected by a number of external factors, the
effects of which on the Group’s operating profit can be controlled to a varying degree. The Group’s operation is dependent on the general economic trend, especially in Europe, which controls the demand for Beijer Ref’s products and services. Acquisitions are normally linked with risks such as, for example, staff defection. Other operating risks, such as agency and supplier agreements, product responsibility and delivery undertaking, technical development, warranties, dependence on individuals, etc., are continually being analysed and, when necessary, action is taken to reduce the Group’s risk exposure. In its operation, Beijer Ref is exposed to financial risks such as currency risk, interest risk and liquidity risk. The parent company’s risk picture is the same as that of the Group. For further information see the Group’s Annual Report.

Financial information

- The Nine-Month Report for 2015 will be published on 22 October 2015.

- The Year-end Report for 2015 will be published in February 2016.

- The Annual Report for 2015 will be published in March 2016.

The Board of Directors and the President assure that the six-month report is prepared in accordance with generally accepted accounting principles for listed companies. The information provided corresponds with the actual conditions in the operation and nothing of significant importance has been left out which could affect the picture of the Group and the parent company that has been created by the six-month report.

Malmö, Sweden, 17 July 2015

Bernt Ingman


Peter Jessen Jürgensen

Board Member

Frida Norrbom Sams

Board Member

William Striebe

Board Member

Philippe Delpech

Board Member

Monica Gimre

Board Member

Joen Magnusson

Board Member

Per Bertland


For further information, please contact:

Per Bertland, CEO

switchboard +46 40-35 89 00, mobile +46 705-98 13 73

Jonas Lindqvist, CFO

switchboard +46 40-35 89 00, mobile +46 705-90 89 04

This interim report has not been the subject of examination by the company’s auditors.

This document is a translation of the Swedish language version.

In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct.