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Beijer Ref Q2 2016

A strong quarter

Net sales increased by 12.3 per cent compared with the corresponding quarter last year and amounted to SEK 2,417M (2,153). The increase is mainly due to a continued positive development in the Southern Europe market region relating to air-conditioning products.

Operating profit amounted to SEK 186M (158). The improved profit is mainly the result of increased sales.

In June, the UK Competition & Markets Authority (CMA) approved the acquisition of HRP Ltd which was consolidated in the Group’s operation from June.

Net profit for the period increased to SEK 121M (107).

Profit per share amounted to SEK 2.82 (2.48). 

Comments by the CEO

A strong quarter

The second quarter of 2016 was our strongest quarter so far, mainly due to a good development in our largest region, Southern Europe. Markets which reported a weaker start to the year are beginning to gain speed and we continue to see a positive development, especially for sales of air conditioning.

Southern Europe enjoys organic growth of 18 per cent compared with the second quarter of 2015. Sales in Spain and Italy are performing very well and France is also enjoying a stable trend. The positive development in Germany for the first quarter was strengthened still further in the second quarter with a very strong sales and profit increase. In the Nordic markets, sales recovered in the second quarter and are now on a par with our expectations. However, we have not yet compensated for the weak start to the year. In Asia Pacific and Africa, the development continues in accordance with the plan.

In June, the UK Competition & Markets Authority (CMA) approved our acquisition of HRP Ltd and we will, therefore, be able to continue with the restructuring work in accordance with the plan. The operation in HRP was consolidated in the Group in June but this influences only sales, as HRP’s operation in June generated a zero result. The resource-demanding CMA process had the effect that our other acquisition work slowed down during the period. However, we are now intensifying the work of identifying potential acquisitions in both new and existing markets.

Our results are to some extent affected by negative currency effects. The underlying negative currency effect is -3.6 per cent which is, however, some improvement compared with the previous quarter.

The operating margin continues to increase which, in addition to the volume increase, is a result of the extensive review of our logistics flows initiated last year. As a result of this, we see an increased return on capital employed in operations.

A large proportion of the sales increase is explained by increased demand for air conditioning. Toshiba, especially, but also other brands, contributed to the increase where the Southern Europe region remains the engine. During the period, sales of air conditioning increased by 40 per cent compared with the second quarter of 2015.

We are continuing our work of developing our offer relating to eco-friendly and energy-efficient systems. The interest for these solutions is considerable, not least in Australia and New Zealand where this technology is still not established to the same degree as in the more mature European markets.

The United Kingdom is an important market for us and we are keeping ourselves continually updated ahead of Brexit. Our operation in the United Kingdom mainly consists of commercial refrigeration, with an emphasis on the food sector. It is a long-term stable market and our current evaluation is, therefore, that Brexit will have a limited influence on our operation.

We are now facing the third quarter which, together with the second quarter, is traditionally the most important period for us during the financial year. Last year’s exceptionally warm weather in Southern Europe generated a strong sales increase, which had a significant influence on the profit for the third quarter of 2015. It remains to be seen if the weather this summer will be as favourable for Beijer Ref.

Per Bertland

CEO, Beijer Ref

Second quarter of 2016


Beijer Ref increased its net sales by 12.3 per cent to SEK 2,417M (2,153) for the second quarter of 2016. Adjusted for exchange rate fluctuations and acquisitions, the organic change in sales was 11.3 per cent. Behind the sales increase lies a strong development demand in Southern and Central Europe, especially with regard to air conditioning.

For the first half of the year, net sales increased by 9.6 per cent to SEK 4,384M (3,999). Adjusted for exchange rate fluctuations and acquisitions, the organic sales change was 7.7 per cent.


The Group’s operating profit amounted to SEK 186M (158) for the second quarter, equivalent to an increase of 17.7 per cent. The result increase can mainly be explained by the strong development in demand in Southern and Central Europe. Italy and Spain enjoyed an especially positive development during the second quarter. Adjusted for exchange rate fluctuations and acquisitions, the organic increase in operating profit was 22.4 per cent.

For the first half of the year, operating profit increased by 9.1 per cent to SEK 275M (252). Adjusted for exchange rate fluctuations and acquisitions, the organic increase in operating profit was 12.3 per cent.

The Group’s financial income/expense amounted to SEK -15M (-16) for the half of the year. Profit before tax was SEK 260M (236). Net profit for the period was SEK 182M (168). Profit per share amounted to SEK 4.17 (3.87).

Cash flow 

Cash flow from the current operation before change in working capital is SEK 230M for the first half of 2016 compared with SEK 235M for the corresponding period in the previous year. During the first half of the year, the working capital increased by SEK 340M compared with SEK 191M for the same period in the previous year, mainly as a result of the increased business volume. This gives a cash flow from the current operation of SEK -110M compared with SEK 44M in the previous year.


Consolidated capital expenditure, including acquisitions, amounted to SEK 54M (173) for the first half of 2016.

Significant events during the year

During the first quarter, the UK Competition & Markets Authority (CMA) initiated an examination of our acquisition of HRP Ltd with 15 branches in the United Kingdom. On 8 June, CMA announced that it had no objections to the transaction. Our restructuring work could, therefore, continue in accordance with the plan. During the examination period, HRP was not included in the Group’s accounts, but was consolidated in June.

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.

Accounting principles 

This interim report has been prepared in accordance with IAS 34, the Swedish Annual Accounts Act and RFR 2. Beijer Ref continues to apply the same accounting principles as those described in the latest Annual Report, with the exception of what is stated below. New and amended standards applied from 1 January 2016 are not deemed to have any significant effect on the Group’s or the parent company’s results or financial position.

For further information, please contact: 

Per Bertland, CEO – switchboard +40 35 89 00

Jonas Lindqvist, CFO – switchboard +40 35 89 00

This interim report has not been the subject of examination by the Company’s Auditors. 

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, 15 July 2016

Bernt Ingman


Peter Jessen Jürgensen

Board Member

Frida Norrbom Sams

Board Member

William Striebe

Board Member

Ross B Shuster

Board Member

Monica Gimre

Board Member

Joen Magnusson

Board Member

Per Bertland


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 15 July 2016.

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 third quarter will be published on 19 October 2016.

- The Year-End Report for 2016 will be published in February 2017.

- The Annual Report for 2016 will be published in March 2017.

Beijer Ref AB

Stortorget 8, SE-211 34 Malmö, Sweden

Telephone +46 40-35 89 00

Corporate ID number 556040-8113 

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.